How firms facing environmental uncertainty should organize their activities remains an important and challenging question for today's managers and organizational researchers. Proponents of contingency theory have argued that organizations must adjust their activities to fit the level of environmental uncertainty to ensure long-term survival. Although much work has been done on contingency theory, it is clear that our understanding of uncertainty is far from complete. One important aspect of today's organizations is their focus on service, mass customization, and continuous innovation. This focus often results in the customer being brought either into the organization or at least into closer contact with it. Even though the literature provides numerous evidences of the increasing customer focus, it is yet to empirically explain how the complications of customer-organizational interactions might create uncertainty for contemporary organizations. The traditional measure of uncertainty still considers customers as an environmental factor causing demand uncertainty while ignoring the complex nature of customer and organizational encounters. Seeking to further refine the concept of uncertainty and focusing on the contemporary business phenomena, this study develops measures aspects of customer induced uncertainty and examines their relationships with three organizational design variables. Specifically, this study explains the complicated nature of customer - …