This paper presents a structural model of interpretation and uncertainty, based on survey data from a single environment. 1) The two ideas that the author presents here are a) a structural model of interpretation and uncertainty and b) survey data from a single environment (single industry). 2) The two ideas are in direct connection since the former is based on the latter. The interpretation perspective allowed the authors to examine how managers understood uncertain environments.
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In order to test their theories the authors used particular environmental change to test their model for results. The results were satisfactory. An analysis with the help of control variables was conducted. The variables were: scanning, interpretation, action, state uncertainty, effect uncertainty and response uncertainty. The six model variables were measured with a number of variables from a survey questionnaire and confirmatory factor analysis was performed. Afterwards, an exploratory factor analysis was conducted and the full model was constructed.
The fit of the model was no ideal. Overall, the authors concluded that the model fit was sufficiently good for the measurement model to be a useful indicator of the approximate level of correlation between the included variables. Thus, the outcome turned out to be quite successful.
The way the authors measured state, effect and response uncertainty in their survey led them down the road of combining state and effect uncertainty in one latent variable. Its items were intended for structural modeling and one of the options for the future was to use an alternative questionnaire.
The authors made a great use of academic literature to support their claims. They did not formulate any statement without giving references to serious academic works. That helped to validate their claims. 7) They used a number of works either to support their ideas or to build alternative ways to performing set analyses or studies. Introducing each of the variables they listed, the authors provided investigation instrument presented in reference literature. All reference material was carefully quoted.
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