Assessment of the Continued Viability of a Business's Organizational Configuration under Unstable Economic Conditions

Abstract

A competitive advantage is based on the assumption that companies should have unique positions, but the concept is related to a relatively stable environment. This research aims to provide a conceptual and practical framework to identify, describe, and analyze the interrelation between an organization's environment and its structure as a relevant topic in the study of organizational dynamics under stressful economic conditions. This research seeks to create and validate an assessment tool that measures the behavioral and environmental variables that affect decisions made under economic duress, such as those inflicted by the pandemic. Using a combination of exploratory factor analysis and construct validity analysis, eight factors were extracted that explained the environment-structure-management dynamics and were used to build an instrument capable of assessing the impact and continued viability of a business's organizational configuration under unsettled economic times. The results indicate that the reduction and its formulation as an instrument have a high degree of reliability and, consequently, its use is statistically acceptable.