Environmental strategies in different stages of organisational evolution: theoretical foundations

Abstract

While many studies have examined the alignment of an organisation's environmental strategy with a number of contingencies such as general business environment, industry and organisational characteristics (the organisation's size, resources, capabilities, etc.), relatively few have considered the role of the organisational life cycle. The value of life cycle models lies in the idea of the dynamic nature of organisations. As organisations pass through life cycle stages, their strategies, structures and activities correspond to the stage of development. The theory and case studies we present in this article identify environmental strategies that high-performing organisations are likely to pursue in each stage of their evolution. Our contention is that environmental strategies have to be aligned with the organisational context and structure in order to be successful and that there is no single optimal strategy for all businesses in an industry.