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The Role of Routines in Reducing Pervasive Uncertainty

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Under conditions of pervasive uncertainty, increasing the "amount" of information will notnecessarily decrease uncertainty. Perhaps more information will even increase uncertainty.Since information may be valuable, even under conditions of pervasive uncertainty, thisamounts to a puzzle. Its solution seems to hold the promise of understanding how decisionmakersactually go about reducing uncertainty in its more pervasive forms and is therefore atthe center of attention in the present article. It is hypothesized that the role of routines indecision-making provides the key to solve the "information puzzle." Drawing on data from 56companies, the argument is supported by empirical tests employing path analysis by linearstructural equations modeling.

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Markus C. Becker, Thorbjørn Knudsen

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