Empirical Analysis: Hypotheses and Methods

Abstract

In this work we have described how a set of institutional innovations have produced many sources of uncertainties and instability into the business environment of companies operating in the New Economy. We have focused our attention mainly on the companies of the New Telecommunications Industry, a subset of the ICT industries, which have been subject to many restructuring and reorganization processes due to institutional changes such as market liberalization, privatization, increased competition, technological development and diversification, all of these sources of uncertainty. The companies operating in the New Economy in an environment of greater market uncertainty, risk and hard competition include in their routines a constant re-dimensioning of their resources. It has been illustrated that constant reorganization and adaptation require constant redesign, reallocation and contracting of new resources. That also suggests more decentralized, flexible and self-managing organizational forms. Another characteristic that has been pointed out in this work is the critical time factor for the management of a continuous innovation process, and a reduced lifecycle of products and services. In addition, there are great expectations for the increase in demand, including uncertain and irregular demands. Ultimately these trends have affected organizational behavior directly, and, in consequence it has substantially increased behavioral uncertainty and job instability.