Uncertainty and Information Search Activities: A Study of Owner–Managers of Small High‐Technology Manufacturing Firms

Abstract

This study examines the relationship among perceived strategic uncertainty (PSU), environmental scanning, and the information sources used by owner–managers of a sample of 153 small high‐technology manufacturing firms. The results suggest that increased scanning activities are associated with high levels of PSU. Perhaps most importantly, the results also suggest that owner–managers of younger firms respond to uncertainty differently than their counterparts in more mature firms. Specifically, owner–managers of younger firms appear to respond to higher PSU by relying more heavily on personal and external information sources. Owner–managers of older firms, on the other hand, rely more heavily on internal and impersonal information sources to address environmental uncertainty.