Environmental uncertainty and organizational technology policy

Reports a study of 54 organizations, 30 of which were nonservice firms. The purpose of the study was to evaluate various aspects of environmental uncertainty and their impacts on innovativeness (new products and processes). In a recursive, causal path model of the nonservice sample of firms, it was found significantly ( p <;0.05) that the impact of a global measure of perceived environmental uncertainty on firm innovativeness is mediated by an aggressive technology policy and, in turn, the presence of a special equipment evaluation group in the organization, for major process innovations only. For minor process innovations, this global perceived uncertainty promoted adoption directly, as expected, with no mediated effects. In addition, it was found that specific causes of perceived uncertainty (competition, customers, and government regulation) have little or no influence on adoption of major process innovation and act to impede adoption of minor process innovations.