Decoding Response Uncertainty

Abstract

Response uncertainty defined as not knowing how to respond to a known event has been identified as the major uncertainty faced by decision makers, especially where organizational action is unavoidable. However, a granular understanding of response uncertainty is missing in the existing literature. This paper contributes to the uncertainty literature by providing a granular understanding of response uncertainty. It identifies focus, stance, and selection as three types of ‘response uncertainties’. To overcome these uncertainties, firms develop ‘configurational capability’ to identify target area, ‘positioning capability’ to position themselves with respect to competitors, and ‘causal-logic capability’ to establish routines to identify solution for a given problem.