The primary goal of this research study was to explore the impact of hostile environments in Pakistan at a firm-level (micro level) on the entrepreneurial cognition process, the resulting formulation and implementation of business strategies, and its eventual impact on firm performance.
Hostility for businesses means competition and a high threat of substitution. Hostility also includes political and economic instability and uncertainty in the regulatory design of the business environment at large. Many researchers examined the relationship between business performance and hostile business environments. However, these researchers studied the macro level, overlooking the importance of entrepreneurial cognition and failing to define a hostile environment by considering all the variables, including terrorism and violent crimes.
To investigate this gap in the literature, the researcher conducted qualitative exploratory research with a multiple case study design. The researcher observed 15 companies from Pakistan to identify entrepreneurial cognition processes and sustainable, successful business strategies used by businesses in a hostile environment.