Perceived Environmental Uncertainty Research Articles

Impact of Environmental Uncertainty on Depression and Anxiety Among Chinese Workers: A Moderated Mediation Model.

Environmental uncertainty has reached unprecedented levels in recent years. While there is substantial knowledge about the connection between environmental uncertainty and organizational outcomes, limited attention has been devoted to investigating its impact on employees' depression and anxiety symptoms. Grounded in job demands-resources theory, this study aims to explore the relationship between environmental uncertainty and employees' depression and anxiety symptoms, and it further investigates the mediating role of work pressure and the moderating role of union practices. In September 2022, we undertook a cross-sectional survey study, gathering data from 1081 employees across various enterprises situated in Liaoning, China. Throughout this timeframe, notable global occurrences heightened the awareness of environmental uncertainty. Following the exclusion of participants who did not provide information on the main variables, the final valid sample comprised 940 employees. To test all hypotheses, a series of confirmatory factor analyses and path-analytic procedures were conducted using Mplus 7.0. Our results confirm that environmental uncertainty, as a high job demand, increases employees' work pressure, thereby elevating rates of anxiety and depression; the indirect relationship between environmental uncertainty and employees' anxiety and depression through work pressure is stronger when union practices are lower. Our findings indicate the detrimental impact of environmental uncertainty on employees' mental health, and highlight the roles of work pressure and union practices. In light of this, organizations should take steps to mitigate employees' perceptions of environmental uncertainty and establish mental health programs, in cooperation with union practices, to protect employees' mental well-being.

Symmetrical and asymmetrical analysis of the complex relationship between perceived environmental uncertainty and creative performance: exploring a competency formula

Purpose In a dynamic and complex environment, employees’ creative performance (CP) can be essential in developing a distinguished and competitive strategy for an organization. Using the lens of competency management, this study aims to examine how employees perceived environmental uncertainty (PEU) and competency formula relate to employee CP, with a focus on the hospitality industry. Design/methodology/approach The data was collected from employees in the hospitality sector. Both symmetrical (PLS-SEM) and asymmetrical (fuzzy-set qualitative comparative analysis [fsQCA]) tests were performed to gain in-depth knowledge of how individual, organizational and environmental factors can be configured to explain employees’ CP. Findings The symmetrical analysis shows that the competency formula mediates the negative impacts of PEU on two dimensions of creativity – that is, novelty and utility. The fsQCA testing generated contrasting findings and revealed that uncertainty, along with the formula elements, is a unique antecedent condition and opportunity for employees’ CP. The inconsistent findings indicate asymmetrical and complex relationships between the proposed antecedents and outcomes in the case of employee creativity. Practical implications A combination of symmetrical and asymmetrical approaches is necessary to uncover the complex relationships among employees, organizations and the environment. This study shows that organizational agility, competency strategies and comprehensive strategic management processes can be configured to explain positive outcomes for organizations during uncertain circumstances. The findings can be used by human resource practitioners to maximize employee creativity and enhance organizational performance. Originality/value To the best of the authors’ knowledge, this study is the first to use symmetrical and asymmetrical testing to address the inadequacy of explaining employee CP in complex and uncertain environments, and highlight the crucial role of the competency formula in enhancing novelty and utility dimensions of CP. This research examines the impact of various internal and external factors (i.e. individual, organizational and contextual) on employee creativity within the hospitality industry.

The impact of perceived environmental uncertainty on green innovation: evidence from text recognition of Chinese listed companies' annual reports.

China has implemented a series of environmental policies aimed at promoting green and innovative development by enterprises, to mitigate the adverse effects of environmental pollution. However, the frequent revision and introduction of environmental policies have also increased enterprises' perception of environmental uncertainty. This study, based on the upper echelon theory, uses data from listed companies in China from 2011 to 2021 to construct an index of perceived environmental uncertainty of firms through textual analysis and empirically examines its impact on green innovation and its potential mechanisms and boundary effects. The results show that, first, perceived environmental uncertainty of firms has a noteworthy inhibiting impact on green innovation. Second, mechanism analysis reveals that perceived environmental uncertainty of firms inhibits green innovation mainly in two ways: reducing the level of transparency in corporate information and reducing R&D investment. Third, the moderating effect finds that government subsidies can mitigate the inhibitory impact of perceived environmental uncertainty on green innovation among firms. In other words, higher government subsidies correspond to a reduced inhibitory effect of perceived environmental uncertainty on green innovation among firms. In addition, heterogeneity analysis shows that this inhibition is more obvious in non-state-owned enterprises, small enterprises, and enterprises in non-heavy pollution industries. This study holds immense practical significance for enterprises in harnessing the opportunities of green innovation amidst perceived environmental uncertainty, facilitating progressive green development, and ultimately fostering the harmonized growth of economic and environmental benefits for enterprises.

Effects of eco-friendly fishing gears on fishermen's welfare and sustainable fisheries: Lessons learned from Indonesia

The eco-friendly fishing gears (EFFGs) have been widely suggested as fishing gears for sustainable blue economy development. This study aims to examine the effects of the utilization of the EFFGs of blue swimming crab (BSC) on fishermen's welfare and sustainable fisheries by taking Indonesia as a case study. The number of fishermen randomly sampled was 647. The method used to analyze the data was the Endogenous Switching Regression model. The results showed that factors that have significant positive effects on fishermen's decision to adopt the EFFGs are the membership of fishermen in fisheries groups, credit access to financial sources, decision synchronization, financial capability, and fishers' perception of environmental uncertainty. Meanwhile, the complexity of fishing gears and buyer pressure have significant negative effects on fishermen's decisions to adopt EFFGs. The results also confirmed that the welfare of BSC's fishermen is better off and received positive benefits for the preservation and regeneration of resources by using the EFFGs compared to the non-EFFGs. Therefore, the application of the EFFGs for BSC fisheries supports the sustainable blue economy development goals and needs to be recommended for other coastal areas in developing countries.

Model of Fit Perceived Environment Uncertainty (PEU) and Budgetary Characteristics on Managerial Performance: A Residual Approach

This study examines effects of budgetary goal characteristics that are budgetary participation, budget goal clarity, budget goal difficulty, budgetary feedback on managerial performance using regression analysis (stepwise). This study also examined the contingency theory to seen the fit between budgetary goal characteristics system and environment on organization effectiveness, in this case budgetary system and perceived environmental uncertainty (PEU) to increasing managerial performance using residual approach. The application of residual analysis is illustrated by examining the interaction fit of budgetary goal characteristics and perceived environmental uncertainty and their effect on managerial performance. Residual approach used to enhance the potential for model of fit and be unformattable for future management accounting contingency theory studies. Based on the response of 64 managers in Makassar Industrial Area. The results of the study showed that that budgetary participation and budget goal clarity tend to have positive and significant effect on managerial performance. The results related to influence of budgetary goal’s difficulty level (about right, tight but attainable, too tight) to the average of managerial performance also showed insignificant relationship. This study showed that lack of fit between budgetary participation and budgetary goal clarity to environment uncertainty have negative and significant correlation with managerial performance.

Immersed in Coleman's bathtub: multilevel dynamics driving new venture survival in emerging markets

PurposeThe authors probe the relationships between country institutional support for entrepreneurship and new venture survival. Specifically, the authors unpack the nuanced influences of entrepreneurs' perceived environmental uncertainty and their subsequent entrepreneurial behavioral profiles and how this particularly bolsters venture survival in contexts with underdeveloped institutions for entrepreneurship.Design/methodology/approachColeman (1990) ‘bathtub’ framework is applied to develop a model and propositions surrounding how and when emerging market entrepreneur's perceptions of their countries institutional support toward entrepreneurship can ultimately enhance new venture survival.FindingsEntrepreneurs' interpretations of regulatory, cognitive and normative institutional support for private enterprise helps them embrace uncertainties more accurately reflective of “on the ground” realities and stimulates constructive entrepreneurial behaviors. These are critical for increasing survival prospects in characteristically turbulent, emerging market contexts that typically lack reliable formal resources for cultivating nascent ventures.Practical implicationsThis paper has implications for international policymakers seeking to stimulate and sustain entrepreneurial ventures in emerging markets. The authors shed light on the practical importance of understanding the social realities and interpretations of entrepreneurs in a given country relating to their actual perceptions of support for venturing—cautioning a tendency for outsiders to over-rely on aggregated econometric indices and various national ‘doing business' rankings.Originality/valueThis study is the first to create a conceptual framework on the mechanisms of how entrepreneurs in emerging economies affect new venture survival. Drawing on Coleman's bathtub (1990), the authors develop propositional arguments for a multilevel sequential framework that considers how developing economies' country institutional profiles (CIP) influence entrepreneurs' perceptions of environmental uncertainty. Subsequently, this cultivates associated entrepreneurial behavior profiles, which ultimately enhance (inhibit) venture survival rates. Further, the authors discuss the boundary conditions of this regarding how the national culture serves to moderate each of these key relationships in both positive and negative ways.

Thriving in uncertainty: examining the relationship between perceived environmental uncertainty and corporate eco-innovation through the lens of dynamic capabilities

Introduction: Objective environmental uncertainty has important impacts on entrepreneurial decision-making, but entrepreneurs’ perception of uncertainty may be a more crucial factor. This is because objective environmental uncertainty may need to be filtered through entrepreneurs’ perceptions to influence their decision-making. Therefore, exploring how entrepreneurs’ perceived environmental uncertainty (PEU) affects their corporate eco-innovation behavior has significant theoretical and practical implications.Methods: Drawing on the dynamic capability view, we utilize data from the 2016 China Private Enterprise Survey (CPES) on 2,733 small and medium-sized enterprises (SEMs) to highlight the impact of entrepreneurs’ PEU on corporate eco-innovation. We also examine the moderating effect of government intervention (government subsidies and government official visiting) on this relationship.Results: Our study reveals a positive impact of entrepreneurs’ PEU on corporate eco-innovation, confirming the critical role of dynamic capability in corporate strategic adjustment under uncertain conditions. Additionally, we find that government intervention (government subsidies and official visits) has a positive moderating effect on this relationship, with entrepreneurs’ PEU and eco-innovation being mediated by corporate dynamic capability.Discussion: The study contributes to the literature on environmental uncertainty, dynamic capabilities, and eco-innovation, and provides practical implications for SMEs in developing countries. The findings highlight the importance of subjective perceptions of environmental uncertainty over objective uncertainty. The study also demonstrates that environmental uncertainty is not inherently negative, but can be managed strategically with dynamic adjustment and government support.

PERCEPTION OF UNCERTAINTY AND GREEN INNOVATION: MACHINE LEARNING EVIDENCE FROM PUBLICLY LISTED FIRMS IN CHINA

Using a unique panel dataset consisting of 2997 Chinese manufacturing firms publicly listed in the A-share market between 2003 and 2020, we examine whether and to what extent a firm’s perception of uncertainty affects green innovation. After integrating textual analysis with a machine learning approach to measure perception of uncertainty, we find that a firm’s perception of environmental uncertainty negatively affects the number of green patents submitted or approved. The negative effect is weaker for firms followed by more professional analysts, operating in more competitive markets, or located in regions with better institutional settings. In addition, there is significant heterogeneity in the negative effect between non-state-owned versus state-owned firms as well as polluting versus non-polluting firms. The results are robust to different measures of green innovation and perception of uncertainty, and after addressing for potential endogeneity problem. Our study contributes to the literature on behavioral environmental economics by demonstrating that it is not only the environment uncertainty but also how firms perceive the uncertainty matters for green innovation and corporate social responsibility.

The use of non-financial performance measures for managerial compensation: evidence from SMEs

This study explores the relationship between contextual variables—strategy, perceived environmental uncertainty (PEU), and decentralization—and the use of non-financial performance measures (NFPM) for managerial compensation in small and medium enterprises (SMEs). Using questionnaire data from SMEs’ managers, we find that the use of NFPM is positively associated with PEU hostility and decentralization. Furthermore, our study shows that these results are mostly driven by CEO’s compensation (in comparison to non-CEOs compensation) and family firms (in comparison to non-family firms). Finally, our analyses reveal that the use of different types of NFPM (customer-oriented, employee-oriented and operations-oriented) is associated with distinct contextual variables. Particularly, customer-oriented NFPM are negatively related to PEU dynamism and positively related to decentralization, while operations-oriented NFPM are positively related to PEU hostility.

SME Top Management Perception of Environmental Uncertainty and Gender Differences during COVID-19

Environmental scanning has become increasingly crucial for an organisation’s existence and a matter of interest for scholars and professionals. This research presents an outline of the situation in the field of multidimensional environmental scanning, focusing on Slovenian micro, small and medium sized organisations during the COVID-19 pandemic. Therefore, the paper aims to examine if top managers perceive the multidimensional (external) environment as uncertain and if there have been gender differences in multidimensional (external) environmental uncertainty perception during the COVID-19 pandemic. We researched the field of ecological, social, technological, economic, and political–legal environments. The nonparametric Mann–Whitney U test and descriptive statistics were used to test the research hypotheses. The results show that top managers are not aware enough of multidimensional environmental uncertainty. They do not perceive the ecological and social environment as unpredictable at all. Among the studied environments, they perceive the political–legal environment as most unpredictable. There are no statistically significant gender differences in perceptions of ecological, social, technological, economic, and political–legal environmental uncertainty. We suggest SME top managers pay more attention to environmental uncertainty and use environmental scanning methods to achieve more sustainable development.

Contextual factors moderating the impact of strategic management accounting on competitive advantage

PurposeThis study investigates the influence of six interrelated contextual factors, namely organisational structure, quality of information technology, business strategy in terms of deliberate strategy-formulation, market orientation, market competition and perceived environmental uncertainty (PEU), on the usage intensity of innovative management accounting techniques commonly referred to as strategic management accounting (SMA); the impact of SMA usage on competitive advantage; and the moderating influence of the contextual factors on the relationship between SMA usage and competitive advantage.Design/methodology/approachSurvey data were obtained through a structured questionnaire from publicly listed manufacturing companies on the main board of the Nigerian Stock Exchange (NSE). Ordinary least squares (OLS) regression and moderated regression were used to analyse data. Both exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) were used to examine the validity and reliability of variables as first and second order of analysis. Structural equation modelling (SEM) (maximum likelihood estimation method) was applied to assess the robustness of result.FindingsMarket orientation and deliberate strategy-formulation emerged as significant determinants of SMA usage intensity. Although there is a significant relationship between SMA usage and competitive advantage, the strength of the relationship is moderate. Organisational structure, deliberate strategy-formulation and PEU significantly moderate the relationship between SMA usage and competitive advantage.Research limitations/implicationsThe emergence of deliberate strategy-formulation, as both a significant predictor of SMA usage intensity and as the strongest moderator of the relationship between SMA usage and competitive advantage, establish that it is organisations that take a proactive approach to strategy issues that may derive the most benefit from SMA utilisation.Practical implicationsThe result from this study brings to fore the need to involve management accountants in strategy-formulation and implementation in order to leverage their competence in deploying SMA techniques to enhance organisational competitiveness.Originality/valueThe current study is the first, to the researcher's knowledge, to specifically examine interrelated contextual factors distinctively affecting SMA usage and organisational competitiveness in a developing country. Whilst these six factors have been stressed as important determinants of the adoption of innovative management accounting techniques, the study provides empirical evidence on the extent to which they exert on SMA. The study presents empirical evidence on the relevance of market orientation—a construct which has surprisingly received little research attention in management accounting literature—as a variable which could affect the adoption of management accounting innovation.

Testing of Strategic Management Accounting Contingency Model on SME Performance in Maluku

The sustainability of SMEs is supported by various important factors, both financial and non-financial. This study examines non-financial factors, namely the management accounting adoption model on the performance of SMEs in Maluku. The sample of this study consisted of 63 UKM units located in Ambon City, SBB Regency and Central Maluku Regency. The testing of management accounting adoption contingency models is carried out using path analysis. The result showed that management accounting adoption is a mediator of the relationship between the level of innovation and technology adoption in manufacturing activities with the performance of SMEs. However, this study has not succeeded in proving the relationship between manager characteristics and managers' perceptions of environmental uncertainty with the decision to adopt strategic management accounting by business units. These results indicate that there is a need for further introduction to the benefits of a strategic management accounting system as an important instrument in streamlining the business value chain.

Management accounting systems effectiveness, perceived environmental uncertainty and enterprise risk management: evidence from Jordan

PurposeThis study aims to investigate the direct relationship between management accounting systems effectiveness (MASE) and enterprise risk management (ERM). In addition, it aims to investigate the interaction (moderating) effect of each of the four informational characteristics of MASE and each of the three components of perceived environmental uncertainty (PEU) on ERM, using empirical evidence from the developing country's Jordanian market.Design/methodology/approachThe study population includes all Jordanian companies listed on the Amman Stock Exchange at the end of 2019, and the study sample consists of all these companies (complete surveying – census population). This study chooses a quantitative method through a survey design approach using questionnaire as the best method for data collection.FindingsThe summation of the relationship and interaction effects (moderation) examined by this study are as follows: three of the four informational characteristics of MASE, namely, a broadness of scope, an aggregation and an integration, have a positive direct relationship with ERM. The characteristic ‘timeliness’ has non-significant negative relationship with ERM. Additionally, the interaction (moderating) effect of higher levels of two informational characteristics of MASE, namely, a timeliness and an aggregation and higher level of perceived competitor uncertainty, will result in a higher ERM implementation.Research limitations/implicationsThe results of this study have significant ramifications for numerous companies, administrators and interested parties, as they may allow them to build and sustain effective accounting processes for management. These results support adopting sophisticated management accounting systems (MASs) instead of traditional systems in the companies to help them in improving the information quality and control levels, as well as reducing the risks by implementation of ERM. In addition, to ensure that companies are confronted with the environmental factors they face. The results of the present study will enable administrators to develop a deeper understanding of such management accounting systems.Originality/valueTo the best of the knowledge, this is the first study of Jordan to investigate the relationship between MASE and ERM, moderated by PEU. As such, the study raises significant findings, drawing attention to MASs and their role in Jordan.

The moderating effect of perceived environmental uncertainty and task uncertainty on the relationship between performance management system practices and organizational performance: evidence from Vietnam

This study examines the moderating effect of perceived environmental uncertainty (PEU) and task uncertainty on relationships between performance management system (PMS) practices and organizational performance in Vietnam. We examine the five PMS practices codified by Ferreira and Otley's paper in 2009,adopting non-financial performance measures (NFPMs), decentralizing decision-making, lower-level manager participation in setting organizational performance targets, interactive use of NFPMs, and objectivity in performance evaluation and rewards. Employing partial least squares structural equation modelling (PLS-SEM) to analyze survey data obtained from managers of companies listed on the Vietnamese Stock Exchange, we find three PMS practices—adopting non-financial performance measures (NFPMs), decentralizing decision-making, lower-level manager participation in setting organizational performance targets—are positively associated with organizational performance. However, these positive associations are considerably malleable in the face of PEU and task uncertainty. Our finding suggests that only lower-level manager participation in setting organizational performance targets positively impacts organizational performance under PEU, whilst only decentralizing decision-making has a significant and positive effect on organizational performance under task uncertainty. The study contributes to a growing body of knowledge on the effectiveness of PMS practices for organizational performance, particularly in times of uncertainty.

Productive dynamic capability, environmental uncertainty, and organizational performance: an analysis of micro and small-sized agroindustries in Southern Brazil

Purpose: The purpose of this research was to correlate the constructs of productive dynamic capability and organizational performance mediated by environmental uncertainty in micro and small agroindustries of Brazilian states such as the Rio Grande do Sul, Santa Catarina, and Paraná.Methodology: In order to reach the expected aim, quantitative research using the survey technique was developed. The sample that was used consisting of 138 small and micro-sized of southern Brazilian agroindustries. It was performed confirmatory factor analysis and structural equation modeling for the data analysis. In order to analyze the mediation, the two dimensions of environmental uncertainty, complexity, and dynamism were analyzed each one isolated.Findings: The outcomes show a positive correlation between productive dynamic capability and performance in rural agroindustries. The mediation of both complexity and dynamism presented a positive statistical significance, that is the environmental uncertainty mediated the relationship. This study suggests that the agroindustries productive dynamic capability contributes to its performance, and the perception of environmental uncertainty influences this relation.Originality/Value: The study contributes to the dynamic capabilities’ theory, advancing and providing new empirical evidence to the investigations on dynamic capabilities, specifically on productive dynamic capability, when relating the performance construct in micro and small agroindustries. It also contributes to the environmental uncertainty field through its mediating effect on the relation between productive dynamic capability and organizational performance.

MEDIATING ROLE OF THE PERCEPTION OF ENVIRONMENTAL UNCERTAINTIES OF IMPACT ANALYSIS ON INTELLECTUAL CAPITAL AND CORE COMPETENCIES

Entelektüel sermayenin değere dönüştüğü, reel dünyada anlam ve nitelik kazandığı kapsam temel yetenekler olarak ifade edilmektedir, çünkü temel yetenekler konsepti sürdürülebilir rekabet avantajı sağlamak için örgütün eşsiz özelliklerini veya ürünlerini öne çıkardığı alan olarak betimlenmektedir. Her iki kavram arasındaki etki ilişkisinde ise çevresel koşullar ve çevresel belirsizlik algısının aracı etkisi oldukça belirleyici olmaktadır. Söz konusu koşullar ve durumlara ilişkin algıdan bağımsız ilişkinin modellenmesi doğru genellemeler yapılmasına mani olabilmektedir. Alan yazınından ve bu alanda yapılan benzer ampirik araştırmalardan yola çıkılarak bu çalışmada, entelektüel sermaye ile temel yetenekler arasındaki etki analizleri, çevresel belirsizlik algısının aracılık rolü etkisi dâhilinde tartışılmaktadır. Etki analizleri ve aracılık rolü yapısal eşitlik modeliyle analiz edilmiş olup veri toplama aracı olarak online anket formu kullanılmıştır. Çalışma devam ederken vuku bulan Covid-19 global salgınının (pandemi) bütün dünyayı etkisi altına alması ve insanların evlerinde karantina altında tutulması sonucu çalışmanın veri toplama sürecinde yüz yüze matbu anket formlarına başvurulamamıştır. Araştırmanın örneklemini yenilikçi girişimlerde (startuplarda) görev yapan girişimciler oluşturmaktadır. Araştırmanın evrenini oluşturan alan 6.614 yenilikçi girişimden 2762 girişimciye çevrimiçi anketler gönderilmiş olup 245 katılımcıya ait veri araştırmanın analizlerine dâhil edilmiştir. Araştırmanın veri analizlerinde AMOS, SPSS ve LISREL yazılımları tercih edilmiş olup varsayımsal ve ampirik çalışmalar doğrultusunda oluşturulan hipotezler yapısal eşitlik modeli tekniğiyle test edilmiştir. Çalışmanın sonucunda entelektüel sermaye ve temel yetenekler üzerine etki analizlerinde çevresel belirsizlik algısının aracılık rolü olduğu tespit edilmiştir.

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

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.

Management Accounting System, Perceived Environmental Uncertainty and Corporate Performance in the Nigeria Breweries Sector.

The study examined the effect of Perceived Environmental Uncertainty on the Implementation of Management Accounting Systems on performance of Breweries Companies in Nigeria. Survey design method was adopted to gather data from respondents using structured questionnaire designed using likert-scale. Data were analysed using correlational and inferential statistics. Results shows R2 of 0.759 and F-value of 172.88 which provide ample confirmation on the effect of adoption of Management Accounting Systems (MAS) based on Perceived Environmental Uncertainty (PEU) on organizational performance in the Breweries sector of the Nigeria economy following the high correlational positive relationship between the variable studied. It is concluded that adoption of Management Accounting systems based on perceived Environmental Uncertainties has enhanced the performance of the sector when tailored to the level of Environmental Uncertainties facing the Sector: It is recommended that contingent approach should be adopted in designing MAS so as to ensure provision of reliable and relevant information for product cost and pricing.

Managerial perceptions of cost-system obsolescence and factors that might affect it

PurposeThis study aims to report the descriptive statistics of cost-system obsolescence (CSO) in the Turkish hotel industry and contingent factors that affect the CSO.Design/methodology/approachTo validate the reflective measurement model, first, an exploratory factor analysis in statistical package for social sciences was conducted. Then, a confirmatory factor analysis using maximum likelihood in analysis of moment structures was performed to establish the reliability and validity of the construct measurements.FindingsThe results demonstrate that CSO symptoms did not occur frequently in sample Turkish hotels. Turkish hotels were found to operate in intense competition and a significant relationship between competition intensity (CI) and CSO takes place. The hospitability industry has been perceived as rather uncertain. However, perceived environmental uncertainty (PEU) had no significant effect on CSO, and there was no mediation effect on the relationship between CI and CSO. Turkish hotels were found to perform market-orientated activities at a mediocre level. However, no significant relationship was found between market orientation (MO) and CSO. Additionally, Turkish hotels with decentralized decision-making structures and “prospector-type” strategies were found to have less CSO. On average, Turkish hotels have centralized decision-making structures and pursue “analyzer-type” strategies.Practical implicationsThis study contributes to previous literature related to accounting information in the hotel industry. It also aims to give additional insight into Turkish hotels’ competitive environment, MO activities, decision-making structures and strategies and their association with CSO.Originality/valueThe study examined CSO in the Turkish hotel industry and factors that affect CSO. The study results provide additional insight into Turkish hotels’ competitive environment, MO activities, hotel structure and strategy. A new model to test CSO was created and validated using structural equation modeling (SEM).

DETERMINING THE MODERATING EFFECT OF PERCEIVED ENVIRONMENTAL UNCERTAINTY - MANAGEMENT ACOUNTING INFORMATION SYSTEMS RELATIONSHIP IN INDONESIA MANUFACTURING COMPANIES

This study examines the effect of perceived environmental uncertainty (PEU) on the design of management accounting information system (MAIS) which is moderated by decentralization. MAIS is design to provide chief executive officers information to make decision, planning, and controlling was defined in terms of the extent to which managers use time information characteristics ofbroad scope, timeliness, and aggregation in manufacturing finns. The study of 158 chief executive officers that have responsible for an organization, drawn from the manufacturing companies in Jakarta, Tangerang, Bogor, and Kerawang. The questionnaire survey, which was analyzed by using a regression analysis, suggests that PEU have an effect on the aggregated MA S information moderated by decentralization.Keywords: PEU, MAIS, Manufacturing Companies, Decentralization