Levels Of Environmental Uncertainty Research Articles

Building cooperative and high-performance organizations with high-performance work systems: the role of firm age and industry dynamism

Although numerous empirical studies have linked human resource (HR) management systems, including systematic HR practices, such as high-performance work systems (HPWS), to superior organizational performance, our understanding of how these benefits vary among firms operating under different levels of environmental uncertainty is limited. By integrating insights from organizational theory, strategy, and strategic human resource management (SHRM), I theorize that an organization’s internal and external environments—specifically firm age and industry dynamism—modulate the benefits derived from HPWS. Utilizing longitudinal data encompassing 1,585 firm-year observations across five waves from 2009 to 2017, I demonstrate that the positive impact of HPWS on organizational performance is most pronounced for younger firms in highly dynamic industries. Conversely, for older firms, this positive effect weakens as industry dynamism increases. Additionally, I discovered that cooperative norms serve as a crucial mediating mechanism. My findings mark a significant advance in our understanding of when and how firms, amidst varying degrees of environmental uncertainty, reap differential benefits from HPWS—especially through the mediation of cooperative norms.

Dual Pathways of Value Creation from Digital Strategic Posture: Contingent Effects of Competitive Actions and Environmental Uncertainty

Dual Pathways of Value Creation from Digital Strategic Posture: Contingent Effects of Competitive Actions and Environmental Uncertainty IN STOCK SKU 48.1.15 Publication History Received: October 9, 2019 Revised: December 20, 2020; February 23, 2022; November 7, 2022; June 7, 2023 Accepted: August 3, 2023 Published Online in Issue: March 1, 2024 https://doi.org/ Downloadable File Article PDF $15.00 Add to Cart Abstract Digital strategic posture (DSP) is defined as a firm’s overall strategic stance toward investing in information technology (IT) initiatives relative to that of rival firms. This study examines how a firm’s DSP affects firm performance. Drawing on the competitive dynamics perspective and contingency view, we demonstrate that DSP influences competitive actions through dual pathways. First, DSP enables firms to take competitive actions that are more appropriate given the level of environmental uncertainty (captured by industry dynamism). In particular, our findings suggest that a proactive DSP enables relatively more innovation-oriented actions in dynamic industries while enabling relatively more operations-oriented actions in less dynamic industries. Second, DSP plays a facilitating role in firms’ execution of competitive actions such that a firm’s value from its proactive DSP is enhanced when there is a fit between the type of the firm’s competitive actions and its level of environmental uncertainty. Specifically, we find that firms with a more proactive DSP achieve superior firm performance from innovation-oriented actions in dynamic industries and from operations-oriented actions in less dynamic industries. Taken together, our findings suggest that a proactive DSP not only allows firms to take appropriate competitive actions that fit their environmental conditions but also contributes to firms’ performance by facilitating the execution of these appropriate actions, thus enhancing their efficacy. Additional Details Author , , , and Year 2024 Volume 48 Issue 1 Keywords Digital strategic posture, competitive actions, innovation-oriented actions, operations-oriented actions, competitive dynamics, contingency view, business value of IT, IT strategy, industry dynamism Page Numbers 409-426

Interorganizational Systems and Supply Chain Agility in Uncertain Environments: The Mediation Role of Supply Chain Collaboration

The economy is recovering in today’s postpandemic phase, but uncertainties such as supply chain disruptions remain a top risk. Environmental uncertainty creates the need for swift supply chain adjustments in response to these external changes. Supply chain agility (SCA) has been recognized as a key capability for firms working to achieve superior performance in uncertain business environments. SCA is challenging to achieve, however, because it requires the firm and its supply chain partners to collaborate closely yet flexibly across organizational boundaries. Considering interorganizational systems (IOS) have been widely deployed to establish digital connections across organizational boundaries, this study aims to explore to what extent and how IOS as boundary objects, characterized by standardization and adaptability, affect SCA under different levels of environmental uncertainty. This study provides guidance for information technology (IT) and business directors on how to achieve SCA through the design or implementation of IOS, provides guidance for business directors on how to invest more effectively to capture opportunities and deal with risks, and advises business and IT directors on how to respond appropriately to different levels of environmental uncertainty (e.g., IT directors should design adaptive IOS and business directors should invest in supply chain collaboration when environmental uncertainty is high).

Uniting partners to cope with environmental uncertainty: Disentangling the role of social capital in developing supply chain agility

Based on social capital theory, in this study, we investigate how a firm utilized social capital to coordinate partners in the achievement of supply chain agility under different levels of environmental uncertainty. We test the proposed hypotheses via a hierarchical regression analysis using questionnaire survey data collected from 190 firms in China. The empirical results show that cognitive, relational, and structural capital positively influence supply chain agility. Furthermore, environmental uncertainty positively moderates the positive relationship between relational capital and supply chain agility, whereas environmental uncertainty negatively moderates the positive roles of cognitive and structural capital. The findings suggest managers should adopt different strategies when leveraging social capital according to the business environment. In unpredictable and volatile business environments, managers should motivate their firms to embrace relational capital to obtain sufficient resources for achieving supply chain agility.

The moderating role of supplier relationship on the effect of postponement on supply chain resilience under different levels of environmental uncertainty

ABSTRACT The purpose of this study is to examine the relationship between postponement and supply chain resilience (SCR), as well as to explore the separate and combined moderating effects of supplier relationship (SR) and environmental uncertainty (EU) on that relationship. Based on the survey data from 261 manufacturing SMEs in the Sana’a and Taiz regions in Yemen, the proposed relationships in the research model were tested. Our empirical results reveal that postponement positively and significantly affects SCR. Furthermore, SR strengthens the postponement–SCR relationship under a lower level of EU. The results of this paper provide useful insights for managers and decision-makers of SMEs, who are expected to show a greater interest in building long-term relationships with suppliers. This has implications that by building a strong SR, SMEs are expected to be able to leverage the full potential of postponement to enhance SCR at a low level of EU.

The Curvilinear Relationship Between Collective Team Identification and New Venture Performance: The Moderating Effect of Environmental Uncertainty

Abstract Many new ventures are founded and developed by teams rather than solo entrepreneurs. Therefore, the extent to which entrepreneurs identify with their teams is likely to have an important impact on the process and outcome of new venture creation in new venture teams. However, most of the relevant studies focus on entrepreneurs’ individual identity, and the identity at the team level has been overlooked. This study seeks to fill this gap by exploring the effect of collective team identification on new venture performance. The relationship between collective team identification and new venture performance was examined using a sample of 54 new venture teams in Internet Technology (IT) industry. The results show that the relationship between collective team identification and new venture performance is inverted U-shaped. Moreover, environmental uncertainty may moderate this curvilinear effect, such that this inverted U-shaped relationship is more salient at a low level of environmental uncertainty rather than at a high level of environmental uncertainty.

The efficacy of organizational control interactions: External environmental uncertainty as a critical contingency

We investigate the efficacy of organizational control interactions in contexts with varying levels of external environmental uncertainty. Specifically, we examine the contingent effect of external environmental uncertainty on the interactions of behavior and outcome control, behavior and clan control, and outcome and clan control on organizational performance. The empirical evidence draws from two temporally sequenced surveys of top executives in 203 firms. We theorize and find that these control combinations are complementary when the level of environmental uncertainty is low, and that this complementarity diminishes as environmental uncertainty increases. Further, in highly uncertain external environments, our findings reveal that higher performance is achieved through a high level of one organizational control type and a low level of the other, indicating a shift toward substitutive effects. Consequently, this study informs the complement-substitute debate in organizational control theory by explicitly investigating external environmental uncertainty as a contextual contingency.

Capabilities and options in uncertain environments: A study of global offshoring

While the impact of environmental uncertainty on the relationship between firm capabilities and firm performance is still unclear, we adopt the integrated perspective of dynamic capabilities and real options to explore this issue under the context of global offshoring. We propose that an offshoring firm could benefit from its offshoring capabilities to configure globally dispersed activities as options in uncertain environments. In addition, the managerial attention and discretion guided by a corporate strategy to implement offshoring, an execution of options, could help explain the variance of firm performance. As firms own equivalently offshoring capabilities and face the same level of environmental uncertainty, we further argue that the implementation of a corporate-wide offshoring strategy would result in better performance by capturing the value of options. Using the firm data from the Corporate Client Survey of Offshoring Research Network and the uncertainty measurement from the International Country Risk Guide, we find the empirical support for our premises.

Breaking away or holding on to the past? Exploring HRM systems of export-oriented SMEs in a highly uncertain context: insights from a transition economy in the periphery

This article advances understanding of the interplay between high levels of environmental uncertainty and HRM challenges and practices of exporting SMEs in the garment industry of Kyrgyzstan. Uncertainty in this post-Socialist country emanates from the complex, conflict-ridden and ongoing process of transition from planned to market-based economy, resulting in a volatile institutional environment with under-developed formal institutions at its core. Drawing on qualitative data and framed by a novel theoretical framework consisting of HRM systems theory, North’s institutional approach and the concept of path-dependency, the article advances knowledge of the distinctive set of HRM challenges faced by SMEs and the contrasting HRM systems adopted by them. The article draws particular attention to how the embeddedness of socialist-era norms and the diffusion of new market-oriented institutional features influence the utilisation of HRM systems in SMEs, whilst also revealing their evolutionary nature in a transition economy context. The article contributes by extending the scope of HRM research to the little-explored transitional periphery of Central Asia and adds to the nascent body of knowledge on HRM in SMEs by offering a more nuanced understanding of HRM systems in exporting SMEs in a highly uncertain context.

Phasic Activation of Dorsal Raphe Serotonergic Neurons Increases Pupil Size

SummaryTransient variations in pupil size (PS) under constant luminance are coupled to rapid changes in arousal state,1, 2, 3 which have been interpreted as vigilance,4 salience,5 or a surprise signal.6, 7, 8 Neural control of such fluctuations presumably involves multiple brain regions5,9, 10, 11 and neuromodulatory systems,3,12,13 but it is often associated with phasic activity of the noradrenergic system.9,12,14,15 Serotonin (5-HT), a neuromodulator also implicated in aspects of arousal16 such as sleep-wake transitions,17 motivational state regulation,18 and signaling of unexpected events,19 seems to affect PS,20, 21, 22, 23, 24 but these effects have not been investigated in detail. Here we show that phasic 5-HT neuron stimulation causes transient PS changes. We used optogenetic activation of 5-HT neurons in the dorsal raphe nucleus (DRN) of head-fixed mice performing a foraging task. 5-HT-driven modulations of PS were maintained throughout the photostimulation period and sustained for a few seconds after the end of stimulation. We found no evidence that the increase in PS with activation of 5-HT neurons resulted from interactions of photostimulation with behavioral variables, such as locomotion or licking. Furthermore, we observed that the effect of 5-HT on PS depended on the level of environmental uncertainty, consistent with the idea that 5-HT could report a surprise signal.19 These results advance our understanding of the neuromodulatory control of PS, revealing a tight relationship between phasic activation of 5-HT neurons and changes in PS.

Responding to Exploration and Exploitation Pressures via a Contingency Framework

According to the ambidexterity literature, organizations tend to favor either exploration or exploitation activities. Yet few articles have integrated our knowledge of why these imbalances occur, what an ideal balance is, and how to remedy any disparities between what organizations do, and what they should do. This article addresses this paucity, by situating these questions within the context of an organization’s resources and level of environmental uncertainty. We present a conceptual four-quadrant framework delineating the link between these contextual influences and ambidexterity, through a systematic review of the ambidexterity literature. By incorporating all three questions into a single framework, this article brings together fragmented literature, highlighting the importance of a contextual lens and integrated perspective. Implications for practice and theory are discussed.

Effectuation or Causation? Configurational Causes of Entrepreneurial Logic

More entrepreneurs are increasingly interested in such a way of “crossing the river by feeling the stones” to realize rapid iteration of enterprises. In this study, we explored simultaneously impacts of entrepreneurial experience, environmental uncertainty, organizational slack and centralization of desicion making on entrepreneurial logic. To do so, we then use clear-set approach to qualitative comparative analysis (csQCA) to compare the different configurations affecting effectuation and causation under an integrated perspective. Our findings suggest that entrepreneurs preferred to use causation logic for decision-making while the level of environmental uncertainty is low. Whereas, when the environmental uncertainty is higher, entrepreneurial experience, organizational slack and decision concentration become the decisive factors for entrepreneurial logic. As such, this study offers novel theoretical and empirical insights to scholars as well as implications for practitioners.

РОЗВИТОК ІНСТИТУЦІЙНОГО СЕРЕДОВИЩА МІЖНАРОДНОЇ ЕКОНОМІЧНОЇ БЕЗПЕКИ В СУЧАСНИХ УМОВАХ

The article is devoted to the modern components definition of the international institutional environment of international economic security and the ways of its development. Deepening globalization has increased the need for international coordination and the creation of a global institutional framework. The institutional mechanism for ensuring economic security is formed by institutions and instruments for ensuring economic security: instruments of universal (legislative base) and local controls (orders, agreements, etc.) that have a direct or indirect impact. The institutions development in society should ensure a decrease in the level of environmental uncertainty, since economic institutions help reduce the information asymmetry on the basis of which economic decisions are made, overall coordination is ensured, etc. Important indicators of infrastructure development are indices, ratings, and monitoring, used by the world community to assess the performance of institutions in countries, government, competitiveness, etc. It is determined that institutions ensure the development of the economic system as a whole, they should include not only institutions at the national level, but also supranational, since it is the actions of the latter that enhance the ability of the national system to counteract negative external factors and risks. Institutions may differ both in formal terms (public authorities and local governments), and in informal ones (civil society institutions). It is proved that the modern phenomenon of security as a multistructure system is determined by its integrative nature, characterized by a hierarchical structure and a combination of corresponding components – vertical (security components that are due to the existing hierarchy) and horizontal (functional links between components are determined by the internal-functional structure), external and internal components, and corresponding integrated communications are established between them. Accordingly, each level of international economic security is characterized by proper institutional support.

Does the Level of Environmental Uncertainty Matter in the Effect of Returnee CEO on Innovation? Evidence from Panel Threshold Analysis

This study applies a panel threshold regression model to reconcile the inconsistent findings about returnee chief executive officer (CEO) effects on enterprise innovation using the environmental uncertainty as the threshold variable and panel data from 187 publicly traded electronic firms in China for the period 2012–2016. The empirical results suggest that a significant double threshold effect does exist, showing an inverted-U correlation between returnee CEO and innovation. Specifically, a returnee CEO significantly promotes innovation at moderate levels of environmental uncertainty but significantly hinders innovation when the environmental uncertainty surpasses the larger threshold value, which contradicts much of the previous literature. This research enriches the scholarship on returnee CEOs and lays a theoretical foundation that firms can use in corporate governance. If firms pay more attention to environmental uncertainty while formulating new CEO introduction policies, substantial innovation ability can be improved at moderate levels of environmental uncertainty.

An Empirical Study on Green Innovation Strategy and Sustainable Competitive Advantages: Path and Boundary

Although green innovation strategy (GIS) is the driving force for the sustainable development of enterprises, while the strategy is implemented, an increased cost and a change in organizational routines will cause an organization to become fragile, and even affect the sustainable competitive advantages. So, the purpose of this paper is to explore the impact path of GIS on sustainable competitive advantages and the implementation boundary of GIS. To explain the impact path, we consider the concept of dynamic capabilities to be the mediator variable. To explain the implementation boundary of GIS, we systematically explore the relationships among GIS, dynamic capabilities and sustainable competitive advantages under different levels of environmental uncertainty. Based on 241 new Chinese green firms, the empirical results find that GIS helps enterprises to gain sustainable competitive advantages. However, in the process of strategy implementation, enterprises should choose appropriate methods according to different degrees of environmental uncertainty. In a low environmental uncertainty, dynamic capabilities play a full intermediary role between GIS and sustainable competitive advantages. However, in a high environmental uncertainty, dynamic capabilities have no mediating effect between GIS and sustainable competitive advantages. This study not only integrates green management theory and strategic management theory but also makes up for the deficiencies in research on these theories and has important reference value for enterprises that seek to carry out green innovation activities.

The Effectiveness of Service Innovation Practices to Reduce Energy Consumption Based on Adaptive Theory

Research on service innovation appears in several research disciplines, with important contributions in marketing, management, and operations research. The purpose of manufacturing enterprise service is to reduce energy consumption. We offer a new account based on an adaptive theory perspective. This paper investigates the relationship among three types of service innovation practices and service innovation performance in manufacturing enterprise. The study further examines environmental uncertainty as a moderator between service innovation practices and service innovation performance. Data collected from 59 manufacturing enterprises in China, and is analyzed and used to validate the article’s theoretical and empirical contributions. The findings reveal that three types of service innovation practices have positive effects on service innovation performance. In addition, the results show that the effect of guide-based service innovation practices on service innovation performance is weakened in manufacturing enterprise when there are higher levels of environmental uncertainty. The effect of project-based service innovation practices on service innovation performance is weakened in manufacturing enterprise when there are higher levels of environmental uncertainty. Based on the results, this study provides implications for service innovation and support roles in fostering and sustaining innovation, which generate sustainable competitive advantage.

Adaptation Experience and New Foreign Market Entry: A Dynamic Capability Perspective

One of the most fundamental choices a MNE has to make is in which geographic markets it wants to be active. Building on insights from the dynamic capabilities and experiential learning literatures we try to shed new light on MNEs location choices by developing predictions concerning the effect of adaptation experience on the likelihood that a MNE enters a new potential host market. Namely, we propose that geographic adaptation experience and product adaptation experience increase the likelihood of a MNE entering a new potential foreign market. Moreover, we propose that the level of environmental uncertainty and volatility as well as how distant the potential host market is from the MNE’s home country act as important contingency factors of these effects. We find general support for our predictions using a sample covering 12,207 firms originating from 48 different home countries over a 7-year period.

The networking behavior of Indian executives under environmental uncertainty abroad: An exploratory analysis

Focused networking has become a significant source of effective internationalization. Prior research has shown that networking can improve the internationalization performance of companies, as local contacts provide access to relevant information that is typically unavailable otherwise. Several factors, such as the level of environmental uncertainty faced abroad, can significantly affect the optimal networking of senior executives in foreign markets. However, there is a lack of research about how environmental uncertainty affects ideal networking behavior. In this study, we examined the impact of the fit between environmental uncertainty and the networking behavior of Indian executives on the internationalization performance of their companies. We collected data from 197 Indian executives with significant experience in European and other markets to test our model. We examined five potential environmental uncertainty factors, including the FDI-related environment, the macroeconomic environment, the material and infrastructure environment, the consumption environment and the competitive environment, as well as four networking behavior dimensions, including proactivity, commitment, strategy and tie strength. The results from a profile deviation analysis reveal that ideal networking behavior profiles exist for different types and levels of environmental uncertainty. In summary, the findings from the study provide useful guidelines for Indian and other executives about how to network abroad given different types and levels of environmental uncertainty, and they offer new perspectives to improve the internationalization performance of these executives.

The Interacting Effects of Environment Uncertainty, Shared Humor and Entrepreneurial Team-Efficacy

One of the greatest challenges faced by new venture teams (NVTs) is trying to effectively lead their firms under varying degrees of environmental uncertainty. Despite this fact, little is known regarding why some NVTs, but not others, are able to attain high performance at different levels of environmental uncertainty. To address this point, the current research draws from social cognitive theory to develop a conceptual model of when NVTs’ use of shared humor and level of entrepreneurial team-efficacy might conditionally influence the relationship between environmental uncertainty and firm performance. The model is tested using survey data gathered from a national (USA) random sample of startups (N = 179) in combination with objective performance data from Dun and Bradstreet. Consistent with social cognitive theory’s core tenets, we find that NVTs’ use of shared humor and level of entrepreneurial team-efficacy each positively moderate the relationship of environmental uncertainty with the performance of t...

A transaction cost economics model for estimating performance effectiveness of relational and contractual governance

Purpose As outsourcing continues to grow, supplier management becomes critical to the success of manufacturing firms. Transaction cost economics (TCE) suggests that firms should choose supplier governance mechanisms to ensure fulfillment of contractual obligations and safeguard against opportunism for their outsourcing activities. Accordingly, the purpose of this paper is to examine how buying organizations govern supplier contracts to improve manufacturing competitiveness and financial performance. The relative effectiveness of two primary governance mechanisms, contractual governance (CG), and relational governance, are examined. Design/methodology/approach Expanding upon previous studies, this study delineates three relational governance mechanisms (negotiation efficiency (NE), problem solving relations, and information sharing (IS)) that are conceptually, statistically and pragmatically different. Based on the TCE literature, a conceptual model is developed to decipher the relationships between pre-contract conditions (supplier asset specificity and environmental uncertainty (EU)), governance mechanisms, performance ambiguity (PA), and performance. Using the data collected from 987 firms, the statistical results present several important findings that would advance current theory and practice in outsourcing. Findings The authors find empirical support for the effects of contractual and relational governance in improving manufacturing and financial performance. The governance of supplier contracts clearly facilitates manufacturers’ ability to leverage their resources to improve performance. The relative effectiveness of these two governance mechanisms is related to the levels of EU and supplier asset specificity. Relational governance displays greater influence on performance than CG does. However, CG appears to be complementary to relational governance. Research limitations/implications The interplays between supplier asset specificity and EU should be examined in the future. The relationships among NE, IS, and problem solving should also be examined to facilitate the development of relational governance. Practical implications Managers should be aware of the situational performance of governance mechanisms. Moreover, it is important to realize how differently each of the three relational governance mechanisms and CG contribute to performance. Originality/value This study extends the academic discussion of supplier governance by investigating the alignment of governance mechanisms (relational governance and CG) with pre-contract conditions to reduce PA and, thereby, enhance manufacturing performance. Under the theoretical framework of TCE, the direct and indirect effects of pre-contract conditions and governance variables are fully examined and discussed. Moreover, relational governance involves multiple mechanisms that are conceptually and pragmatically different, and future studies should not treat it as one single construct.