Organizational Actions in Response to Threats and Opportunities

Abstract

In this study, we tested a model in which threats and opportunities lead directly to different organizational actions and compared it to a model in which organizational characteristics moderate organizational actions taken in response to threats and opportunities. To better understand these effects, we differentiated the dimensions of threat and opportunity associated with the threat-rigidity hypothesis from the dimensions associated with prospect theory. In this study, threats had the main and moderated effects predicted from the literature, but opportunities did not.