Perceived Environmental Uncertainty and Strategic Flexibility among Entrepreneurs in Pakistan
DOI:
https://doi.org/10.55737/trt/v-ii.330Keywords:
Perceived Environmental Uncertainty, Strategic Flexibility, Entrepreneurs, PakistanAbstract
Entrepreneurs across the globe face environmental uncertainty, and successful enterprises adapt to it through strategic flexibility. However, such studies are rare in Pakistan. Therefore, the present study aimed to address this gap by assessing the relationship between perceived environmental uncertainty and strategic flexibility. The study employed a cross-sectional correlational research design and purposive sampling to collect data from entrepreneurs with at least one year of experience in operating and managing a business and a minimum of an intermediate-level qualification. Initially, 300 entrepreneurs from Lahore and Faisalabad were approached, of whom 240 completed the questionnaires and met the inclusion criteria, yielding a response rate of 80%. Standardized questionnaires were used to measure the study variables. Correlational analysis revealed a significant positive relationship between perceived environmental uncertainty and strategic flexibility. Furthermore, regression analysis demonstrated that perceived environmental uncertainty significantly and positively predicted strategic flexibility. The study addressed a gap in the indigenous literature and provided useful implications and recommendations.
References
Afshar Jahanshahi, A., Brem, A., & Shahabinezhad, M. (2018). Does thinking style make a difference in environmental perception and orientation? Evidence from entrepreneurs in post-sanction Iran. Sustainability, 10(5), 1546. https://doi.org/10.3390/su10051546
Bouguerra, A., Hughes, M., Rodgers, P., Stokes, P., & Tatoglu, E. (2024). Confronting the grand challenge of environmental sustainability within supply chains: How can organizational strategic agility drive environmental innovation? Journal of Product Innovation Management, 41(2), 323-346. https://doi.org/10.1111/jpim.12692
BUCHKO, A. A. (1994). Conceptualization and measurement of environmental uncertainty: An assessment of the miles and snow perceived environmental uncertainty scale. Academy of Management Journal, 37(2), 410-425. https://doi.org/10.2307/256836
Cao, G., & Duan, Y. (2024). Exploring the impact of business analytics on strategic decision-making in uncertain environments. Journal of Management Analytics, 11(4), 577-600. https://doi.org/10.1080/23270012.2024.2420365
Carayannis, E. G., Papamichail, G., Zotas, N., & Askounis, D. (2025). Corporate foresight: Navigating uncertainty in a VUCA world. Journal of the Knowledge Economy, 16(6), 17494-17515. https://doi.org/10.1007/s13132-024-02587-4
Cheng, P., Wu, S., & Xiao, J. (2025). Exploring the impact of entrepreneurial orientation and market orientation on entrepreneurial performance in the context of environmental uncertainty. Scientific Reports, 15(1). https://doi.org/10.1038/s41598-025-86344-w
Chirico, F., Gomez‐Mejia, L. R., Kotlar, J., Cruz, C., Baù, M., Eddleston, K. A., Berrone, P., & Hoskisson, R. E. (2026). Entrepreneurial decision‐making under uncertainty and competing goals. Strategic Entrepreneurship Journal, 20(1), 3-19. https://doi.org/10.1002/sej.70013
Dawodu, T. (2026). Effective Strategies That Small Business Leaders Use to Adapt to Changing Market Trends to Increase Profitability (Doctoral dissertation, Walden University).
De Diego Ruiz, E., Almodóvar, P., & Birkinshaw, J. (2024). The effects of a firm’s internationalization, age, and environmental turbulence on the capabilities that comprise strategic agility. International Entrepreneurship and Management Journal, 20(3), 1935-1961. https://doi.org/10.1007/s11365-024-00971-9
Dong, B. (2024). Environmental dynamism's influence on firm growth: Transformational leadership and strategic flexibility insights. The Journal of High Technology Management Research, 35(2), 100499. https://doi.org/10.1016/j.hitech.2024.100499
Eferakeya, I. (2025). Does environmental uncertainty influence the application of strategic management accounting? An investigation of listed manufacturing firms in Nigeria. Journal of Economics and Management, 47, 355-384. https://doi.org/10.22367/jem.2025.47.14
Giunipero, L. C., Denslow, D., & Eltantawy, R. (2005). Purchasing/supply chain management flexibility: Moving to an entrepreneurial skill set. Industrial Marketing Management, 34(6), 602-613. https://doi.org/10.1016/j.indmarman.2004.11.004
Harinurdin, E., Laksmono, B. S., Kusumastuti, R., & Safitri, K. A. (2025). Community empowerment utilizing open innovation as a sustainable village-owned enterprise strategy in Indonesia: A systematic literature review. Sustainability, 17(8), 3394. https://doi.org/10.3390/su17083394
Jian, Z., Javaid, M., & Liao, S. (2025). Strategic orientation, strategic flexibility and firm performance: The important role of strategic human resource management. Chinese Management Studies, 19(5), 1417-1446. https://doi.org/10.1108/cms-02-2024-0112
Joussen, T. P., Quiel, J., Schwaeke, J., Kanbach, D. K., & Kraus, S. (2025). The role of artificial intelligence in entrepreneurial decision-making under uncertainty: A corporate entrepreneurship perspective. International Journal of Entrepreneurial Behavior & Research, 1-27. https://doi.org/10.1108/ijebr-12-2024-1351
Kariv, D., Attar, I., Haber, Y., & Elyoseph, Z. (2026). AI-simulated entrepreneurship under uncertainty: Forecasting university-driven capability evolution. The Journal of Technology Transfer, 51(4), 2942-2972. https://doi.org/10.1007/s10961-025-10306-7
Karman, A. (2020). Flexibility, coping capacity and resilience of organizations: Between synergy and support. Journal of Organizational Change Management, 33(5), 883-907. https://doi.org/10.1108/jocm-10-2019-0305
Li, C., Sampene, A. K., Khan, A., & Wiredu, J. (2025). Environmental orientations to innovation ecosystem: The role of green transition, perceived environmental uncertainty and green transformational leadership. Operations Management Research, 18(1), 48-71. https://doi.org/10.1007/s12063-024-00527-8
Mawardi, A. A. K., Farida, L., Endhiarto, T., & Apriliana, T. (2025). Resilient MSMEs in the digital era: Managing environmental uncertainty through dynamic capabilities. BISMA (Bisnis dan Manajemen), 131-158. https://doi.org/10.26740/bisma.v18n1.p131-158
Miles, R. E., & Snow, C. C. (1978). Organizational strategy, structure, and process. McGraw-Hill.
Neupane, B. P., Zielinski, S., & Milanes, C. B. (2025). Startup success in hospitality & Tourism SMEs in emerging economies: How innovation and growth are driven by entrepreneurial orientation, networking strategy, leadership, and flexibility. Sustainability, 17(8), 3485. https://doi.org/10.3390/su17083485
Niamat, R., & Qureshi, F. H. (2025). Dynamic capabilities and environmental performance of high-tech SMEs in Pakistan – The role of eco-innovation and female executives. Organizacija, 58(2), 158-174. https://doi.org/10.2478/orga-2025-0010
Peng, H., & Walid, L. (2022). The effects of entrepreneurs’ perceived risks and perceived barriers on sustainable entrepreneurship in Algeria’s SMEs: The mediating role of government support. Sustainability, 14(17), 11067. https://doi.org/10.3390/su141711067
Petricevic, O., & Teece, D. J. (2019). The structural reshaping of globalization: Implications for strategic sectors, profiting from innovation, and the multinational enterprise. Journal of International Business Studies, 50(9), 1487-1512. https://doi.org/10.1057/s41267-019-00269-x
Rehman, A. U., & Jajja, M. S. (2022). The interplay of integration, flexibility and coordination: A dynamic capability view to responding environmental uncertainty. International Journal of Operations & Production Management, 43(6), 916-946. https://doi.org/10.1108/ijopm-11-2021-0708
Shahid, M. S., Begum, R., & Ambreen, U. (2026). The relationship between workplace loneliness and turnover intention: Moderating role of perceived organizational support. Journal of Professional & Applied Psychology, 7(1), 32-42. https://doi.org/10.52053/jpap.v7i1.480
Shahid, M. S., Komal, S., Khalid, A., Ashraf Shami, A. Z., & Qureshi, S. (2025). Project managers’ emotional intelligence and team performance: The mediating role of team cohesion. Pakistan Journal of Humanities and Social Sciences, 13(4), 174-182. https://doi.org/10.52131/pjhss.2025.v13i4.3048
Shahid, M. S., Soomro, N. I., Zehra, K., Shami, A. Z., & Ashraf, S. J. (2025). Perceived corporate social responsibility and employee engagement among employees in the corporate sector of Pakistan: The mediating role of organizational pride. The Regional Tribune, 4(4), 277. https://doi.org/10.55737/trt/fl25.178
Shahzad, S., & Jasińska, E. (2024). Renewable revolution: A review of strategic flexibility in future power systems. Sustainability, 16(13), 5454. https://doi.org/10.3390/su16135454
Sharma, M. K., Sushil, & Jain, P. K. (2010). Revisiting flexibility in organizations: Exploring its impact on performance. Global Journal of Flexible Systems Management, 11(3), 51-68. https://doi.org/10.1007/bf03396587
Shimizu, K., & Hitt, M. A. (2004). Strategic flexibility:Organizational preparedness to reverse ineffective strategic decisions. Academy of Management Perspectives, 18(4), 44-59. https://doi.org/10.5465/ame.2004.15268683
Sołoducho-Pelc, L., & Sulich, A. (2020). Between sustainable and temporary competitive advantages in the unstable business environment. Sustainability, 12(21), 8832. https://doi.org/10.3390/su12218832
Teece, D. J. (2025). Dynamic capabilities: Foundational concepts. Cambridge University Press.
Teece, D. J. (2018). Dynamic capabilities as (workable) management systems theory. Journal of Management & Organization, 24(3), 359-368. https://doi.org/10.1017/jmo.2017.75
Trigeorgis, L. (1996). Real options: Managerial flexibility and strategy in resource allocation. MIT Press.
Ulrich, D., & Wiersema, M. F. (1989). Gaining strategic and organizational capability in a turbulent business environment. Academy of Management Perspectives, 3(2), 115-122. https://doi.org/10.5465/ame.1989.4274761
Yi, C. Y., Ngai, E., & Moon, K. (2011). Supply chain flexibility in an uncertain environment: Exploratory findings from five case studies. Supply Chain Management: An International Journal, 16(4), 271-283. https://doi.org/10.1108/13598541111139080
York, J. G., & Venkataraman, S. (2010). The entrepreneur–environment nexus: Uncertainty, innovation, and allocation. Journal of Business Venturing, 25(5), 449-463. https://doi.org/10.1016/j.jbusvent.2009.07.007
Zahra, S. A., Hayton, J. C., Neubaum, D. O., Dibrell, C., & Craig, J. (2008). Culture of family commitment and strategic flexibility: The moderating effect of stewardship. Entrepreneurship Theory and Practice, 32(6), 1035-1054. https://doi.org/10.1111/j.1540-6520.2008.00271.x
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Abdul Samad, Dr. Abida Hassan, Aurang Zaib Ashraf Shami
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
