Impact of external environmental turbulence on enterprise transformation strategy

Abstract

This study establishes a simulation model of enterprise transformation to study the impact of external environmental turbulence on enterprise transformation strategy. The result shows that the optimal degree of enterprise transformation declines as the level of external environmental turbulence rises. Further analysis indicates the reason of this result: First, with higher degree of transformation, enterprises could get more new capabilities that match the external environmental requirement; second, the value of new abilities obtained in the transformation process could also be reduced by constant external environmental turbulence. © 2013 Asian Network for Scientific Information.