Title: Intolerance of Ambiguity in Entrepreneurs of Micro-Enterprises
Abstract: ABSTRACT This paper investigates the of ambiguity in entrepreneurs of microenterprises, using Budner's 16-item scale. There is some confusion in the literature regarding whether entrepreneurs should be highly tolerant of ambiguity or intolerant. Results from this study support the view that entrepreneurs of small businesses are very intolerant of ambiguity. One reason that entrepreneurs are intolerant of ambiguity is attributed to the entrepreneurial role having less ambiguity than other roles in companies. INTRODUCTION Budner (1962) defined an ambiguous situation as one which cannot be adequately structured or categorized by an individual because of the lack of sufficient cues (p. 30). Teoh and Foo (1997) noted tolerance of ambiguity then is the ability to respond positively to ambiguous (p. 72). Budner (1962) defined intolerance of ambiguity as the tendency to perceive ambiguous situations as sources of threat. People who have low levels of for ambiguity tend to find unstructured and uncertain situations uncomfortable and want to avoid these situations (Lumpkin & Erdogan, 2000). Individuals who are intolerant of ambiguity are also more rigid and conventional (Budner, 1962). Individuals high on of ambiguity appear to be confident about decisions made in an ambiguous environment without attempting to seek more information (Teoh & Foo, 1997). The purpose of this paper is to investigate the of ambiguity in entrepreneurs of microenterprises, using a 16-question scale developed by Budner (1962). Budner (1962) constructed a 16-question scale to measure intolerance of ambiguity. He tested his scale on 17 sample groups of college students, with mean score results ranging from 43.3 to 53.0. Lower score results indicate more for ambiguity than higher scores. Budner's data indicate that those students who are intolerant of ambiguity choose more structured fields of study. Ambiguity was later extended to the study of individuals in organizations, and more specifically, the entrepreneur (Furnham & Ribchester, 1995). Prior literature has depicted the entrepreneur as a person who must deal with an uncertain, turbulent and complex world (Dollinger, 1983). Moreover, entrepreneurs face organizational events that are frequently uncertain and unstructured, so they must have the willingness and ability to cope with uncertainty to be successful (Lumpkin & Erdogan, 2000). Also, entrepreneurs may be more proactive because they are required to think about the future, think beyond conventional ways of operating, question the status quo, and take actions to answer future situations and threats (Lumpkin & Erdogan, 2000). Therefore, there exists a thought that entrepreneurs are expected to have a high of ambiguity. The idea that entrepreneurs must have a high for ambiguity appears to be suggested by Hornaday and Aboud (1971) whom reported that sixty-three percent of entrepreneurs rated themselves high for tolerating uncertainty and confirmed by Schere (1982), who found that entrepreneurs had a higher of ambiguity than managers and budding entrepreneurs. The mean score for Schere's entrepreneurs, using Budner's Tolerance of Ambiguity scale, was 44.40, a lower score than most of Budner's student samples results. Pitt (2000), in his study of black South African entrepreneurs, reported a mean score 46.04 supporting the view that entrepreneurs have a higher of ambiguity. Other studies (Teoh & Foo, 1997; Entrialgo, Esteban, & Vazquez, 2000) utilizing scales different form the Budner's scale, but reported to measure intolerance of ambiguity, reported that entrepreneurs had a higher of ambiguity. However, there have been exceptions to this view that entrepreneurs have a high for ambiguity. Dollinger (1983) found that entrepreneurs in his study scored high on Budner's Scale, indicating an intolerance of ambiguity. …
Publication Year: 2002
Publication Date: 2002-10-01
Language: en
Type: article
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Cited By Count: 1
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