Uncertainty and Information-Gathering Behavior: An Empirical Investigation.

Abstract

The relationship between environmental uncertainty and the information-gathering behavior of managers in organizational boundary-spanning positions are empirically examined in this study. It tests hypotheses related to the perceived importance managers attach to external, internal, formal, and informal information sources, and the frequency with which they consult these sources. R & D expenditure per sales dollar was used as an objective surrogate measure of uncertainty in selecting the electronics (8.7%) and wood products (.4%) industries for testing these hypotheses. The findings of this study provide empirical support for a contingency view of the relationship between uncertainty and the adaptive-coping responses of managers. Significant positive correlations exist between the amount of environmental uncertainty perceived by managers in a given firm and their: (1) reliance on external information sources; (2) their frequency of use of all information sources; and (3) the amount of time they allocate to...