How Certain are you Measuring Environmental Dynamism and Complexity? A Multitrait-Multimethod Approach

Abstract

The study considers the measurement of environmental dynamism and environmental complexity. Previous hospitality strategy research utilizing main environmental constructs (uncertainty, dynamism, complexity, and munificence) is examined. The measurement of these constructs used in the general strategy literature is contrasted with the hospitality strategy literature. Using a multimethod-multitrait approach, convergent and discriminant validity is assessed between these constructs using archival and self-reported measures. The findings indicate that knowledgeable managers’ perceptions match archival measures of dynamism and complexity when the same domain is ensured. Common self-reported measures of dynamism and complexity assess a broader domain than commonly used archival measures. Dynamism and complexity are shown to be separate and distinct constructs. It is suggested that these latent variables are important independent and control variables for strategy research. Further clarification in the measurement and impact of these variables should provide a clearer understanding of the relationship between the industry task environment, strategies, structure, and performance.

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