Exploring the Impact of Environmental Dynamism on the Organizational Structure and Strategic Posture

Abstract

This study describes the organizational structure, strategic posture, degree of differentiation, and integration in small and medium-sized enterprises (SMEs) operating in stable and dynamic environments. Results suggested that environmental dynamism impacts the organizational structure, level of differentiation and integration whereas, partial support was found between environmental dynamism and strategic posture. Moreover, firms were classified into seven clusters to study the internal dynamism of each firm based on its environment. It was found that each cluster holds a different firm's strategies to meet the demands of the external environment.