Environmental Scanning Behavior of Small and Medium Firms in Developing Economies: Evidence from Botswana

Abstract

Although environmental scanning is a key concept in management research, its application and importance, particularly in developing African countries, is not well investigated. Scanning the company's external environment for the purpose of exploiting opportunities and minimizing threats in a precondition for the survival and success of firms in the developed economies. Does this precondition also apply to African developing countries like Botswana? Are firms in Botswana formulating their strategies for the attainment of organizational goals without scanning their environment? If not, what are their scanning behaviours? Data were collected from a randomly selected sample of 44 firms in Botswana. Findings indicated that companies in Botswana do scan their environment and use the information in major managerial decision-making processes, particularly in strategy formation. Though more importance is attached to the customer / market, competition and economic sectors, corporate leaders in Botswana tend to rely more on impersonal and internal sources as opposed to personal and external sources to analyse an increasingly uncertain sector, This scanning practice calls for the attention of researchers in strategic management in developing countries.