The second hypothesis

From this main one there are four sub -hypothesis:

5.9.2.1 First sub-hypothesis

There is a significant positive relationship between strategic planning and Characteristics of the firm (firm size, firm age, industry which the firm belongs to) at (0.05) level.

To test this hypothesis the researcher used Chi-Square to measure the interaction between strategic planning and Characteristics of the firm (firm size, firm age, industry which the firm belongs to), in addition the researcher used Pearson Correlation Coefficient for measuring the relationship between strategic planning and Characteristics of the firm (firm size, firm age, industry which the firm belongs to) and the direction of this relationship.

Table (34) shows that Chi-Square Test value =1550.634, and this considers more than tabulated Chi-Square which equals 160.132 , and that denotes that there is an interaction between strategic planning and Characteristics of the firm (firm size, firm age, industry which the firm belongs to) , also table (34) shows that Pearson correlation coefficient equals 0.556 significance at 0.000 level which is less than 0.01, and that denotes a strong positive correlation between strategic planning and Characteristics of the firm (firm size, firm age, industry which the firm belongs to) significance at 0.01 level. This denotes that Characteristics of the firm (size, age, industry which firms belong to) are positively affecting strategic planning process, where firm size seems a good factor for firm to practise strategic planning, also firm's age reflects that the

moreover the type of industry the age belongs to is affecting the ability and practice of strategic planning.

Table (34)

Chi-Square Test and Pearson correlation coefficient concerning the relationship between Strategic Planning and characteristics of the firm ( firm size, firm age , the industry which the firm belongs to )

Chi-Square Test

Pearson Chi-Square df Asymp. Sig. (2-sided)

1550.634 945 0.000 Correlation Pearson Correlation Sig. (2-tailed) N 0.556 ** 0.000 165

Correlation is significant at the 0.01 level (2-tailed)

5.9.2.2 Second sub-hypothesis:

There is a significant positive correlation between strategic planning and growth in sales/ revenues at (0.05) level.

To test this hypothesis the researcher used Chi-Square o measure the interaction between strategic planning and the growth in sales/revenues, in addition the researcher used Pearson Correlation Coefficient for measuring the relationship between strategic planning the direction of this relationship.

Table (35) shows that Chi-Square Test value = 424.309, and this considers more than tabulated Chi-Square which equals 160.132 , and that denotes that there is an interaction between strategic planning and growth in sales/ revenues, also table (35) shows that Pearson correlation coefficient equals 0.387 significance at 0.000 level which is less than 0.01, and that denotes a strong positive correlation between strategic planning and growth in sales/ revenues significance at 0.01 level. This reflects that the more firms conduct and practise strategic planning the

more they gain revenues and profits. So, it is clear here that strategic planning improve the ability of firms to increase their abilities to survive and hence to keep always up to date with market, and in turn satisfy the needs of customers. In addition, propensity of firms may encourage them to improve and continue its usage of strategic planning .

Table (35)

Chi-Square test and Pearson correlation coefficient to find the relationship between strategic planning and growth in sales/ revenues

Chi-Square Test

Pearson Chi-Square df Asymp. Sig. (2-sided)

424.309

252 0.000

Correlation

Pearson Correlation Sig. (2-tailed) N

.387

**

0.000

165

**Correlation is significant at the 0.01 level (2-tailed)

5.9.2.3 Third sub-hypothesis:

There is a significant positive relationship between strategic planning and market share expansion at (0.05) level

.

To test this hypothesis the researcher used Chi-Square to measure the interaction between strategic planning and Market share expansion, in addition the researcher used Pearson Correlation Coefficient for measuring the relationship between strategic planning and the direction of this relationship.

Table (36) shows that Chi-Square Test value = 445.493, and this considers more than tabulated Chi-Square which equals 160.132 , and that denotes that there is an interaction between strategic planning and Market share expansion, also table (36) shows that Pearson correlation

0.01, and that denotes a strong positive correlation between strategic planning and Market share expansion significance at 0.01 level.

This denotes that the more strategic planning is being practicing, the more firms can expand and gain more and more market expansion, this in turn clarifies the fact that strategic planning when is practiced on clear and scientific conceptions, and this agrees with many previous studies conducted in this term.

Table (36)

Chi-Square Test and Pearson correlation coefficient concerning the relationship between Strategic Planning and Market share expansion

Chi-Square Test

Pearson Chi-Square df Asymp. Sig. (2-sided)

450.493 0.000252

Correlation

Pearson Correlation Sig. (2-tailed) N

0.386

**

0.000

165

Correlation is significant at the 0.01 level (2-tailed)

5.9.2.4 Fourth sub-hypothesis:

There is a significant positive relationship between strategic planning and establishment of new locations / sites at (0.05) level.

To test this hypothesis the researches used Chi-Square to measure the interaction between strategic planning and establishment of new locations / sites, in addition the researcher used Pearson Correlation Coefficient for measuring the relationship between strategic planning the direction of this relationship.

Table (37) shows that Chi-Square Test value =480.855, and this considers more than tabulated Chi-Square which equals 160.132 , and that denotes that there is an interaction between strategic planning and New sites expansion, also table (38) shows that Pearson correlation

coefficient equals 0.499 significance at 0.000 level which is less than 0.01, and that denotes a strong positive correlation between strategic planning and New sites expansion significance at 0.01 level.

This in turn denotes that strategic planning improve firms plans to expand their activities everywhere to compete and open new places to distribute its products, and this makes firms avoid lost, and increase its abilities to produce and widen its presence in the areas where they expand. But from the point of view of the researcher, this is to some extent not right, as Palestine face too hard and bad conditions due to the Israeli aggression and policies specially in the period of time where this study is conducted

Table (37)

Chi-Square Test and Pearson correlation coefficient concerning the relationship between Strategic Planning and new branches expansion

Chi-Square Test

Pearson Chi-Square df Asymp. Sig. (2-sided)

480.855 0.000252

Correlation

Pearson Correlation Sig. (2-tailed) N

0.499

**

0.000

168

Correlation is significant at the 0.01 level (2-tailed)

5.9.2.5 Fifth sub-hypothesis:

There is a significant positive relationship between strategic planning andincreasing of staff in the firm at (0.05) level.

To test this hypothesis the researches used Chi-Square to measure the interaction between strategic planning and increasing of staff in the firm, in addition the researcher used Pearson Correlation Coefficient for measuring the relationship between strategic planning and increasing of

Table (38) shows that Chi-Square Test value =448.795, and this considers more than tabulated Chi-Square which equals 160.132 , and that denotes that there is an interaction between strategic planning and increasing of staff in the firm , also table (38) shows that Pearson correlation coefficient equals 0.485 significance at 0.000 level which is less than 0.01, and that denotes a strong positive correlation between strategic planning and increasing of staff in the firm significance at 0.01 level. This denotes that strategic planning in small industrial businesses open new opportunities for manpower through the new branches and locations of firms, moreover, the success of firms pushes them to expand their activities and in turn need more and more staff. The strong relationship between strategic planning and increasing in staff in firms reflects how much strategic planning is useful and helpful for raising the capacity of firms to increase its success and propensity.

Table (38)

Chi-Square Test and Pearson correlation coefficient concerning the relationship between Strategic Planning and the increasing of staff in

the firm Chi-Square Test

Pearson Chi-Square df Asymp. Sig. (2-sided)

448.795 0.000252

Correlation

Pearson Correlation Sig. (2-tailed) N

00.485

0.000

165

Chapter Six

Conclusions and

Policy

6.1 Conclusions

1- The classification of Industry to which the firm belongs to is, 100% of firms. The researcher justifies this high percentage of industrial firms to the fact that he chose the industrial sector to have a homogeneous sample.

2- Top management are primarily responsible for strategic planning, where they represent %52.1 of the employees in units which develop strategic plans in firms; Whereas %44.8 of the employees in different levels participate in developing strategic plans. Furthermore %3.0 of employees in units which develop strategic plans in firms are from the Strategic Planning committee which was formed by the top management. The top management here relatively equal with the other units which take share in developing strategic planning, and this, from the point view of the researcher reflects that top management tends somehow to be centralized, sometimes, but another time it gives the other management levels the opportunity to develop strategic planning. But here the researcher notices that the top management does not tend to form specialized committee in wide range, which is considered a shortcoming in practicing strategic planning from the researcher point of view.

3- More than half of the sample do not prepare strategic plans; the ratio was %58.8 of the firms, whereas %41.2 of firms do. This indicates that the majority of firms in the sample do not practice strategic planning. Due to time period, %16.2 of the strategic plans duration is less than one year, %35.3 of strategic plans duration is from one to three years, and %48.5 of strategic plans duration is four years. Here about half of strategic plans duration is four years. But here the

research does not believe that %41.2 of firms prepare strategic plans

,

the researcher refers this ratio to the fact that many people do not talk

frankly or accurately in such a scientific way.

4- Firms of the sample use written strategic plans, as %50.0 of firms use written strategic plans for seven years, where %9.1 of firms use written strategic plans for four to six years, but %9.1 of firms use written strategic plans for one to three years, and %2.4 of firms use written strategic plans for less than a year .

5- Firms of the sample rarely use outside consultancy , as the research shows that %23.6 of the firms use external consultancy to develop strategic plans; while %76.4 of the firms do not. The research refers it to many reasons, first , strategic planning is completely new in Gaza, moreover the hard circumstances which all Palestinian territories live due to the Israeli policies ( closure, destroying establishments, ..etc.,), this in turn affects the financial abilities of these firms, which try to short cut expenditures as can as possible. Also, due to circumstances mentioned above, it seems that firms of sample do not allocate suitable resources, as %28.5 of firms allocate appropriate resources for strategic plans, yet %71.5 do not.

6- The firms of the sample analyze its Internal Environment , by determining and evaluating its Strengths and Weaknesses points, but it was unclear if firms analyze its external environments or not, external environment analysis like: ( long range implications , formal procedures for evaluating threats and opportunities and a wide management participation in the determining threats and opportunities of the external environment, such as, political, social…etc., .

7- Firms have not a formal statement mission and have not developed it, and its statement of mission is not long-term in nature. Also firms have not a formal statement of its objectives and goals, nor has established long-term and short-term objectives and goals and even has not developed it, moreover there is not wide management participation not long-term in nature. formulating the firm objectives and goals and its objectives and goals are

8- Firms do not take care of formulating strategies well, nor take care of controlling and evaluating strategies. But firms develop the resources which help increasing its growth. Not clear if firms take care of implementing strategies .

9- The study shows a significant positive correlation between strategic

planning and growth in sales/ revenues .

10- The study shows a significant positive relationship between strategic planning and market share expansion .

11- the study also shows a significant positive relationship between strategic planning and New sites expansion .

12- The study shows a significant positive relationship between strategic planning and increasing of staff in the firm .

13- The study also shows a significant positive relationship between strategic planning and Characteristics of the firm (firm size, firm age, industry which the firm belongs to) .