Who knows how long this will last
Now we've come so far, so fast
But somewhere back there in the dust
That same small town in each of us
--Don Henley
Environmental uncertainty can be defined as the degree to which future states of the world cannot be anticipated or accurately predicted (Pfeffer & Salancik, 1978: 67). Decision-makers generally do not like high levels of uncertainty because it upsets their strong preference for certainty, stability, and predictability.
As such, when environments are perceived as uncertain and unpredictable, decision-makers will exert greater effort to re-establish the illusion or reality of control and stability over future outcomes (Oliver, 1991).
Actions taken to reduce uncertainty and gain predictability can be seen as driven by the 'stability motive.'
References
Oliver, C. 1991. Strategic responses to institutional processes. Academy of Management Review, 16: 145-179.
Pfeffer, J. & Salancik, G.R. 1978. The external control of organizations: A resource dependence perspective. New York: Harper & Row.
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Never think that lack of variability is stability. Don't confuse lack of volatility with stability, ever.
~Nassim Nicholas Taleb
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