A Study of Hotel Managers' Perceived Business Uncertainty over Different Time Periods and Its Impact on the Functional Subunit Powers - A Cross-country Study of Korea and Japan -

This study tested for differences in the perceived environmental uncertainty (PEU) of hotel general managers in two Asian countries, Korea and Japan. This study also examined whether the level of PEU escalates over time and managerial PEU is significantly correlated with certain organizational subunits. The data were collected through questionnaires and telephone interviews. PEU was measured using questionnaire items that corresponded to seven major sectors of the industrial environment of the organization. The results are quite different from what was expected, indicating that managerial perceptions did not substantially vary across hotels in different countries or over different time periods. On the other hand, managerial PEUs of two countries are significantly correlated with specific organizational subunits. The results of this study imply that hotel managers in both countries share a common business environment in terms of the uncertainty level. Their PEU levels even remain constant across different time periods. However, managers in two different countries, even though they share similar level of uncertainty, implemented different powers to different subunits on their strategic management process. This study provided a picture of hotelier’ PEU in different time and international settings.