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Beyond risk mitigation: Enhancing corporate innovation with scenario planning

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  • Worthington, William J.
  • Collins, Jamie D.
  • Hitt, Michael A.

Abstract

The impact of exogenous shocks on business strategy, and possible responses to those threats, have received growing attention when considering the challenges of conducting business in an increasingly complex business environment. Scenario/contingency planning is a tool used by firms to translate their organizational learning capabilities into preconceived operational responses designed to react to, and then recover from, an exogenous shock. The use of scenario planning that includes exogenous shock scenarios has become a best practice in many industries. This article explores the additional potential usefulness of scenario planning as a tool for promoting innovation and corporate entrepreneurship.

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  • Worthington, William J. & Collins, Jamie D. & Hitt, Michael A., 2009. "Beyond risk mitigation: Enhancing corporate innovation with scenario planning," Business Horizons, Elsevier, vol. 52(5), pages 441-450, September.
    • Handle: RePEc:eee:bushor:v:52:y:2009:i:5:p:441-450
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    2. Tsai, Chia-Yun & Wilson, Paul N. & Rahman, Tauhidur, 2015. "Economic Resilience and Vulnerability in the Rural West," Working Papers 202969, University of Arizona, Department of Agricultural and Resource Economics.
    3. Crawford, Megan M., 2019. "A comprehensive scenario intervention typology," Technological Forecasting and Social Change, Elsevier, vol. 149(C).
    4. Bouhalleb, Arafet & Tapinos, Efstathios, 2023. "The impact of scenario planning on entrepreneurial orientation," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    5. Jennifer M. Oetzel & Chang Hoon Oh, 2014. "Learning to Carry the Cat by the Tail: Firm Experience, Disasters, and Multinational Subsidiary Entry and Expansion," Organization Science, INFORMS, vol. 25(3), pages 732-756, June.
    6. Tiberius, Victor & Siglow, Caroline & Sendra-García, Javier, 2020. "Scenarios in business and management: The current stock and research opportunities," Journal of Business Research, Elsevier, vol. 121(C), pages 235-242.
    7. Oliver, John J. & Parrett, Emma, 2018. "Managing future uncertainty: Reevaluating the role of scenario planning," Business Horizons, Elsevier, vol. 61(2), pages 339-352.
    8. Duncan, W. Jack & Yeager, Valerie A. & Rucks, Andrew C. & Ginter, Peter M., 2011. "Surviving organizational disasters," Business Horizons, Elsevier, vol. 54(2), pages 135-142.
    9. Mehmet BICER & Nazmiye Ulku PEKKAN, 2020. "The Relationship Between Group Culture And Intrapreneurship:A Case Study For Hotel Industry," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 12(3), pages 21-32, September.
    10. Moqaddamerad, Sara & Ali, Murad, 2024. "Strategic foresight and business model innovation: The sequential mediating role of sensemaking and learning," Technological Forecasting and Social Change, Elsevier, vol. 200(C).

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