Uncertainty and equivocality in the commercial and natural environments: the implications for organizational design

Abstract

AbstractOrganizations process information to reduce uncertainty and equivocality. The organization's structure and its systems determine the amount and quality of information provided to executives. By analysing how executives perceive uncertainty and equivocality in their business contexts, it is possible to show how organizations should be designed in order to effectively process information. The research shows how executives' perceptions of environmental uncertainty and equivocality differ across industries and countries in both the natural and commercial environments. The target sample consists of executives from the German (n = 92) and UK (n = 198) textile industries and the German food industry (n = 117). The data have been obtained using research instruments adapted and developed by the author. The findings have significant implications for how organizations should be designed (i.e. structures and systems) in order to process commercial and environmental information. Furthermore, the findings also highlight organizational differences between countries (Germany and UK) and between industries (food and textile). Copyright © 2004 John Wiley & Sons, Ltd and ERP Environment.