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Examines the environment hostility‐planning‐performance relationship of Hong Kong retailers. A positive relationship is found between environment hostility and the threats encompassed by the existing labour shortage, rising rents, foreign‐based competition, the 1997 return to Chinese governance and Hong Kong′s relationship with mainland China. Retailers who perceive less hostility in their environment are more planning‐oriented. Short‐term planners significantly outperformed non‐planners. Formal long‐range planning was unrelated to retailer performance.

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