Scanning actions and environmental dynamism

While it is generally accepted that scanning supports organizational adaptation to the environment, scanning behavior may vary with the amount of environmental change. Information processing perspectives suggest that scanning activity will increase in response to increasing environmental uncertainty. Yet, social cognition perspectives suggest that scanning decreases at high and low levels of uncertainty since useful information is either unattainable or is already known. Using a combined perspective in a strategic decision‐making context, this study hypothesized that scanning would be greatest at high and low levels of uncertainty to support identification of previously unexploited niches. Results indicate that the level of environmental dynamism combined with the manager's functional position explains scanning behavior.