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This study aims to examine the contingent factor of business strategy choice decision; that is, environmental uncertainty. This study uses secondary data as an alternative method to analyze the technology uncertainty, one of environmental uncertainty components. To examine the environmental uncertainty, this study developes an environmental uncertainty index (EUI). Using sample of manufacturing companies listed on Indonesia Stock Exchange (IDX) for period 2009 to 2012, and multinomial logistic regression, this study finds that probability companies to choose prospector is greater than that of analyzer; however, it fails to prove that probability companies choosing  defender is greater than that of analyzer. The findings suggest that the new technology uncertainty measure is more applicable and better than other measures, moreover EUI measures the environmental uncertainty objectively, this new measures can be applied on future research. This study increases the understanding of relation between business strategy and its contingent factor, e.g. environmental uncertainty.

Business strategy; Contingent Factor; Environmental Uncertainty