Organizational management through strategic planning and financial practices: An empirical assessment from business firms of Kuwait

Abstract

The purpose of this research is to investigate the relationship between strategic planning as busi-ness management dimensions and financial management (FM) practices. To achieve this objective, employees from various firms working in Kuwait are under observation. A survey questionnaire is developed, considering fifteen items of strategic planning and five for financial management practices. A final sample of 276 respondents is considered for investigating the empirical relationship between the selected variables. Both descriptive and traditional linear regression modelling techniques are applied. However, the study findings are pretested through model specification for all five items of FM. It is found that various strategic planning items are significantly associated with financial management proxies including staff turnover, safeguarding physical and financial assets, and development of financial budgets in selected firms. Significance of the study can be viewed as emerging contribution in the present literature while assimilation strategic planning with financial management too. Besides, the study findings are useful for both strategic planning and finance departments in the business organizations for their better future development. Limitations of the study cover limited sample size and application of traditional method of analysis. Future studies should be in direction while addressing these boundaries.

Keywords

• Strategic planning
• Financial management
• Model specification
• Traditional linear regression
• Kuwait