Abstract

A model is proposed to associate perceived strategic uncertainty with the utilization of specific information sources and environmental scanning behaviours by managers. This model is tested with data from 153 small high-technology firms and is contrasted with previous models. A structural modeling approach is employed to test for the existence of latent variables representing perceived strategic uncertainty and thereby to demonstrate that strategic uncertainty can be better conceptualized as having two dimensions, comprising internal and external factors that are manifest as the seven operational categories reported in earlier research. In addition, covariance among measures of information seeking is used to develop new hypotheses that question the implied causality of previous models.

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