Strategic management and performance of enterprises evaluated using chaid decision tree analysis

Abstract

The proposed paper deals with the relation of strategic planning and economic performance of Czech and Slovak industrial enterprises based on questionnaire research results processed by CHAID decision tree model. The relations between the selected parameters were focused and statistically tested on a sample of 254 industrial enterprises active in the Czech and Slovak Republic in the years 2009- 2011. The hypothesis was formulated and evaluated with the goal of clarifying the mutual relation between the strategic planning and performance of the examined enterprises. The chi-square analysis was used as the primary statistical method. The findings show that the “successful branch” of the decision tree based on the parameter “annual turnover” leads through “written strategic document”. We can also find the implementation of ISO 9001 quality management system on the “successful branch”. The results can be interpreted as empiric ex-post confirmation of reasonability of thorough strategic planning and continuous improvement. These management branches are crucially underestimated especially in micro and SMEs. The findings confirm our previous research publications on this topic as well as other studies.