Document Type
Article
Publication Date
12-1-2008
Abstract
Ambiguity about firm and competitor competencies and resources challenges managerial decision making − especially in developing countries where asymmetric information is higher than in the developed ones. Although a number of scholars have addressed “causal ambiguity” and its relationship with firm resources and competencies, and theorists have suggested a positive relationship between it and organizational performance, these links remain unclear. On one hand, ambiguity may protect a firm because competitors cannot easily imitate it (Alvarez & Antolin, 2005). On the other hand, causal ambiguity may impede imitation of valuable resources within the firm, limiting management ́s ability to manage resources and competencies for competitive advantage (Szulanski, 1996). Our research, based on interviews with CEOs and Board Directors of large and medium sized Chilean corporations, illuminates the role of ambiguity and its impact on the performance of firms in developing markets. In contrast to claims about its deleterious effect on performance, our data revealed that CEOs of Chilean companies are quite comfortable with causal ambiguity and appreciate its potential.
Keywords
organizational behavior, causal understanding, causal mapping, causal ambiguity, firm performance, resource-based theory, competitive advantage, transfer of competencies, and imitation
Rights
© The Author(s). Kelvin Smith Library provides access for non-commercial, personal, or research use only. All other use, including but not limited to commercial or scholarly reproductions, redistribution, publication or transmission, whether by electronic means or otherwise, without prior written permission is strictly prohibited.
Department/Center
Design & Innovation
Recommended Citation
Araya, Richard I., "The Relation Between Management's Perception of Causal Ambiguity in Firm Competencies and Firm Performance: An Empirical Examination in Chile" (2008). Student Scholarship. 479.
https://commons.case.edu/studentworks/479