Deep Uncertainty Effects on Managerial Perceptions: The Case of UK Firms in the Context of Brexit

Abstract

Deficiency in information around Brexit has produced tremendous uncertainty. Our study employs perceived environmental uncertainty (PEU) composite-view and directional (state to effect to response) theoretical lens to investigate, through interviews, the impact of information on UK-based senior managers (SMs) and middle-managers (MMs) in understanding and responding to Brexit. Findings reveal the presence of ‘deep uncertainty’ characterized by information deficiency, which reduces the ability to agree on the condition, factors and responses to Brexit and results in pervasive sensemaking. Our findings reveal the suspension of the composite- view and directional flow of PEU. We highlight the implications for strategic decision-making under deep uncertainty: the predominance of sensemaking; strategies need to be agile, responsive and flexible; and SMs/MMs differences in a context of deep uncertainty require trustworthy and deliberate SMs sensemaking and sensegiving to MMs.