Material Editor > Standard material > Multi-Layer or Oren-Nayar-Blinn Basic Parameters rollout > Advanced Diffuse group (unlabeled for Multi-Layer)
Roughness controls how quickly the diffuse component blends into the ambient component.
Note: The Roughness parameter is available only with the Oren-Nayar-Blinn and Multi-Level shaders, and with the Arch & Design material (mental ray).

Roughness—As you increase this value, the matte appearance of the material increases. It also grows darker and appears more flat. At 0, the roughness is the same as it is with Blinn shading. Default=50.
Click the map button to assign a map to Roughness. This button is a shortcut: you can also assign Diffuse Roughness mapping in the Maps rollout. See Diffuse Roughness Mapping.