NAVIGATING THE TURBULENT WATERS OF TRANSITION: HOW HUNGARIAN FIRMS CO-EVOLVE WITH THEIR ENVIRONMENT IN THE LAST TWENTY YEARS OF ECONOMIC TRANSITION?
pp.2080-2093
Research on strategic orientations has mainly focused on Western countries, leaving findings an open issue for other contexts, such as transitional economies. In these economies competition is likely to be fluid and new entrants are approaching the market which offers new perspectives on the strategic orientation-context link. However, extant literature on strategic management has mostly studied short term adaption events or single cases, and to more accurately account for the dynamic process of economic transition, strategic research has to focus on how firms co-evolve with the changing environment. Extending previous work, we investigate the process of firms’ co-evolution with their environment over the last two decades of economic transition in Hungary. Results show that there has been a significant increase in perceived market turbulence, technological turbulence and competitive intensity as the Hungarian economy enters the later phase of economic transition. However, firms do not perceive this change in the environment and do not respond to it by allocating more resources on customer and competitor orientation.