The external environment's effect on management and strategy

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 stra...