Organisational Environment and Strategy‐making Behaviour

The quest for efficient and effective organisational performance induces management theorists and practitioners to centre attention on environmental factors. Aldrich (1979) and Child (1972), among others, believe that an organisation's timely response to environmental change has a significant effect on performance. Harrison (1986) reviews literature on environment and organisational performance and concludes that firms which have employed a strategy responsive to change in the external environment have grown and prospered relative to other firms.