Organizational Adaptation: Interorganizational Relationships and Environmental Uncertainty

Paula W. Potter
(Western Kentucky University, Kentucky, USA)

Abstract: Researchers have advanced organizational adaptation theory arguing that the interaction of strategic choice and environmental determinism provides explanations for the adaptation process (Hrebiniak & Joyce, 1985). Recent research indicates that the organizational adaptation research domain still contain gaps (Abatecola, 2012). Although the research literature expands over several decades, the question of how organizations change remains to be one of importance to scholars. Organizational adaptation theory may be extended further by the proposal that environmental uncertainty and choice of interorganizational relationships may influence the adaptation process. Milliken (1987) differentiates the three types of environmental uncertainty, which are state, effect and response. Each type of environmental uncertainty holds implications for organizations in general and influences administrators’ strategic choices in particular. Under watch of the three different types of environmental uncertainty, state, effect and response, organizations may be more likely to enter interorganizational relationships depending on the fundamental contingencies of relationship formation.

Key words: adaptation; strategic choice; uncertainty

JEL code: D81