As environmental uncertainty increases,firms tend to increase their buffering and bridging activities.

Question

Quizplus · Accepted Answer

When faced with greater environmental uncertainty, firms are more likely to engage in buffering activities, which involve creating reserves or safety nets to mitigate potential threats, as well as bridging activities, which involve building relationships with external stakeholders to gain access to information and resources. These activities help firms to cope with uncertainty and adapt to changing circumstances.

As Environmental Uncertainty Increases,firms Tend to Increase Their Buffering and Bridging