Development of Systemic Environmental Turbulence
DOI:
https://doi.org/10.16930/2237-766220253554Keywords:
Environmental turbulence, Contingency theory, Turbulent environmentAbstract
How does contingency theory underpin the concepts of the organizational environment? Although it may seem like a simple question, it requires further reflection on how this theory emerged and how environments have evolved from simple to complex, turbulent, and hyper-turbulent. The organizational environment was addressed differently in earlier studies, both during the development and the consolidation of contingency theory. Initially, only characteristics of uncertainty were considered as environmental variables necessary to maintain an adequate structure for example, in organic or mechanistic organizations. However, the description of the environment remained broad until 1972, when a watershed moment occurred by delineating internal and external components and incorporating the concepts of environmental turbulence contexts. In this regard, the deepening of environmental concepts in contingency and turbulence studies had two notable pioneers. Consequently, consistent measures of environmental turbulence were developed, focusing on perceptual assessments. This integration brought environmental turbulence into contingency studies. Nonetheless, environmental turbulence began to encompass other forms of turbulence within these constructs, highlighting the need for a more comprehensive perspective. Thus, efforts directed toward environmental turbulence represent a holistic view of contingencies that aims to measure eventualities at the company, sector, and country levels. Perhaps the greatest challenge lies in the wide array of social and economic variables required to form these constructs, as determining the relevance of each factor to the business environment remains an open question.
References
Alawamleh, E., Singh, H., & Ullah, I. (2022). The Impact of Innovation and Environmental Turbulence on Financial Performance. International Journal of Academic Research in Business and Social Sciences, 12(4). https://doi.org/10.6007/ijarbss/v12-i4/13121 DOI: https://doi.org/10.6007/IJARBSS/v12-i4/13121
Aldrich, H. E. (1979). Organizations and Environments. Prentice-Hall.
Annida, L., & Firmansyah, A. (2022). Environmental Uncertainty, Debt Policy, Tax Avoidance: Does Managerial Ability Matter? Riset: Jurnal Aplikasi Ekonomi Akuntansi Dan Bisnis, 4(2), 54–71. DOI: https://doi.org/10.37641/riset.v4i2.162
Ansoff, I. H. (1979). Strategic management. Mac Millan. DOI: https://doi.org/10.1007/978-1-349-02971-6
Arora, A., Arora, A., Anyu, J., & McIntyre, J. (2021). Global value chains’ disaggregation through supply chain collaboration, market turbulence, and performance outcomes. Sustainability (Switzerland), 13(8). https://doi.org/10.3390/su13084151 DOI: https://doi.org/10.3390/su13084151
Balodi, K. C. (2020). Strategic orientations and performance of young ventures: Moderating role of environmental turbulence. Management Decision, 58(4), 666-686. https://doi.org/10.1108/MD-04-2017-0351 DOI: https://doi.org/10.1108/MD-04-2017-0351
Bodlaj, M., & Čater, B. (2019). The Impact of Environmental Turbulence on the Perceived Importance of Innovation and Innovativeness in SMEs. Journal of Small Business Management, 57(S2), 417-435. https://doi.org/10.1111/jsbm.12482 DOI: https://doi.org/10.1111/jsbm.12482
Bourgeois, L. J., & Eisenhardt, K. M. (1988). Strategic Decision Processes in High Velocity Environments: Four Cases in the Microcomputer Industry. Management Science, 34(7), 816–835. https://doi.org/10.1287/mnsc.34.7.816 DOI: https://doi.org/10.1287/mnsc.34.7.816
Burns, T., & Stalker, G. M. (1961). The management of inovation (First edition). Oxford University Press.
Calantone, R., Garcia, R., & Dröge, C. (2003). The Effects of Environmental Turbulence on New Product Development Strategy Planning. The Journal of Product Innovation Management, 20(2), 90-103. https://doi.org/10.1111/1540-5885.2002003 DOI: https://doi.org/10.1111/1540-5885.2002003
Cameron, K. S., Kim, M. U., & Whetten, D. A. (1987). Organizational Effects of Decline and Turbulence. Source: Administrative Science Quarterly, 32(2), 222-240. https://www.gov.uk/government/organisations/competition-and-markets-authority DOI: https://doi.org/10.2307/2393127
Chandler, A. D. (1962). Strategy and structure: Chapters in the history of the industrial empire. The MIT Press.
Chege, S. M., & Wang, D. (2020). The impact of entrepreneurs’ environmental analysis strategy on organizational performance. Journal of Rural Studies, 77, 113–125. https://doi.org/10.1016/j.jrurstud.2020.04.008 DOI: https://doi.org/10.1016/j.jrurstud.2020.04.008
Chen, J., Shu, W., Wang, X., Sial, M. S., Sehleanu, M., & Badulescu, D. (2022). The impact of environmental uncertainty on corporate innovation: Empirical evidence from an emerging economy. International Journal of Environmental Research and Public Health, 19(1). https://doi.org/10.3390/ijerph19010334 DOI: https://doi.org/10.3390/ijerph19010334
Chung, T. S., & Low, A. (2017). The impact of investor impatience and environmental turbulence on myopic marketing management and stock performance. International Journal of Research in Marketing, 34(3), 660-677. https://doi.org/10.1016/j.ijresmar.2017.01.004 DOI: https://doi.org/10.1016/j.ijresmar.2017.01.004
Despoudi, S., Papaioannou, G., & Dani, S. (2021). Producers responding to environmental turbulence in the Greek agricultural supply chain: does buyer type matter? Production Planning and Control, 32(14), 1223-1236. https://doi.org/10.1080/09537287.2020.1796138 DOI: https://doi.org/10.1080/09537287.2020.1796138
Dess, G. G., & Beard, D. W. (1984). Dimensions of Organiza-tional Task Environments. Source: Administrative Science Quarterly, 29(1), 52-73. DOI: https://doi.org/10.2307/2393080
Dost, M., Pahi, M. H., Magsi, H. B., & Umrani, W. A. (2019). Effects of sources of knowledge on frugal innovation: moderating role of environmental turbulence. Journal of Knowledge Management, 23(7), 1245-1259. https://doi.org/10.1108/JKM-01-2019-0035 DOI: https://doi.org/10.1108/JKM-01-2019-0035
Duncan, R. B. (1972). Characteristics of Organizational Environments and Perceived Environmental Uncertainty. Administrative Science Quarterly, 17(3), 313-327. DOI: https://doi.org/10.2307/2392145
Emery, F. E., & Trist, E. L. (1965). The Causal Texture of Organizational Environments. Human Relations, 18(1), 21-32. https://doi.org/10.1177/001872676501800103 DOI: https://doi.org/10.1177/001872676501800103
Engel, J., Wahl, M., & Zagst, R. (2018). Forecasting turbulence in the Asian and European stock market using regime-switching models. Quantitative Finance and Economics, 2(2), 388-406. https://doi.org/10.3934/QFE.2018.2.388 DOI: https://doi.org/10.3934/QFE.2018.2.388
Glazer, R., & Weiss, M. A. (1993). Marketing in turbulence environments: Decision processes and the time-sensitivity of information. Journal of Marketing Research, 30, 509-521. DOI: https://doi.org/10.1177/002224379303000409
Hauptmann, J., Hoppenkamps, A., Min, A., Ramsauer, F., & Zagst, R. (2014). Forecasting market turbulence using regime-switching models. Financial Markets and Portfolio Management, 28(2), 139-164. https://doi.org/10.1007/s11408-014-0226-0 DOI: https://doi.org/10.1007/s11408-014-0226-0
Ho, J., & Plewa, C. (2020). Recipes for new product success: the interplay between orientations and environmental turbulence. Journal of Business and Industrial Marketing, 35(8), 1345-1357. https://doi.org/10.1108/JBIM-08-2019-0387 DOI: https://doi.org/10.1108/JBIM-08-2019-0387
Ikhlaq, K., & Raza, S. (2022). A Theoretical Brand Equity Model for Marketing In Presence of Environmental Turbulence. Journal of Marketing Strategies, 4(1), 73-99. https://doi.org/10.52633/jms.v4i1.186 DOI: https://doi.org/10.52633/jms.v4i1.186
Jaworski, B. J., & Kohli, A. K. (1993). Market Orientation: Antecedents and Consequences. Journal of Marketing, 57, 53-70. DOI: https://doi.org/10.1177/002224299305700304
Khandwalla, P. N. (1976). The design of organizations. Harcourt Brace Jovanovich, INC. https://archive.org/details/designoforganizaOOOOkhan
Kipley, D., Lewis, A., & Jewe, R. (2012). Entropy - Disrupting Ansoff’s five levels of environmental turbulence. Business Strategy Series, 13(6), 251-262. https://doi.org/10.1108/17515631211286083 DOI: https://doi.org/10.1108/17515631211286083
Kuankuan, L., & Liming, Z. (2022). Effect of environmental turbulence on new product development: A case of serial mediatio of strategic flexibility and brigolage in high-tech industries of chengdu, China. Preprints.Org. DOI: https://doi.org/10.2139/ssrn.4186467
Lawrence, P. R., & Lorsch, J. W. (1967). Differentiation and Integration in Complex Organizations. Source: Administrative Science Quarterly, 12(1), 1-47. DOI: https://doi.org/10.2307/2391211
Liu, Y., Deng, P., Wei, J., Ying, Y., & Tian, M. (2019). International R&D alliances and innovation for emerging market multinationals: roles of environmental turbulence and knowledge transfer. Journal of Business and Industrial Marketing, 34(6), 1374-1387. https://doi.org/10.1108/JBIM-01-2018-0052 DOI: https://doi.org/10.1108/JBIM-01-2018-0052
Mayntz, R. (1965). The study of organizations. Current Sociology, 13(3), 95-119. https://doi.org/10.1177/001139216501300301 DOI: https://doi.org/10.1177/001139216501300301
Mccann, J. E., & Selsky, J. (1984). Hyperturbulence and the Emergence of Type 5 Environments. Academy of Management Review, 9(3), 460-470. DOI: https://doi.org/10.5465/amr.1984.4279678
Meng, M., Lei, J., Jiao, J., & Tao, Q. (2020). How does strategic flexibility affect bricolage: The moderating role of environmental turbulence. PLoS ONE, 15(8 August). https://doi.org/10.1371/journal.pone.0238030 DOI: https://doi.org/10.1371/journal.pone.0238030
Mokhtarzadeh, N. G., Mahdiraji, H. A., Jafarpanah, I., & Cao, D. (2022). Examining the influence of environmental turbulence on firm innovation performance in emerging markets: using an environment-strategy-performance framework. International Journal of Innovation Management, 26(4). https://doi.org/10.1142/S1363919622500281 DOI: https://doi.org/10.1142/S1363919622500281
Panucci Filho, L., Hein, N., & Kroenke, A. (2022). Relação entre Investimento em Intangíveis e Desempenho Econômico-Financeiro. UFAM Business Review - UFAMBR, 4(1), 01-19. https://doi.org/10.47357/ufambr.v4i1.10365 DOI: https://doi.org/10.47357/ufambr.v4i1.10365
Pasha, O., & Poister, T. H. (2019). The Impact of Performance Management Under Environmental Turbulence. American Review of Public Administration, 49(4), 441-453. https://doi.org/10.1177/0275074018814245 DOI: https://doi.org/10.1177/0275074018814245
Perrow, C. (1961). The Analysis of Goals in Complex Organizations. Source: American Sociological Review, 26(6), 854-866. http://www.jstor.org/stable/2090570 DOI: https://doi.org/10.2307/2090570
Pratono, A. H., & Mahmood, R. (2015). Entrepreneurial orientation and firm performance: How can micro, small and medium-sized enterprises survive environmental turbulence? Pacific Science Review B: Humanities and Social Sciences, 1(2), 85-91. https://doi.org/10.1016/j.psrb.2016.05.003 DOI: https://doi.org/10.1016/j.psrb.2016.05.003
Pudjiarti, E. S., & Priagung Hutomo, P. T. (2020). The critical role of effective organizational learning to improve firm’s innovation and performance in a market turbulence condition. International Journal of Innovation Science, 12(3), 237-254. https://doi.org/10.1108/IJIS-08-2019-0079 DOI: https://doi.org/10.1108/IJIS-08-2019-0079
Rego, L., Brady, M., Leone, R., Roberts, J., Srivastava, C., & Srivastava, R. (2022). Brand response to environmental turbulence: A framework and propositions for resistance, recovery and reinvention. International Journal of Research in Marketing, 39(2), 583-602. https://doi.org/10.1016/j.ijresmar.2021.10.006 DOI: https://doi.org/10.1016/j.ijresmar.2021.10.006
Rodriguez, H. A. R. (2010). Cambio estratégico para entornos turbulentos. Revista Facultad de Ciencias Económicas: Investigación y Reflexión, 28(1), 87-117. DOI: https://doi.org/10.18359/rfce.2283
Song, S., Hossin, M. A., Yin, X., & Hosain, M. S. (2021). Accelerating green innovation performance from the relations of network potential, absorptive capacity, and environmental turbulence. Sustainability (Switzerland), 13(14). https://doi.org/10.3390/su13147765 DOI: https://doi.org/10.3390/su13147765
Sung, S. Y., & Choi, J. N. (2021). Contingent effects of workforce diversity on firm innovation: high-tech industry and market turbulence as critical environmental contingencies. International Journal of Human Resource Management, 32(9), 1986-2012. https://doi.org/10.1080/09585192.2019.1579243 DOI: https://doi.org/10.1080/09585192.2019.1579243
Terreberry, S. (1968). The Evolution of Organizational Environments. Administrative Science Quarterly, 12(4), 590-613. DOI: https://doi.org/10.2307/2391535
Thompson, J. D. (1967). Organizations in action. McGraw-Hill, Inc.
Trist, E. (1980). The Environment and System-response Capability. Futures, 113-127. DOI: https://doi.org/10.1016/0016-3287(80)90054-3
Turulja, L., & Bajgoric, N. (2019). Innovation, firms’ performance and environmental turbulence: is there a moderator or mediator? European Journal of Innovation Management, 22(1), 213-232. https://doi.org/10.1108/EJIM-03-2018-0064 DOI: https://doi.org/10.1108/EJIM-03-2018-0064
Volberda, H. W., & Van Bruggen, G. H. (1997). Environmental turbulence: a look into its dimensionality. In NOBO Nederlandse Organisatie voor Bedrijfskundig Onderzoek (Vol. 1).
Volberda, H. W., van der Weerdt, N., Verwaal, E., Stienstra, M., & Verdu, A. J. (2012). Contingency fit, institutional fit, and firm performance: A metafit approach to organization-environment relationships. Organization Science, 23(4), 1040-1054. https://doi.org/10.1287/orsc.1110.0687 DOI: https://doi.org/10.1287/orsc.1110.0687
Wang, C., Qureshi, I., Guo, F., & Zhang, Q. (2022). Corporate social responsibility and disruptive innovation: The moderating effects of environmental turbulence. Journal of Business Research, 139, 1435-1450. https://doi.org/10.1016/j.jbusres.2021.10.046 DOI: https://doi.org/10.1016/j.jbusres.2021.10.046
Wang, K., & Wei, J. (2021). State ownership and green innovation in China: The contingent roles of environmental and organizational factors. Journal of Cleaner Production, 314, 1-17. DOI: https://doi.org/10.1016/j.jclepro.2021.128029
Waterhouse, M. F. (1992). Managing effectively in turbulent environments. Journal of Strategic Change, 1, 135-146. DOI: https://doi.org/10.1002/jsc.4240010303
Witschel, D., Baumann, D., & Voigt, K.-I. (2022). How manufacturing firms navigate through stormy waters of digitalization: the role of dynamic capabilities, organizational factors and environmental turbulence for business model innovation. Journal of Management & Organization, 28(3), 681-714. https://doi.org/10.1017/jmo.2022.44 DOI: https://doi.org/10.1017/jmo.2022.44
Woodward, J. (1977). Organização industrial: teoria e prática. Editora Atlas S.A.
Yang, J., Ma, J., Zhao, H., Cater, J., & Arnold, M. (2019). Family involvement, environmental turbulence, and R&D investment: evidence from Listed Chinese SMEs. Small Business Economics, 53(4), 1017-1032. https://doi.org/10.1007/s11187-018-0113-6 DOI: https://doi.org/10.1007/s11187-018-0113-6
Yasmeen, H., Wang, Y., Zameer, H., & Ahmad, Z. (2020). Environmental Turbulence as a Moderator on the Impact of Transformational Leadership and IT Business Strategy Alignment on EIS Adaptation. International Journal of Information Systems in the Service Sector (IJISSS), 12(3), 74-92. https://doi.org/10.4018/IJISSS.2020070105 DOI: https://doi.org/10.4018/IJISSS.2020070105
Yu, Y., Zhang, X., Huang, S., Chen, Z., & Chen, Z. (2022). Entrepreneurial Leadership and Innovation Performance in New Ventures: Examining the Roles of Strategic Flexibility and Environmental Turbulence. Entrepreneurship Research Journal, 12(4), 629-652. https://doi.org/10.1515/erj-2018-0090 DOI: https://doi.org/10.1515/erj-2018-0090
Zaidi, S. S. A., & Zaidi, S. S. Z. (2021). Linking entrepreneurial orientation and innovation intensity: moderating role of environmental turbulence. Journal of Entrepreneurship, Management, and Innovation, 3(2), 202-236. DOI: https://doi.org/10.52633/jemi.v3i2.78
Zamutto, R. F. (1985). Managing Decline. Administration & Sociey, 17(1), 71-95. DOI: https://doi.org/10.1177/009539978501700104
Zhang, Y., Sun, Z., & Sun, M. (2022). Unabsorbed slack resources and enterprise innovation: The moderating effect of environmental uncertainty and managerial ability. Sustainability, 14(7), 1-21. DOI: https://doi.org/10.3390/su14073782
Zhou, G., Liu, L., & Luo, S. (2022). Sustainable development, ESG performance and company market value: Mediating effect of financial performance. Business Strategy and the Environment, 31(7), 3371-3387. https://doi.org/10.1002/bse.3089 DOI: https://doi.org/10.1002/bse.3089
Zhou, Y., Shu, C., Jiang, W., & Gao, S. (2019). Green management, firm innovations, and environmental turbulence. Business Strategy and the Environment, 28(4), 567-581. https://doi.org/10.1002/bse.2265 DOI: https://doi.org/10.1002/bse.2265
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Revista Catarinense da Ciência Contábil
This work is licensed under a Creative Commons Attribution 4.0 International License.
The copyright for articles published in this journal belongs to the author (s), with first publication rights assigned to Revista Catarinense da Ciência Contábil. Due to appearing in this publicly accessible journal, articles are free to use, with mandatory recognition of the original authorship and initial publication in this magazine and for educational and non-commercial applications. The magazine chose to use published works for non-commercial purposes, including the right to submit or work for publicly accessible databases. The content of published articles is the sole and exclusive responsibility of the authors. - The author (s) authorize (s) a publication of the article in the journal; - The author (s) guarantee (s) that a contribution is original and unpublished and that it is not being evaluated in another magazine (s); - A magazine is not responsible for the opinions, ideas and concepts emitted in the texts, for the full responsibility of the author (s); - It is reserved to the editors or the right to make textual adjustments and to adjust the article to the publication rules.
This work is licensed under a Creative Commons Atribuição-NãoComercial-CompartilhaIgual 4.0 Internacional.
