Revisiting the relationship between formal planning process and planning effectiveness: Do organizational capabilities and decision-making style matter?

Said Elbanna, Tamer H. Elsharnouby

Research output: Contribution to journalArticlepeer-review

14 Citations (Scopus)

Abstract

Purpose: The purpose of this study is to address a timely research question by clarifying whether formal planning is a worthy approach for hotels. In so doing, the authors developed a theoretical model that extends prior research by exploring how the formal planning process influences organizational capabilities and decision-making style. The model also examines the impact of the three identified factors on planning effectiveness. Design/methodology/approach: Data were collected from 175 hotels located in United Arab Emirates (UAE) and Qatar and hypotheses were tested using structural equation modeling (SEM). Findings: The study concludes that the practice of formal planning in the tourism sector does matter and both organizational capabilities and decision-making style are important factors in predicting planning effectiveness. Research limitations/implications: Generalizations to organizations operating in other sectors, such as manufacturing or government sectors, should be drawn cautiously. Practical implications: Taking into account oil price volatility and serious political crises in the region, this study provides several insights to hotel managers into how the formal planning process can influence planning effectiveness. Originality/value: The findings enrich the debate on the role of formal planning in the tourism sector, which has been relatively devoid of similar studies.

Original languageEnglish
Pages (from-to)1016-1034
Number of pages19
JournalInternational Journal of Contemporary Hospitality Management
Volume30
Issue number2
DOIs
Publication statusPublished - 2018
Externally publishedYes

Keywords

  • Decision-making style
  • Formal planning process
  • GCC countries
  • Hotel management
  • Organizational capabilities
  • Planning
  • Planning effectiveness
  • Strategic management
  • Tourism

ASJC Scopus subject areas

  • Tourism, Leisure and Hospitality Management

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