|Title: ||The external environment’s effect on management and strategy: A complexity theory approach|
|Citation: ||Management Decision, 45(1): 10-28|
|Publisher: ||Emerald Group Publishing Limited|
|Issue Date: ||2007 |
|Additional Links: ||http://www.emeraldinsight.com|
|Abstract: ||Purpose – This paper seeks to investigate the influence of the external environment on the choice of
strategic management activities, from a chaos and complexity perspective, since a business
environment is a complex adaptive system.
Design/methodology/approach – The study in this paper was of an exploratory nature, using the
qualitative techniques of case study, depth interviews and document analysis to collect data from two
companies each in the IT and packaging industries, namely, more successful/less successful companies.
Findings – The paper finds that first, it was proposed that more successful companies in turbulent
environments would use radical, fast and disruptive strategies. Furthermore, strategy making should
be a democratic, bottom-up process and should be organic, self-organising, adaptive and emergent.
The results confirmed these propositions. Second, it was proposed that more successful companies in
stable environments would use more traditional management and strategies and more formal strategy
planning activities. The findings did not confirm this proposition, probably due to the fact that in
reality a truly stable environment does not exist in South Africa.
Originality/value – This paper is of benefit to managers and strategists by emphasising a new way
to consider the future management and strategies of their companies. Since businesses and markets
are complex adaptive systems, using complexity theory to increase understanding of how to cope in
complex and turbulent environments is necessary, but has not been widely researched.|
|Description: ||Metadata only|
|Keywords: ||Strategic management|
|Appears in Collections: ||Management Research Centre |
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