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Casual Ambiguity and its Impact on Firm Performance

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2010, Doctor of Management, Case Western Reserve University, Weatherhead School of Management.
Strategic management literature has recognized that the presence of causal ambiguity plays a pivotal role in generating differences in obtained rents. At the same time, causal ambiguity may hamper internal diffusion of capabilities within the firm negatively affecting its performance (Szulanski, 1996). Overall, the relationship between dynamic capabilities, causal ambiguity and firm performance has remained poorly understood. In this doctoral study, we seek to address this gap by developing a causal model that depicts how management perceptions of causal ambiguity mediate the effects of the firm’s competencies on firm performance. Three mixed method studies together provide a rich account of how managers respond to causal ambiguity and its effects on firm performance. The first study examines the extent to which characteristics of managers are related to ambiguity. The second study based on qualitative interviews shows that a holistic approach to firm operations addresses causal ambiguity more effectively than attempts to address ambiguous situations separately. The third study analyzes using a survey methodology how ambiguous competencies are deployed within the organization and to what extent causal ambiguity mediates the effects of firm competencies. The results suggest two important considerations for management practice. First, participative leadership style, open climate, and congruent sustained values should be considered for their positive impact on reducing causal ambiguity. Second, the managerial climate and organizational values have also an effect in decreasing causal ambiguity.
Kalle Lyytinen, Ph.D. (Advisor)
Richard Boland, Ph.D. (Advisor)

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Citations

  • Araya, R. I. (2010). Casual Ambiguity and its Impact on Firm Performance [Doctoral dissertation, Case Western Reserve University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=casedm1568627761609538

    APA Style (7th edition)

  • Araya, Richard. Casual Ambiguity and its Impact on Firm Performance. 2010. Case Western Reserve University, Doctoral dissertation. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=casedm1568627761609538.

    MLA Style (8th edition)

  • Araya, Richard. "Casual Ambiguity and its Impact on Firm Performance." Doctoral dissertation, Case Western Reserve University, 2010. http://rave.ohiolink.edu/etdc/view?acc_num=casedm1568627761609538

    Chicago Manual of Style (17th edition)