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Abstract ▼ AI-Helper

Although environmental uncertainty has been considered as one of the most critical contingencies in the study of organizations, there has been little consensus regarding its conceptualization and measurement. Recognizing such a gap, this study pointed out the shortcomings and problems with previou...

Although environmental uncertainty has been considered as one of the most critical contingencies in the study of organizations, there has been little consensus regarding its conceptualization and measurement. Recognizing such a gap, this study pointed out the shortcomings and problems with previous studies regarding conceptualization and operationalization of environmental uncertainty and proposed a new measure of perceived environmental uncertainty, which extends Milliken"s(1987, 1990) approach to conceptualizing three dimensions of state, effect, and response uncertainty. Specifically, unlike Milliken"s operationalization of environmental uncertainty assuming independence among the three dimensions of state, effect, and response uncertainty, this study developed a multidimensional entropy measure of perceived environmental uncertainty based on the logically inherent conditional linkage among those three dimensions of uncertainty along with the survey questionnaire focusing on the first two dimensions of state and effect uncertainty. An empirical analysis conducted by this study provided high reliability and validity for the developed measurement instrument. The usefulness and future research implications regarding the proposed measurement for perceived environmental uncertainty were discussed.

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