Strategic responses to uncertainty shocks and consequences: a study of sustainability-oriented exporters in an emerging country

Abstract

Purpose

The COVID-19 pandemic has brought unprecedented challenges to businesses worldwide, compelling them to swiftly adapt their strategies to the evolving landscape. This study explores the relationships between uncertainty shocks (i.e. COVID-19), strategic responses, and performance outcomes, with a specific focus on general and green strategic responses.

Design/methodology/approach

Drawing from a sample of sustainability-oriented exporters in different industries, we examine the impact of these responses on market, financial, and operation performance by gathering data from 212 managers in Vietnam – an emerging country, and then applying PLS-SEM for analysis.

Findings

Our findings reveal that sustainability-oriented exporters have exhibited adaptability by adopting general and green strategic responses in the face of the pandemic’s disruptions. Green strategic responses positively influence market, financial, and operational performance, underscoring the strategic significance of integrating sustainability considerations. However, while general strategic responses show alignment with uncertainty risks, they just impact operational performance, but do not significantly influence market and financial outcomes.

Research limitations/implications

Future research should consider diversifying the sample to encompass a wider range of firm types and geographical locations to enhance the external validity of the results. In addition, the study does not extensively explore the mechanisms that mediate or moderate the relationships between uncertainty shocks, strategic responses, and performance outcomes.

Practical implications

The study’s implications guide practitioners toward agile responses that balance adaptability, sustainability, and performance. This study provides timely insights for sustainability-oriented firms, managers, policymakers, and researchers aiming to navigate disruptions effectively and sustainably.

Originality/value

These findings contribute to the fields of strategic management and sustainability by emphasizing the complexities of strategic responses during uncertainty shocks, and disruptions and the pivotal role of sustainability-driven strategies in enhancing performance.

Citation

Nguyen, H., Nguyen, M.T.T., Binh, D., Nguyen, L.D.X. and Phung, H.M. (2024), "Strategic responses to uncertainty shocks and consequences: a study of sustainability-oriented exporters in an emerging country", Benchmarking: An International Journal, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/BIJ-08-2023-0588