Abstract
Increasingly, scholars have suggested that there is a need to approach the problem of international risk from a multidimensional perspective [Brouthers 1995; Miller 1993; Shan 1991]. Miller [1992, 1993] developed and tested the most comprehensive framework to date. Miller [1993] showed high inter-rater reliability in his measure of Perceived Environmental Uncertainty (PEU). In this paper we test the dimensionality of the scales from a statistical viewpoint and find that the statistical determination is reasonably consistent with Miller's conceptual determination. We also investigate Miller's measure by comparing scales, conceptualized by Miller, with ones determined by factor analysis. We test the reliability of these scales and find that the conceptualized scales have generally high internal consistency in samples of both manufacturing and service firms. However, the findings also suggest that several changes in the PEU measure are warranted, resulting in a refinement of Miller's measure, which we have labeled PEU 2.
Similar content being viewed by others
Author information
Authors and Affiliations
Additional information
*Steve Werner (Ph.D., University of Florida) is an assistant professor in the Department of Management at the University of Houston. His research has appeared in the Academy of Management Journal, Journal of International Business Studies, Journal of Applied Psychology, Journal of International Management, Columbia Journal of World Business, and International Business Review, among others.
**Lance Eliot Brouthers (Ph.D., University of Florida) teaches in the Division of Management and Marketing at the University of Texas at San Antonio. He has published in many refereed journals including: Long Range Planning, International Business Review, Columbia Journal of World Business, Journal of International Management and Journal of International Business Studies.
***Keith D. Brouthers (DBA, U.S. International University) is an assistant professor of Strategic Management at Vrije Universiteit, Amsterdam, the Netherlands.
Rights and permissions
About this article
Cite this article
Werner, S., Brouthers, L. & Brouthers, K. International Risk and Perceived Environmental Uncertainty: The Dimensionality and Internal Consistency of Miller's Measure. J Int Bus Stud 27, 571–587 (1996). https://doi.org/10.1057/palgrave.jibs.8490144
Received:
Revised:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1057/palgrave.jibs.8490144