Uncertain Business Environment Research Articles

Neural mechanisms underlying competition-induced optimal decisions in individuals with high entrepreneurial intention

In a rapidly changing and uncertain business environment, individuals with high entrepreneurial intention (HEI) inevitably need to compete or cooperate with others to maximize their gains. However, the effects of competition and cooperation on the risky decision-making and neural mechanisms of individuals with HEI are not clear. By combining the modified Devil Task and electroencephalogram (EEG) technology, the current study showed that a competition context is more likely to motivate optimal decisions and enhance the total decision gains for individuals with HEI than a cooperation context. A positive relationship between the frequency of optimal decisions and the total gains of decision-making for individuals with HEI was also found, and this relationship was mediated by the degree of entrepreneurial intention. The EEG results showed that individuals with HEI made decisions in the competition context with greater P2 amplitude of frontal regions than in the cooperation context, and source localization analyses revealed that this difference in brain activity was manifested in the medial prefrontal cortex. Finally, the results revealed a positive relationship between the P2 amplitude and the degree of entrepreneurial intention of individuals with HEI. Overall, the study suggests that competition is an effective way to motivate individuals with HEI to make optimal decisions and, thus, maximize their profits, providing new perspectives on ways to promote successful entrepreneurship.

Transformational Leadership Style and Team Innovation: The Moderating Role of Leaders’ Emotional Intelligence

Organizations around the world continuously confront a wide range of challenges, risks and obstructions occurring in dynamic and complex business environment. These vulnerabilities keep on menacing their sustainability and appropriate functioning. Given such uncertain external pressures, the capabilities of employees working in teams within these organizations have become crucial and by time evolving as their viable assets. Business leaders are often tested for their agility in response, resource base sufficiency and innovative outcomes through unpredicted crises. Leading in tough times is itself a toughest challenge in face of unparalleled environmental pressures. It is therefore important to understand and explore what entails a successful leadership role for teams to remain innovative given any drastic change occurs. The objective of intended research was to address gaps in the understanding and comprehension of team innovation through leadership and leaders’ emotional intelligence in order to identify how leaders derive their teams in uncertain business environments. This study determined the influence of transformational leadership on team innovation with emotional intelligence of leaders as a moderating variable. The results showed that a relationship exists between transformational leadership and innovation in teams in an uncertain environment. Transformational leadership boosted employee innovation in teams. Accordingly, emotional intelligence has been seen as ability of leaders to make a set of norms that recognize employees in teams; yet, unpredicted effect of emotional intelligence on the relationship between transformational leadership and team innovation has been witnessed in this research.

CRISIS COMMUNICATIONS STRATEGIES DURING WAR

The article substantiates the relevance of the research of crisis communication strategies, outlines possible ways of their organization, which will ensure stability and successful activity in an uncertain business environment. The peculiarities of communication during a crisis have been determined. Reasoned role and functions of internal communications. An example of a communication-oriented risk management plan is given. The characteristics of corporate messengers, which are used by a large number of companies of various sizes and, especially, during remote work, are given. It has been proven that a necessary aspect of successful management during a crisis is the presence of strong and affective leadership. It was emphasized that in order to improve the internal climate and communications in the team, it is advisable to appoint a specialist responsible for team spirit, who will distribute functions so that each team member realizes himself as a part of the whole, makes his important contribution, on which the final result of the project depends. Communications in crisis situations can both warn, mobilize help, reduce negative consequences, and spread panic, strengthen myths and misinformation, and divide society for years to come. It will depend on the correctness and clarity of establishing crisis communications, the choice of specific communication technologies and the communication strategy for exiting a specific crisis. For this, the authorities must develop a plan for managing crisis communications in conditions of uncertainty. Therefore, the crisis is a complex phenomenon that contains both potential and real threats and the danger of losses, as well as new opportunities for renewal and transformation in organizations, creating new modern approaches to interaction. Martial law can affect the quality of governance due to restrictions on freedom of action and decisions, extraordinary circumstances and instability of the political and economic situation

Constructing a resilience measurement model for small and medium-sized enterprises in Vietnam: A PLS-SEM approach

Small and medium-sized enterprises (SMEs) constitute around 97% of the total number of businesses in Vietnam, which contributes to 60% of the national growth. In a dynamic and uncertain business environment, both domestically and internationally, the resilience of SMEs has become a topic of significant interest among researchers and practitioners. Resilience, however, is a multifaceted concept that depends on the specific context in which it is applied. Therefore, this study aims to construct a measurement model for assessing the resilience of SMEs in Vietnam. Drawing from a dataset collected from 500 SMEs and employing the PLS-SEM technique. the findings of this research indicate that the resilience index is a combination of reflective and formative models. Resilience at level three is a formative construct comprising four prioritized components: agility, anticipatory capability, flexibility, and adaptability. The reflective measurement model of agility, anticipation, flexibility, and adaptability confirms its reliability and validity. These findings form the basis for the effective allocation of resources to enhance resilience within SMEs. Understanding the nuanced aspects of resilience can benefit in developing targeted strategies to bolster SMEs against the challenges posed by an ever-changing business landscape.

Enhancing Supply Chain Resilience: Proactive Strategies for Disruptive Events

Purpose: This paper emphasizes the significance of proactive strategies in enhancing supply chain resilience against disruptions, focusing on natural disasters, geopolitical instability, and pandemics. Through risk assessment, scenario planning, and proactive measures like diversification, inventory optimization, and technology adoption, it proposes an integrated methodology for resilient supply chains. Methodology: Drawing from literature and real-world examples, this study develops a framework for supply chain resilience, emphasizing contingency planning and implementation techniques. Findings: The integrated methodology enhances companies' resilience and recovery capacity, mitigating the severity of disruption effects. Practical recommendations are offered for developing resilient supply chains in uncertain business environments. Unique Contribution to Theory, Practice and Policy: This study contributes by offering actionable recommendations, bridging theory and practice, to fortify supply chains against instability and uncertainty, thereby advancing both theoretical understanding and practical applications in supply chain resilience planning.

Understanding dynamic capabilities in emerging technology markets: antecedents, sequential nature, and impact on innovation performance in the extended reality industry

PurposeThe purpose of this study is to empirically investigate the role of dynamic capabilities, specifically the sequence of sensing, seizing, and transforming capabilities, in highly uncertain, emerging technology environments. Focusing on the extended reality industry, the study aims to understand the antecedents to these dynamic capabilities, their sequential nature, and their subsequent impact on innovation and company performance.Design/methodology/approachBased on a survey of 130 German companies in the extended reality sector, we built a structural equation model that explores the relationship between dynamic capabilities, their antecedents, and their effect on innovation and company performance.FindingsThe analysis suggests that sensing capabilities positively influence seizing and transforming capabilities, while seizing directly contributes to transforming. Transforming capabilities are linked to improved innovation performance, which in turn boosts company performance. Organizational ambidexterity, market orientation, and technology orientation are found to be crucial antecedents, accounting for 33.1% of the variance in sensing capabilities.Originality/valueThis research illuminates the interdependence of dynamic capabilities in highly uncertain business environments, such as emerging technology markets. It contributes original insights by elucidating the sequential nature of dynamic capabilities and identifying their vital antecedents. It also enlarges the understanding of how dynamic capabilities impact firms’ innovation performance.

Antifragility, resilience and collaborative networks of SMEs: a theoretical foundation

PurposeThe dynamic of the business environment has escalated the competition and uncertainty, which is challenging business survivability, particularly for small and medium enterprises (SMEs). SMEs attract researchers due to their unique characteristics that have limited resources but great flexibility and adaptability. Furthermore, Collaborative Networks (CNs) have been proposed by business scholars as a critical strategy to gain resilience and antifragility. However, the concept of antifragility and its relation with CNs is still vague in the SME sector. Therefore, this study aims to develop a complete understanding regarding: (1) the emerging knowledge that is critical in explaining antifragility in the business sector based on co-citation and thematic analysis; (2) the relation between resilience and antifragility in emerging business research; (3) the relation between CNs and antifragility in emerging business research and (4) a framework of antifragility in the SME context.Design/methodology/approachBibliographic Analysis and Systematic Literature Review are performed to reach the research objectives. We use co-citation and thematic analysis to identify the map of emerging knowledge and the related concepts, which are the fundamentals of antifragility. Furthermore, we use a systematic literature review to determine the relation of antifragility, resilience and CNs in the SME context.FindingsAntifragility is a higher level of survivability compared to resilience. Antifragile SMEs could gain an advantage from the uncertain business environment. However, both in resilience and antifragility, SMEs should become active learners. Furthermore, CNs are proposed as the gateway for SMEs to manage their resource limitations. The conceptual framework of Antifragile SMEs is presented as the theoretical contribution of this manuscript.Originality/valueThis article explains the knowledge structure of antifragility in the business sector, particularly among SMEs. Based on bibliometric data, we describe critical characteristics or mental states entrepreneurs should have when facing uncertainty. Furthermore, we propose a conceptual framework for antifragile SMEs where active learning and positive psychology are the pillars, and CNs are critical ingredients of antifragility in SMEs.

Exploring the affordable loss principle: a systematic literature review

Objective: This article investigates how academic research in business and management approaches the Affordable Loss Principle (ALP) concept. We identify what researchers observed from the ALP lens, what they found, and which conclusions they reached to develop a future research agenda. Method: This study analyzes 51 recent research articles through a systematic literature review to evaluate the current state and developments in the domain of ALP. Main Results: Using the VOSviewer software, the articles are clustered into three groups of primary subjects. The Performance cluster examines how ALP and effectuation influence company performance. The Motivation cluster delves into the motivational aspects behind decision-making processes in businesses. The Assessment cluster focuses on validating measurement scales for effectuation logic, particularly in the context of ALP. Relevance / Originality: The study underscores the critical role of ALP in fostering resilient and adaptive entrepreneurial strategies in uncertain business environments. It highlights the distinctive approach of ALP in encouraging entrepreneurs to engage in risk management strategies that focus on potential losses rather than maximum possible gains. Theoretical / Methodological Contributions: This article contributes significantly to the scholarly understanding of effectuation logic by providing a comprehensive framework of the current research landscape around ALP. It aids emerging researchers by mapping the existing literature and suggesting future research directions. In addition, it offers practical insights into implementing effectuation principles, particularly ALP, in entrepreneurial practices, thereby enhancing decision-making in dynamic and unpredictable markets.

Risk Mitigation and Strategies in Aviation

In today's dynamic and uncertain business environment, organizations face countless risks that can significantly affect their operations, finances and reputation. The spectrum of risks is broad and constantly evolving, from natural disasters and economic downturns to cyber security threats and regulatory changes. Effective risk management is essential for organizations to manage these uncertainties and protect

Multi-item order quantity optimization through stochastic goal programing

AbstractManaging multi-item economic order quantity (MIEOQ) problems within an uncertain business environment is a critical challenge. Decision-makers, with a comprehensive understanding of organizational goals and risk tolerances, play a pivotal role in this context. However, existing solutions often inadequately consider decision-maker preferences in MIEOQ problem-solving. The literature suggests that integrating the concept of satisfaction function with stochastic goal programming (SGP) can address this issue. However, the existing SGP approaches struggle with the challenge of effective goal setting. Additionally, employing distinct satisfaction functions for each uncertain goal can complicate threshold setting, diminishing their effectiveness. To tackle these challenges, we introduce a straightforward, yet effective approach called aspiration-free goal programming (AFGP) and integrate it with a unified satisfaction function. AFGP operates by minimizing expected values of deviation variables, eliminating the challenging task of goal setting under uncertainty. A unified satisfaction function is a singular metric applied uniformly across multiple goals, offering a consistent framework for evaluating performance across diverse objectives. This integration forms a preference-sensitive framework that not only captures nuanced trade-offs between conflicting objectives but also enhances decision quality and stakeholder satisfaction. By emphasizing the importance of decision-maker’s preferences and addressing identified issues, our research introduces a practical and effective approach for achieving balanced solutions in uncertain MIEOQ environments.

Enhancing Logistics Performance through Increased Trust and Collaboration in Supply Chain Risk Management: A Focus on the Distribution Network of Manufacturing Companies

This study aims to explore the significance of trust among companies within the supply chain and investigate its effect on collaborative supply chain risk management. In the current uncertain business environment, it is crucial for companies to establish trust relationships with their trading partners and collaboratively manage risks. This research seeks to understand how such trust relationships influence collaborative risk management and, subsequently, the effect of risk management collaboration on logistics performance. This study surveyed manufacturing companies in the Korean supply chain, and data were analyzed using SPSS 23.0 and AMOS 23.0. The results of this study imply that cognitive trust, related to the partner’s expertise and capabilities, is more crucial than emotion-based affective trust in fostering collaborative supply chain risk management among companies within the supply chain, especially in the current unpredictable and complex business environments. Given the supply chain disruptions caused by uncertainties in the business environment, it is imperative to effectively manage risks and restructure the disrupted supply chain. Therefore, companies need to strive to demonstrate their expertise and capabilities to build cognitive trust and enhance logistics performance through supply chain risk management collaboration.

Entrepreneurial orientation and socioemotional wealth as enablers of the impact of digital transformation in family firms

PurposeThe research aims to investigate how digital transformation (DT), entrepreneurial orientation (EO) and socioemotional wealth (SEW) impact the financial performance of family firms in uncertain business environments. Drawing from existing literature, we propose that DT and EO drive firm performance. Additionally, we suggest a new role for SEW, which positively moderates this relationship in family firms, especially in terms of risk behavior and innovation for survival.Design/methodology/approachWe used the STEP Consortium’s 2020–2021 database, derived from a global survey that explored how family businesses responded to environmental shocks. Following STEP’s definitions, we proposed three hypotheses and tested two models using structural equation modeling.FindingsThe findings show that EO significantly enhances the impact of DT on family firm performance. Family businesses exhibit a notable willingness to take strategic venture risks to protect their SEW. These findings align with conclusions drawn in related literature, supporting all hypothesized relationships proposed.Practical implicationsThe study has made an applied contribution by challenging the misconception that family firms are outdated and provides insights into supporting their approach to entrepreneurship, innovation and transgenerational entrepreneurship. Furthermore, it provides business families and consultants with a new view of SEW as a strategic asset.Originality/valueOur study adds to the literature by showing how entrepreneurial orientation catalyzes the positive impact of digital transformation on firm financial performance. We also highlight the contextual influence on family firm decision-makers' risk propensity, which affects SEW development and firm outcomes. This context dependency of SEW can hinder or enhance performance, offering new research and support avenues for family firms.

기업이 인지한 기업지원이 위기 관리정도와 기업 성과에 미치는 영향

This study aimed to verify whether the need for business support to survive in a rapidly changing external environment affects corporate performance and whether the degree of crisis management mediates this relationship. Accordingly, a study was conducted on companies in Jeju, specifically in the intelligent tourism service and green energy solution industries, which are promoting the digital transformation of traditional sectors in response to the COVID-19 pandemic. Therefore, policy support for companies was categorized into four groups: Infrastructure, R&D, Technology support, and Business support. The impact of each support program on corporate performance was then examined through the degree of crisis management within the company. The following is a summary of the research results.
 First, the relationship between business support and crisis management was verified, showing that the impact varied depending on the characteristics of the business support program. In the short term, it was analyzed that companies require direct support programs to overcome crises. Second, the relationship between business support and corporate performance was found to be statistically insignificant. Third, in the relationship between crisis management and corporate performance, it was confirmed that managing financial and material resources in the short term can improve corporate performance. Finally, in the relationship between perceived corporate support and corporate performance, as well as the relationship between infrastructure, R&D, technology support, and corporate performance, it was found that resource management has a complete mediating effect.
 The implications of this study confirm that business support in response to uncertain business environments affects crisis management simultaneously but does not immediately impact corporate performance. As business support may have a negative effect on short-term corporate performance from the perspective of support agencies, it is necessary to establish a direction for support by dividing short-term and long-term outcomes derived through business support.

Business Continuity Innovation in Disruption Time: Sociotechnical Systems, Business Analytics, Virtual Business, and Mediating Role of Knowledge Absorptive Capacity

The continuity strategy of business innovation to deal with the disruption condition, it is still many to be designed and explained. Referring to a sociotechnical systems (STSs) approach, this article conceptualizes and practically examines the business analytics, virtual business, and knowledge absorptive capacity that increase and produce the continuity capability of business innovation in uncertain business environment (e.g., COVID-19). We used SmartPLS to empirically evaluate the model based on 145 companies in a developing country of Indonesia that is currently under high disruption. Drawing a technical perspective, business analytics has successfully enhanced business continuity innovation and knowledge absorptive capacity. In a socio perspective, knowledge absorptive capacity significantly produces business continuity innovation. Business continuity innovation suffers if firms adopt virtual business without increasing their knowledge capabilities. Furthermore, mediating effects present higher support from management level to knowledge absorptive capacity strategy, a bigger impact for business analytics, and virtual business to improve and increase the goals opportunities of business continuity innovation. A novel contribution is the integration of STSs (business analytics, virtual business, and knowledge absorptive capacity) that drives business continuity innovation to deal and recover from uncertain environment. Our efforts also align several fields such as information technology-business alignment strategy, knowledge management, and knowledge-business services. Future research would be worthwhile and interesting whether our framework will suitable to different companies/respondents, business context, industry area, and crisis condition.

Modeling the Organizational Agility in the Architecture, Engineering, and Construction (AEC) Industry

In today's complex, dynamic, and uncertain business environment with increasing globalization, extreme competitiveness, and changing stakeholder needs, companies are expected to sense the change and respond appropriately. Agility is a significant concept that helps organizations survive, sustain as an operable entity, stay competitive, and become successful in a changing environment. Unlike the other sectors, agility has not been studied in detail in the architecture, engineering, and construction (AEC) industry. This article aims to investigate organizational agility of the AEC companies. In this respect, it proposes a model that includes the following components: organizational agility drivers (political, economic, social, technological, environmental, legal changes, the threat of new entrants, and rivalry among competitors), enablers (flat structure, changed culture, organizational learning, people, technology, and external relations), and capabilities (sensing, responsiveness, flexibility, and competency). The data to verify the model are collected from companies based in Turkey through an online questionnaire survey and analyzed by using structural equation modeling. According to the analysis results, the influence of agility drivers has not been found significant, changed culture directly contributes to higher levels of organizational agility, and responsiveness and flexibility are the major indicators of organizational agility. This study recommends the AEC companies to observe environmental changes and develop strategies enhancing the organizational agility enablers to address these changes.

Construct measurement for dynamic adaptive capability in Indonesian higher education

The ability of universities and colleges to adapt and respond effectively to these dynamic changes has become an important determinant of their success and relevance in the modern world. This study aimed to develop a comprehensive construct measurement tool to assess the dynamic adaptive capability (DAC) of higher education institutions in Indonesia. We collected data from 41 private universities in Indonesia. The DAC measurement construct consists of four main dimensions, identifying opportunities, creating, modifying and altering, and adapting to the dynamics of change. Each dimension consists of several indicators, which are assessed using face validity and quantitative methods. This study used confirmatory factor analysis (CFA) to determine construct validity and reliability by evaluating composite reliability (CR) and average variance extracted (AVE) values. The results of this study succeeded in validating and confirming the reliability of the DAC construct. The practical implications of these findings extend to organizations, notably higher education institutions seeking to increase their capacity to navigate a dynamic and uncertain business environment.

Should I Return or Not?

Jammu and Kashmir, famous for its picturesque beauty, is one of the most attractive and welcoming tourist hubs in India. The tourism industry contributes significantly to Jammu and Kashmir’s GDP. In addition to its scenic beauty, this union territory is rebranding itself with adventure, horticulture, cultural, eco, film, rural, spiritual and golf tourism. Following an uncertain business environment, new policies are being framed which may enhance investments. The government has taken several initiatives to develop an ambience and new favourable infrastructure simultaneously. Now the challenge is to determine if an individual (here Mrs Fatima Wani, a Canada-based entrepreneur) should invest in the hotel industry of this union territory. Since she inherited an ancestral property recently, can she now consider taking up this venture as the laws and environment are favourable to her?

Research on the Corporate Innovation Resilience of China Based on FGM(1,1) and Fuzzy-Set Qualitative Comparative Analysis Model

Over the past few years, the uncertain business environment has shaped the resilient development thinking of firms. Measuring and predicting innovation resilience plays a crucial role in fostering the sustainable development of enterprises. This paper used the entropy-weight TOPSIS model and FGM(1,1) model to measure the innovation resilience of companies based on an indicator system, covering aspects such as tolerance for factor scarcity, R&D safety, core technology self-sufficiency, and organizational change capacity. The results show that the MAPE of the FGM(1,1) model is 0.0136, which is lower than that of the GM(1,1) model, with the predicted annual growth rate of the resilience being −0.95% from 2020 to 2025. Consequently, the study investigated what policy configuration may improve innovation resilience using the fuzzy-set qualitative comparative analysis (fsQCA) model. It identified four policy configuration paths, of which the combination of a tax policy for an additional deduction of enterprise R&D expenses and an income tax reduction policy is an effective policy configuration. This research expands the application of the FGM(1,1) model and inspires managers to develop innovative policies to enhance corporate resilience.

Streamlining apartment provider evaluation: A spherical fuzzy multi-criteria decision-making model

In the context of the thriving real estate market in developing countries like Vietnam, understanding consumer preferences and effectively addressing them through a comprehensive multi-criteria decision-making (MCDM) framework is paramount for real estate providers. This study presents a two-stage MCDM model that integrates the Delphi technique and the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) based on Spherical Fuzzy Sets (SFSs). Initially, the SF-Delphi technique validates critical criteria influencing customers' apartment selection in Vietnam. Secondly, the SF-TOPSIS method evaluates the top ten apartment providers. To ensure robustness and validity, a comparative analysis compares the results with those from the Intuitionistic Fuzzy TOPSIS (IF-TOPSIS) and Fuzzy TOPSIS (F-TOPSIS) methods. Subsequently, five rank correlation coefficients (Spearman, Kendall, Goodman-Kruskal, Weighted rank measure of correlation, Weighted Similarity) are used to assess the relationships between various TOPSIS techniques applied to apartment suppliers in Vietnam. The correlation coefficients demonstrate strong agreement among the TOPSIS methods, with the smallest coefficient being 0.7778, surpassing the threshold of 0.7. This high level of consistency confirms the efficacy of the proposed TOPSIS approach with different Fuzzy Sets in reliably evaluating customers' preferences for apartment suppliers. Notably, the legal aspect's prominence underscores its critical role in shaping customer choices, emphasizing the significance of considering legal factors in the context of apartment supply and demand in Vietnam. Furthermore, using SFSs makes this approach particularly suited to capture consumer perceptions within the dynamic and uncertain business environment characterized by volatility, uncertainty, complexity, and ambiguity (VUCA).

Leadership and Strategy Business in VUCA World

This research aims to investigate the pivotal role of leadership and business strategy in addressing the challenges of the rapidly changing and uncertain business environment known as VUCA (Volatile, Uncertain, Complex, Ambiguous). In the context of ongoing globalization and technological transformation, organizations are facing increasing pressure to adapt and innovate. This study employs a comprehensive literature review methodology to identify key elements of effective leadership in managing the uncertainty, complexity, diversity, and ambiguity associated with VUCA. The research results yield a leadership and strategy model that integrates essential elements, including adaptive leadership, collaborative leadership, and responsive strategies. This model provides practical guidance for business leaders in developing strategies to tackle VUCA challenges and capitalize on existing opportunities. In a fast-paced business world, a deeper understanding of how to effectively combine these elements becomes the key to long-term success. This research holds significant relevance in understanding how organizations can achieve sustainability in the VUCA era and enhance their competitiveness. The proposed model offers a framework that can be applied across various industry sectors and can assist organizations in facing the challenges of an increasingly uncertain business environment more successfully.