Abstract
The classical contingency theory and its extension are the basis for the following deduction of hypotheses. These theories assume an influence of environmental uncertainty and personal attitudes on organizational design. As seen above, the process of early warning is part of organizational design and therefore is also influenced by environmental uncertainty and managerial attitudes. The hypotheses are deduced on the basis of relevant literature. Numerous studies already exist about the relationship between environmental uncertainty and scanning behavior. These studies developed hypotheses and empirically examined them.311 In order to put forth hypotheses about the relationship between managerial attitudes and design variables of early warning, psychological literature is consulted. Additionally, hypotheses already proposed by LEWIN and STEPHENS are discussed. The facts that empirical research has already been done in this area and that LEWIN and STEPHENS have already developed hypotheses on the basis of their model lead to a confirmatory procedure, i.e. first hypotheses are deduced from literature, next they are empirically examined. Otherwise an explorative procedure, e.g. a case study, would have been appropriate because this method is only based on empirical data and generates new hypotheses from them.312
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References
For a comparison of both procedures and their application see Martin and Bateson (2004), p. 126ff., Jobson (1999), p. 9ff. and Chatfield (1995), p. 25.
Duncan (1972), p. 314. See also Thompson (1967), p. 26f. and Galbraith (1973), p. 5.
For examples of firm-specific intersubjective measures see Prescott (1986), p. 335ff. and Rasheed and Prescott (1992), p. 199.
In this context Dess and Beard developed an industry-wide construct. See Dess and Beard (1984). It was further developed by Sharfman and Dean. See Sharfman and Dean (1991). For a critique of these measures see Dess and Rasheed (1991), p. 703ff.
See Yasai-Ardekani (1986), p. 10 for strengths and weaknesses of the intersubjective approach.
See Lawrence and Lorsch (1967), p. 24ff. They strengthen the importance of subjective measures by analyzing the plastic industry as an example. Yasai-Ardekani provides an overview about strengths and weaknesses of the perceptual approach. See Yasai-Ardekani (1986), p. 10f. For a critique of perceptual measures see also Bourgeois (1985), p. 550.
See Boyd, Dess and Rasheed (1993), p. 209ff.
See Dess and Rasheed (1993) Ibid., p. 209 and Anderson and Paine (1975), p. 813f.
See Boyd, Dess and Rasheed (1993), p. 211ff. See also Tosi, Aldag and Storey (1973), p. 30ff., Osborn and Hunt (1974), p. 240f., Downey, Hellriegel and Slocum (1975), p. 613ff. and Bourgeois (1985), p. 550. Yasai-Ardekani also argues that other factors such as personality influence the perception of the environment. Therefore, perceptual measures do not only reflect the intersubjective environmental uncertainty. See Yasai-Ardekani and Nystrom (1996), p. 188.
Milliken (1987), p. 135. See also Galbraith (1977), p. 35f. and Shivers-Blackwell (2006), p. 28.
See Duncan (1972). For a detailed discussion about the possibilities to categorize environmental uncertainty see Miller (1992), p. 313ff.
See for example Bourgeois (1980), p. 25, Daft, Sormunen and Parks (1988), p. 124 and Elenkov (1997), p. 288.
His classification also follows Aguilar who found 16 categories of the environment based on managers’ responses when asked about perceived sources of uncertainty. See Aguilar (1967), p. 40ff.
Elenkov (1997), p. 287. See also Dill (1958), p. 410f.
Some authors argue that technology is part of the general environment. See Ashegian and Ebrahimi (1990), Sawyerr (1993), p. 290. But most of the researchers consider technology to be part of the task environment as organizations are in direct contact with technology. See Daft, Sormunen and Parks (1988) p. 124, Elenkov (1997), p. 293 and McGee and Sawyerr (2003), p. 386 and 391.
See Duncan (1972), p. 314ff., Tung (1979), p. 673f. and Daft, Sormunen and Parks (1988), p. 125.
Daft, Sormunen and Parks (1988), p. 131f. See also Elenkov (1997), p. 288.
See Pfeffer and Salancik (1978), p. 269.
See Daft, Sormunen and Parks (1988), p. 124 and Elenkov (1997), p. 288.
See Daft, Sormunen and Parks (1988), p. 131f.
See Sawyerr (1993), p. 293.
See Dollinger (1985), p. 27, Smeltzer, Fann and Nikolaisen (1988), p. 61 and Brush (1992), p. 46.
See Brush (1992), p. 46.
See Elenkov (1997).
See Ibid., p. 297f.
See Ibid., p. 291ff.
Leifer and Huber (1976), p. 234.
This is supported by Cyert and March who assume that managers are limited in their ability to collect and to process information. See Cyert and March (1963), p. 77ff.
See Pfeffer and Salancik (1978), p. 269.
Cyert and March (1963), p. 45. Only when the individual is motivated he will look for information. See MacCrimmon and Taylor (1976), p. 1400.
See Boyd and Fulk (1996), p. 4f. and 12.
See Wilensky (1967), p. 10.
At this time the concept of perceived strategic uncertainty was not yet developed. So Leifer and Huber analyze perceived uncertainty. See Leifer and Huber (1976), p. 234.
See Huber (1976) Ibid., p. 236. This was also supported by Culnan (1983), p. 200.
See Daft, Sormunen and Parks (1988), p. 132.
See Sawyerr (1993), p. 293. The correlation coefficients for the remaining three sectors are also positive but not significant. For an explanation considering the specificity of the Nigerian market see Sawyerr (1993), p. 296.
See Auster and Choo (1993), p. 200. See also the findings of Boyd and Fulk (1996), p. 12.
See Elenkov (1997), p. 297.
See Daft, Sormunen and Parks (1988), p. 132, Sawyerr (1993), p. 293, Auster and Choo (1993), p. 200 and Boyd and Fulk (1996), p. 12.
See Elenkov (1997), p. 299.
See May, Stewart and Sweo (2000).
In contrast to previous analysis they decompose perceived strategic uncertainty. Only for the aspect of importance a correlation with scanning frequency can be found. For the dimensions of complexity and of rate of change no significant correlation can be shown. See Stewart and Sweo (2000) Ibid., p. 420.
Ibid., p. 419.
See Aguilar (1967), p. 63ff.
See Daft and Lengel (1984), p. 196ff. See also Holland, Stead and Leibrock (1976), p. 164 and Keegan (1974), p. 418f.
Daft and Lengel (1984), p. 196.
See Bruns and McKinnon (1993), p. 104 and Eisenhardt (1990), p. 42ff.
See Kefalas and Schoderbek (1973), p. 65.
See McGee and Sawyerr (2003), p. 389.
See Daft and Lengel (1984), p. 199.
See Lengel (1984) Ibid., p. 199.
See Daft and Lengel (1984), p. 199. See also Daft and Macintosh (1981), p. 209.
See Holland, Stead and Leibrock (1976), p. 164 and Daft and Lengel (1986), p. 561.
See Kurke and Aldrich (1983), p. 981.
See Lindsay and Rue (1980), p. 394 and 396ff.
See Elenkov (1997), p. 297.
Ibid., p. 298.
See Puffer (1994), p. 43ff., Pearce (1991), p. 76ff. and Beamish (1992), p. 470f.
See McGee and Sawyerr (2003), p. 392. They also show that with rising perceived strategic uncertainty the use of personal sources is more frequent, whereas the use of impersonal sources remains constant.
See Daft, Sormunen and Parks (1988), p. 132f. See also Daft and Macintosh (1981), p. 215ff.
See Sawyerr (1993), p. 293.
See Nystrom and Starbuck (1984), p. 60ff. and Van de Ven (1986), p. 602.
See Aguilar (1967), p. 63ff. and Culnan (1983), p. 197.
See Daft, Sormunen and Parks (1988), p. 126 and McGee and Sawyerr (2003), p. 387.
See Daft and Weick (1984) and their information richness theory. See also Elenkov (1997), p. 294. Kefalas and Schoderbek hypothesize the same way. See Kefalas and Schoderbek (1973), p. 65.
“The quality of information finally received by A — that is, its substantive content — will probably be very different from that originally put into the communication system at the lowest level. The selection principles used by officials below A to determine which data to pass on and which to omit will always differ from those of A himself.” Downs (1966), p. 118.
See Brown and Utterback (1985), p. 307ff. They analyze 199 organizations within 15 industrial sectors in the United States of America. Lindsay and Rue support this result and show that the higher the perceived environmental uncertainty is, the higher the use of external experts such as consultants. See Lindsay and Rue (1980), p. 394 and 396ff.
See Blandin and Brown (1977), p. 118.
See Elenkov (1997), p. 298. In this context, Sawyerr can only show such a significantly positive relationship for the sectors of the remote environment. See Sawyerr (1993), p. 293f.
Elenkov (1997), p. 294.
See McGee and Sawyerr (2003), p. 392 and 394. The study was conducted with North American manufacturing companies which do business in the high-technology industry. The enterprises had a minimum of 2 employees and a maximum of annual sales of 20 million Dollars. See McGee and Sawyerr (2003), p. 391. Pineda shows the same for importance of strategic decisions. The more important a decision is the more frequent the use of external sources. See Pineda, Lerner, Miller and Phillips (1998), p. 65. As importance is part of perceived strategic uncertainty, this result is also relevant in this context.
See Daft, Sormunen and Parks (1988), p. 132f.
See Chenhall and Morris (1986), p. 137f.
See Yasai-Ardekani and Nystrom (1996), p. 198f.
Chenhall (2003), p. 138. In this context the use of the word data would be more precise.
SeeChong and Chong (1997), p. 272.
See Gordon and Narayanan (1984), p. 44.
See Chong (1996).
Task uncertainty is defined as the difference between the amount of information required to perform the task and the amount of information already processed. See Galbraith (1973), p. 4.
See Chong (1996), p. 419.
See Utterback (1979), p.136. Eisenhardt reasons in a similar way by stating that managers rely on real-time information under highly uncertain environments. See Eisenhardt (1989), p. 551.
See Thompson (1967), p. 51ff.
See Burns and Stalker (1961), p. 35f.
See Lindsay and Rue (1980), p. 394 and 396ff.
See Lewin and Stephens (1994).
See Legerski, Cornwall and O’Neill (2006), p. 1523.
Miller and Toulouse (1986), p. 1392. See also Lefcourt (1991), p. 414.
Fisher (1996), p. 362. See also Miller and Minton (1969), p. 370.
See Bandura (1977) and Bandura (1977). In this context Bandura is also using the term “cognitive representation of contingencies”. Bandura (1977), p. 165.
Gist (1987), p. 478.
For an overview of studies see Jennings and Zeithaml (1983), p. 418.
See Mitchell (1975) and Mitchell, Smyser and Weed (1975).
See Seemann (1967).
See also Spector and O’Connell (1994) and Spector, Cooper, Sanchez, O’Driscoll and Sparks (2002).
Organ and Greene (1974) and Pryer and Distefano (1971) empirically show this relationship.
See Anderson, Hellriegel and Slocum (1977).
See James and Wright (1993).
See Siu, Spector, Cooper, Lu and Yu (2002), p. 622.
See Shivers-Blackwell (2006), p. 31.
See Brockhaus (1975).
See Durand and Shea (1974).
See Miller and Dröge (1986).
See Miller and Toulouse (1986).
See Burroughs and Mick (2004), p. 407.
See Miller, Kets de Vries and Toulouse (1982), p. 239 and 244.
See Miller, Kets de Vries and Toulouse (1986).
See Vandenbosch and Huff (1997), p. 96.
See Huff (1997) Ibid., p. 87 and 96.
See Miller, Kets de Vries and Toulouse (1986).
See Seemann and Evans (1962). This study is interesting in the context of early warning. Although more information might have negative connotations for the patients, internals tend to be better informed.
See Seemann (1963).
See Srinivasan and Tikoo (1992).
Ibid., p. 500f.
See Dawis and Phares (1967), Phares (1968) and Miller, Kets de Vries and Toulouse (1982).
See Trice and Price-Greathouse (1987).
See Plumly and Oliver (1987). The study of Coleman and Deleire can be seen in analogy. They derive theoretically and prove empirically that teenagers with an internal locus of control are more likely to make educational investments. See Coleman and Deleire (2003).
See Dawis and Phares (1967), p. 549.
See Fisher (1996), p. 365.
See Lefcourt (1982), p. 51ff.
Lewin and Stephens (1994), p. 195.
Ibid., p. 195.
See Evans (1974), p. 176f.
See Durand and Nord (1976), p. 432.
See Zaltman, Duncan and Holbek (1973), p. 121ff. They argue that “it is a non bureaucratic type of organizational structure [that] facilitates the process of innovation”. See Zaltman, Duncan and Holbek (1973), p. 121.
See Miller and Toulouse (1986), p. 1403. See also Burns and Stalker (1961), p. 34f.
See Evans (1974), p. 176f.
See Durand and Nord (1976), p. 432.
Runyon states that, given managers with an internal locus of control, the relationship between managers and subordinates is more authoritarian and supervisors care less. See Runyon (1973), p. 288. The later finding is empirically supported by Durand and Nord. “These results indicated that external supervisors were perceived as showing more consideration than were internal supervisors.” Ibid., p. 434. See also the following two studies: Goodstadt and Hjelle (1973) and Mitchell, Smyser and Weed (1975). Pryer and Distefano, however, find a negative relationship between internal locus and control. See Pryer and Distefano (1971).
Wright and Davidson (2000), p. 69. See also Lamberton (2005), p. 77.
See Norton (1975), p. 608.
Furnham (1994), p.404.
See also Furnham and Ribchester (1995), p. 180.
See McCaskey (1976), p. 64.
See Ashford and Cummings (1983) and Ashford and Cummings (1983).
See Bennett, Herold and Ashford (1990).
See Yurtsever (2001).
See Gul (1984), p. 273 and Gul (1986), p. 102.
See Judge, Thoresen, Pucik and Welborne (1999), p. 113, Johanson (2000), p. 534 and Lamberton (2005), p. 77.
See Entrialgo, Fernández and Vázquez (2000), p. 198f.
See Nakata and Sivakumar (1996).
Lewin and Stephens (1994), p. 196.
See Stephens (1994) Ibid., p. 196.
Vandenbosch and Huff (1997), p. 85.
See Huff (1997) Ibid., p. 91.
McGee, Shields and Birnberg (1978), p. 689.
See Shields and Birnberg (1978) Ibid., p. 690.
See Shields and Birnberg (1978) Ibid., p. 681. Therefore, their way of capturing this attitude will not be adopted.
Lewin and Stephens (1994), p. 196.
McClelland (1976), p. 8.
Ibid., p. 14.
See Ibid., p. 36.
See McClelland (1965).
See McClelland (1976), p. 340ff. Connor shows that teaching need for achievement is almost impossible and not reasonable because “if a need for achievement does exist, it may have heavy knowledge, ability, and opportunity components as well as goal and value components, all of which require identification before they can be manipulated. [...] There is little justification for investment in such a program at this time.” Connor (1971), p. 19. See also Kolb (1965), p. 790.
Mazur and Rosa do not find a significant correlation between economic growth and need for achievement. They conclude that “[n]eed for achievement does not generally predict the economic growth of nations.” Mazur and Rosa (1977), p. 769. In addition to that see Schatz (1971), p. 183ff. For a theoretical economic discussion see Schatz (1993).
See Atkinson (1964), p. 242ff.
See Gilmer (1971), p. 208f.
See Hornaday and Bunker (1970).
See Hornaday and Aboud (1971).
See Kirk and Brown (2003), p. 46f. and Amyx and Alford (2005), p. 346 and 353f.
See Wainer and Rubin (1969), p. 178ff., Davidsson (1989), p. 220 and Lee and Tsang (2001), p. 586 and 593.
See Ruf and Chusmir (1997), p. 631ff.
See Miller and Dröge (1986), p. 541 and Miller and Toulouse (1986), p. 1391.
Entrialgo, Fernández and Vázquez (2000), p. 191. See also Miller and Dröge (1986), p. 541.
See Miller and Toulouse (1986), p. 1402.
See Durand and Shea (1974).
See Entrialgo, Fernández and Vázquez (2000).
See Miller, Dröge and Toulouse (1988).
See Dröge and Toulouse (1988) Ibid., p. 554 and Lewin and Stephens (1994), p. 192.
See Miller and Toulouse (1986), p. 1402.
Lewin and Stephens (1994), p. 191.
Miller, Dröge and Toulouse (1988), p. 541.
See Miller and Toulouse (1986), p. 1402. For the underlying reason of this finding see Miller and Toulouse (1986), p. 1391.
Sitkin and Weingart (1995), p. 1575. See also Kogan and Wallach (1964), p. 2, Das and Teng (2001) and Nicholson, Soane, Fenton-O’Creevy and Willman (2005), p. 158ff.
For the basis of the expected utility framework see Neumann and Morgenstern (1953), p. 15ff., Schoemaker (1982) and Hogarth and Einhorn (1990).
March and Shapira (1987), p. 1404. See also Arrow (1965), p. 11ff.
See Pennings and Smidts (2000), p. 1337. An overview about measuring risk attitude by expected utility functions is provided by Harvey (1990).
Lewin and Stephens (1994), p. 197.
See MacCrimmon and Wehrung (1990), p. 423ff. and Shapira (1995), p. 22ff.
Pennings and Smidts (2000), p. 1339. See also Pennings and Smidts (2000), p. 1344.
See Wally and Baum(1994),p. 936.
See Stewart and Roth (2001). These results are contrary to the findings of Brockhaus. He does not find risk propensity a “distinguishing characteristic of entrepreneurs.” Brockhaus (1980), p. 509. See also Miner and Raju (2004), p. 5ff and Miner (1990), p. 221ff.
See Nicholson, Soane, Fenton-O’Creevy and Willman (2005), p. 166.
Lewin and Stephens (1994), p. 197.
See Shapira (1995).
See Pennings and Smidts (2000), p. 1344.
Kolm (1977), p. 1.
See Rubin and Peplau (1973), p. 66.
Bass, Barnett and Brown (1989), p. 188.
See Rawls (1971).
In this context he speaks about the veil of ignorance that everyone has before entering this world. See ibid, p. 136ff. As a result of this ignorance about the circumstances of future life people will tend to opt for equality. See Ibid., p. 100ff. For a critique of Rawls assumptions see for example Buchanan (1976).
See Puttermann, Roemer and Silvestre (1998), p. 861.
See for example Ramsey (1927) and Aaron and Munnel (1992).
See Lampman (1993).
See Moriarty (2005), p. 458ff. In contrast, Phillips and Margolis argue that states and companies are different kinds of entities and therefore require different ethical theories. See Phillips and Margolis (1999), p. 619ff.
McGuire (1977), p. 26.
See ibid., p. 26.
Shin and Zashin (1982), p. 11 (format of source not adopted). See also McGuire (1977), 26f.
Lewin and Stephens (1994), p. 194.
See Bass, Barnett and Brown (1989), p. 183 and the sources mentioned there.
Sims (1992), p. 505 (format of source not adopted).
Bass, Barnett and Brown (1989), p. 189.
See Trevino (1986), p. 603, Stratton, Flynn and Johnson (1981), p. 36ff., Vallerand, Deshaies, Cuerrier, Pelletier and Mongeau (1992), p. 103f. and Lewin and Stephens (1994), p. 197.
See Candee (1976), p. 1293.
For alternative measurements of moral behavior see Hosmer (1997).
Lewin and Stephens (1994), p. 197.
See Kohlberg, Levine and Hewer (1983), p. 5ff. For a description of the shortcomings of Kohlberg’s construct see Kay (1982), p. 30ff.
“Teleological theory holds that certain actions are right because they have positive consequences in terms of the various goods humans desire: for example, happiness, friendship, economic outcomes, and the traditional notion of the common good.” Cherry and Fraedrich (2000), p. 174. See also Finnis (1988), p. 84 for a definition of teleological ethics.
Deontological theorists believe that an action is inherently right regardless of its consequences. Kant is one of the most important representatives. See Laczniak and Murphy (1993), p. 57ff. and Ashmore(1987),p. 93ff. 521 The preconventional level comprises stage 1 (punishment and obedience orientation) and stage 2 (instrumental relativist orientation). The conventional level comprises stage 3 (interpersonal concordance) and stage 4 (society maintaining orientation). The last level, the principled or postconventional, autonomous one comprises stage 5 (social contract orientation) and stage 6 (universal ethical principle orientation). See Kohlberg (1972), p. 17ff. and 409ff. Weber shows the occurrence of these categories empirically. See Weber (1990), p. 335ff.
See Kohlberg (1972), p. 16 and Kohlberg (1974), p. 5ff.
Beu, Buckley and Harvey (2003), p. 92.
One example for this empirical research is the work by Candee. He finds that persons characterized by a higher stage of moral structure more often make moral choices consistent with human rights than people characterized by a lower stage of moral structure. See Candee (1976). These findings were empirically confirmed. See Randall (1989) and Bass, Barnett and Brown (1989). Very view empirical research has been conducted in the organizational context. Lovell is an exception. He applies the types of moral reasoning to accounting theories of control. See Lovell (1977), p. 154ff.
Lewin and Stephens (1994), p. 198f.
See Sheppard, Hartwick and Warshaw (1988) and the reply of Ajzen (1991).
See Moores and Chang (2006), p. 176.
See Peace, Galletta and Thong (2003).
See Dubinsky and Loken (1989).
See Hunt and Vitell (1986), Marshall and Dewe (1997) and Morris and McDonald (1995).
See Loch and Conger (1996) and Thong and Yap (1998).
Machiavelli (1950).
Ibid.
Lewin and Stephens (1994), p. 192. See also Wrightsman (1991), p. 376 and Geis (1978), p. 305.
See Gable and Dangello (1994), p. 599. For an overview of studies about Machiavellianism within the business context see Gable and Dangello (1994), p. 600. See also Bedell, Hunter, Angie and Vert (2006).
Calhoon (1969), p. 211. See also Jay (1967), p. 17.
See Hunt and Chonko (1984), p. 31.
See Grams and Rogers (1989).
See Lamdan and Lorr (1975).
See Durkin (1970).
Lewin and Stephens (1994), p. 192.
See Durand and Nord (1976).
See Nord (1976) Ibid., p. 433.
See Nord (1976) Ibid., p. 433.
See Nord (1976) Ibid., p. 429.
See Gemmill and Heisler (1972), p. 58.
See Rosenberg (1957), p. 26.
Lewin and Stephens (1994), p. 194. See also Williams (2001), p. 377.
See Coleman (1988), p. 102.
Roberts and O’Reilly (1974), p. 205.
Yasai-Ardekani and Nystrom (1996), p. 187. Aaker for example proposes this delegation of scanning for which trust in people is a prerequisite. See Aaker (1983), p. 79ff.
See Macauley (1963).
See Powell (1990).
See Daft and Weick (1984), p. 286, Milliken (1990), p. 42, Garg, Walters and Priem (2003), p. 725f. and Child (1997), p. 47.
See Hirsch (1975), p. 332.
See Miller and Friesen (1977).
“One fact is particularly worth noting. That is that the highest intelligence/rationality score amongst the failure archetypes is lower than the lowest intelligence/rationality score amongst the successful archetypes. The intelligence factor discriminates perfectly amongst failure and successful archetypes.” Friesen (1977) Ibid., p. 269.
See Subramanian, Fernandes and Harper (1993).
See Subramanian, Kumar and Yauger (1994).
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(2007). Deduction of Hypotheses. In: A Contingency-Based View of Chief Executive Officers’ Early Warning Behavior. Gabler. https://doi.org/10.1007/978-3-8350-5504-9_4
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