Business Environment: Designing and Explaining the New Environmental Dynamism Model in Pharmacies

Abstract

: The present study aimed to propose and elaborate on a new model for business environmental dynamism in pharmacies. The concept of business environmental dynamism was considered to determine the influential factors and operational strategies for the improvement of the performance of small enterprises (i.e., pharmacies) in environmental dynamism. The study was conducted using a qualitative and quantitative method; content analysis was used in the qualitative section, and confirmatory factor analysis was employed in the quantitative section. The sample population of the qualitative section included valid scientific databases during 2000-2020 regarding environmental turbulence and environmental dynamism. In the quantitative section, a survey was performed on 80 owners of the pharmacies located in Kermanshah city, Iran. In the qualitative section regarding the environmental dynamism dimension of environmental turbulence, the two components of market turbulence and technological turbulence were identified and validated, as well as six sub-components. As a result, the conceptual model was extracted, and the high validity and reliability of the researcher-made questionnaire of environmental dynamism were confirmed. According to the results of confirmatory factor analysis, the instrument has a good fit. In addition, the insignificance of the paths resulted in determining the appropriateness of the structural research model.

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“…After the total lockdown, premises were allowed to reopen but with restrictions. The environmental hostility theory states that, when faced with a lack of customers, organizational behavior changes as business activities become more influenced by market movements [ 41 ].…”

“…Recently, Rezaei et al carried out extensive work to advance the research in business environmental hostility focusing their research on the adaptation of businesses and organizations after terrorist attacks. The outcome of this work demonstrates that two components can summarize the hatred of the business environment: competitive turbulence and regulatory turbulence [ 41 ].…”

“…Competitive turbulence is “a managerial perception of how much competition is in the market” and is related to the level of competition in the industry [ 41 ]. Competitive turbulence describes the increase of competition when a terrorist attack or a natural disaster reduces the customer base.…”

“…Competitive turbulence describes the increase of competition when a terrorist attack or a natural disaster reduces the customer base. In this situation, the ‘environmental hostility theory’ states that changes in organizations have to be expected due to market movements [ 41 ].…”

“…On the other hand, regulatory turbulence refers to “changes in government or regulation policies that can promote changes at the corporate level”. Four components have been identified for regulatory turbulence: legal factors, political factors, economic factors, and social factors [ 41 ].…”