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Strategy, external communication and environmental context

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  • Mark W. Dirsmith
  • Mark A. Covaleski

Abstract

It has long been argued that organizations must interact with their environments in order to survive. But is the nature of this interaction invariant across environmental contexts? This paper considers the importance of communication between organizations and key environmental elements to the development of organizational strategic norms. Based on a grounded theory framework of analysis, it is theorized that organizational strategic norms are negotiated with the environment in an interactive fashion, and that task environmental elements concerned with assessing organizations tend to employ evaluation processes that are broadly reflective of an organization's context. Views offinancial analysts and individual investors, elicited in both a quantitative and a qualitative form, are suggestive of the merits of this theorizing. Several implications for researchers and strategists are discussed.

Suggested Citation

  • Mark W. Dirsmith & Mark A. Covaleski, 1983. "Strategy, external communication and environmental context," Strategic Management Journal, Wiley Blackwell, vol. 4(2), pages 137-151, April.
    • Handle: RePEc:bla:stratm:v:4:y:1983:i:2:p:137-151
    DOI: 10.1002/smj.4250040205
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    Cited by:

    1. Luis Escobar & Harrie Vredenburg, 2011. "Multinational Oil Companies and the Adoption of Sustainable Development: A Resource-Based and Institutional Theory Interpretation of Adoption Heterogeneity," Journal of Business Ethics, Springer, vol. 98(1), pages 39-65, January.
    2. Bremmers, Harry J. & Sabidussi, Anna, 2009. "Co-innovation: what are the success factors?," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 3(1-2), pages 1-8.
    3. Aerts, Geoffrey & Cauwelier, Kathleen & Pape, Sam de & Jacobs, Sophie & Vanhondeghem, Seppe, 2022. "An inside-out perspective on stakeholder management in university technology transfer offices," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    4. Rachida Aïssaoui, 2022. "Actors and Resources in the Deinstitutionalization and Reproduction of Educational Inequalities: A Comparative Historical Analysis," Journal of Management Studies, Wiley Blackwell, vol. 59(6), pages 1386-1421, September.
    5. Murray, Keith B. & Vogel, Christine M., 1997. "Using a hierarchy-of-effects approach to gauge the effectiveness of corporate social responsibility to generate goodwill toward the firm: Financial versus nonfinancial impacts," Journal of Business Research, Elsevier, vol. 38(2), pages 141-159, February.
    6. Mark A. Covaleski & Mark W. Dirsmith & Clinton E. White, 1987. "Economie consequences: The relationship between financial reporting and strategic planning, management and operating control decisions," Contemporary Accounting Research, John Wiley & Sons, vol. 3(2), pages 408-429, March.

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