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Managers' foresight matters

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Abstract:

PurposeThe purpose of this paper is to assess the relationship between the foresight of managers and firm performance. Design/methodology/approachAn evolutionary perspective is deployed to specify the presumed relationship between managerial foresight and firm performance measures. A positive relationship between managerial foresight and firm performance is proposed. The hypothesis is tested through Spearman's rho, on Swedish managers, and firms in the computer programming industry. Managers' foresight as well as performance is assessed as indexes. FindingsThe paper finds a moderate and statistically significant positive relationship between managers' foresight and firm performance. Research limitations/implicationsThere is support for the theoretical relationship between managerial foresight and firm performance. There is a strong rationale for further studies. Originality/valueThe paper provides empirical evidence regarding the importance of managerial foresight for firm performance.

Keywords: Company performance; Forward planning; Managers; Sweden

Document Type: Research Article

DOI: https://doi.org/10.1108/14636681111126256

Publication date: 2011-04-12

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