Strategy planning and business performance: the moderating roles of market sensing and tolerance for failure

Abstract

Purpose This study aims to examine the relevance of strategic marketing planning in this agile era and its effect on firms’ international performance and explores conditions under which the influence of planning changes. Design/methodology/approach Based on contingency theory, a conceptual model is tested based on survey data from internationalizing firms. Data were analyzed using partial least squares -structural equation modeling. Findings Marketing strategy planning is (still) associated with enhanced performance, and depends on external and internal contingencies. While the planning−performance relationship is amplified by market sensing (external contingency), surprisingly, it is decreased in presence of high tolerance for failure (internal contingency). Practical implications Findings seek to transform marketing planning in international business practice by requiring that its implementation receives the attention of senior management. Originality/value Marketing strategy planning should not be deemphasized. While planning appears to be undergoing an identity crisis, practitioners’ attention to marketing planning is warranted.