<span>Ambiguity about firm and competitor competencies and resources challenges managerial decision making, especially in developing countries where asymmetric information is higher than in the developed ones. Although a number of scholars have addressed “causal ambiguity” and its relationship with firm resources and competencies, and theorists have suggested a positive relationship between it and organizational performance, these links remain unclear. On one hand, ambiguity may protect a firm because competitors cannot easily imitate it (Alvarez & Antolin, 2005). On the other hand, causal ambiguity </span><span>may impede imitation of valuable resources within the firm, limiting management´s ability to manage resources and competencies for competitive advantage (Szulanski, 1996). Our research, based on interviews with CEOs and Board Directors of large and medium sized Chilean corporations, illuminates the role of ambiguity and its impact on the performance of firms in developing markets. In contrast to claims about its deleterious effect on performance, our data revealed that CEOs of Chilean companies are quite comfortable with causal ambiguity and appreciate its potential.Doctorate of Management Programs</span>
