Stretching Strategic Learning to the Limit : The Interaction between Strategic Planning and Learning

This study sets out to analyze the potential performance benefits of the interaction between strategic planning and strategic learning processes. First, this study analyzes whether strategic learning positively moderates the relationship between strategic planning and firm performance. Second, extending the literature on the limitations of firm-level learning capabilities, the nonlinear interaction between strategic planning and learning is examined. Results from 182 small and medium-sized software firms, including pre- and post-performance measures, indicate that strategic learning positively moderates the relationship between strategic planning and performance. Furthermore, the study reveals that the moderating effect of strategic learning is nonlinear (represented by an inverted U-shape). Low to medium levels of learning offer an important mechanism to enhance the positive performance benefits derived from planning. However, at higher levels of learning, the interaction between learning and planning on performance becomes negative, suggesting that knowledge overload can expose the limitations of the learning process.