| The study is based on the adaptability paradigm, which emphasizes the behavior of an organization when subjected to external stimuli. This research aims at gaining a better understanding of company's abilities to adapt to a turbulent environment, given its internal organizational culture. The concept of adaptability is viewed from the information processing perspective as consisting of three main components: information search, information filtering, and responsiveness. Performance and the three components of adaptability were found to be related. Information search and responsiveness are linearly related to performance while information filtering and performance have an U-inverted relationship. Meanwhile, corporate culture serves as an antecedent for adaptability. Managers' perceived environmental turbulence was found to be moderator of the relationships between adaptability and performance.; To test the generalizability of the proposed theoretical framework, data were also collected in Romania, a country with a rapidly changing environment. It contributes to a better understanding of the differences in behavior of businesses in a stable economy versus an economy in transition to the free market system.; The research has proved that the non-linear relationship found between adaptability and performance is due to the filtering system of the organization. Best performers have a balanced adaptability with a filtering system that is neither too strong nor too weak. Optimal information filtering can be achieved by means of the planning system coupled with formal and informal rules and routines.; The study has several managerial implications. Performance of the company is expected to increase if: (a) environment monitoring and firm's capability to respond to market signals are well developed; (b) the firm place high value on market information; (c) filtering of information is adequate; (d) the business culture is supportive; and (e) the locus of decision making is as close to the customer as possible. |
