Environmental Uncertainty within the Hospitality Industry: Exploring the Measure of Dynamism and Complexity between Restaurant Segments

Abstract

The use of aggregated macro-level data is underrepresented in hospitality research, and it is suggested here that traditional measures of environmental uncertainty are insufficient when measuring differences within a hospitality sector. This article reviews the traditional measures of environmental uncertainty using secondary data and proposes a measure of heterogeneity as an alternative method grounded in previous theory. Aggregated segments of the restaurant industry are used to illustrate the usefulness of heterogeneity in resources as a measure of environmental uncertainty. Using this exploratory measure, significant differences are shown to exist between limited service and full service restaurant segments.