Exploring The Relationships Between Environmental Uncertainty, Business Strategy and Management Control System on Firm Performance

Eker, Melek; Eker, Semih

doi:10.20409/berj.2019.158

Cited by 11 publications

(17 citation statements)

References 30 publications

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“…This is contrary to our hypothesis, but the finding is not surprising in that Lam and Yeung (2010), Agle et al (2006) and Cannella et al (2008) had similar findings. Our findings do not support the work of Eker and Eker (2019), who reported a positive correlation for the relationship between environmental uncertainty and nonfinancial performance nor does it support James and George’s (2018) contention that there is a significant positive relationship between uncertainty and supply chain performance.…”

Section: Discussioncontrasting

confidence: 99%

“…While Eker and Eker (2019) found a positive correlation between environmental uncertainty and performance and James and George (2018) found support for their hypothesis that as environmental uncertainty increases, supply chain performance increases, from our work one can see that the positive relationship between the two comes from the idea that uncertainty triggers certain firm activities that improve performance (Mukherji and Jukherji (2017).…”

Section: Discussionsupporting

confidence: 59%

“…Mandal (2016) found that environmental uncertainty moderates the relationship between innovation and operational performance (measured by undamaged orders, accuracy of orders and meeting deadlines) in supply chains and that the relationship was enhanced when under greater levels of uncertainty. Among the few works that studied the direct relationship between environmental uncertainty and performance were Eker and Eker (2019) and James and George (2018). Although it reported a nonsignificant correlation for the relationship between environmental uncertainty and financial performance (ROA, operating income, ROI, cash flow and cost of sales ratio), Eker and Eker's (2019) study, which analyzed data from a sample of manufacturers in Turkey, reported a positive correlation for the relationship between environmental uncertainty and nonfinancial performance (measured as market development, market share, new product development, human resource development and sales growth).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Among the few works that studied the direct relationship between environmental uncertainty and performance were Eker and Eker (2019) and James and George (2018). Although it reported a nonsignificant correlation for the relationship between environmental uncertainty and financial performance (ROA, operating income, ROI, cash flow and cost of sales ratio), Eker and Eker's (2019) study, which analyzed data from a sample of manufacturers in Turkey, reported a positive correlation for the relationship between environmental uncertainty and nonfinancial performance (measured as market development, market share, new product development, human resource development and sales growth). James and George (2018) hypothesized that, as environmental uncertainty increases, supply chain performance also increases.…”

Section: Literature Reviewmentioning

confidence: 99%

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Environmental uncertainty and supply chain performance: the effect of agility

Inman

Green

2021

JMTM

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PurposeToday's businesses are facing a world that is more complex, turbulent and unpredictable than in the past with increasing levels of environmental complexity. Rather than proposing environmental uncertainty as a mediator/moderator of the relationship between agility and performance as others have done, the authors offer an alternative view where supply chain agility is seen as mediating the relationship between environmental uncertainty and supply chain performance.Design/methodology/approachThe authors propose that supply chain agility is a response to the effects of environmental uncertainty and, as such, environmental uncertainty should be seen as a driver of supply chain agility. Few studies test the direct relationship between uncertainty and supply chain performance, and none simultaneously test for agility's mediation and moderation effect between environmental uncertainty and agility.FindingsThe model was statistically assessed using partial-least-squares structural equation modeling (PLS/SEM) by analyzing survey data from manufacturing managers in 136 US firms. The study results did not indicate a significant relationship between environmental uncertainty and supply chain performance. However, the authors did find a significant positive relationship between agile manufacturing and supply chain performance using measures that were primarily operations-centered rather than financial. Additionally, the authors found that agile manufacturing fully mediates the relationship between environmental uncertainty and supply chain performance.Originality/valueThe authors’ model, though simple, provides a base for future research for them and other researchers who can incorporate other impacting variables into the model. The study results show that uncertainty can be a force for good and that utilizing agile manufacturing can be a new source of opportunity.

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Section: Discussioncontrasting

confidence: 99%

Section: Discussionsupporting

confidence: 59%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

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Environmental uncertainty and supply chain performance: the effect of agility

Inman

Green

2021

JMTM

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“…Such an operating environment is often said to be the business ecosystem (Bhagavatula et al 2017). Eker and Eker (2019) suggested that higher differentiation strategy, management control system, the three-way interaction between environmental uncertainty, differentiation strategy and management control system often lead to higher firm performance. The networking behavior of executives also needs to be tailored to the environmental uncertainty to achieve higher performance (Srivastava et al 2018).…”

Section: Introductionmentioning

confidence: 99%

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

2020

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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, petrochemical 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.

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