Methodological Redirections for an Evolutionary Approach of the External Business Environment

Journal of Management and Sustainability, Vol. 9, No. 2, pp. 25-46, 2019

22 Pages Posted: 6 Sep 2019

See all articles by Charis Vlados

Charis Vlados

Democritus University of Thrace, Department of Economics

Dimos Chatzinikolaou

Democritus University of Thrace, Department of Economics

Date Written: August 30, 2019

Abstract

The usual strategic analysis perceives the external business environment fragmentarily and without a coherent and unifying way. The three levels that a typical analysis of the external business environment involves are a) the macroenvironment and PEST analysis, b) mesoenvironment and “Porter’s diamond”, and c) industrial environment and “Porter’s five forces”. Contrary to the fragmentary analysis of the three levels, this article aims to counter-propose a restructured method of a unified and evolutionary analysis of the external business environment. After presenting the usual analytical handling of the external business environment in the three levels, we suggest that these are rather co-evolving than separate and autonomous spheres of analysis. Therefore, after introducing some elements of the evolutionary socioeconomic theory, we propose a systemic web that perceives the external environment of the socioeconomic organisations in dynamically unified and evolutionary terms. The systemic web conceptualises the approach of the external socioeconomic environment as an open and interactive system comprising three co-evolving spheres in the context of global dynamics: the institutional character of each spatially structured socioeconomic formation; the firm’s functions within the system; and the public-state intervention that contributes to the establishment and reproduction of the system. This conceptual redirection of the methodology of the external business environment can be useful for building an integrated strategic analysis that studies all “micro-meso-macro” components of the entire socioeconomic system.

Keywords: external business environment, evolutionary approach, strategic analysis, micro-meso-macro analysis, business environment systemic web

Suggested Citation

Vlados, Charis and Chatzinikolaou, Dimos, Methodological Redirections for an Evolutionary Approach of the External Business Environment (August 30, 2019). Journal of Management and Sustainability, Vol. 9, No. 2, pp. 25-46, 2019, Available at SSRN: https://ssrn.com/abstract=3445379

Charis Vlados (Contact Author)

Democritus University of Thrace, Department of Economics ( email )

Komotini
Greece

Dimos Chatzinikolaou

Democritus University of Thrace, Department of Economics ( email )

Komotini
Greece

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
81
Abstract Views
281
rank
359,143
PlumX Metrics