Beyond the Dichotomy of Business Versus its Environment: Internal Transcendence and External Assimilation

Abstract

The traditional dichotomic view of internal and external factors influencing businesses has long been a cornerstone of strategic management frameworks. However, this static view fails to capture the dynamic and reciprocal nature of modern business-environment interactions. This article introduces the Dynamics of Business-Environment Exchange (DBEE) framework, which moves beyond the conventional internal-external divide by acknowledging two additional categories: Internal Forces Acting Externally (IFAE) and External Forces Acting Internally (EFAI). The IFAE concept recognizes that businesses can leverage internal resources to shape and influence the external environment, while EFAI acknowledges that external changes can permeate and influence internal operations, fostering adaptability and resilience. By considering the reciprocal influence between businesses and their surroundings, the DBEE framework provides a more comprehensive understanding of the intricate interplay between organizations and their environments. This article explores the relevance of the DBEE framework in strategic planning, decision-making, and risk management. It challenges readers to reconsider the traditional perception of business-environment interactions, offering a paradigm shift that redefines business strategy in an increasingly complex and dynamic landscape.