A model of the interpretation process and perceived uncertainty in a specific issue context.

Sensemaking in general and the interpretation of environmental cues specifically, are carried out
under conditions of uncertainty with which managers and organizations must cope. Mounting
evidence supports the existence of organizational processes of issue interpretation, but empirical
evidence is often conflicting in its conclusions about specific relationships within these processes
and about the effects of perceived uncertainty on these. This paper reports the results of a survey
of how hotel executives interpret a specific environmental trend. We find evidence that higher
levels of regular scanning leads to labeling an issue as more of an opportunity than a threat, and
that opportunity labels lead to more action in response to the issue. We find evidence to support
the notion that perceived environmental uncertainty is a multi-dimensional construct and that
perceived uncertainty may be linked to the interpretation process.