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    The external environment’s effect on management and strategy: A complexity theory approach

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    Authors
    Mason, Roger B.
    Issue Date
    2007
    
    Metadata
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    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.
    Citation
    Management Decision, 45(1): 10-28
    Publisher
    Emerald Group Publishing Limited
    URI
    http://hdl.handle.net/2436/18716
    DOI
    10.1108/00251740710718935
    Additional Links
    http://www.emeraldinsight.com
    Type
    Journal article
    Language
    en
    Description
    Metadata only
    ISSN
    00251747
    ae974a485f413a2113503eed53cd6c53
    10.1108/00251740710718935
    Scopus Count
    Collections
    Faculty of Social Sciences

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