The effects of situational and cultural factors on branch bank planning activity and performance

Current cross-cultural research on organizational planning has failed to determine whether differences in organizational planning activities across cultures are due to differences in the characteristics of the planning situation or to differences in the cultural characteristics of the planning unit. In addition, current research has ignored the potential for interactive effects between situational and cultural factors on organizational planning activities. This study explores the linkages among organizational planning activities, planning situational factors, cultural factors, and planning performance. A survey was sent out to commercial bank branch managers of American, Filipino, Chinese and Japanese ethnic origin in the United States and the Philippines, generating a response rate of 50.7% The data were then analyzed using LISREL and MANCOVA procedures. The results suggest that bank branch planning activities are significantly affected by the degree of resource dependence in the planning situation. Independent cultural effects on selected bank branch planning activities were also suggested by the data. Rule-searching behaviors during bank branch planning were linked to planning performance. Finally, some interactive effects between situational and cultural factors on bank branch planning activities were suggested by the data. The results suggest that differences in bank branch planning activities across countries and cultures might be due to the direct effects of both situational and cultural factors. Bank branch planning activities are influenced by the need to maintain linkages for planning resource acquisition. However, the cultural values of the branch planner also influence planning activities and evaluations of planning process effectiveness.