Most models of the strategy formulation process suggest organization performance is related, to at least some degree, to the ability of top management to accurately assess the external environment and to reach a degree of consensus in this assessment. The research reported here tested these assertions within two distinct industry segments, U.S. producers of corrugated shipping containers and U.S. passenger airlines, andfound very limited support for these relationships. The results suggest that in complex, unstable environments, accuracy and consensus in assessing environmental uncertainty may actually detract from organization performance. Directions for future research are recommended.
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