There has been some academic discussion on the relationship between planning sophistication and performance of small and medium-sized enterprises (SMEs) (Knight 1993; Aram and Cowen 1990; Hillidge 1990). Yet little attention seems to have been given to the control aspect of planning and its possible impact on performance. This points to a major limitation of the prior research on planning and performance. It is common knowledge that effective control often is necessary for achieving the maximum results from a predetermined plan of action in any organization. Even an excellent plan may not produce the results as expected due to numerous unforseen circumstances that are internal or external to the firm. Therefore, measuring actual performance against planned performance from time to time and taking remedial action on factors causing unfavorable deviations from the plan are important for maximizing the results anticipated through planning (Koontz and Weihrich 1988).