IDEAS home Printed from https://ideas.repec.org/a/spr/snbeco/v1y2021i1d10.1007_s43546-020-00010-z.html
   My bibliography  Save this article

The effect of uncertainty on the formulation of strategies: a study of selected Indian organizations

Author

Listed:
  • Amit Kundu

    (Techno India Group)

  • Dev Narayan Sarkar

    (PepsiCo India)

  • Arabinda Bhattacharya

    (University of Calcutta)

Abstract

An organization’s performance is often claimed to be associated with the business environment, as well as with the organization’s strategic response to such an environment. If the environment of an organization is adverse, it may face challenges in getting its required inputs, and in adding value to the society. The objective of the present study is to propose a measure of uncertainty based on a survey of executives from randomly selected companies and present several implications for practice and theory. The present research follows a multi-stage sampling process. In the first stage, a complete list of sectors was taken from CMIE, and four sectors were randomly selected (simple random sampling) from the list. The selected sectors are as follows: chemical, petro-chemical industry, agricultural-related industry, and food processing industry. The second stage was also a simple random sampling process. The third stage was a sort of convenience sampling since the top management of the selected organizations proposed the names of the executives to be surveyed. A firm’s performance seems to be associated to the business environment, as well as, the organization’s strategic response to such an environment. There exists a dynamic relationship between a firm and its business environment. Several limitations and future courses of studies are also presented.

Suggested Citation

  • Amit Kundu & Dev Narayan Sarkar & Arabinda Bhattacharya, 2021. "The effect of uncertainty on the formulation of strategies: a study of selected Indian organizations," SN Business & Economics, Springer, vol. 1(1), pages 1-21, January.
  • Handle: RePEc:spr:snbeco:v:1:y:2021:i:1:d:10.1007_s43546-020-00010-z
    DOI: 10.1007/s43546-020-00010-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s43546-020-00010-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s43546-020-00010-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Arabinda Bhattacharya & Amit Kundu, 2013. "Organization Design And Performance: Evidence From India," International Journal of Management and Marketing Research, The Institute for Business and Finance Research, vol. 6(2), pages 93-107.
    2. Man Chen & Zhi Yang & Wenyu Dou & Feng Wang, 2018. "Flying or dying? Organizational change, customer participation, and innovation ambidexterity in emerging economies," Asia Pacific Journal of Management, Springer, vol. 35(1), pages 97-119, March.
    3. repec:cup:maorev:v:13:y:2017:i:02:p:451-454_00 is not listed on IDEAS
    4. Richard P. Rumelt, 1982. "Diversification strategy and profitability," Strategic Management Journal, Wiley Blackwell, vol. 3(4), pages 359-369, October.
    5. Houssein Abdo & Jean-Marie Flaus, 2016. "Uncertainty quantification in dynamic system risk assessment: a new approach with randomness and fuzzy theory," International Journal of Production Research, Taylor & Francis Journals, vol. 54(19), pages 5862-5885, October.
    6. Asher Curtis & Sarah McVay & Sara Toynbee, 2020. "The changing implications of research and development expenditures for future profitability," Review of Accounting Studies, Springer, vol. 25(2), pages 405-437, June.
    7. Morgan, Todd & Anokhin, Sergey Alexander & Wincent, Joakim, 2019. "New service development by manufacturing firms: Effects of customer participation under environmental contingencies," Journal of Business Research, Elsevier, vol. 104(C), pages 497-505.
    8. Eker, Melek & Eker, Semih, 2019. "Exploring the Relationships between Environmental Uncertainty, Business Strategy and Management Control System on Firm Performance," Business and Economics Research Journal, Uludag University, Faculty of Economics and Administrative Sciences, vol. 10(1), pages 115-129, January.
    9. Dante I. Leyva-de la Hiz & Vera Ferron-Vilchez & J. Alberto Aragon-Correa, 2019. "Do Firms’ Slack Resources Influence the Relationship Between Focused Environmental Innovations and Financial Performance? More is Not Always Better," Journal of Business Ethics, Springer, vol. 159(4), pages 1215-1227, November.
    10. Srivastava, Mohit & Moser, Roger & Hartmann, Evi, 2018. "The networking behavior of Indian executives under environmental uncertainty abroad: An exploratory analysis," Journal of Business Research, Elsevier, vol. 82(C), pages 230-245.
    11. Danny Miller, 1987. "The structural and environmental correlates of business strategy," Strategic Management Journal, Wiley Blackwell, vol. 8(1), pages 55-76, January.
    12. Pradip N. Khandwalla, 1976. "The Techno‐Economic Ecology Of Corporate Strategy," Journal of Management Studies, Wiley Blackwell, vol. 13(1), pages 62-75, February.
    13. Bhagavatula, Suresh & Mudambi, Ram & Murmann, Johann Peter, 2017. "Management and Organization Review Special Issue ‘The Innovation and Entrepreneurship Ecosystem in India’," Management and Organization Review, Cambridge University Press, vol. 13(01), pages 209-212, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Uma Shankar Yadav & Ravindra Tripathi & Mano Ashish Tripathi, 2022. "Adverse impact of lockdown during COVID-19 pandemic on micro-small and medium enterprises (Indian handicraft sector): A study on highlighted exit strategies and important determinants," Future Business Journal, Springer, vol. 8(1), pages 1-10, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pehrsson, Anders, 2008. "Strategy antecedents of modes of entry into foreign markets," Journal of Business Research, Elsevier, vol. 61(2), pages 132-140, February.
    2. Greenley, Gordon E. & Foxall, Gordon R., 1996. "Consumer and nonconsumer stakeholder orientation in U.K. companies," Journal of Business Research, Elsevier, vol. 35(2), pages 105-116, February.
    3. López Zapata, Esteban & García Muiña, Fernando Enrique & García, Susana María, 2019. "Analysing the relationship between diversification strategy and firm performance: the role of the economic cycle," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    4. José Pla-Barber & Cristina Villar & German Benito-Sarriá, 2020. "Configurational Theory in Traditional Manufacturing Industries: A New Model of High-Performing Small and Medium-Sized Enterprises," Sustainability, MDPI, vol. 12(17), pages 1-16, August.
    5. Fei Li & Jin Chen & Ying Ying, 2019. "Innovation Search Scope, Technological Complexity, and Environmental Turbulence: A N-K Simulation," Sustainability, MDPI, vol. 11(16), pages 1-12, August.
    6. Sukpanich, Nessara & Rugman, Alan, 2007. "Intra-regional sales, product diversity, and the performance of merchandising multinationals," Journal of International Management, Elsevier, vol. 13(2), pages 131-146, June.
    7. Desislava Ivanova Yordanova, 2011. "Growth Plans of Bulgarian Enterprises: An Empirical Investigation of Individual, Organizational and Environmental Influences," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 1(1), pages 1-30.
    8. Joon Mahn Lee & Rahul Kapoor, 2017. "Complementarities and Coordination: Implications for Governance Mode and Performance of Multiproduct Firms," Organization Science, INFORMS, vol. 28(5), pages 931-946, October.
    9. Panagopoulos, Nikolaos G. & Avlonitis, George J., 2010. "Performance implications of sales strategy: The moderating effects of leadership and environment," International Journal of Research in Marketing, Elsevier, vol. 27(1), pages 46-57.
    10. Cory Cassell & Emily Hunt & Gans Narayanamoorthy & Stephen P. Rowe, 2019. "A hidden risk of auditor industry specialization: evidence from the financial crisis," Review of Accounting Studies, Springer, vol. 24(3), pages 891-926, September.
    11. Spanos, Yiannis E. & Voudouris, Irini, 2009. "Antecedents and trajectories of AMT adoption: The case of Greek manufacturing SMEs," Research Policy, Elsevier, vol. 38(1), pages 144-155, February.
    12. Shuguang Liu & Jiayi Wang & Yin Long, 2023. "Research into the Spatiotemporal Characteristics and Influencing Factors of Technological Innovation in China’s Natural Gas Industry from the Perspective of Energy Transition," Sustainability, MDPI, vol. 15(9), pages 1-34, April.
    13. Vasanthan Subramaniam & Shaista Wasiuzzaman, 2019. "Corporate diversification and dividend policy: empirical evidence from Malaysia," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 23(3), pages 735-758, September.
    14. Li, Ying & Dai, Jing & Cui, Li, 2020. "The impact of digital technologies on economic and environmental performance in the context of industry 4.0: A moderated mediation model," International Journal of Production Economics, Elsevier, vol. 229(C).
    15. Ralf Meinhardt & Sebastian Junge & Martin Weiss, 2018. "The organizational environment with its measures, antecedents, and consequences: a review and research agenda," Management Review Quarterly, Springer, vol. 68(2), pages 195-235, April.
    16. Goldsmith, Peter D. & Gow, Hamish R., 2005. "Strategic Positioning Under Agricultural Structural Change: A Critique of Long Jump Co-operative Ventures," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 8(2), pages 1-21.
    17. Raffaele Morandi Stagni & Juan Santaló & Marco S. Giarratana, 2020. "Product‐market competition and resource redeployment in multi‐business firms," Strategic Management Journal, Wiley Blackwell, vol. 41(10), pages 1799-1836, October.
    18. Andrea Cuccia, 2018. "Potential of IFRS 8: Managerial "customization", relevance of subsidiaries and separate financial statements," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2018(1), pages 103-131.
    19. Simon Parker, 2014. "Who become serial and portfolio entrepreneurs?," Small Business Economics, Springer, vol. 43(4), pages 887-898, December.
    20. Maria Guadalupe & Hongyi Li & Julie Wulf, 2014. "Who Lives in the C-Suite? Organizational Structure and the Division of Labor in Top Management," Management Science, INFORMS, vol. 60(4), pages 824-844, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:snbeco:v:1:y:2021:i:1:d:10.1007_s43546-020-00010-z. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.