Towards an uncertainty theory for organizations: Energy efficiency in Canada's public sector

Abstract

This paper builds upon theory of approaches to dealing with uncertainty in organizations by making use of quantitative methods to investigate factors driving energy efficiency practices. Scales for frames and approaches to dealing with uncertainty were developed, and their relationships to energy efficiency performance tested.Analysis suggests that forms of rationality and dealing with uncertainty both predict energy efficiency performance, accounting for up to 32% of the variance. As theorized, dealing with uncertainty by Managing Complexity and framing energy efficiency through a Resiliency Logic are both found to predict energy efficiency performance.The Demanding Certainty approach was found to be made up of two items: Demanding Certainty in Processes, and Demanding Certainty: Staff Risks. Both scales were found to be negatively associated with energy efficiency performance, as predicted. Organizations that can re-frame energy efficiency away from their mission-based values, can change how individuals perceive how internal risks are absorbed, and this can lead to improved energy efficiency performance. Energy efficiency performance was also found to have a negative association with temporal silos, as predicted.The results suggest that logics and approaches to dealing with uncertainty are intertwined and have an influence on organizational practices. Applying these findings more broadly can ensure government policy is in the best position to not only drive innovation, but to contextualize the risk-taking needed to achieve its objectives.