Departure of Complexities and Arrival of Success: Institutionalization of Long-Term Strategic Planning and Budgeting in an Apparel Firm in Sri Lanka.

Abstract

In recent years, long-run planning (LRP) has been a key focus for many organizations as they seek to remain competitive and efficient in an increasingly dynamic world. Thus, the economic crisis has created a new urgency for companies to adopt innovative strategies to mitigate the complexities. The study aimed to explore an LRP success story amidst an economic crisis. The researchers employ a qualitative single-case study approach and lean on the Institutional Theory. The sample case includes South Asia's largest apparel manufacturing firm and as a main method of data collection twenty interviews were conducted. Our findings revealed that the implementation of a based budgeting system was driven by the complexities in the market dynamics that arose due to the economic crisis. Further, it was evident that the successful execution of the LRP-based budgeting system is driven by top-to-bottom employees in the organization's cross-functional teams. Resistance to change is the common barrier observed among employees, which was first reduced and then eliminated with effective communication and employee training. Thereby showing how LRP transformation plays the role of economic resilience. This shed light on the best practices for other organizations to embark on their strategic transformation journeys even in the face of economic crises. Accordingly, this study can be considered the first that has studied the success story of LRP adoption in a developing country during an economic crisis. It offers a learning opportunity to practitioners on how complexities could be mitigated through strategic advancements while alerting managers to practical challenges.