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Beyond Risk Mitigation: Enhancing Corporate Innovation with Scenario Planning

10 Pages Posted: 15 Feb 2009 Last revised: 2 Jul 2014

William J. Worthington

Baylor University

Jamie D. Collins

Sam Houston State University

Michael A. Hitt

Texas A&M University - Department of Management; Texas Christian University

Date Written: 2009

Abstract

When considering the challenges of conducting business in an increasingly complex business environment, the impact of exogenous shocks on business strategy and possible responses to those threats have received growing attention. Scenario/contingency planning is a tool used by firms to translate their organizational learning capabilities into preconceived operational responses designed to react to and then recover from an exogenous shock. The use of scenario planning that includes exogenous shock scenarios has become a "best practice" in many industries. This paper explores the additional potential usefulness of scenario planning as a tool for promoting innovation and corporate entrepreneurship (Ireland, Covin, & Kuratko, 2009).

Keywords: exogenous shock, scenario planning, corporate entrepreneurship, innovation

Suggested Citation

Worthington, William J. and Collins, Jamie D. and Hitt, Michael A., Beyond Risk Mitigation: Enhancing Corporate Innovation with Scenario Planning (2009). Business Horizons, Vol. 52. Available at SSRN: https://ssrn.com/abstract=1343393

William J. Worthington (Contact Author)

Baylor University ( email )

PO Box 98006
Waco, TX 76798-8006
United States
254-710-6203 (Phone)

Jamie D. Collins

Sam Houston State University ( email )

Box 2056
Huntsville, TX 77341
United States

Michael A. Hitt

Texas A&M University - Department of Management ( email )

430 Wehner
College Station, TX 77843-4218
United States
979-458-3393 (Phone)

Texas Christian University ( email )

Fort Worth, TX 76129
United States

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