Environmental Scanning Initiatives of SMEs in Singapore

Abstract

Due to rapid changes and more intense competition happening in today's marketplace, the business environment is increasingly becoming uncertain and volatile. As a result, the ability to conduct effective environmental scanning is becoming critical for organizations to survive and succeed. This study investigates environmental scanning and information sharing practices of Small and Medium-sized Enterprises (SMEs) in Singapore. The objectives of the study included looking into the information needs of SMEs, the sources frequently utilized for the acquisition of environmental information and how this information is processed, stored, disseminated and utilized. A pre-tested questionnaire was used for collecting data and 45 SMEs, representing different industries, participated in the study. It was found that a majority of the participating companies perceived external environmental information as critical to their survival and growth and conduct frequent environmental scanning activities. However, improvements should be made to the effectiveness of environmental scanning, as the collected information may not be disseminated to the end-users in a timely manner.