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Management under uncertainty: the unavoidable risk-taking
Univ Gothenburg, Sch Business Econ & Law, Business Adm, Gothenburg, Sweden.
Uppsala universitet, Företagsekonomiska institutionen.
Univ Gothenburg, Sch Business Econ & Law, Business Adm, Gothenburg, Sweden.
2017 (English)In: Multinational Business Review, ISSN 1525-383X, Vol. 25, no 2, p. 91-109Article in journal (Refereed) Published
Abstract [en]

Purpose - Accentuating the concept of management under uncertainty in the Uppsala internationalization process model, the purpose of this paper is to develop a model for describing how managers act while keeping uncertainty at an acceptable level. Design/methodology/approach - The authors perform two empirical studies to underpin the model they construct. First, a survey of 309 chief executive officers and chief financial officers in large, publicly listed international firms in the Nordic region on managerial risk perceptions and, second, a case study of Volvo Car Corporation and its endeavors when developing new car models for the Chinese market on a new platform - a process characterized by unprecedented uncertainty. Findings - The proposed model describing managers' behavior under uncertainty contains elements such as adjusting/proceeding in small steps, reducing uncertainty via learning, building relationships with important parties in the environment to avoid unforeseen changes and re-dos (i.e. starting all over again) and, perhaps most important, acting despite uncertainty. Originality/value - The paper highlights a central, though forgotten, concept of the Uppsala internationalization process model, i.e. management under uncertainty, and, thereby, opens a new path for research on how manager behave under the sway of uncertainty.

Place, publisher, year, edition, pages
2017. Vol. 25, no 2, p. 91-109
Keywords [en]
Management under uncertainty, Uppsala internationalization process model
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hig:diva-38254DOI: 10.1108/MBR-03-2017-0015ISI: 000407386200002OAI: oai:DiVA.org:hig-38254DiVA, id: diva2:1646916
Available from: 2018-09-18 Created: 2022-03-24Bibliographically approved

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Hamberg, Mattias

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CiteExportLink to record
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Citation style
  • apa
  • harvard-cite-them-right
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • sv-SE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • de-DE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf