Examining the Relationship between Environmental Uncertainty and Strategic Planning Approaches: The Mediating Role of Strategic Orientation

Document Type : Research Paper

Authors

1 MSc., Department of Business Management, Faculty of conomics and Social Sciences, Bu-Ali Sina University, Hamadan, Iran.

2 Assistant Prof., Department of Management, Faculty of conomics and Social Sciences, Bu-Ali Sina University, Hamadan, Iran.

10.22059/jibm.2024.354143.4529

Abstract

Objective
In a rapidly changing world with an uncertain future, it is becoming increasingly challenging for managers to develop strategies that provide a competitive advantage by effectively balancing commitment and adaptability. One way to achieve such a balance is through flexible planning. In this regard, the management of organizations has a significant impact on the way internal components interact with the external world and on the overall performance of the organization. This is especially true for small and medium-sized enterprises, where the weight of the management factor on the overall performance of the enterprise is much greater. It is becoming more and more apparent. However, in strategic planning, various models have been proposed to deal with the phenomenon of uncertainty, the most important of which are: emergent and learning strategies, multiple simultaneous strategies, rolling strategies, shaping strategies, phased strategy development, persistent strategy, strategic issues approach, and strategy negation approach. The key point is that uncertainty has a wide range, and in some organizational environments, uncertainty is very high, while in some environments, its severity is low. This variation raises a fundamental question: which strategic planning models are most effective under different levels of uncertainty? One of the variables that can have a moderating role here is strategic orientation. Because strategic orientation in companies can represent a tendency to use riskier strategic plans, it can have a moderating role in the relationship between types of strategic planning and uncertainty. Therefore, the present study aimed to investigate the relationship between uncertainty and types of strategic planning with the mediating role of strategic orientation.
 
Methodology
The statistical population of this study comprises senior managers of companies located in Tehran's Pardis Technology Park. This research adopts a descriptive-survey design in both nature and methodology. The validity of the questionnaire was established through a review of theoretical foundations and expert evaluations, while its reliability was confirmed using Cronbach's alpha coefficient. To examine relationships and analyze the data, structural equation modeling (SEM) and correlation analysis were employed.
 
Findings
The results of the study indicate a significant positive relationship between uncertainty and strategic orientation. Additionally, a significant negative relationship was found between the level of uncertainty and strategic planning. The findings also reveal a significant positive relationship between strategic orientation and the selection of strategic planning approaches. Finally, the mediating role of strategic orientation in the relationship between uncertainty and strategic planning was confirmed.
 
Conclusion
The planning approaches most strongly correlated with uncertainty, in descending order, are: learning and emergent strategy, persistent strategy, strategic issues management, formative planning, and lastly, strategic planning, which, despite ranking fifth in correlation, holds the highest mean score. A second key finding is that strategic orientation significantly influences how managers perceive and approach strategies and the future; thus, it plays a critical role in shaping responses to uncertainty and in determining the choice of strategic planning approaches.

Keywords

Main Subjects

References

 
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Journal of Business Management
Volume 17, Issue 3
2025
Pages 177-198

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