Performance ambiguity occurs when what is not clear?

Performance ambiguity arises in situations where the relationship between actions taken and the results achieved is not clearly defined. This lack of clarity can prevent managers and stakeholders from understanding why certain performance outcomes occur. When the causes of performance outcomes are ambiguous, it becomes challenging to determine whether a particular strategy or action is effective or whether external factors are playing a role. This can lead to confusion in performance assessment and decision-making processes.

The concept emphasizes that when decision-makers cannot identify what leads to success or failure, it complicates their ability to make informed adjustments or strategic choices. Therefore, recognizing the causes behind different performance outcomes is crucial in international business contexts, as it aids in improving operational effectiveness and strategic planning.