Uncertainty and Planning in Indigenous and Non-Indigenous Small Firms in The South Pacific

Abstract

This article looks into the differences in the level of entrepreneurship and sophistication of planning between indigenous and non-indigenous firms and their strategic response to an increase in environmental uncertainty in the South Pacific. Data analyses suggest that non-indigenous firms engage in more sophisticated planning than indigenous ones. As the perceived uncertainty in the environment increases, planning activity declines among indigenous firms. However, the article does not find any significant relationship between strategic planning sophistication and entrepreneurial intensity.