Environmental Dynamism

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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 “competitive forces within each country’s economic system vary, each economy remains strong” (Griffin & Moorehead, 2012, p. 472). Stable environments are found in “many cultures…[such as] the economies of Sweden and the United States” (Griffin & Moorehead, 2012, p. 472). On the other hand, environmental instability occurs when “far-reaching changes in the economic and management philosophies of [certain] countries make their environments far more dynamic” (Griffin & Moorehead, 2012, p. 472). Unstable environments are found in “other countries [which] are much more dynamic… [such as] France [whose] policies on socialism versus private enterprise tend to change dramatically with each election” (Griffin & Moorehead, 2012, p. 472). Stable environments and unstable environments impact certain aspects of organizations. For instance, the performance of organizations is dependent on the stability, or instability, of the environment. In an article written about organizational performance it was found that perform...

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...ason, OH: South-Western/Cengage Learning.

Hamann, P., Schiemann, F., Bellora, L., & Guenther, T. W. (2013). Exploring the dimensions of organizational performance: A construct validity study. Organizational Research Methods, 16(1), 67-87. doi:10.1177/1094428112470007

Magnusson, P., Westjohn, S. A., Gordon, G. L., & Aurand, T. W. (2012). Environmental dynamics and first-mover advantages in emerging markets. Marketing Management Journal, 22(1), 17-34.

Miller, D., Kets de Vries, M. R., & Toulouse, J. (1982). Top executive locus of control and its relationship to strategy-making, structure, and environment. Academy of Management Journal, 25(2), 237-253. doi:10.2307/255988

White, M. C. (2012, March 28). Full real estate recovery not coming until 2015. Retrieved from
Time website: http://business.time.com/2012/03/28/full-real-estate-recovery-not-coming-until-2015/

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