Environment, Executive Information Search Activities, and Firm Performance

Abstract

This study examines the relationships between perceived strategic uncertainty, environmental scanning, information source use, and firm performance in Hong Kong and Nigeria. The results of the study provide strong support for the assertion that the external environment of firms differs from country to country. The results indicate that there is a positive relationship between perceived strategic uncertainty and frequency and level of interest in the industry and macro sectors of the environment for both samples of decision-makers. Hong Kong decision-makers ascribe a greater level of dynamism to the technology sector, while the Nigerian sample attribute a greater degree of perceived strategic uncertainty to the political/legal, economic, and resource availability sectors. The two samples of decision-makers seem to differ in their use of information sources, with the Hong Kong executives relying on a broad range of sources and the Nigerians depending primarily on impersonal sources. There are also differences in the impact of scanning on firm performance. Significant relationships exist between scanning frequency, interest, and performance in Nigeria but not in Hong Kong.