Uncertainty and management's search for information

Abstract

This study empirically examines the relationship between perceived environmental uncertainty and the information search behavior of managers in organizational boundary-spanning positions. It tests hypotheses related to the perceived importance managers attach to external, internal, formal, and informal information sources, as environmental uncertainty increases. Managerial search behavior of electronics firms is contrasted with that in wood products firms. The findings suggest that certain information search behaviors appear to be associated with perceived uncertainty. Significant positive correlations were found to exist between the level of uncertainty perceived by managers and (1) their reliance on external sources of information, (2) their use of informal sources of information, (3) their frequency of use of all information sources, and (4) the amount of time they allocate to information gathering activities.