A blueprint for succeeding despite uncertain global markets

Abstract

This paper aims to highlight the importance of developing capabilities to thrive amid global uncertainty. The study builds a framework to help managers assess uncertainty in the global business environment and develop capabilities to prosper amid uncertainty. In doing so, the paper explains three capabilities – sensing the context, driving the market and redesigning the business – providing examples to capture each capability and managerial implications. The framework of this study is based on academic research in dynamic capabilities and the author’s scholarly work on global strategy. The paper develops managerial guidelines and illustrates those with practical examples of multinational enterprises to make the case for why managers need to develop the three core capabilities for thriving amid uncertainty to achieve competitive advantage. This study identifies three core capabilities that organizations should build if they are to thrive amid global uncertainty: sensing the context, driving the market and redesigning the business. Key practical guidelines to manage this process are provided, including a managerial tool with ten steps to develop capabilities to thrive amid global uncertainty. The framework allows for developing dynamic capabilities in a world of new uncertainties such as digital disruption and de-globalization. It offers key guidelines for the journey, thus enabling managers to steer their firms towards thriving in an uncertain global environment. The augmented uncertainty of the global business environment presents new challenges. The value of this paper lies in the simplicity and practicality of the framework, and its focus on the role of uncertain global environment in developing dynamic capabilities.