Organizational growth can ultimately be linked back to economic factors at play. During periods of economic expansion and prosperity, there are heightened incentives for organizations to invest into their infrastructure and expand capacity. During times of economic decline, organizational growth wanes as profit margins dwindle, and increased organizational efficiency becomes key. This paper intends to demonstrate how growth is inextricably linked to environmental factors.
Economic prosperity has a great impact on an organization’s success and thus, its decision process in terms of expansion with innovation and creativity; this is evidenced through a wide variety of both observable and unobservable criteria. Some of the unknown variables …show more content…
As such, results showed that cultural distance showed the highest levels of creative innovation, whereas depth showed a decreasing positive effect that turned negative. “A significant three-way interaction shows that depth is the most critical dimension for achieving creative innovations, with breadth and cultural distance important at low but not high levels of depth” (Godart, 2015, p195-220). The research results showed how the executives’ professional foreign endeavors proved to be a critical catalyst for creativity and innovation in their organizations and thus, impacted their profits accordingly (Godart, 2015, …show more content…
Much in the same way as with economic prosperity, all of these factors interrelate with one another in a circular cause-and-effect relationship.
During times of heightened economic prosperity, savings decrease and consumption increases. I argue that this is due to the perceptions and assumptions of consumers. Perceived risks are low, leading to an increased tendency to engage in what otherwise might be considered risky behavior: increased spending on credit, increased investment for purposes of growth and income, moving from job-to-job in search of an ideal fit, and consuming more than is necessary to sustain minimal living standards are but some examples.
On the subject of perceived risk, Ross (1975) states that “it should be noted that Bauer clearly views perceived risk as not only related to consumers ' pre-decision information acquisition and processing activity but to post-decision processes as well.” Furthermore, “risk might be reduced to a "tolerable level" by either or both (1) reducing the amount at stake (e.g. reducing that which the person hoped to gain, reducing the penalties for failure, and reducing the means by which the gain was to be made) and (2) increasing the degree of certainty that loss will not occur” (Ross,
Economic prosperity has a great impact on an organization’s success and thus, its decision process in terms of expansion with innovation and creativity; this is evidenced through a wide variety of both observable and unobservable criteria. Some of the unknown variables …show more content…
As such, results showed that cultural distance showed the highest levels of creative innovation, whereas depth showed a decreasing positive effect that turned negative. “A significant three-way interaction shows that depth is the most critical dimension for achieving creative innovations, with breadth and cultural distance important at low but not high levels of depth” (Godart, 2015, p195-220). The research results showed how the executives’ professional foreign endeavors proved to be a critical catalyst for creativity and innovation in their organizations and thus, impacted their profits accordingly (Godart, 2015, …show more content…
Much in the same way as with economic prosperity, all of these factors interrelate with one another in a circular cause-and-effect relationship.
During times of heightened economic prosperity, savings decrease and consumption increases. I argue that this is due to the perceptions and assumptions of consumers. Perceived risks are low, leading to an increased tendency to engage in what otherwise might be considered risky behavior: increased spending on credit, increased investment for purposes of growth and income, moving from job-to-job in search of an ideal fit, and consuming more than is necessary to sustain minimal living standards are but some examples.
On the subject of perceived risk, Ross (1975) states that “it should be noted that Bauer clearly views perceived risk as not only related to consumers ' pre-decision information acquisition and processing activity but to post-decision processes as well.” Furthermore, “risk might be reduced to a "tolerable level" by either or both (1) reducing the amount at stake (e.g. reducing that which the person hoped to gain, reducing the penalties for failure, and reducing the means by which the gain was to be made) and (2) increasing the degree of certainty that loss will not occur” (Ross,