Brinckmann, Grichnik, Kapsa (2010)

Question 1

Should entrepreneurs plan or just storm the castle?

Answer 1

• PRO:
  Business planning fosters firms development due to increased decision making speed and more efficient resource usage. Goal setting fosters the identification of effective steps to realize these goals
• CON:
  Business planning prevents dedicating time to activities such as acquiring resources or organizational development. BP can lead to cognitive rigidities, organizational inertia, and limited strategic flexibility

Question 2

Key message

Answer 2

• For all small firms business planning makes sense. There is a positive relationship between BP and firm performance
• However BP does not cause performance
• BP is not equally beneficial
  o It is more important for mature firms as they are aware of the market
  o Young firms should not spend too much attention
• The higher the uncertainty avoidance, the less effective the planning. As they then do not welcome changes