The World’s Richest Municipality: The Importance of Institutions for Municipal Development
Organizations with the capability to handle uncertainty are those which best solve problems and stay successful for longer periods of time. This assertion is strongly supported in several important works of research in the field of social sciences (see, e.g., Olson 1984, North 1990, and Ostrom 1990). Each organization has at its disposal a set of methods and techniques, and the purpose of applying them in the implementation of activities is to contribute to the reduction of uncertainty. Factors such as good leadership, a well-adapted form of organization, satisfactory rendering of information, and reliable data for decision making bring reduction of uncertainty. Hence, the goal is to use suitable methods and techniques and apply them in such a way that they serve the purpose of the organization and its performers as well as the activities carried on. However, current knowledge regarding which solutions are best suited to handle uncertainty is insufficient. After all, uncertainty means that there is a lack of knowledge about the circumstances under which the chosen solution should be applied, and this, in turn, means that the solution selected and applied may not be at all suited for the