Entrepreneurs in post-sanctions Iran

Innovation or imitation under conditions of perceived environmental uncertainty?

Asghar Afshar Jahanshahi*, Alexander Brem

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

We examined the relationships between perceived environmental uncertainty and firm strategies (innovation vs. imitation) with a sample of 143 Iranian entrepreneurs. By using longitudinal data, we hypothesized that perceived environmental state uncertainty increases the possibility of pursuing innovative strategies and that the perceived effect and response of uncertainty increases the possibility of pursuing imitative strategies by Iranian entrepreneurs during the post-sanction period. Our results extend previous research by not only highlighting the importance of perceived environmental uncertainty in shaping firms’ strategic behavior, but also indicating how each dimension of perceived environmental uncertainty either enhances or inhibits the innovation/imitation strategy. Since perceived environmental uncertainty is a multidimensional and broad concept that usually stems from different sources, ignoring the exact types of uncertainty faced by entrepreneurs during strategy formulation could lead to unproductive investments and higher costs that may hurt firm performance in the long term. Our findings are in general consistent with the predictions of upper echelons theory and confirm that the strategy of a firm varies according to the types of uncertainty perceived by entrepreneurs.

Original languageEnglish
JournalAsia Pacific Journal of Management
Pages (from-to)1-21
ISSN0217-4561
DOIs
Publication statusPublished - 1. May 2019

Fingerprint

Entrepreneurs
Perceived environmental uncertainty
Sanctions
Iran
Innovation
Imitation
Uncertainty
Innovative strategies
Prediction
Upper echelons theory
Firm performance
Strategic behavior
Longitudinal data
Perceived uncertainty
Costs
Strategy formulation
Firm strategy

Keywords

  • Entrepreneurs
  • Imitation strategy
  • Innovation strategy
  • Iran
  • Perceived environmental uncertainty
  • Sanctions

Cite this

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title = "Entrepreneurs in post-sanctions Iran: Innovation or imitation under conditions of perceived environmental uncertainty?",
abstract = "We examined the relationships between perceived environmental uncertainty and firm strategies (innovation vs. imitation) with a sample of 143 Iranian entrepreneurs. By using longitudinal data, we hypothesized that perceived environmental state uncertainty increases the possibility of pursuing innovative strategies and that the perceived effect and response of uncertainty increases the possibility of pursuing imitative strategies by Iranian entrepreneurs during the post-sanction period. Our results extend previous research by not only highlighting the importance of perceived environmental uncertainty in shaping firms’ strategic behavior, but also indicating how each dimension of perceived environmental uncertainty either enhances or inhibits the innovation/imitation strategy. Since perceived environmental uncertainty is a multidimensional and broad concept that usually stems from different sources, ignoring the exact types of uncertainty faced by entrepreneurs during strategy formulation could lead to unproductive investments and higher costs that may hurt firm performance in the long term. Our findings are in general consistent with the predictions of upper echelons theory and confirm that the strategy of a firm varies according to the types of uncertainty perceived by entrepreneurs.",
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Entrepreneurs in post-sanctions Iran : Innovation or imitation under conditions of perceived environmental uncertainty? / Afshar Jahanshahi, Asghar; Brem, Alexander.

In: Asia Pacific Journal of Management, 01.05.2019, p. 1-21.

Research output: Contribution to journalJournal articleResearchpeer-review

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T2 - Innovation or imitation under conditions of perceived environmental uncertainty?

AU - Afshar Jahanshahi, Asghar

AU - Brem, Alexander

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AB - We examined the relationships between perceived environmental uncertainty and firm strategies (innovation vs. imitation) with a sample of 143 Iranian entrepreneurs. By using longitudinal data, we hypothesized that perceived environmental state uncertainty increases the possibility of pursuing innovative strategies and that the perceived effect and response of uncertainty increases the possibility of pursuing imitative strategies by Iranian entrepreneurs during the post-sanction period. Our results extend previous research by not only highlighting the importance of perceived environmental uncertainty in shaping firms’ strategic behavior, but also indicating how each dimension of perceived environmental uncertainty either enhances or inhibits the innovation/imitation strategy. Since perceived environmental uncertainty is a multidimensional and broad concept that usually stems from different sources, ignoring the exact types of uncertainty faced by entrepreneurs during strategy formulation could lead to unproductive investments and higher costs that may hurt firm performance in the long term. Our findings are in general consistent with the predictions of upper echelons theory and confirm that the strategy of a firm varies according to the types of uncertainty perceived by entrepreneurs.

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KW - Innovation strategy

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