Managing in turbulence an empirical study of small firms operating in a turbulent environment

Abstract: This thesis deals with how small firms, and especially their CEOs, manage their situation in times of high environmental turbulence. Eight firms have been chosen for the empirical study based on their performance and the CEO’s self-efficacy and tolerance for ambiguity. Interviews with the CEO and employees at each firm, observations, gathering of annual reports and a questionnaire are the principal means used for data collection. The results show that the CEO is very influential at all firms, regardless how the company performs. A CEO that tolerate uncertainty is better able to engage in enterprising, which seems necessary in turbulence. A CEO with high self- efficacy is generally able to control his firms destiny by having access to the appropriate resources for the task (e.g. own ability and network). However, too high self-efficacy could be a sign of dysfunctional overconfidence, where the CEO dismiss relevant information from actors around him.