Corporate Strategies for Navigating Uncertainty in the Global Business Environment

Abstract

Within a period marked by exceptional levels of geopolitical instability, technological disruption, and macroeconomic uncertainties, the ability for firms to cope with uncertainty is becoming the critical factor behind sustained competitive advantage. This study aims to examine the strategic actions used by companies to create organizational resilience within their operations amidst a dynamic global environment. The study is based on a mixed methods approach that combines quantitative analysis using survey data obtained from 350 top managers within six different industries with qualitative analysis from case studies conducted on 20 multinational firms. Scenario planning, creation of dynamic capabilities, digital transformation, and diversification have been found to be the key strategic tools that promote organizational resilience. Results from structural equation modeling and multiple regression analysis have shown that scenario planning has the most significant influence (β = 0.412, p < 0.001), while dynamic capabilities (β = 0.378, p < 0.001) and digital transformation (β = 0.334, p < 0.001) also exhibit high predictive power in creating organizational resilience. The suggested model of a strategic architecture with three layers – environmental scanning, strategic decision-making, and resilience at the implementation stage – is designed as a practitioner-driven approach to apply these results in practice. From a theoretical standpoint, the study contributes to the development of dynamic capability theory, while managerial implications are provided with regard to building adaptive strategies in the context of unstable environments.