Abstract
This paper reports preliminary results of a study of how relatively large U.S. international firms assess noneconomic environments, how the resulting evaluations are integrated into decision making or planning, and how the process affects managerial strategy. A mailed survey of 455 firms was followed up by personal interviews with approximately 113 managers in 37 firms selected via a stratified quota sample of respondents. Findings support a conclusion that assessment and evaluation of nonmarket environments is emerging as a new managerial function in relatively large international firms. Over half of the respondents indicated that they have a group or groups which have been assigned formal assessment responsibility; however, both the survey results and interview data suggest a number of problems with current practice. Assessments tends to be reactive rather than active; the most important sources of information about environments are internal to the firm; assessments are typically not conducted independently of an investment or planning proposal; and resulting evaluations serve as a context in which decisions are taken rather than as input to a decision-making process.
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*Stephen J. Kobrin is Associate Professor of Management at the Sloan School of Management at M.I.T. and a Research Fellow at The Conference Board.
**John Basek is a Research Fellow at The Conference Board.
***Stephen Blank is Senior Research Associate and Director of the International Political and Social Analysis Program at The Conference Board.
****Joseph La Palombara is Wolfers Professor of Political Science at Yale University and Senior Research Fellow at The Conference Board.
An erratum to this article is available at http://dx.doi.org/10.1057/jibs.1980.18.
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Kobrin, S., Basek, J., Blank, S. et al. The Assessment and Evaluation of Noneconomic Environments by American Firms: A Preliminary Report. J Int Bus Stud 11, 32–47 (1980). https://doi.org/10.1057/palgrave.jibs.8490594
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DOI: https://doi.org/10.1057/palgrave.jibs.8490594