Effect of the perceived environmental uncertainty on market orientation, strategic flexibility and corporate entrepreneurship: a field study with small and medium size firms in Kars

Abstract

Contemporary changeable and complex environmental conditions create an uncertain medium for businesses. In such conditions. managers with acquired dynamic knowledge will be seeing the environment as a whole, and will develop suitable competitive strategies by being aware of the opportunities/threads created by the environment. In uncertain environmental conditions, key factor for businesses is to develop realistic strategies to keep their business alive and to gain competitive advantages through solving their problems. Uncertainty is an environmental phenomenon businesses try to minimize because it indicates the complexity of environmental elements, affects adaptation ability negatively by creating inadequacy on determining environmental developments. In uncertain conditions. managers with their market orientation. strategic flexibility, and corporate entrepreneurship abilities, will find the opportunity to perceive opportunities/threads created by the environment and to develop suitable strategies through making coordination among the environmental factors. Due to that, perceived environmental uncertainty leads the managers to search more information, thereby affecting their market orientation, strategic flexibility, and corporate entrepreneurship abilities. This study aimed to determine the effects of perceived environmental uncertainty by the managers of small and medium size firms in Kars on market orientation. strategic flexibility and corporate entrepreneurship.