Contribution to reduce risks related to strategic decisions in new uncertain competitive environments: The case of Algerian State-Owned Firms

Abstract

The aim of this paper is to show the complexity of the political, legal, social and economic environments where the Algerian State-Owned Firms operate. These environments are qualified by “uncertainty” given the instability of the different parameters cited. Since 1988, Algeria has initiated deeper economic reforms supported by significant legislation and international agreements. In this uncertain environment, Algerian State-Owned Firm cannot rely only on their internal capabilities. They should, create partnerships, both with suppliers, subcontractors, universities and even competitors. There is a need for these firms to: Transform their organization to a new form improved for unexpected events and enough resilience to adapt to uncertain environments. Build a Strategic Intelligence Information System able to facilitate decision-making and reduce risks inherent to the strategic choices. Find ways to reverse choice when unexpected events occur. This article shows there is a need to handle the following risks: Inertia against the process of organizational transformation, wrong understanding of the received signals from the environment and poor reaction of the decision-maker to signals and events in the environment.