O&E: Environmental school

Question 1

Main Theories in Environmental School:

Answer 1

1. Contingency Theory
2. Population Ecology
3. Institutional Theory

Question 2

Characteristics & premises of the Environmental school:

Answer 2

• Organizations shape themselves to fit the environment, but after initial formation, adaptation is limited.
• Early strategic choices are crucial for survival.
• Leadership influence declines over time.
• Surviving organizations tend to become similar (cluster together).
• Environment is the central actor in strategy making.

Question 3

Critique of the environmental school:

Answer 3

• Environment dimensions are abstract and vague.
• Ignores strategic choice and agency (organizations do have some control).
• Organizations also shape their environment, not just react.