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9 J. Mgmt. & Sustainability 25 (2019)
Methodological Redirections for an Evolutionary Approach of the External Business Environment

handle is hein.journals/jms9 and id is 165 raw text is: Journal of Management and Sustainability; Vol. 9, No. 2; 2019 ISSN 1925-4725 E-ISSN 1925-4733 Published by Canadian Center of Science and Education Methodological Redirections for an Evolutionary Approach of the External Business Environment Charis VladosI & Dimos Chatzinikolaou1 1Department of Economics, Democritus University of Thrace, Komotini, Greece Correspondence: Dimos Chatzinikolaou, Department of Economics, Democritus University of Thrace, Komotini, Panepistimioupoli, 69100, Greece. E-mail: dimos.chatzinikolaou ttgmail.com Received: July 25, 2019 Accepted: August 14, 2019 Online Published: August 29, 2019 doi: 10.5539/jms.v9n2p25 URL: https://doi.org/10.5539/jms.v9n2p25 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 1. Positioning the Problem: The Fragmentary and Sporadic Perception of the External Business Environment The discipline of business strategy accepts increasingly that the external environment includes all the dynamic, evolving in time, dimensions that lie externally and influence the organisation to a greater or lesser extent (Banham, 2010; Calantone, Kim, Schmidt, & Cavusgil, 2006; Kumar & Subramanian, 2000; Kuznetsova & Markova, 2017; Loasby, Pfeffer, & Salancik, 1979; Mason, 2007; Reino, Kask, & Vadi, 2007; Terreberry, 1968). This approach examines all the external variable components of social and economic symbiosis and accepts that these external factors can affect the organisational evolution, but cannot be changed and controlled directly by the organisation. Concerning the external business environment, specifically, there is a variety of definitions: i. According to Kotter (1979), all organisations are dependent on some elements in their external environments. The control of the external resources that the organisation needs defines the degree of dependence. Land, labour, capital, information, or a specific product or service, can be such external resources. ii. According to Blair and Hitchcock (2004), while seeking to fulfil their goals, businesses face a series of external influences and pressures; these include market trends, government legislation, and the action of their competitors. iii. According to Sloman (2008), the external business environment of many firms is increasingly becoming a global one. International trade has grown much faster than the output of countries, while cross-border investment has grown much faster than investment by companies within their home

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