Chief executive scanning, environmental characteristics, and financial performance: A canonical analysis and empirical investigation of top United States manufacturing firms in the Philippines

• Main Author: Mamo, Ermias T.
• Format: text
• Language: English
• Published: Animo Repository 1993
• Subjects: Executive ability; Management; Corporations, American > Philippines; Organizational effectiveness; Manufacturing industries; Business Administration, Management, and Operations; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_doctoral/697
• Institution: De La Salle University

This dissertation aims to determine the external environment scanning practices and perceptions of chief executive officers of top American manufacturing firms in the Philippines regarding strategic uncertainty across environmental sectors.They study was conducted among the top 42 United States owned/controlled firms operating in 6 sub-sectors of the manufacturing industry in the Philippines.The descriptive, correlational, and causal research methods were used. The chief executives' perceptions of external environmental characteristics were measured using the descriptive research design. The degree of association between the indicator variables of sector importance, sector complexity, and sector rate of change was evaluated using the correlational technique. The correlational analysis was also used to obtain insight about the possibility of multicollinearity among the indicator variables and to determine the nature of the ensuing analysis. Finally, the multivariate relationship between the predictor and criterion sets of variables was analyzed using the canonical correlation technique.Development of the survey instrument was guided by the earlier work of Daft and Lengel (1986) and several of the studies reviewed. Two sets of questionnaires were utilized. Questionnaire A used the 5-point Likert scale and attempted to measure the environment characteristics and scanning variables. Questionnaire B was a follow-up survey intended to validate the findings that surfaced in the earlier analysis. Descriptive statistics, t-tests, Pearson correlations, regression analysis, cluster analysis, box-plot analysis, canonical correlations, Chi-square test, R-squared and the Wilks-Shapiro test of normality were used. Significance levels were tested at the .05 or higher level.Conclusions based on the results were: 1) The data gathered lent credence to the validity of the Daft and Lengel (1986) chief executive scanning model. 2) Partial support is found for a positive relationship between strategic uncertainty and personal scanning modes. The only exception noted is for the economic sector. It appears that personal scanning modes are utilized when strategic uncertainty is high. 3) Written information is less utilized when strategic uncertainty is high. 4) More external environment information is used by high-performing companies when strategic uncertainty is high. 5) The task environment creates greater strategic uncertainty than the general environment. 6) Food, Drug, and Construction supplies manufacturers appear to need a higher level of external environment information than Textile, Soap and Chemical manufacturers. It seems that industry sectors that are faced with several restrictions and regulations seek more external environment information.