Causal linkages among dimensions of perceived organizational environment

Abstract

The paper highlights the importance of environmental perceptions of management for a strategic conti theory of organizational functioning. Based on data from 75 Indian organizations, the paper examines the temporal stability of environmental perceptions and the potential causal linkages between perceptions of ten dimensions of the organization's operating environment. Based on identified casual linkages, the environmental dimensions are classified into strategic, transmitter, instrumental, and isolated. A causal network is constructed. Distinction is drawn between the direct and network organizational effects of changes in environmental perceptions. Implications are drawn for a dynamic organization theory. The paper concludes with some emergent hypotheses.