Essay about Environmental Dynamism

1666 Words 7 Pages
Environmental dynamism, along with environmental change and environmental uncertainty, serves a significant role in organizations. The definition of environmental dynamism is the “degree to which important environmental components change” (Griffin & Moorehead, 2012, p. 471). The dynamics of an environment can influence the types of environment, leadership styles, and management controls of organizations. Therefore, it is important to understand how organizations are impacted by environmental dynamics in order to ascertain the most effective ways for organizations to perform.
The dynamics of an environment are influenced by two types of environments: stable environments and unstable environments. Environmental stability occurs when
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W., 2013, p. 83). The article also found that, “For years with high environmental instability [organizational performance] becomes weaker” (Hamann, P., Schiemann, F., Bellora, L., & Guenther, T. W., 2013, p. 83). The opposite would hold true for organizational performance in stable environments. Performance of organizations is stronger in years with high environmental stability. These aspects of the environment impinge on stability which is comparable to certain areas of organizations also influenced by the stability of the environment.
An area where environmental stability and instability exists with import in organizations is in emerging markets. The conditions of the environment with this type of market are important to the success of organizations. Whether the environment is stable or unstable can help to determine this success. Typically organizations with first-mover advantages are significant in emerging markets. First-mover advantages generally pertain to the timing in which an organization emerges into certain markets. In an article written on the subject it is stated that, “Timing of entry is an established predictor of firm performance with a long history of research…[which] has shown that early entrants into new markets often enjoy first-mover advantages” (Magnusson, P., Westjohn, S. A., Gordon, G. L., & Aurand, T. W., 2012, p. 18). The author’s of the article go on to propose that “a calmer and smoother environment [one that is stable] enables the

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