By Andreas Kirschkamp, Prof. Dr. Utz Schäffer
Organizations have to determine hazards and possibilities of environmental adjustments so that it will adapt to or potentially even to persuade them. Early caution which contains scanning and interpretation performs a big function during this technique. while the normal contingency method considers early caution as part of the organizational constitution, the prolonged contingency conception assumes the extra impact of an individual’s character on early caution.
Andreas Kirschkamp empirically analyses the early caution habit of leader government officials in German medium-sized businesses. First, he provides the layout variables of early caution, then the influencing contingency variables. at the foundation of the scholarly study on mental and contingency concept, the writer deduces hypotheses and assessments them. the consequences exhibit that early caution habit isn't just encouraged by way of conventional contingency variables but additionally via own attitudes. for that reason, the writer proposes combining the prolonged contingency thought with the normal contingency theory.
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Extra info for A Contingency-Based View of Chief Executive Officers’ Early Warning Behavior: An Empirical Analysis of German Medium-Sized Companies
154 adapted it to the individual level. ” 156 The collection of mere data is followed by its interpretation. ” 157 Interpretation occurs before organizational action158 which is comprised in two steps. ” 159 The second step is the response, the adaptive action. e. the capability of learning to act according to environmental changes. 161 This act of learning also provides new information for scanning and interpretation. 162 Therefore, learning can be considered as a feedback loop 151 152 153 154 155 156 157 158 159 160 161 162 See Sutcliffe (2001), p.
See also figure 5. Part B Understanding of Early Warning in Literature and Definition of Important Terms 19 threat number 2 will be considered. No reaction at any state of the firm is possible to prevent possible losses resulting from this threat. This analysis shows ANSOFF’s two key insights: the importance of detecting the signal early enough by scanning the environment of the organization 117 and of changing the state of the firm 118 . In the context of this work the first point is especially looked at.
P. 315. See Weick, Sutcliffe and Obstfeld (2005). Dutton, Fahey and Narayanam (1983), p. 307f. Aguilar (1967), p. 1 (format of source not adopted). See Wilson (1983), p. 12. 142 An issue with a major impact and high urgency demands a quick reaction, whereas a trend with low impact and low urgency can be disregarded. Finally, the formulation of a response strategy is based on the results of this analysis. 143 However, sensemaking is understood only as the step precedent to decision, which itself is not regarded by this stream of literature.