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The Characteristics of Organizational Environments and Perceived Environmental Uncertainty
Abstract
Twenty-two decision groups in three manufacturing and three research and development organizations are studied to identify the characteristics of the environment that contribute to decision unit members experiencing uncertainty in decision making. Two dimensions of the environment are identified. The simple-complex dimension is defined as the number of factors taken into consideration in decision making. The static-dynamic dimension is viewed as the degree to which these factors in the decision unit's environment remain basically the same over time or are in a continual process of change. Results indicate that individuals in decision units with dynamic-complex environments experience the greatest amount of uncertainty in decision making. The data also indicate that the static-dynamic dimension of the environment is a more important contributor to uncertainty than the simple-complex dimension.
... Firms today navigate environments that are not only dynamic but also inherently unpredictable, with uncertainty serving as a constant force shaping their strategic choices. [9] observed that environmental uncertainty arises when decision-makers lack sufficient information about external conditions, hindering their ability to anticipate outcomes or predict how these factors might influence their decisions. To capture this volatility, many studies quantify environmental uncertainty using the standard deviation of a firm's revenue over several years, adjusted for industry-specific contexts [10]. ...
... Risk preference theory posits that most economic agents tend to display risk aversion when engaging in decision-making processes [11]. This aversion is amplified when facing external environmental instability, which disrupts established market expectations and amplifies operational risks [9]. Consequently, firms may hesitate in pursuing digital transformation initiatives due to the inherent uncertainties and potential negative consequences involved [19,20]. ...
... Building on [9], we employ the average EU of other firms in the same industry and year (excluding the focal firm) as an instrumental variable. This, along with other control variables, is incorporated into the first stage of the Heckman model. ...
This study investigates the impact of environmental uncertainty on the digital transformation of Chinese A-share listed companies from 2013 to 2022. Our empirical analysis reveals that environmental uncertainty negatively affects digital transformation by inducing managerial myopia, hindering research and development (R&D) investment, and exacerbating financial constraints. However, these negative effects can be mitigated by increasing management shareholding, which aligns managers’ interests with long-term goals, providing digital transformation subsidies to lower financial barriers, and fostering a favorable legal environment to protect digital investments and innovation. These findings offer valuable insights for understanding how environmental uncertainty influences digital transformation strategies and provide practical implications for enterprises and policymakers in dynamic business environments.
... Uncertainty has been a central concept in organisational theory, especially in theories that attempt to explain the nature of the relationship between organisations and their environment (Dill, 1958;Duncan, 1972;Lawrence and Lorsch, 1967;Spender and Kessler, 1995). Uncertainty is defined as "Inability to assign probabilities of future events" (Duncan, 1972;Pennings, 1981;Pennings and Tripathi, 1978;Salancik and Pfeffer, 1978). ...
... Uncertainty has been a central concept in organisational theory, especially in theories that attempt to explain the nature of the relationship between organisations and their environment (Dill, 1958;Duncan, 1972;Lawrence and Lorsch, 1967;Spender and Kessler, 1995). Uncertainty is defined as "Inability to assign probabilities of future events" (Duncan, 1972;Pennings, 1981;Pennings and Tripathi, 1978;Salancik and Pfeffer, 1978). ...
... The concept of uncertainty emerges as a pervasive feature of the environment in which people and organizations must adapt in order to survive (Bell, 1982;Dantzig, 1955;Duncan, 1972;Milliken, 1987). Although uncertainty tends to be seen as aversive, it prompts actors to reduce it (Mascarenhas, 1982;Whitecross and Smithson, 2023). ...
This study analyzes the interaction between legitimacy, innovation, uncertainty, and electric vehicle (EV) purchase intention in Spain, Portugal, Italy, and Greece. Using partial least squares structural equation modeling (PLS-SEM) and data from 2016 to 2023, the relationships between these key variables are assessed. The results show that legitimacy has a positive impact on purchase intention, while innovation influences legitimacy but does not directly affect purchase intention. Uncertainty moderates these relationships in complex ways. The findings suggest that enhancing the perception of legitimacy is crucial to increase EV purchase intention, and strategies promoting innovation and managing uncertainty can improve market acceptance.
... The strategy is subject to the turbulence of the external environment, which can be characterized by different dimensions (Duncan, 1972;Lavarda et al., 2021;Lavarda & Leite, 2022;Mintzberg et al., 2010). For Duncan (1972), the dimensions of the environment are divided into (i) stability (static/dynamic) and (ii) complexity (simple/complex). ...
... The strategy is subject to the turbulence of the external environment, which can be characterized by different dimensions (Duncan, 1972;Lavarda et al., 2021;Lavarda & Leite, 2022;Mintzberg et al., 2010). For Duncan (1972), the dimensions of the environment are divided into (i) stability (static/dynamic) and (ii) complexity (simple/complex). In the first case, the environment becomes more complex as the number of factors and components, as well as their disparity, in the environment increases. ...
... Still, according to Duncan (1972), these two dimensions can be combined in four ways: ...
Objectives of the study: Understand how do middle managers play their roles in implementing strategy in a turbulent environment. Methodology/approach: Case study in the Superintendence of a Large Banking Institution. Data collection through interviews, document analysis and direct observation. Data analysis based on comparative analysis (pattern matching) and narrative analysis. Originality/relevance: From the roles of the middle manager (MM) in strategy implementation, the covid-19 pandemic caused changes in the macro and micro scenario, demanding to revisit the classic concepts about the middle manager, bringing a new look to possible changes in its performance. Main results: We noted the predominance of top-down strategic management in the superintendence of the financial institution analyzed, in which MMs play a fundamental role through the operationalization of practices such as proposing new actions and transmitting information with insights to senior management, facilitating the process adaptation and implementation of deliberate strategies amid the period of environmental turbulence arising from the Covid-19 pandemic. This role avoided significant losses in the activities carried out by the financial institution, in addition to enabling an integrated decision-making process due to the articulating role of the MM. Academic contributions: Besides the importance of the middle manager as a strategy articulator, we highlight communication as a theoretical element that was not included in the literature on the roles of the middle manager and that emerged from the data, showing that communication is intertwined in the strategy implementation process, being a potential contribution to the Floyd and Wooldridge (1992) model.
... For instance, changes in macroeconomic conditions can affect customer consumption behaviors, which, in turn, alter a firm's green innovation direction through shifts in customer demand. Similarly, policy changes in the macro-environment, such as updates in environmental regulations, can indirectly impact firms by influencing supplier and competitor actions within the green technology domain (Duncan, 1972;Helfat & Peteraf, 2009). Some scholars analyze these environments from both internal and external perspectives (Duncan, 1972) [41] , considering that the internal environment consists of entities and social factors within the organization or decision-making unit, including organizational structure, corporate culture, human resource allocation, etc., with individual behaviors and attitudes also taken into account. ...
... Similarly, policy changes in the macro-environment, such as updates in environmental regulations, can indirectly impact firms by influencing supplier and competitor actions within the green technology domain (Duncan, 1972;Helfat & Peteraf, 2009). Some scholars analyze these environments from both internal and external perspectives (Duncan, 1972) [41] , considering that the internal environment consists of entities and social factors within the organization or decision-making unit, including organizational structure, corporate culture, human resource allocation, etc., with individual behaviors and attitudes also taken into account. The external environment includes relevant entities and social factors outside the organization or specific decision-making unit, such as customers, suppliers, competitors, economic and technological factors, etc. Tan and Litschert (1994) divided the organizational environment into the task environment (the environment closely related to the setting and achievement of organizational goals) and the institutional environment (social, demographic, economic, political, etc., environments) [42] . ...
Green technological innovation has become a pivotal tool for driving economic restructuring and achieving environmental sustainability. However, in the face of complex and volatile market and policy environments, a critical question remains: how can enterprises effectively select and implement innovation pathways to address environmental turbulence? Drawing on data from 14,751 Chinese listed companies from 2012 to 2022, this study employs dynamic capabilities theory and a fixed-effects panel model to examine the impact of dynamic capabilities on firms’ choice of green innovation pathways. Results show a significant positive influence of dynamic capabilities on green innovation, although this effect varies depending on the research and development model and the level of environmental turbulence. Firms with high dynamic capabilities tend to favor independent research and development, with an effect coefficient of 0.778 (p<0.01); firms with moderate dynamic capabilities benefit more from cooperative research and development, with a coefficient of 0.045 (p<0.01); and firms with lower dynamic capabilities primarily pursue green innovation through technology transactions, with a coefficient of 0.052 (p<0.01). Furthermore, environmental turbulence significantly moderates the relationship between dynamic capabilities and green innovation negatively, with an interaction coefficient of -0.088 (p<0.05), indicating that environmental uncertainty weakens the positive impact of dynamic capabilities.These findings suggest that firms can select suitable research and development models aligned with their level of dynamic capabilities and adopt flexible innovation strategies to effectively manage environmental turbulence. This study proposes the following policy recommendations: enterprises should strengthen their dynamic capabilities, particularly in knowledge acquisition, resource integration, and adaptability to environmental changes, to enhance their green innovation capacity. Additionally, the government should increase policy support for green technological innovation by offering financial subsidies, tax incentives, and intellectual property protections, helping enterprises maintain their innovation momentum amid environmental turbulence.
... Sixth and finally, prior research suggests that firms facing high perceived environmental uncertainty (PEU) may require the MC department to enact the business partner role to a greater extent. According to Duncan (1972), PEU is high, for example, when management perceives insufficient information about factors in the firm's environment that relate to a decision situation or when there is ambiguity about a specific decision outcome. At high levels of PEU, information needs increase and the MC department is more likely to interact closely with management (Emsley, 2005;Granlund and Lukka, 1998;Hartmann and Maas, 2011). ...
... Taken together, this suggests that PEU may affect both role enactment in MC departments and controllership effectiveness. For this reason, we controlled for PEU, which was measured with a seven-item formative scale, following Emsley (2005) and Duncan (1972). All measurement items used are listed in the Appendix. ...
... As unpredictability increases in the environment, organizations are less prepared to respond to opportunities and risks as it is more difficult to predict outcomes of organizational decisions (Duncan, 1972;Dess and Beard, 1984). For example, unpredictability may impact supply chains when customer preferences or needs are unclear (e.g. ...
... According to information processing theory, unpredictability creates equivocality, which produces an issue of multiple meanings among organizational leaders and increases the length of time it takes to interpret, understand, and devise and debate courses of action (Cappellaro et al., 2021;Daft and Lengel, 1986). In such environments, SCMOs lack reliable information and are less able to accurately forecast the required organizational changes (Duncan, 1972). Unpredictability creates situations where "managers are less able to adjust or 'tune' their structures to the environment because there is less pattern to match" (Davis et al., 2009, p. 424). ...
Purpose
This research examines the long-held belief in the adaption-related literature that a firm’s ability to adapt organizational structure to changing environments is related to superior performance. We create and test a construct that reflects an organization’s ability to change structure, which we call Supply Chain Structural Adaptability (SCSA), rather than relying on proxies (e.g. structural form or organizational modularity) used in prior studies.
Design/methodology/approach
Quantitative data was collected from 218 firms to test our conceptual model.
Findings
We find that SCSA has a mixed effect on profitable growth under various environmental conditions.
Originality/value
We find evidence that refutes two widely held assumptions in organization research, namely, that structural form serves as a reasonable proxy for structural adaptability and that the benefits of adaptive capabilities always increase as environmental dynamism increases.
... Gelecekteki araştırma yönelimleri, karmaşıklık bilimi ve ağ teorisi (Flood & Jackson, 1991: 142) (Cyert & March, 1963, akt. Mintzberg, 2009 ile çevresel belirsizliklerin (Duncan, 1972: 63) karar verme süreçleri üzerindeki etkisi de incelenmiştir. ...
This thesis examines employee motivation within the framework of Daniel H. Pink's (2009) Motivation 3.0 theory, organizational culture through Cameron and Quinn's (2011) Competing Values Framework (CVF) theory, and the dynamic interaction between agile methodologies. The research adopts a method based on the comparative analysis of sample groups, combining quantitative methods with qualitative approaches. Organizational culture was assessed using the Organizational Culture Assessment Instrument (OCAI), while employee motivation was evaluated via a scale tailored to the business context, based on Pink's (2009) theory. The variable of agile methodology implementation was analyzed categorically, based on the management strategies reported by the participating companies. This comparative study focuses on two organizations: one employing agile methodologies and the other following traditional management approaches. The research investigates the relationship between organizational culture and employee motivation using a comparative framework, which enhances the comprehensiveness of the analysis. Quantitative methods were employed to objectively evaluate data gathered through surveys, while qualitative methods, including on-site observations and semi-structured interviews, were used to provide subjective insights, offering a more nuanced understanding of the findings. The results of the quantitative analysis, examined through hypothesis testing, reveal a statistically significant impact of organizational culture on employee motivation. This impact was particularly notable in organizations where clan and adhocracy cultures, characterized by flexibility rather than control, were prevalent. In these environments, employee motivation exhibited significant positive differentiation, particularly in the dimensions of purpose and autonomy. The qualitative findings corroborate these results, highlighting that agile methodologies offer employees greater flexibility and opportunities for innovation, leading to enhanced motivation. The thesis underscores the pivotal role of organizational culture in the success of agile methodologies, demonstrating that cultures positively influenced by agile practices lead to meaningful improvements in employee motivation. In alignment with the research objectives, the study provides conceptual and practical recommendations for organizations aiming to optimize their work environments for improved employee performance and satisfaction. Furthermore, the study contributes to literature by offering a novel tool for future research on employee motivation and delivers valuable insights for researchers through its findings. Keywords: Agile Management Methodologies, Organizational Culture, Employee Motivation, Clan Culture, Adhocracy Culture, Motivation 3.0
... These shocks can be natural disruptions such as earthquakes and pandemics or human-driven events such as wars, attacks, and recessions (Jacquart et al., 2020). Such shocks create dynamism and uncertainty, resulting in limited information, unpredictability of decision outcomes, and an inability to assess their full impact, all of which affect businesses (Duncan, 1972) and moderate their performance (Soh & Setia, 2022 to businesses, exogenous shocks affect individuals directly and indirectly. Direct effects arise from immediate damage to human or physical capital, as in the case of an earthquake, while indirect effects emerge through the spillover effects of disrupted social and economic systems (Khunti et al., 2022). ...
Online reviews are effective information-sharing tools due to their word-of-mouth characteristics. The extant literature has considered reviews as independent variables that influence business performance, while the environmental factors shaping these reviews remain under-explored. We examine the impact of COVID-19-related environmental uncertainties on changes in review prosumption (production and consumption) behavior. Based on the stimulus-response theory, with COVID-19 as the stimulus and prosumption as the response, we examined the changes in the characteristics of online reviews. Using the difference-in-differences methodology, we analyze online reviews of restaurants in two US cities that experienced different levels of COVID-19 impact. On the production side, we find an increased use of contextual terms and negative sentiments. On the consumption side, we find an increase in review usefulness and a decline in funniness. The results are robust, supported by coarsened exact matching and falsification tests. We conclude with a discussion of the study’s implications and contributions.
... In this study, the endogenous variables were accountability, which consisted of 5 questions adapted from Ridlwan (2015), Winfield (2003), and management commitment, which consisted of 6 questions adapted from Cavalluzzo and Ittner (2004) and Sari (2016). Organizational performance is the endogenous variable consisting of 5 questions adapted from Sari (2016) while environmental uncertainty is a moderating variable consisting of 6 questions adapted from Duncan (1972). ...
Purpose: This study aims to examine the influence of accountability and management commitment on organizational performance during covid-19 pandemic with environmental uncertainty as moderating variable. Methodology/approach: This study used primary data obtained from survey through questionnaires. The measurement scale used in this questionnaire uses Likert Scale of 1-5. There were as many as 100 respondents who participated in this study. The sampling technique used purposive sampling with the following criteria; respondents were BUMDes directors or BUMDes managers, and BUMDes that had been established for more than two years. Then, the hypotheses were tested using Structural Equation Modeling (SEM) based on Partial Least Squares (PLS). Findings: The results showcased that environmental uncertainty does not moderate the relationship between accountability and management commitment on organizational performance, while accountability and management commitment have a positive effect on organizational performance. Practical implications: this research provides practical implications for organizations to increase the actualization of accountable principles through strong management commitment so that budgets can be managed effectively and efficiently. Originality/value: This research investigate the moderating effect of environmental uncertainty on the influence of accountability and management commitment on the BUMDes performance.
... At the point when chiefs can't figure out the entire circumstance and oversee ecological elements (Duncan, 1972), they might be confounded by the problematic importance passed on by acquired messages. A few incongruous messages result from a divided as opposed to all-encompassing point of view of the world. ...
The integration of artificial intelligence (AI), robotics, and smart hotel technology to promote
sustainable tourism in Bangladesh's hotel sector. It investigates the role of AI-powered robotics,service robotics, smart waste and water management systems, and chatbots/virtual assistants in
reducing environmental impacts, optimizing resource management, and enhancing guest experiences. While global studies have explored the integration of AI and robotics in hospitality,there is limited research focusing on their specific role in sustainability practices, particularly in the context of Bangladesh. Key areas such as AI powered services delivery, smart waste management,
and water conservation in hotels remain underexplored. Additionally, the unique challenges and
opportunities posed by Bangladesh infrastructure, economic conditions, and cultural factors have not
been sufficiently addressed in existing literature. The main objective of this study is to examine how
AI, robotics, and smart hotel technology can encourage sustainable tourism in the context of
Bangladesh’s hotel sector. Data were gathered from both specific and general sources for the study.
A set of questionnaire was used as the instrument for collecting primary or direct data from employees from different hotels in Bangladesh. The findings suggest a positive correlation between AI powered robotics, smart waste and water management systems, and chatbots in enhancing sustainability and guest experience. Respondents agree that these technologies contribute to
sustainable practices.
... However, managing supplier involvement in product development requires dealing with uncertainty (Eslami and Melander, 2019), which is a critical capability in product development (Eisenhardt and Tabrizi, 1995). Uncertainty refers to both the lack of information and the difficulty in accurately predicting something, for example, knowing the outcome of a decision (Duncan, 1972;Milliken, 1987). Several studies have looked at uncertainty in the context of product development (e.g. ...
... In essence, while making an appeal to the central tenants of contingency theory (Duncan, 1972;Downey & Slocum, 1975), strategic alignment theory and the dynamic capabilities perspective (Teece et al., 1997;Teece, 2007), with the primary intent to probe into relative and contextual efficacy of various forms of SC flexibility in enhancing firm performance, this paper primarily aims to answer research questions such as: (1) The intended contributions of this paper are manifold. First, we intend to contribute to the contemporary academic discourse on (environmental) uncertainty -(firm) performance link by corroborating the mediating effects of each of the individual constituents of SC flexibility. ...
Whereas the general undertone of environmental uncertainty might feel minacious, it is not always an effing contingency. It might at times lead to the prudent concurrences like supply chain flexibility incrementing. While making appeals to the contingency theory, strategic alignment theory, and the dynamic capability view, this paper elaborates upon the instrumentality of three key facets of supply chain flexibility in enabling firms to secure the much-needed strategic fit in the face of an ever-accelerating environmental uncertainty, to keep performing well. A regression-based approach involving a sample of 280 Thai firms reveals that environmental uncertainty flickers the downstream, system and upstream types of supply chain flexibility that significantly mediate the environmental uncertainty-firm performance association. It has also been found that mediating role of these three constituents of supply chain flexibility swells with rising levels of technological complexity. The paper not enriches existing body of knowledge by exploring the performance-enhancing effects of different forms of supply chain flexibility under varying permutations of technological complexity, but also offers some useful insights on how supply chain flexibility, as a noticeable dynamic capability, could be modulated to yield an effective adaptive response to the organizational crises stemming from environmental uncertainties.
... Environmental uncertainty is a well-established concept in strategic management literature, which refers to the unpredictability and complexity of the business environment (Duncan, 1972). Research has highlighted the importance of environmental scanning and sensemaking processes for navigating environmental uncertainty and identifying strategic opportunities and threats (Choo, 2001). ...
Digital transformation has affected various aspects of business, including
corporate identity management. The research aim is to assess the topicality and
impact of digital transformation on corporate identity management crafting into
the corporate strategy of small-sized companies. Research methodology is based on
the research of scientifc literature with the aim to introduce a conceptual framework for the implementation of digital transformation in the context of corporate
identity management and its corporate strategy dimension that can help companies
to increase the value of a company. The conceptual scope of the paper focuses on
digital transformation and corporate identity management within small-size companies. The authors have identifed a research gap related to the intersection of digital
transformation and management of corporate identity frameworks in terms of conceptual models and applied know-how that could be utilized to introduce specifc
digital transformation guidelines in further research. Managing corporate strategy
requires organizations to align their digital capabilities with their strategic goals,
balance risks and foster a digital mindset throughout the organization. Research
limitations relate to focusing on the segment of small sized enterprises operating in
the European Union and aiming to perform digital transformation process in parallel to attempts of developing strong corporate identity.
Keywords Digital transformation · Corporate identity · Corporate strategy ·
Strategic management · Small size companies
... The concept of environmental uncertaintyor unstable business environmentcan be subdivided into two notions; the environment and the changes that occur within it. The environment in which a firm finds itself is generally considered as "the collection of physical and social factors that are directly considered in the decision-making behavior of individuals in an organization" (Duncan, 1972). Some scholars have identified three (03) major characteristics of the environment. ...
... Other factors, especially more complex production processes and rapidly evolving markets, create additional uncertainty for a hospital's (and, more generally, a health system's) management. This enhances the need to implement strategic decisions to address external forces (Duncan, 1972;Kreiser and Marino, 2002;Shin, Weech-Maldonado, and Chang, 2020). For example, Coppola, Hudak, and Gidwani (2002) describe how the U.S. Department of Defense's Managed Care System implemented strategies changed their use of formularies to manage rising medication costs. ...
Hospitals are complex organizations which provide a wide array of health care services. This complexity creates challenges for stakeholders who wish to use financial accounting statements to make inferences about the productive choices made by a hospital's management. These challenges are especially salient when using data reported at the department (or cost center) level, or where the provision of care is coordinated across hospital departments. This study applies information entropy-based comparability analysis techniques to overall and department level hospital financial data to identify hospital peer groups. Hospitals peer groups not only exhibit similar financial positions overall, but are also likely to exhibit operational similarities at the department level. Data for this analysis are drawn from the financial statements of Washington State critical access hospitals in the fiscal year 2019. The medical laboratory and pharmacy departments were specifically assessed because their services impact or support virtually every other revenue-producing department in the hospital. Findings suggest both departments significantly impact the formation of peer groups, with the pharmacy department contributing the largest impact.
... The institutional environment is an important feature of the external environment faced by enterprises. The subjectiveness of measuring the external environment is relatively strong, and the subjective perception and response of senior management personnel towards the environment also affect their strategic orientation [49]. Therefore, it may be more appropriate to evaluate the subjective evaluation of the institutional environment. ...
Objectives: Business model innovation is significant for corporation performance. Unclear or poorly designed business models can only achieve moderate or insignificant results in terms of performance. Under the view of innovation theory, multiple factors affect the efficiency-based business model innovation. Big data capabilities, knowledge creation, and Institutional environment are proposed. Methods: With the collection from 513 pig farming enterprises in China, this research analyzes the relationships among big data capabilities, knowledge creation, institutional environment, and efficiency-based business model innovation by SMART-PLS. Findings: As a result, big data capabilities have a positive impact on efficiency-based business model innovation. Big data capabilities have a positive impact on knowledge creation. Knowledge creation has a positive impact on efficient business model innovation, which is supported. Knowledge creation mediates between big data capabilities and efficient business model innovation, which is supported. The impact of institutional environment regulation knowledge creation on efficient business model innovation. Novelty:This research has theoretical and practical contributions. This study implies the theory of innovation to the practice. And it also enriches the literature and research on business model innovation. Doi: 10.28991/ESJ-2024-08-04-016 Full Text: PDF
... environmental turbulence (enVt) was defined in this study as the rate of change in technological capabilities, consumer preferences, and the intensity of market rivalry. enVt is the rate at which a company's technology, consumer demand, and level of market rivalry in its sector are all changing (Duncan, 1972). according to research by hitt et al. (1998), environmental turbulence (enVt) has made knowledge in a company's business process more intense, and knowledge's importance and attention have grown with time. ...
Businesses that aim to efficiently and effectively combine strategy, governance, and resource allocation face new impediments as the global economy becomes more turbulent. As the environment becomes more demanding and people seek new business opportunities, knowledge sharing helps organizations succeed in the long run. The purpose of this study is to assess the direct structural relationship between variables as well as the moderating influence of environmental turbulence on Nigerian SMEs. This study collected firm-level data from Nigerian manufacturing SMEs via questionnaires, with a sample size of 402. Furthermore, partial least squares structural equation modelling (PLS-SEM) using the SmartPLS software was used to conduct additional analyses. The findings demonstrated a strong correlation between an organization’s long-term health and its ability to share knowledge and generate new ideas. They also showed that environmental turbulence affects the connection between the factors that were studied, and this is consistent with previous studies. By considering the presented heuristic model, this study offers valuable insights for managers, researchers, and policymakers to enhance organizational efficiency and sustainability. It adds to the literature on sharing knowledge and innovation in manufacturing SMEs in a turbulence environment.
... Public organizations operate in quite a complex environment, characterized by numerous stakeholders, ambiguous and often conflicting objectives, a high level of scrutiny and external political influences on decision-making processes (Van der Voet, 2016). According to Duncan (1972), an organisation's environmental complexity relates to the wide variety of factors that an organisation relies on and the extent to which these factors differ from each other. "Environmental complexity is expected to be negatively related to planned process of change" (Van der Voet, 2016, p. 847). ...
Organisational change consists of organisational actions aimed at changing organisational aspects such as culture, processes, delivery of service and so on. Such change can be incremental, aimed at fine tuning certain aspects of an organisation, or transformative, consisting of attempts to revolutionise one or more parts. Successful change, whether incremental or transformative, is critical for organisations to renew themselves and remain valid. Yet, many change initiatives fail. As a result, a lot of work has been done in the field of organisational change to understand what contributes to change success or failure. Change leadership was one of the areas that attracted most interest, yet most work has been leader centric, focusing on the positive aspects of leadership. However, researchers are increasingly focusing on the dark side of leadership to try and understand the effects on organisational change when leaders behave badly. This study aims to address some of this imbalance.
This research studies the influence of transformational and destructive leadership behaviours on affective commitment to change. It also looks at the mechanisms through which these two differing leadership behaviours exert such influence and explores the relationship between voice and affective commitment to change. To do so, the study uses a cross-sectional approach and collects data from two independent samples, followers and leaders of a Maltese public service organisation that experienced change. Transformational leadership behaviours were found to be positively related to affective commitment to change, whilst destructive leadership behaviours were found to relate negatively to affective commitment to change. Also, readiness for change was found to mediate the relationship between transformational leadership behaviours and affective commitment to change. Evidence of partial mediation was also found for resistance to change in the negative relationship between destructive leadership behaviours and affective commitment to change. A positive relationship between promotive voice and affective commitment to change was also found, though prohibitive voice was not found to be a significant predictor of affective commitment to change. As such, this study delivers several important findings with implications for both organisational change and change leadership literature.
... Contingency Theory argues that the organization's environment shapes strategy. In this context, each environmental dimension will influence the formation of a strategy (Duncan, 1972;Mintzberg et al., 2010) and, consequently, how this strategy is opened (Hautz, 2017). Rosa et al. (2023) highlights the impact of adaptive evolution on business cycles in times of crisis. ...
Aim of the study:This article evaluated the process of developing strategies for the digital transformation of a footwear retail organization during the COVID-19 pandemic. The new strategies may have contributed to the development of new digital capabilities.Methodology:Qualitative research using the case study method was used. Data was collected through interviews and documents, and content analysis was applied, defining mixed categories.Originality/Relevance:The article proposes an interpretative framework for understanding the processes and practices of formulating and adopting Digital Transformation strategies.Main results:The research shows that coping with the COVID-19 pandemic has contributed to a change in the organization's positioning, adopting new strategies (emergent and deliberate), new capabilities, and the development of digital transformation. Theoretical/methodological contributions:the article addresses potential gaps in the specific domain of strategy-as-practice research through an empirical case in a crisis and accelerated digital transformation context.Social contributions to management:The researched organization promoted strategic changes with economic results by adopting new methodologies, such as using OKRs in its existing strategic process. This understanding can help retail businesses accelerate their digital transformation to face contingencies
... Empirically, Dess and Robinson (1984); Venkatraman and Ramanujam (1987) and Robinson and Pearce (1988) posit that estimating performance in percentage is reliable for companies' that are not available publicly. Literature also suggests that estimates of performance measures of interest can also be accessed using the perspective of organizational members (Duncan, 1972). In this regard, sales revenue growth is estimated in percentage using Likert format for the past five years in which questions raised on survival follows Likert pattern. ...
The array of incidences of corporate failure and poor performance witnessed in the economy recently cannot be unconnected to the activities in the political environment surrounding business operations. Thus, the study focuses on the influence of the political environment on firms' corporate performance with evidence from selected firms in the manufacturing sector of the Nigerian economy. The study used research survey using questionnaire to elicit data from the middle and top managers about their perception of the effect of political environment measured by government regulations, legislation, policy and security on corporate performance using multiple regression techniques. The individual effect of each of the proxy for the independent variable on the dependent variable was mixed. The study reveals that political environment has a significant effect at p < 0.05 on corporate performance for the two objectives and hypotheses raised. The study concludes that government policy inconsistency should be minimised to aid its predictability and regulatory agencies enforcing compliance on regulations of business operations should be collapsed into an integrated body to reduce administrative burdens on firms. The study recommends more investment in security infrastructure to engender the safety of lives and property as a means to enhance business survival. Further studies are suggested to cover other sectors of the economy. JEL: M100, M190
... The central question we address in this study is: What is Knightian Uncertainty? For more than a century, Frank Knight's (1921) foundational work in RUP has been instrumental in shaping how economics (e.g., Ellsberg, 1961;Lawson, 1988;Luce & Raiffa, 1989), organizational (e.g., Duncan, 1972) and entrepreneurship (e.g., Busenitz & Barney, 1997;McMullen & Shepherd, 2006;Sarasvathy, 2001;Townsend et al., 2018) scholars theorize the role of uncertainty. In the field of entrepreneurship, Knight's theory of uncertainty has substantially shaped and informed the development of virtually all of the field's most prominent theories and literatures; a small sample includes actualization theory of opportunities Ramoglou, 2021;Ramoglou & Tsang, 2016), entrepreneurial orientation (Miller, 2011), entrepreneurial cognition (Busenitz & Barney, 1997), effectuation (Sarasvathy, 2001), entrepreneurial action (McMullen & Shepherd, 2006), creation theory (Alvarez & Barney, 2007), and judgment-based analysis (Foss & Klein, 2012). ...
Research Summary
For more than a century, Frank Knight's Risk , Uncertainty , and Profit has significantly influenced entrepreneurship theory development by exploring the nature of uncertainty and the epistemic limits of entrepreneurial action. Knight's work highlights how economic actors cannot fully predict the consequences of their actions. Despite its broad influence, debates persist regarding the nature of Knightian uncertainty. This study addresses these debates through a comprehensive analysis of RUP and Knight's other published and unpublished writings to offer new insights into the nature and meaning of Knightian uncertainty, revealing Knight's holistic theory that integrates “real indeterminism,” “partial knowledge,” and “subjective beliefs.” This analysis provides much needed construct clarity to advance contemporary theories of entrepreneurial action and the role of uncertainty in business venturing processes.
Managerial Summary
This article revisits Frank Knight's foundational work, Risk , Uncertainty , and Profit , a cornerstone in entrepreneurship research for over a century. We highlight Knight's holistic approach to uncertainty, which integrates the concepts of real indeterminism (the inherent unpredictability of future events), partial knowledge (the incomplete understanding of the present and future), and subjective beliefs (individual perceptions and interpretations). The study offers new perspectives on how Knightian uncertainty influences entrepreneurial decision‐making and action, highlighting how this unique type of uncertainty plays a critical role in the business venturing process. These insights provide valuable contributions to contemporary theories of entrepreneurship, emphasizing the complexity and multifaceted nature of navigating uncertainty in business.
Purpose
Borrowing from the dynamic capabilities theory and augmented by the relational view, the study investigates the criticality of supply chain agility in delivering operational performance while understanding the determinant role of key cross-firm resources. Additionally, based on the contingency theory, the interactive influence of two critical context factors, supply uncertainty and product complexity, is examined to enrich the understanding of the contingent nature of the operational performance implications.
Design/methodology/approach
The study draws its conclusions from the survey data collected from a 152-respondent sample of executives from US manufacturing firms. The empirical data analyses using partial least square structural equation modeling (PLS-SEM) relate agility to operational performance enhancements while incorporating the moderating effects of contextual factors.
Findings
The study relates agility capability to operational performance enhancements, while resource specificity and resource complementarity emerge as significant determinants of the capability. Results on the contingent impact of contextual factors suggest differential influences of supply uncertainty and product complexity on the agility–performance relationship: while the former enhances, the latter detracts from the relationship.
Originality/value
The study’s contributions suggest theory extensions into supply chains as contexts, reinforcing the importance of market-responsive capabilities and the foundational nature of supply chains as repositories of vital cross-firm resources. The contingent nature of the agility–performance relationship accents the importance of market context factors.
Purpose
Despite the growing attention being paid to the role of uncertainty in the competitive business environment, few studies have considered uncertainty as an antecedent factor and explored its direct impact on accelerating a firm’s innovation speed. This study develops a conceptual framework that examines the impacts of technological uncertainty and market uncertainty on innovation speed, building on complex adaptive theory. Furthermore, it is important to note that the internal resources of a firm and its external environment are not separate entities. In this study, we investigate the moderating role of a firm's internal and external resource ability (financial constraints level and organizational slack level) in the relationship between environmental uncertainty and innovation speed.
Design/methodology/approach
Our data sample is the panel data of China's A-share listed companies. The data year span is from 2000 to 2018. We use a hierarchical regression analysis model.
Findings
Our results reveal that both technology uncertainty and market uncertainty can promote innovation speed. Still, a firm’s organizational slack positively moderates the relationship between technology uncertainty and innovation speed, and financial constraints negatively moderate the relationship between demand uncertainty and innovation speed.
Originality/value
Our research contributes to the existing literature on uncertainty and extends its research perspective by no longer taking uncertainty as an environmental factor but exploring its direct impact. Still, our research focuses on innovation speed and discusses the impact of environmental uncertainty (including technology uncertainty and demand uncertainty) on firms’ innovation speed, expanding the limitations of previous research, which usually holds a relatively general perspective on innovation problems.
Bu çalışmanın temel amacı, stratejik karar alma süreci (SKAS) özellikleri üzerindeki çevresel etkileri ortaya koymak ve stratejik karar alma süreci özelliklerinin stratejik kararın uygulama başarısı üzerindeki rolünü belirlemektir. Çalışmanın amacı doğrultusunda, stratejik karar alma sürecinin özellikleri, çevresel determinizm perspektifi ve stratejik kararların uygulama başarısı ile ilgili literatür incelenmiştir. Bu çalışma, SKAS özellikleri üzerindeki çevresel etkilerin ve SKAS özelliklerinin stratejik kararın uygulama başarısındaki rolünün kuramsal temellerini ortaya koymakta ve geliştirilen araştırma önermeleri ışığında kavramsal bir model sunmaktadır. Başka bir deyişle, bu nitel araştırmada metodoloji, literatürün sentezini içermekte ve çevresel faktörlerin SKAS üzerindeki doğrudan etkilerini ve SKAS özelliklerinin stratejik kararların uygulama başarısı üzerindeki rolünü araştıran bir çerçeve önermektedir. Bu çalışma aynı zamanda kuramsallaştırma, metodoloji ve yönetimsel çıkarımlarla ilgili olarak gelecek araştırmalara fayda sağlaması beklenen bir dizi alana değinmektedir.
Purpose
Eco-innovations (EIs) are intended to benefit not only the environment but society and firms, but how the relationship is reconciled is unclear, particularly in emerging economies. The advancement of EI has resulted in both positive and negative relationships with sustainability, indicating that the association is more complex than a simple linear one.
Design/methodology/approach
Thus, the authors hypothesize that EI has a curvilinear relationship with sustainable business performance (SPB) and that market turbulence (MT) exerts stimulus that reinforces EIs. Accordingly, using the Stata software, the authors apply a moderated regression to a sample size data of 511 manufacturing firms to test the hypothesized assumptions.
Findings
Although the results attest to a positive relationship between EI and SBP, the results are synonymous with an inverted “U” shape that renders EIs unprofitable beyond a certain threshold (rebound effect). Additionally, the authors observe that the moderation stimulus of technology turbulence flattens the inverted U-shaped curve.
Originality/value
Built on the foundations of natural-resource-based view (NRBV) and contingency theory, the authors identify the rebound effect point of EI and SBP and the reinforcing stimulus of MT.
Companies that intend to leverage standardization to drive innovation have to set up their organizations appropriately. Data from four German companies reveal different ways for organizing the standardization activities. Companies may allocate a high level of resources by dedicating a specialized department; they may assign the standardization task to top managers; they may treat standardization within occasional projects; or create sophisticated solutions to facilitate the use of standards. Contingency theory is used to narrow down the number of factors that influence the organization of the standardization function. There are three relevant contingency factors: competition, size, and strategy. Company's age, technological complexity and volatility of customer demand are found to be less important. Instead, maturity of technology and the period of time, during which the company has been actively engaged in standardization work seem to be better contingencies. Another finding is that innovation appears to be a by-product and not the main driver of standardization work.
Purpose
In the context of the severe global challenges posed by climate and environmental issues, this paper aims to explore the connection between female Chief Executive Officers (CEOs) and the level of sustainable development in companies. This study aims to investigate the impact of female CEOs on corporate ESG performance and provide a detailed analysis of the underlying mechanisms.
Design/methodology/approach
This study uses a sample of listed companies from 2010 to 2021, as reported by Bloomberg. This study uses logit regression models to test hypotheses and conduct robustness tests using the generalized method of moments, propensity score matching and heckman two statge tests.
Findings
The research findings indicate that female CEOs can enhance a company’s ESG performance, primarily by elevating the level of green innovation and engaging in more philanthropic activities. When environmental uncertainty is high, the risk-averse attitude of female CEOs may diminish the enhancement of ESG performance. However, granting a higher proportion of equity to female CEOs incentivizes risk-taking, thereby strengthening the improvement of ESG performance. Further analysis reveals that the impact of female CEOs on ESG performance is more significant in non-state-owned enterprises, high-pollution industries, and companies with low financing constraints.
Research limitations/implications
The authors have shown that two key ways in which female CEOs enhance a company’s ESG performance are by increasing the level of green innovation and assuming more social responsibility. Nonetheless, this remains a shortcoming of this work, opening a door for future research to examine and enrich. There may be other possible mechanisms explaining the influence of female CEOs on corporate ESG performance. More research is warranted about the CEO’s additional traits, which were not considered in this study but may have an impact on a company’s ESG performance. Finally, while the analysis has delved into the moderating effects of external factors such as environmental uncertainty and CEO ownership on the influence of female CEOs on corporate ESG performance, there is room for exploring whether other factors also play a moderating role in future studies.
Practical implications
First, the findings of this study highlight the beneficial societal and economic effects of choosing female CEOs. The inclination to take on social responsibility and care for the environment are both higher among female CEOs. Furthermore, the authors have also discovered that female CEOs possess unique advantages in promoting corporate sustainability and enhancing ESG standards. This can contribute to breaking down stereotypes about gender roles in the workplace. Finally, this research shows that organizational heterogeneity and market risks have an impact on female CEOs’ capacity to improve company ESG performance.
Originality/value
A significant innovation of this paper lies in its unique focus on the connection between female CEOs and corporate ESG performance, along with the underlying mechanisms. Against the backdrop of sustainable development, the paper integrates social gender theory, upper echelon theory and agency theory into a comprehensive framework, shedding light on the influence of female CEOs on ESG performance and the associated mechanisms.
Bu çalışma, sağlık sektöründe çevresel belirsizlik konusunu ele almakta ve literatürdeki bu konudaki çalışmaları incelemek için bir içerik analizi yöntemi kullanmaktadır. Araştırma, Web of Science veri tabanı üzerinden yapılmış olup araştırma kapsamına alınan makaleler, 2000-2024 yılları arasında yayımlanmış ve sağlık sektöründe çevresel belirsizlik konularını içeren makalelerden oluşmaktadır. Toplamda 448 makale arasından 11 makale incelenmiştir. Doküman incelemesi yöntemi kullanılmıştır. Web of Science veri tabanından alınan ikincil veriler kullanılmıştır. Literatür tarama stratejisi belirli arama terimleriyle yapılmış ve uygun makaleler seçilmiştir. İncelenen makalelerin yayım yılları, örneklem büyüklükleri, araştırma türleri, kullanılan anahtar kelimeler ve diğer değişkenler incelenmiştir. Elde edilen veriler Excel programı kullanılarak özetlenmiştir. Örneklem büyüklükleri çeşitlilik göstermektedir, ancak çoğunlukla küçük ve orta ölçekli örneklem grupları üzerinde çalışılmıştır. Tam metne ulaşılamayan (tam metne ulaşılamayan ve veri tabanında olamayan) bazı çalışmalar sınırlılık oluşturmaktadır. Yüksek lisans tezleri, doktora tezleri, kitaplar ve kongre bildirileri gibi kaynaklar çalışma dışında bırakılmıştır. Sadece belirli bir veri tabanı kullanılarak yapılan taramaların genellemesi kısıtlı olabilir. Bu çalışma, sağlık sektöründeki kuruluşların çevresel belirsizliklerle başa çıkmak için nasıl stratejiler geliştirdiğini anlamak ve literatüre katkı sağlamak amacıyla yapılmıştır. Araştırmanın sonuçları, sağlık kuruluşlarının bu belirsizlikleri nasıl algıladıklarını ve stratejik olarak nasıl yönetebileceklerini anlamak için değerli bir bakış sunmaktadır.
Ketidakpastian yang dihadapi oleh perusahaan dapat mempengaruhi efektivitas sistem akuntansi manajemen dan sistem pengendalian manajemen, Terdapat kebutuhan untuk menilai seberapa efektif sistem akuntansi manajemen dalam menghasilkan informasi yang relevan dan akurat untuk pengambilan keputusan. Penelitian ini bertujuan untuk mengetahui efektivitas sistem akuntansi manajemen, sistem pengendalian manajemen dan ketidak pastian lingkungan terhadap kinerja manajerial dengan desentralisasi sebagai variabel moderasi. Metode dalam penelitian ini adalah kuantitatif dengan sumber data primer. Populasi dalam penelitian ini adalah Rumah Sakit Umum Daerah (RSUD) di DKI Jakarta. Sampel penelitian ini adalah kepala divisi, kepala subbidang, kepala bagian, kepala subbagian serta kepala instalasi dan staf Rumah Sakit Umum Daerah di DKI Jakarta yang berjumlah 104 responden. Analisis data yang digunakan dalam penelitian adalah analisis data Structural Equation Modeling (SEM) dengan pendekatan Partial Least Square (PLS) versi 3.00. Berdasarkan hasil penelitian dengan menggunakan uji hipotesis menunjukkan bahwa Sistem Akuntansi Manajemen berpengaruh signifikan terhadap Kinerja Manajerial artinya H1 Diterima H0 Ditolak. Sistem Pengendalian Manajemen tidak berpengaruh signifikan terhadap Kinerja Manajerial artinya H1 Ditolak H0 Diterima. Ketidakpastian Lingkungan mempunyai pengaruh yang signifikan terhadap Kinerja Manajerial artinya H1 Diterima H0 Ditolak. Desentralisasi tidak memoderasi pengaruh Sistem Akuntansi Manajemen terhadap Kinerja Manajerial artinya H1 Ditolak H0 Diterima. Desentralisasi memoderasi pengaruh Ketidakpastian Lingkungan terhadap Kinerja Manajerial artinya H1 Diterima H0 Ditolak. Desentralisasi memoderasi pengaruh Sistem Pengendalian Manajemen terhadap Kinerja Manajerial artinya H1 Diterima H0 Ditolak.
Purpose
The entrepreneurial process often cannot be explained by a single entrepreneurial theory. Instead, it is more likely the result of the interaction between various entrepreneurial behavior patterns and different environmental conditions. However, existing research has frequently overlooked the complexity inherent in the entrepreneurial phenomenon. Building on a configurational perspective, this study aims to examine how new ventures can use different behavioral configurations to achieve high performance amid various uncertain environments.
Design/methodology/approach
Based on the survey data from 143 new start-ups in China’s software industry, this study uses fuzzy-set qualitative comparative analysis (fsQCA).
Findings
This study jointly considers multiple entrepreneurial behaviors − causation, effectuation and entrepreneurial bricolage and different types of environmental uncertainty − state uncertainty, effect uncertainty and response uncertainty. The findings reveal three behavioral configurations for high/nonhigh new venture performance.
Originality/value
This study expands previous insights into the relationship between entrepreneurial behaviors and new venture performance from the perspective of configurational theory. Moreover, it offers new insights into the types of uncertainty, further refining our understanding of the uncertainties inherent in entrepreneurial activities.
As China deepens its investment in Indonesia, risk governance has become a core issue in the country’s internationalization process. This chapter adopts the CAGE distance framework as a theoretical basis and uses the Mahalanobis distance to measure the unidimensional and multidimensional cultural, institutional, geographical, and economic distances between China and Indonesia. With 518 Indonesian text data points, word cloud maps are drawn using Python to define the liability of foreignness risks faced by Chinese enterprises in Indonesia, clarify the evolution mechanism of risks, and analyze the spillover effects of risks with field research data.
Research investigating the underlying mechanisms and boundary conditions under which big data analytic capabilities (BDACs) influence business model innovation (BMI) in incumbents remains largely underdeveloped. Drawing on the dynamic capabilities view (DCV), we developed a moderated multi-mediation model in which unlearning success beliefs and unlearning failure beliefs were theorized as the different mechanisms underlining why incumbents are more likely to engage in BMI under the influence of BDACs. We further proposed that deep uncertainty is an important boundary condition that affects such a relationship. Multisource data from a multi-wave survey was analyzed using structural equation modeling (PLS-SEM) to test the theoretical framework. The results indicated that BDACs positively affect incumbents' BMI through not only unlearning success beliefs but also unlearning failure beliefs. Furthermore, the results provided evidence for that deep uncertainty positively moderates the mediation of unlearning success beliefs. Notably, although the moderating effect of deep uncertainty on the mediation of unlearned failure beliefs is negative, it is insignificant. Our study contributes theoretically to the research on BDACs, organizational unlearning, BMI, and DCV, while practical implications are also discussed.
This study aims to examine the relationship between middle managers and organizations in an uncertain environment due to the COVID-19 pandemic. We focus on middle managers' perceptions of their organization's future, as middle managers are "key link" between the organization and employees. Specifically, we examine the attributes of employees with high expectations for the future (innovativeness) for both the organization and the workplace. We confirmed that organizational attributes, such as industry, firm size, and location, and individual attributes of middle managers, such as job type, gender, educational background, and generation, affect the future potential of organizations and workplaces.
Celem artykułu jest zdefiniowania pojęcia „niepewności strategicznej”, określenia jej wymiarów oraz różnych skal pomiarowych, które pozwalają ją zoperacjonalizować. Zostało to zrealizowane w oparciu o trzyetapową metodykę badań i doprowadziło do werbalnego ujęcia niepewności strategicznej oraz określenia jej wymiarów: złożoności, zmienności i strategiczności. Wnikliwa analiza literatury pozwoliła na zdefiniowanie poziomów niepewności a przeprowadzona synteza narracyjna umożliwiła współczesną interpretacje otrzymanych wyników. Niepewność strategiczną zdefiniowano jako subiektywne postrzeganie złożoności i zmienności wszystkich kluczowych dla danego obiektu elementów, opisanych przez właściwą dla badanego zjawiska dynamikę zmian. Zdaniem autorek takie ujęcie rozszerza przedstawione w analizie literatury wymiary niepewności strategicznej, wskazując na bardziej praktyczne ich rozumienie, a jednocześnie uświadamia skomplikowanie analizowanego zjawiska, które trzeba sprowadzić do wymiarów możliwych do zidentyfikowania.
Purpose
This study aims to examine the impact of the regulatory focus of the top management team (TMT) members on the technological diversification of firms in high-technology industries based on the upper echelons theory and regulatory focus theory and explore the moderating effect of environmental uncertainty.
Design/methodology/approach
This paper uses data on the Chinese Growth Enterprises Market Board (GEM)-listed companies from 2012 to 2016. The authors collected data on TMT regulatory focus from firms’ annual reports by Python programming. A fixed-effects model was used to test our hypotheses.
Findings
Results indicate that TMTs with a high promotion focus are associated with greater technological diversification, while TMTs with a high prevention focus are linked to lower technological diversification. Moreover, environmental uncertainty amplifies the positive relationship between promotion-focused TMTs and technological diversification, while it diminishes the negative relationship between prevention-focused TMTs and technological diversification.
Research limitations/implications
This study is limited to high-technology firms listed on the Chinese GEM, which may restrict the generalizability of the findings. Future research could validate these results in different countries and industries to enhance their robustness. Additionally, this study focuses on the impact of TMT regulatory focus on technological diversification; future studies could explore its influence on other strategic decisions, such as digital transformation or innovation strategies.
Practical implications
The results suggest that firms should carefully consider the regulatory focus of their TMT when making strategic decisions regarding technological diversification. Boards of directors should ensure that the TMT’s regulatory focus aligns with the firm’s strategic objectives, particularly in high-technology industries. Moreover, firms should adapt their strategies to the level of environmental uncertainty to better navigate the risks and opportunities presented by a dynamic market environment.
Originality/value
Supportive evidence allows authors to discuss how our findings contribute to the upper echelons theory, as well as the emerging stream of firm technological diversification, which provided valuable psychological insights into the factors influencing TMT strategic decision-making. Meanwhile, this paper integrates the factors of the industry macro-environment to explore the changes in the TMT regulatory focus on firm technological diversification under different contexts.
This research provides valuable insight into the challenges posed by perceived environmental uncertainty and the recent trends in research. Perceived environmental uncertainty indeed represents a significant concern for top management, influencing decision-making processes and strategic planning within organizations. In recent years, researchers have increasingly viewed perceived environmental uncertainty as a multidimensional construct. This means that it is not a singular, uniform concept but encompasses various dimensions or sub-dimensions that contribute to the overall perception of uncertainty. In conclusion, this research emphasizes the need for a broader perspective when studying perceived environmental uncertainty. By considering multiple dimensions, researchers and practitioners can gain a more comprehensive understanding of the challenges posed by uncertainty and develop strategies that enhance organizational adaptability and performance.
This paper addresses the critical yet often overlooked concept of distribution uncertainty (ambiguity) in decision making, emphasizing its importance alongside traditional outcome uncertainty (risk). It introduces a novel quantitative measure of ambiguity that accurately captures distribution uncertainty. This measure enhances empirical models, yielding more reliable parameter estimates and improving decision-making processes. The study demonstrates the practical value of this ambiguity measure using financial market decision making as an example. The measure helps identify and adjust for uncertainties in underlying distributions, supporting more robust financial models and better risk management. The findings advocate for integrating ambiguity considerations into data analytics models and developing more reliable methodologies for empirical research and practical applications. This study promotes a nuanced understanding of uncertainty, offering significant implications for research methodologies and practical risk management across various fields.
In pursuing competitive advantage, businesses are diffusing new digital technologies across their value chains and, by doing so, catalyzing significant organizational changes in operational processes and strategic approaches. This widespread evolution of businesses has prompted significant questions regarding the drivers of digital change, the necessary resources, and the capabilities that need to be developed or reconfigured. Our paper focuses on the role of intangible resources, such as a firm’s social capital, and its specific implications for the broader research on this phenomenon. Consistent with the resource-based view, we examine the role of different types of social capital as critical resources in the digital transformation process while also considering the mediating role of the balancing act of the capabilities around business alignment and adaptation encompassed in the concept of ambidexterity. Furthermore, we introduce a contextual dimension to our study by examining family involvement in a firm as a significant factor influencing how businesses shape their digital goals and allocate resources toward digital transformation. Our paper addresses this under-explored research field by drawing on a large, cross-sectional dataset from an online panel study with 582 management-level participants from UK firms. After testing our hypotheses, our study’s results indicate that bridging and bonding social capital resources significantly promote digital transformation by indirectly developing an ambidextrous orientation. Moreover, familial orientation strengthens both relationships. This research is currently one of the few studies providing empirical evidence on the relationship between digital transformation, its antecedents, and, specifically, the role of intangible resources.
Previous literature offers conflicting findings on how the restrictiveness of the regulatory environment—the amount of rules that prohibit specific activities—affects innovation of firms. One camp suggests that restrictiveness circumscribes the range of available technological components and therefore decreases innovation. The other camp believes that restrictiveness can lead firms to seek new alternative technological components, which could increase innovation. In this article, we develop a new theory on regulation and innovation to reconcile these views, which we test using novel data on federal regulations and the patents of 1,242 firms, from 1994 to 2013. We find that restrictiveness can have both a negative and positive relationship with innovation output depending on the level of regulatory uncertainty and the innovation type in question.
Funding: This work was supported by the Mercatus Center, George Mason University, and the Strategy Research Foundation [Grant SRF-2021-DRG-8365].
Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2022.16770 .
This research investigates the impacts of empowering leadership (EL) on work uncertainty (WU) and employee's entrepreneurial orientation (EO) and its dimensions (risk-taking, pro-activeness, and innovativeness). Furthermore, this study also exploring the intervening role of work uncertainty in the connection between empowering leadership and entrepreneurial orientation and its dimension. The data (n=271) were gathered from individuals employing in hospitality and tourism industry of Pakistan by utilizing a time-lag research approach. Using AMOS software for data analysis, findings suggested that empowering leadership is meaningfully related with work uncertainty and individual's entrepreneurial orientation. Similarly, work uncertainty mediates the relationship between empowering leadership and entrepreneurial orientation and its dimensions. This study suggests that empowering leadership can be an effective tool for encouraging employee's entrepreneurial orientation. Therefore, managers and leaders of hospitality and tourism sector, who aim to achieve employee's entrepreneurial orientation need to induce empowering leadership in their organization. The article bridges the gap relating to factors Empowering Leadership Navigating the Employee's Entrepreneurial Orientation 528 and antecedents that impact individual's entrepreneurial orientation in a time lag research design. This research is one of the pioneer studies which examining, how empowered leadership affects entrepreneurial orientation, with employing work uncertainty as a mediating role. The practitioners of tourism and hospitality industry such as investors, managers, employees and other stakeholders, will find this study quite useful as well.
Purpose
The interest of scholars to study microfoundations of dynamic capability has increased. Literatures associated with them are rapidly and diversely developing. This study aims to investigate whether both boundary spanning activities and resource orchestration are the microfoundations of dynamic capability.
Design/methodology/approach
A systematic literature review using preferred reporting items for systematic reviews and meta-analyses (PRISMA) guideline is applied to extract 263 studies from Scopus and 12 studies from other online sources. Some studies investigate some of the relationships but only one investigates all relationships examined.
Findings
Further discussion suggests that boundary spanning activities and resource orchestration are microfoundations of dynamic capability. The first and second groups of boundary spanning activities (scout and ambassador) and the first stage of resource orchestration (structuring/search/selection) are microfoundations of sensing/shaping. Third group, task coordinator, with some elements of the second stage, leveraging and all elements of third stage, bundling, are microfoundations of seizing. Meanwhile, some other elements of second stage, leveraging, are microfoundations of reconfiguring. Guard, the fourth group of boundary spanning activities, is excluded from microfoundations of dynamic capability because of its nature of internal activities to keep things from the environment.
Originality/value
This study is an original review of literatures about both boundary spanning activities and resource orchestration as microfoundations of dynamic capability. The paper starts with a systematic literature review on four relationships examined and ends up with deep further analysis on the elements of activities groups of boundary spanning, stages of resource orchestration and process groups of dynamic capability.
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