Facing crisis periods: a proposal for an integrative model of environmental scanning and strategic issue diagnosis

Abstract

The aim of this study is to examine the way top managers scan environmental conditions to diagnose and interpret issues during periods of crisis. Despite each of these processes being widely and individually represented in the research literature, there is a lack of integrative models that examine their internal dynamics in-depth. In this study, structural equation modeling methodology (EQS 6.3) was applied to a sample of 120 top managers to examine how the cognitive orientation of scanning (rational vs. intuitive analysis of environment) may influence final issue categorizations. Results confirm that not only is procedural rationality needed when scanning the environment, as traditional arguments have posited, but also that intuition plays a relevant role, complementing rational processes and configuring a mixed set of competencies to assess different issue dimensions, such as favorability, urgency, and influence.

Longitudinal study of perceived environmental uncertainty. An application of Rasch methodology to SMES

“…, 2019). Through a combination of rational and intuitive processes (García-Carbonell et al. , 2021), the analysis of the environment aims to gather information about the environment and builds knowledge about it (Sund, 2015).…”

“…, 1982; Buvik and Gronhaug, 2000; Danneels and Sethi, 2011; Elenkov, 1997; Sund, 2013; Sutcliffe and Zaheer, 1998), or more complex techniques such as structural equation modelling (Badri et al. , 2000; Boyd and Fulk, 1996; García-Carbonell et al. , 2021; Keats and Hitt, 1988).…”

“…Aguilar, 1967; Daft et al. , 1988; Du Toit, 2016; García-Carbonell et al. , 2021; Sawyerr, 1993) and particularly on its relationship with a wide variety of organisational and strategic aspects (e.g.…”

“…Castrogiovanni, 2002;Dess and Beard, 1984;Duncan, 1972;Jurkovich, 1974), its mode of analysis (e.g. Aguilar, 1967;Daft et al, 1988;Du Toit, 2016;Garc ıa-Carbonell et al, 2021;Sawyerr, 1993) and particularly on its relationship with a wide variety of organisational and strategic aspects (e.g. Danneels and Sethi, 2011;Leifer and Huber, 1977;Pryor et al, 2019;Shopa et al, 2021;Srivastava and Frankwich, 2011) [1], among others.…”

Economic policy uncertainty and corporate donation: evidence from private firms in Korea

“…Our world is experiencing an unprecedented shock from the coronavirus (COVID-19) outbreak that has taken many lives, accompanied by astonishing economic and political uncertainty from various issues such as the debt ceiling and a contentious presidential election in the United States, the Brexit transition, the Black Lives Matter movement, a nuclear threat from North Korea, and many others. Countries around the world are constantly re-evaluating lockdowns, social distancing, quarantine, and vaccination policies that have brought unprecedented uncertainties to firms’ operations (Donthu and Gustaffson 2020 ; García-Carbonell et al 2021 ). Worldwide, companies are currently experiencing an extraordinary period of economic policy uncertainty (EPU hereafter) (Baker et al 2020 ).…”