Improving the Internal Relations Versus Shaping the External Relations of the Enterprise

Abstract

Purpose: The aim of the paper is to identify the importance of actions for enhancing internal relations in a company, with the aim to improve company’s relations with its environment. Design/Methodology/Approach: The studies conducted in 2018-2020 focused on the importance of relational competencies in the creation of company value and on the role of leadership. The first study concentrated on managers (N=10). The second study focused on the employees of the analysed companies (N=185). The obtained information was used to perform a structural analysis, based on structural indicators expressed as percentage values. Findings: The findings indicate that assessments of the importance of actions for enhancing internal relations in a company to improve company’s relations with its environment vary. The managers of the surveyed enterprises perceive it differently than the employees. In addition, cluster analysis showed that the managers and employees are not unanimous in their assessments of the actions. Practical Implications: The results of the analysis indicate that both the management and employees recognise the importance of taking actions for enhancing internal relations in a company in order to improve company’s relations with its environment. This analysis may identify the directions for building internal relations to improve company’s relations with its environment. Originality/Value: Business strategy making with regard to creation and enhancement of relational competencies and relational capital, both internally and externally, is becoming a key trend in the development of operational philosophy in business. Focusing on internal relations translates into formation of external relations. Development of relational capital essentially affects the growth of an enterprise and its competitive advantage.