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Managerial sensemaking in a transforming business ecosystem
Kaisa Penttilä |
May 13, 2024 |

 1,386 total views

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A recent study delved into how managers navigate the complexities of evolving business landscapes and its implications for their enterprises. The investigation, which fills a notable gap in empirical research, comes at a crucial time as managers grapple with multifaceted socio-economic shifts.

Approaching the research through a sensemaking lens, the study aimed to unravel the microfoundations of managerial decision-making in a transforming business ecosystem. Through an abductive research process, the study revealed nuanced insights into the moderating frames that shape managerial sensemaking.

Contrary to conventional wisdom, the study found that managerial sensemaking extends beyond mere technological and competitive factors. It identified three overarching themes—New technologies, Global competition and market trends, and Properties of the local business ecosystem—as focal points for managerial sensemaking.

Moreover, the study unveiled four distinct sensemaking frames—Technological insight, Latitude for strategic change, Business model boundaries, and Local identity embeddedness—that influence how managers interpret environmental cues and strategize accordingly.

This empirical validation of existing frameworks adds a crucial layer of detail to our understanding of sensemaking in networked contexts. By shedding light on the actual content of managerial sensemaking and its implications for strategizing, the study advances theoretical and practical knowledge in the field.

Importantly, the findings underscore the pivotal role of individual-level sensemaking in firm-level decision-making within transforming business ecosystems. Understanding how managers frame and interpret these environments is essential for envisioning future strategizing options and adapting to changing landscapes.

Looking ahead, the study paves the way for future research to adopt a longitudinal and multilevel approach to studying the microfoundations of strategizing in dynamic business environments. By focusing on individual sensemaking frames, researchers can gain deeper insights into the drivers of strategic decision-making in an ever-evolving business landscape.

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Author: Kaisa Penttilä

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