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Organizational environments and performance: a linear or nonlinear relationship?

Andrews, Rhys William ORCID: and Johansen, Morgen 2012. Organizational environments and performance: a linear or nonlinear relationship? Public Organization Review 12 (2) , pp. 175-189. 10.1007/s11115-012-0173-z

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The external circumstances that organizations confront are an important influence upon their prospects of success. The resources available within the environment, the multiplicity of stakeholder demands to be addressed and the rates of change in these, each have serious implications for organizational functioning. Nevertheless, it remains conceivable that the effects of different dimensions of the environment are not straightforwardly positive or negative, but may follow nonlinear patterns posing very different challenges at different levels. To draw lessons for public organizations seeking to understand how best to respond the circumstances that they face, this paper examines linear and nonlinear effects of different dimensions of the organizational environment on the performance of over 500 organizations using both objective and subjective measures of the environment. Strong support is found for the presence of linear relationships between each environmental dimension and type of measure and performance, but no evidence of statistically significant nonlinear environmental effects. The theoretical and practical implications of the findings are discussed.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HF Commerce
Uncontrolled Keywords: Organizational environments; Performance; School districts; Empirical analysis
Publisher: Springer
ISSN: 1566-7170
Related URLs:
Last Modified: 19 Oct 2022 08:39

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