The impact of Perceived Environmental Uncertainty (PEU) on international entry mode choice has been subject to much empirical investigation. In preparation for studying this domain, conceptual and measurement models have been developed and refined for PEU. However, the concept of uncertainty contains an inherent ambiguity flowing through research from very early conceptualisations. The purpose of this paper is to explore and clarify whether a distinction between uncertainty and risk can be validated both conceptually and empirically. Our findings are based on a review of extant literature and quantitative analysis of 73 firms engaging in international operations, and demonstrate that despite the initial ambiguity regarding the concepts, a meaningful delineation between the definition of uncertainty and risk can be made, and that this conceptualisation of risk is statistically different from PEU. This provides a context from which further studies in the future can more accurately capture organisation's response to environmental uncertainty and risk.
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