Strategy and the environment: A study of corporate responses to crises

Abstract

This paper describes an empirical study that examines the relationship between the type of external environment in which a firm operates and the repertoire of strategic responses the firm develops to cope with crises. The findings suggest that an executive's propensiry to adopt a particular strategic posture depends on his perceptions of how well his firm can control its environment and onthe costs of introducing change into the organization. 0143-2095/84/030 199-15$O I. 50

Managerial Cognition, Strategy and Performance of Foreign SMEs in Romania

“…These categorisations made by individuals are important because managers will enact their environment consistently with their psychological set (Smart & Vertinsky, 1984). The way managers perceive a crisis has consequences, in terms of determining strategic responses; thus, the level of individual tolerance for ambiguity and uncertainty becomes a critical factor in determining organisational responses to environmental stimuli (Dutton & Jackson, 1987, in;Ashmos et al, 1997;Smart & Vertinsky, 1984).…”

A Case Study: An Analysis of Organizational Changes of Henan Machinery and Electric Import and Export Corporation

“…In a study of corporate responses to crises, Smart and Vertinsky [9] combined the strategies adopted by an organization with the external environment the organization is in, which gives me some enlightenment. In their study, the external environment is conceptualized into two important dimensions: the degree of environmental stability and that of complexity [9].…”

“…In their study, the external environment is conceptualized into two important dimensions: the degree of environmental stability and that of complexity [9]. As organizations should respond to the external environment, the strategic responses were further divided into four branches: long-term entrepreneurial (strategic) responses, entrepreneurial short-term (tactical) responses, short-term adaptive (fire-fighting) responses, and long-term adaptive (planning) responses, each fits for different environments respectively [9]. The strategies adopted are very crucial during the change process, thus managers can"t be too careful when making decisions.…”

Fighting the Bear and Riding the Bull: Exploitation and Exploration During Times of Recession and Recovery

“…The National Bureau of Economic Research (Hall et al, 2010, p (Hall et al, 2010, p. 1). In this respect, recessions and recoveries are characterized by many opposing macroeconomic indicators (Grewal and Tansuhaj, 2001;Smart and Vertinsky, 1984). These two phases of the business cycle are therefore likely to present top executive teams, attempting to obtain the right exploitation-exploration ratio, with highly dissimilar challenges and implications.…”