A Study on Determinants of Business Environment (Technological Strength, Competitive Strength, Government Support, and Financial Support)

Authors

  • Jung-Su Lee, Ha-Kyun Kim

Abstract

Corporate survival and growth depend on corporate adaptation and addressing challenges of environmental changes. In an open system, all activities of an entity take place in constant interaction with the internal and external environments. Environmental changes pose a threat to the survival of companies and also provide opportunities for growth. Changes in the environment surrounding businesses give profound influnce on the establishment of management strategies and the achievement of business performance. The business environment is changing rapidly as the needs of customers increase and various technological innovations are commercialized. To meet these changes, an entity needs to develop an appropriate management strategy. In order to secure competitiveness in a complex market environment, various control systems must also be established.
In this study, the prior study of the management environment, management strategy, and business performance was reviewed and empirical research was carried out. Based on prior research, technological strength, competitive strength, government support policy and financial support were adopted as factors for the business environment. The collected data were analyzed using the default statistics of SPSS 22.0. Smart PLS 2.0 (partial least squares) using a structured formula. The results of study are shown. First, the management environment (technological strength, competitive strength, government support policy, and financial support) had a significant impact on management strategy. Second, management strategies had a significant impact on business performance. This means that in order for an entity to settle in the market, it is essential to establish a discriminatory management strategy in various business environments. To measure an entity's performance, active use of its management strategy is necessary.

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Published

2020-05-17

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Section

Articles