Introduction

Abstract

As the existence of enterprises is a direct result of the fact of uncertainty (Power, 2007), the question of how firms cope with uncertainty to survive in the long run is at the heart of management science (Knight, 1921). While increasing dynamics of the environment of businesses has been leading to advanced complexity within organizations during the twentieth century (Ansoff, 1979), complexity within an organization leads to uncertainty, which results in a lack of information regarding potential future outcome (Galbraith, 1973). As a result, information tends to be diverse and incomplete, leading to the institution of controls such as rules, documentation, and formalized structures (Child & Mansfield, 1972; Khandwalla, 1975) to cope with evident coordination problems (Arrow, 1964).