Antecedents of risk and uncertainty management capabilities: Insights from multinational enterprises in New Zealand

Abstract

AbstractRisks and uncertainties of increasing severity and variety characterise the operating environments of most multinational enterprises (MNEs). Surprisingly limited attention has been given to understanding the antecedents and nature of risk and uncertainty management capabilities. In this study, we contribute to the organisational capability research, by examining the antecedents of risk and uncertainty management capabilities and theorising how MNEs develop and transfer risk and uncertainty management capabilities across borders. By drawing on empirical evidence from MNEs operating in New Zealand, we conceptualise the role of environmental factors – including country risk profile and regulatory environment – in shaping firms' risk and uncertainty management capabilities. We also inductively theorise about the organisational factors that support the development of risk and uncertainty management capabilities in MNEs, and explain which factors influence their cross-border transferability. Finally, we discuss our study's limitations and offer future research directions.