A Study of Affecting Business Environment on Management Performance through Management Strategy

Abstract

Corporate survival and growth depend on corporate adaptation and challenges to environmental changes. This is under an open system, all activities of the entity take place in constant interaction with the internal and external environments. Environment changes pose a threat to the survival of companies and provide opportunities for growth. Changes in the internal and external environment surrounding businesses have a profound impact on the establishment of management strategies and the achievement of management 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, appropriate management strategies and various control systems must be established. In this study, the prior study of management environment, management strategy, and management performance was re viewed 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 and the Smart PLS 2.0 (Partial Least Squared) using the structured formula. The results of the study are as follows. First, the management environment (technology strength, competition strength, government support policy, and finance support) had a significant impact on the management strategy. Second, management strategies had a significant impact on management 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.