Uncertain Business Environment Research Articles

“Dodging the bullet”: are effectual managers better off in a crisis? A case of Ghanaian agricultural SMEs

PurposeThis study aims to investigate the effectiveness of causation decision-making and effectual decision-making logic in challenging economic situations within agricultural small and medium-sized enterprises in Ghana.Design/methodology/approachThe authors collect and derive composite variables from effectuation, causation, financial capital availability (FCA) and crisis performance data through a randomized system based on literature precedents. This study analyzes the data using descriptive analysis, confirmatory factor analysis and ordinary least squared regression through STATA 15.FindingsThe authors find that effectual managers are indeed better off during crisis conditions. Also, there is a significant moderation relationship between the effectuation, FCA and crisis performance.Originality/valueFrom strategic management and entrepreneurial process standpoint, the effectuation theory thrives within uncertain business environments. This notwithstanding, literature has often focused on hypothetical, uncertain business environments. The authors present plausible evidence of effectual business behavior from a real crisis, from small agriculture firms’ perspectives and an emerging economy context.

An analysis of Industry 4.0 implementation-variables by using SAP-LAP and e-IRP approach

PurposeIn today’s uncertain business environment, Industry 4.0 is regarded as a viable strategic plan for addressing a wide range of manufacturing-related challenges. However, it appears that its level of adoption varies across many countries. In the case of a developing economy like India, practitioners are still in the early stages of implementation. The implementation of Industry 4.0 appears to be complex, and it must be investigated holistically in order to gain a better understanding of it. Therefore, an attempt has been made to examine the Industry 4.0 implementation for the Indian manufacturing organization in a detailed way by analyzing the complexities of relevant variables.Design/methodology/approachSAP-LAP (situation-actor-process and learning-action-performance) and an efficient interpretive ranking process (e-IRP) were used to analyze the various variables influencing Industry 4.0 implementation. The variables were identified, as per SAP-LAP, through a thorough review of the literature and based on the perspectives of various experts. The e-IRP has been used to prioritize the selected elements (i.e. actors with respect to processes and actions with respect to performance) of SAP-LAP.FindingsThis study ranked five stakeholders according to their priority in Industry 4.0 implementation: government policymakers, industry associations, research and academic institutions, manufacturers and customers. In addition, the study also prioritized important actions that need to be taken by these stakeholders.Practical implicationsThe results of this study would be useful in identifying and managing the various actors and actions related to Industry 4.0 implementation. Accordingly, their prioritized sequence would be useful to the practitioners in preparing the well-defined and comprehensive strategic roadmap for Industry 4.0.Originality/valueThis study has adopted qualitative and quantitative approaches for identifying and prioritizing different variables of Industry 4.0 implementation. This, in turn, helps the stakeholder to comprehend the concept of Industry 4.0 in a much simpler way.

Effect of opportunity seizing capability on new market development and small and medium-sized enterprise performance: Role of environmental uncertainty in the IT industry

With the rapid evolution of technologies and markets in the IT industry, it is especially crucial for small and medium-sized enterprises (SMEs) in the IT sector to possess the dynamic capability of seizing opportunities. This paper adopts the concept of “opportunity–seizing capability (OSC)” from the perspective of dynamic capability, and investigates its impact on relative firm performance via new market development. Furthermore, we examine whether environmental uncertainty influences the effect of a firm's OSC. Our hierarchical ordinary least squares regression results obtained using the data of 215 IT SMEs indicate that new market development is an important link between a firm's OSC and relative performance. The positive effect of a firm's OSC on new market development is stronger under a highly uncertain business environment. The findings indicate that enhancing an IT SME's OSC is crucial for its survival, particularly under an uncertain business environment.

Prioritising risk mitigation strategies for environmentally sustainable clothing supply chains: Insights from selected organisational theories.

Recent outbreak of COVID-19 pandemic has provided strong impetus to supply chain resilience research. In a volatile and uncertain business environment, resilience can be incorporated by developing and implementing effective risk mitigation strategies. In this research, risk mitigation strategies for environmentally sustainable clothing supply chain have been prioritised by considering their efficacy to mitigate various risks. Twelve risks and thirteen mitigation strategies, identified through literature review and experts' opinion, are considered as decision criteria and alternatives respectively. Fuzzy Technique for Order Preference by Similarity to Ideal Solutions (fuzzy TOPSIS) is implemented under a group decision making scenario for prioritising the strategies. Developing supply chain agility; multiple green sourcing and flexible capacities; adoption of green practices; building trust, coordination and collaboration; and alignment of economic incentives and revenue sharing are found to be dominant risk mitigation strategies for environmentally sustainable clothing supply chain. These strategies have been viewed through the lens of resource dependence, change management and transaction cost theories. Organisation desirous to build resilience in their supply chain can prioritise the risk mitigation strategies and adopt a portfolio of strategies based on the outcome of this research.

Developing and training artificial neural networks using bootstrap data envelopment analysis for best performance modeling of sawmills in Ontario

PurposeThe measurement capabilities of the data envelopment analysis (DEA) models are used to train the artificial neural network (ANN) models for the best performance modeling of the sawmills in Ontario. The bootstrap DEA models measure robust technical efficiency scores and have benchmarking abilities, whereas the ANN models use abstract learning from a limited set of information and provide the predictive power.Design/methodology/approachThe complementary modeling approaches of the DEA and the ANN provide an adaptive decision support tool for each sawmill.FindingsThe trained ANN models demonstrate promising results in predicting the relative efficiency scores and the optimal combination of the inputs and the outputs for three categories (large, medium and small) of sawmills in Ontario. The average absolute error in predicting the relative efficiency scores varies from 0.01 to 0.04, and the predicted optimal combination of the inputs (roundwood and employees) and the output (lumber) demonstrate that a large percentage of the sawmills shows less than 10% error in the prediction results.Originality/valueThe purpose of this study is to develop an integrated DEA-ANN model that can help in the continuous improvement and performance evaluations of the forest industry working under uncertain business environment.

Agile learning strategies to compete in an uncertain business environment

PurposeThe purpose of this study was to explore what agile learning strategies businesses need to develop agile core competencies to respond to the uncertainty of the rapidly changing business environment and sustain their competitive advantage. Technology advances and unexpected crises have created an ever-changing environment in which traditional static corporate training methods have failed to continuously provide employees with the ability to listen to and interpret the rapid changes and respond accordingly.Design/methodology/approachThis qualitative exploratory multi-case study was useful to explore what agile learning strategies businesses need to develop agile core competencies to sustain their competitive advantage. Snowball sampling enabled the discovery of 15 participants who represented 10 different industries. Participants represented both management and non-management roles. Data were collected from multiple sources such as interviews, observations, researcher notes and document reviews. A thematic analysis model was used to analyze the collected data.FindingsThe findings substantiated that organizations are operating in a fast-changing environment where agile learning strategies are vital to surviving. The data also showed that agile learning strategies must include individual learning paths to continuously develop employees’ agile skills to build their organizations’ agile core competencies.Originality/valueThis study underlined the importance of adopting agile learning strategies to help employees listen and accurately interpret their organizations’ external environments to enable quick responses to changes. Without agile learning strategies, organizational agile core competencies and competitive advantage will progressively decline.

A model of long-term value creation

ABSTRACT Companies need to rethink the way they create value and grow their business to thrive in tomorrow’s volatile and uncertain business environment. Companies in virtually every industry are impacted by new disruptive societal trends, such as climate change, energy transition and social inequality. At the same time, companies are increasingly evaluated on their sustainability performance. Still, only a few companies have begun to invent new strategic directions, pioneering strategies focused on creating long-term value, not just for shareholders but for all stakeholders. A playbook on how to create long-term value is currently lacking, making it difficult for companies to capture the opportunities and mitigate the risks created by these societal trends. This paper develops a model of long-term value creation that supports companies in creating long-term value and setting their strategies accordingly. Financial institutions can draw on the model to assess how future proof their investment and/or lending portfolios are.

THE IMPACT OF ENTREPRENEURSHIP AND LEADERSHIP DEVELOPMENT ON ECONOMIC DEVELOPMENT

The development of entrepreneurship and leadership is the backbone of the development of any society. In a market economy, the state of entrepreneurship changes every day and it is necessary to find new methods of its development and adaptation to market conditions. Today, Serbia is in a difficult economic situation. The global economic crisis halted the country’s belated transitional recovery the moment the momentum began to take hold. The road to its recovery leads through painful measures: rationalization of the oversized public sector and serious financial discipline, as well as the promotion of entrepreneurship and leadership as development strategies, without which sustainable economic growth will not be possible. This paper aims to contribute to the description and analysis of the development of entrepreneurship and leadership, with the intention that it contributes to faster development in Serbia. The paper analyzes the concept, general state, and importance of entrepreneurship, the relationship between entrepreneurship and leadership, and the role of entrepreneurship in economic development. Based on the analysis performed in the paper, the authors concluded that entrepreneurial opportunities arise from market changes and that the modern, rapidly changing and uncertain business environment is a theoretically potential area for entrepreneurial activities.

Technologies of Brand Development and Positioning

Market economy develops very fast in current conditions, which fosters the growth in the number of goods and services of one product group. It helps avoid monopoly, but at the same time it makes customer choice more difficult as they get lost in the vast number of similar offers. This problem can be resolved by branding, i. e. proving product with the brand, a set of tangible and intangible values that can identify and differentiate product and impact customer choice. It is the product itself, its trade mark and other visual and physical components, its surrounding halo and relations between the company and the buyer. Successful branding gives an opportunity to get a trusted audience and retain it even in unstable economic conditions and it can prepare the ground for business extension and cut costs in new product and service promotion. Brand development can have a positive impact on investors’ loyalty, financial quarters, workers and mass media, that is why the brand is often perceived as a valuable asset of the company. The article specifies the notion of brand and branding, identifies stages of the brand life cycle and marketing tasks typical of each stage. The first and fundamental stage of brand development is positioning. Positioning is a product place on market. To build positioning tactics it is important to identify the current and desirable position of the brand and develop brand strategy. Varieties of brand positions are shown. The essence of mission, vision and value of brand is revealed. Specificity of brand identification is described: development of outer attributes that personify its individuality (name, slogan, logotype, package, design and company style). Identification can pass on to customer the precise information about the brand notion. Apart from this benefits of branding are shown for different target groups. Findings of the research supplement the existing theoretical and methodological approaches to brand development and positioning in conditions of uncertain business environment.

ADOPTION OF MOOCS AND ONLINE TEACHING AMIDST THE COVID-19 PANDEMIC, A STUDY FROM THE PERSPECTIVE OF STUDENTS AND FACULTIES IN INDIA

COVID-19 Pandemic has presented a slew of challenges to almost every industry bringing opportunities for few and challenges for others. The key to survival in this volatile, uncertain, complex and ambiguous business environment is adapting and changing business processes to suit the new normal. Education industry has not been immune to this pandemic; it has brought a myriad of challenges and opportunities for the students and teachers community. Institutions around the world have adopted E-teaching methods to serve the students from an arm’s length; faculties have also taken lockdown period as an opportunity to sharpen their knowledge domain by pursuing various MOOC/Online courses. This study is an effort to understand consumer behavior in the adoption of E-learning/teaching among students and faculties. The objective of this paper was to create and test two regression models on the adoption of e-courses by students and adoption of online teaching/online learning among faculties. Additional objectives included assessing the difference in adoption of elearning/teaching between different groups of students/faculties on the basis of demographic factors.

Strategic framework for developing resilience in Agri-Food Supply Chains during COVID 19 pandemic

ABSTRACT The Agri-food Supply Chains (AFSC) dealing with perishable items have suffered a lot due to the COVID 19 pandemic. During this uncertain time, developing resiliency has become a priority for management. Therefore, the main purpose of the study is to explore the impact of COVID-19 on AFSC and the possible strategies for improving the resilience of the AFSC. Impacts on AFSC and possible strategies are explored through the literature review and experts’ opinions. The importance rating of impacts of COVID-19 on AFSC is determined using the Best-Worst Method (BWM). These impacts are further correlated with the strategies for improving the resilience of AFSC using Quality Function Deployment (QFD). The findings of the study will help farmers, food processors, distributors, and retailers to maintain the uninterrupted flow of food items from farmers to end-users during the uncertain business environment. It will also contribute to formulating effective policies by the government and other stakeholders for improving the resilience of AFSCs.

Environmental Turbulence Capability Sparks Firm Performance by Embracing Business Model Transformation: An Empirical Study on the Internet Industry in Indonesia

This study assesses solutions to several questions regarding the effect of Environmental Turbulence on Firm Performance directly and indirectly through Business Model Transformation on Internet Service Provider Companies in Indonesia. The research approach used is an explanatory survey, verification research with a quantitative approach by measuring a sample of variables built on the population's constructs representing 239 companies. The author finds that novelty B.M. transformation design is significantly related to what factors drive the business transformation. Although, this study also finds that BMT positively mediates the relationship between environmental turbulence to influence performance. Environmental turbulence alone is no longer adequate, and organizations need to revamp the B.M. to achieve firm performance. This study also contributed to the movement of research trends targeted at B.M. Transformation. This study provides an appropriate riposte for quantitative empirical studies that elucidate the correlation between BMT on company performance by simultaneously embracing and managing environmental turbulence. The relationship between BMT and the factors that support it will be higher comprehend when contextualized. The author locates different designs and impacts of BMT on business transformation results that culminate in firm business performance since it faces an uncertain business environment that grows dynamically. Although this novelty is important, the authors found no support for effectiveness. However, this study highlights the robustness of the important factors that drive BMT to work effectively to improve business performance.

Logistics performance index-driven policy development: An application to Turkey

Logistics Performance Index (LPI), published by the World Bank, is a powerful tool for countries to benchmark and assess their performance in global logistics business. Researchers have investigated relations between LPI scores and other related statistics for developing country logistics policies; however, no studies examine the strategies of countries with high or increasing LPI scores. These countries could be used as a benchmark for improving the performance of competing countries, specifically emerging economies. The aim of this study is to develop a methodological framework for recommending logistics policies to improve the LPI score of specific countries. The study implements both qualitative and quantitative methods for developing the strategic recommendations in an uncertain business environment. The sources of the required data include logistics magazines, scientific articles, newspapers, World Bank investment reports, news and Ministry of Transport publications of the countries, as well as expert opinions. The framework consists of two main steps; (i) analyzing countries’ logistics strategies and their impacts on LPI scores and (ii) providing policy recommendations for improving the LPI score of specific countries under consideration. We implemented the developed framework to provide strategic recommendations for Turkey. The developed framework is a strategic tool which can be used by countries to benchmark and implement relevant logistics policies, thus sustaining and improving their LPI scores and worldwide trade performances.

Searching for Flexibility in Corporate Real Estate Portfolio: Six Co-Working Strategies for User Corporations

The increasing competitive pressures and dynamic user preferences have resulted in a fast-paced and uncertain business environment. In the face of these circumstances, organizations are looking into alternatives to incorporate flexibility to become more adaptive and responsive to change. In this line, co-working, typically associated with freelancers, entrepreneurs, and startups, has become a particularly interesting alternative in the market that has caught the attention of corporate occupiers. Therefore, the aim of this paper is to identify co-working strategies that can be implemented as part of the corporate real estate portfolio, in alignment with the flexibility demands of the organization. This nascent research topic is studied through 5 qualitative case studies including in-depth, semi-structured interviews with corporate real estate managers and related case documentation. The results evidence the different motivations that the organizations have when incorporating co-working in their property portfolio. As seen across the cases, organizations in different stages of maturity are implementing co-working as the main office location or as a temporary or complementary space solution, through six different strategies: (1) Swing Space, (2) Expansion Space, (3) Core and Flex, (4) Touchdown Space, (5) Testing Market, and (6) Temporary Projects and Staff. This research evidences that each strategy plays a specific role in the corporate real estate portfolio and implies different sources of flexibility that support the physical, functional, and financial flexibility demands of the organization.

INFLUENCE OF ENTREPRENURIAL WORKING ENVIRONMENT ON EMPLOYEE PRODUCTIVITY AMONG SMALL AND MEDIUM ENTERPRISES

The purpose of the study was to determine the influence of entrepreneurial working environment on employee productivity among small and medium enterprises in Kitale town, Kenya. The specific objectives of the study were to; examine entrepreneurial working environment, establish employee productivity and to find out the relationship between entrepreneurial working environment and employee productivity among small and medium enterprises in Kitale town. The study used both descriptive, cross-sectional and correlation research designs. A total of 14 SME hotels with a total of 92 regular employees were sampled to participate in the study. The sampling method used was census since the population was small. The research instruments reliability test had a cronbatch’s alpha value of 0.884 which was above the threshold. The results indicated that SMEs hotels have not embraced entrepreneurial working environments in their work places which will allow employees to be motivated to exploit their potential and improve on productivity. The study results also showed that employee productivity is low implying that they may not be achieving their set targets which affects performance of SMEs hotels. The study results also revealed that there was a significant relationship between entrepreneurial working environment and employee productivity. The study recommendations were;the SMEs hotels are facing stiff competition from world class hotels, to remain relevant and in productive operations, they should embrace creation of entrepreneurial environment where their employees will feel motivated and valued. The SMEs hotels should consider recruiting entrepreneurial human resources who will easily utilize their unique skills and talents to benefit the enterprises they work with and the county government of Trans Nzoia and national government should draft a policy to provide incentives to SMEs hotels while operating in uncertain business environments..
 Keywords: Entrepreneurial Environment, Productivity, Small and Medium Enterprises, Employee, Hotel

The Impact of External Environment on Competitive Advantage through SME Differentiation Strategy in Central Java

The competitiveness of Small and Medium Enterprises (SMEs) in Indonesia is still very low and vulnerable compared to increasingly uncertain business environment dynamics. Changing conditions require SMEs carry out continuous and systematic analysis of the external environment, so that owners who carry out strategic planning get information through various sources in the external environment. This is done to maintain a competitive advantage and as an effort to realize unexpected opportunities and progress. This study aims to: (1) measure the impact of external environment on differentiation strategy in SMEs in Central Java; (2) measure the impact of external environment on competitive advantage in SMEs in Central Java; (3) measure the impact of differentiation strategy on competitive advantage in SMEs in Central Java. The type of research used in this study is causal research. The method used in this research is quantitative. The population that will be used and examined in this study is all SMEs in Central Java, while the samples in this study were 180 SMEs in Central Java with a multivariate type sample size. Data collection technique was conducted using a questionnaire. This study uses Partial Least Square (PLS) for its analysis technique. The results in this study indicate that: (1) External Environmental has a significant effect on Differentiation Strategy; (2) External Environmental has a significant impact on Competitive Advantage. And (3) Differentiation Strategy has a significant effect on Competitive Advantage.

The dark and bright sides of policy uncertainty: do too many cooks spoil the broth?

PurposeThis paper aims to investigate the nonlinear relationship between corporate social performance (CSP) and economic policy uncertainty (EPU).Design/methodology/approachThis paper uses panel regression techniques to examine a sample consisting of UK-listed non-financial companies during 2000–2018.FindingsThe authors found that EPU increases corporate social responsibility which suggests that firms become more socially proactive during the period of heightened EPU. Such countermeasure enhances CSP and is likely a part of a competitive strategy and an insurance mechanism to protect firms against uncertainty in long-term. Further analysis shows a nonlinear relationship between the two factors, suggesting that in a heightened uncertain business environment, the insurance benefit generated by CSP is neutralised by the corresponding cost and, therefore, the positive relationship between EPU and CSP reverses.Originality/valueThis paper is the first to find a nonlinear relationship between CSP and EPU, indicating that too much uncertainty in macroeconomic policies deteriorates the benefits of CSP to the point that the CSP – EPU relationship becomes negative. The results suggest that policy uncertainty has both the bright side and the dark side where too many cooks eventually spoil the broth.

Leveraging green skills in response to the COVID-19 crisis: a case study of small and medium enterprises in Harare, Zimbabwe

PurposeThe sustainable skills that informal manufacturers use in volatile times remain poorly understood. This study explored the skills that the informal manufacturers used to navigate the uncertain business environment during the COVID-19 pandemic.Design/methodology/approachA total of 27 telephone interviews were conducted with informal entrepreneurs who were manufacturers of agricultural machinery at Mbare Magaba and Gaza home industry in Harare, Zimbabwe. Purposive and snow ball sampling were used to identify information rich sources. The authors used thematic analysis in identifying recurrent themes from this study.FindingsThe study results show that business agility motivated most informal manufacturers to restructure their business to sustain their operations. With the closure of formal companies, the informal manufacturers adopted slowing and narrowing loops through purchasing broken down agricultural machines for repairs or remanufacturing of durable machines for their low-income customer base. Most young and formally trained manufacturers adopted a prospector strategic behaviour as they used digital platforms to network with business associates for supplies, gathering market intelligence, making and receiving electronic payments and establishing virtual distant markets whilst the older manufacturers resorted mostly to a defender strategic behaviour of engaging their usual customers for repair jobs and a few referrals.Originality/valueThis study offers unique insights with respect to skills required for the sustainable and strategic management of small and medium enterprises during times of crisis.

The Sleep Paradox: A Retrospective Exploration into Sleeplessness and Aberrant Sleep Patterns to Gain Insights into Entrepreneurial Psychology and Behaviour

The need for sleep has important implications for entrepreneurship. Researchers have come to understand that sleep insufficiency affects creativity, innovation, self-control and operational efficacy. Yet quality sleep often eludes an entrepreneur because of the demands from the business environment, fear of failure and job insecurity, among other things. Hence, a sleep paradox exists where aberrant sleep patterns or sleeplessness undermine success. However, aberrant sleep patterns and sleeplessness are a necessary part of successful entrepreneurial experiences. The current research used a qualitative design to understand how successful entrepreneurs retrospectively perceive aberrant sleep patterns or sleep restriction (i.e., sleeplessness); but, more importantly, how they implement coping mechanisms to overcome this paradox to achieve positive outcomes for their business. Successful entrepreneurs of the current research were seen to self-regulate their actions to address the vagaries of entrepreneurial experience. They manage aberrant sleep patterns or sleeplessness by taking steps to develop adaptative tools (i.e., coping mechanisms such as mental, physical and behavioural shortcuts) to aid decision-making in an uncertain business environment and to facilitate the sustainability of their entrepreneurial endeavours.

New Product Idea Selection in the Fuzzy Front End of Innovation: A Fuzzy Best-Worst Method and Group Decision-Making Process

New product development (NPD) is essential to most business organizations to create new values and protect existing values for maintaining high profitability and sustainability. However, the success of NPD projects is deemed to be difficult and challenging owing to high organizational complexity, uncertain business environment, and time-critical innovation. Under the smart manufacturing paradigm, NPD is an active research area to establish effective measures through the adoption of systematic approaches so as to facilitate idea management in the fuzzy front end for the product innovation. In this paper, the domain of new product idea selection is focused on and enhanced by means of the multi-criteria decision-making (MCDM) approach, in which multiple criteria and sub-criteria can be considered in the selection process. Among a number of MCDM approaches, the fuzzy set theory and best-worst method (BWM) are integrated as the fuzzy BWM in this study to structure the new product idea selection process under a group decision-making process. The hierarchy structure for the new product idea selection is also established to consider the perspectives of finance, marketing, engineering, manufacturing, and sustainability. Overall speaking, this study contributes to the field of NPD through overcoming the new product idea selection problem, while the group decision-making process is incorporated into the fuzzy BWM.