Dynamic Stability
Feb 2022 - Jun 2022
An In-Depth Analysis Of Design Strategies Utilized By Companies Facing Uncertain Events
A Multi-Case Study Approach
As of March 2022, ongoing geopolitical challenges have created a significant global impact, indirectly influencing lives well beyond the immediate conflict. This occurs against the backdrop of an unfinished struggle with the lingering effects of the COVID-19 pandemic. In our interconnected world, events such as geopolitical conflicts and pandemics contribute to heightened uncertainty. The complexities of these situations, characterized by Volatility, Uncertainty, Complexity, and Ambiguity (VUCA), pose considerable challenges for businesses. While Bennett & Lemoine (2014) and Kim et al. (2022) offer strategies to navigate various uncertainties, their application to real-world events and their repercussions on companies remains a critical gap. Our research aims to bridge this gap, connecting actual events to effective strategies for achieving dynamic stability in the business landscape.
Research Question 1
Which real-world uncertain events did the different industries face in the year May 2021 to May 2022?
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What were the levels of uncertainty faced by these industries?
Research Question 2
What patterns emerge in the use of 6R framework strategies across diverse uncertainty levels among all industries?
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Do all deployed reactions and strategies fit within the categories of the 6R Framework?
Research Process and Approach
For our research, we used a mixed-method research approach. First, we have used a multi-case study approach based on Eisenhardt’s (1989) proposals. It contains a comparative study of what uncertainties selected companies have faced and how they have dealt with them. Through analysis, we have identified the correlation between the levels of uncertainty and the strategies or actions companies use to overcome this type of event. After we aimed to link the level of uncertainty to Kim’s (2022) 6R framework. Second, we conducted an expert interview (Bogner & Menz, 2009) to validate our correlation of the levels of uncertainty to the 6R framework for the selected companies.
Insights and Strategies for Dynamic Stability in VUCA Environments
Over the span of 2021 to 2022, various industries encountered a total of 53 distinctive uncertain events. These events were sorted into eight main categories of uncertainty, namely (Geo)political events, Accidental disaster, Economic crisis, Market crises, Natural disaster, Organizational/operational crisis, Societal issues, and Technological crisis. Notably, each company navigated uncertainties across all levels, with a prevalent focus on level 3 uncertainties, such as supply chain challenges or geopolitical events.
During our analysis of companies' responses using the 6R Framework, we identified a noteworthy phenomenon. Some reactions didn't align neatly with any of the predefined re-strategy groups in the 6R Framework. Termed as the "react" group, these companies responded to uncertain events by maintaining their existing strategies, addressing or supporting the situation, and, at times, even denying the root causes of the situation. This unique "react" approach provides an intriguing perspective within the broader framework of handling uncertainty in the dynamic period from 2021 to 2022. Building upon these insights, our analysis culminated in a modified 6R Framework, illustrated in Figure 2, showcasing the predominant re-strategies employed at each level of uncertainty from 2021 to 2022.
In today’s VUCA environment, companies are facing many uncertainties and hence it has become important for the company to be dynamically stable in such situations. Through our research we want to provide a source of information which can help the designers in the companies to better understand the real-world uncertain events and then make their decisions accordingly. Our research used a multi-case study approach to analyze the diverse range of uncertain events faced by 12 selected companies (each from different industries) and how they responded to these events. We established a correlation between the level of uncertainty framework and the 6R Framework to give an overview of the possible strategies that can be used in these levels of uncertainties. We hope that the diverse set of uncertain events and the possible strategies used in these situations will help the companies to build the necessary dynamic capabilities to be successful in VUCA environments as well as help for further exploration in this domain.
For a more in-depth understanding of this project, you can explore the comprehensive details in my Master's thesis. It provides a thorough analysis and insight into the research findings.