Academy of Entrepreneurship Journal (Print ISSN: 1087-9595; Online ISSN: 1528-2686)


Enviromental Uncertainty and Firm's Strategic Change: The Moderating Role of Managerial Experience

Author(s): Heni Agustina, Rizki Amalia Elfita, Rizqi Putri Nourma Budiarti, Yohan Kurniawan and Triyonowati

All managerial experiences are always used to a moderate role by its effect, but sometimes the result gives environmental uncertainty. We proposed to examine the effect of environmental uncertainty on corporate strategy change and examines the moderating role of managerial experience on this effect. The sample used is 662 annual reports of manufacturing companies from the period 2014 to 2019. The analysis technique used is moderate regression analysis using the SPSS 24.0 application. The results showed that environmental uncertainty has a positive and significant correlation with changes in corporate strategy. In addition, the research results pro-vide evidence of managerial experience encouraging managers to be more intensive in minimizing the impact of environmental uncertainty so that the likelihood of changes in company strategy is low. These findings indicate changes in the external environment when environmental uncertainty increases, which causes the company to make changes to the strategy it carries out due to changes in the company’s resource allocation pattern. In addition, high managerial experience makes it easy for companies to obtain information related to environmental changes so that the impact of environmental uncertainty can be minimized. It means that companies do not need to change their strategy when environmental uncertainty increases.

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