STRATEGIC PLANNING INTENSITY AND INNOVATION PERFORMANCE: THE MODERATING EFFECT OF SENSING CAPABILITY

Authors

  • Thomas Oyetunde Oladele (PhD)
  • Emmanuel Abiodun Alagbe (PhD)
  • Miss Margaret Oyekan

Keywords:

Strategic planning intensity, Innovation performance, Sensing capability

Abstract

This study examines the effect of strategic planning intensity on innovation performance and the
moderating effect of sensing capability on the relationship. This study made use of data collected
through a questionnaire survey from 364 owners/managers in the SMEs sub-sector of Oyo state
of Nigeria through a cross-sectional quantitative approach. To test hypotheses, data collected
were analysed using Pearson Product Moment Correlation and Multiple Regression Analysis. The
results suggest that strategic planning intensity, sensing capability, and demographic variables
had a significant effect on innovation performance for owner/manager in the SMEs sub-sector of
Nigeria. Owners/managers in the SMEs sector achieve high innovation performance when they
attain a high level of strategic planning intensity and a high sensing capability. In addition, the
moderating effect of sensing capability on the relationship between strategic planning
thoroughness of strategic planning intensity and innovation performance was found to be
significant. Besides, with regards to the demographic variables of respondents, there was a
significant positive relationship between only educational level and innovation performance.
Finally, this study concludes that strategic managers can maintain and improve their innovation
performance by providing support for cultivating employee sensing capability and by the
development of practices that support thoroughness in strategic planning process. It is
recommended that strategic managers should establish a culture that promotes effective strategic
planning for increasing innovation performance and business sustainability. This is because
strategic planning is not only the ability to align internal and external critical success factors but
also it is a medium for efficient allocation of scarce resources.

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Published

2021-10-30

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Section

Articles