ORGANIZATIONAL CONTEXT AND THE INTERPRETATION OF STRATEGIC ISSUES - ANOTE ON CEOS INTERPRETATIONS OF FOREIGN-INVESTMENT

This paper explores the relationship between organizational context an d the interpretation of strategic issues by examining the hypothesis t hat CEOs' interpretations of foreign investment in the USA are influen ced by the organizational context in which they are embedded. Three as pects of organizational context the global business experience of the firm; the firm's level of organizational inertia (as represented by fi rm age and size); and the resources available for responding - are exa mined as predictors of CEOs' perceptions of foreign investment as a th reat or an opportunity. Analysis of data from 320 organizations, contr olled by industry, shows that global business experience, firm size, a nd perceived capability are significant predictors of the perception o f threat and opportunity. The discussion addresses the implications of these findings for future research on issue interpretation and organi zational context.