Abstract

Because innovation and environmental uncertainty are highly crucial concepts for organizations’ survival, and managers are key decision makers in organizational operations, investigating the relationship between innovation and environmental uncertainty from managers’ lenses is important. This study aims to explore how managers’ adoption of radical and incremental innovation is affected by perceived environmental uncertainty (PEU). Data collected from 230 managers that work for companies that operate in various industries has been analyzed by using Multinomial logistic regression analysis. Results of the study indicate that government and policies factor is the effective factor on managers’ decisions on innovation adoption, and in uncertain environments in terms of governmental and policy factor, managers choose to adopt both types of innovation since they want avoid to take risks of adopting solely one type of innovation.