New Horizons of Debate 'Environment - Selects or Selected' : An Exploratory Account

Purpose: The purpose of this paper is to critically examine the assumptions underlying the population ecology theory, to point out its major weaknesses and also to suggest a solution. Design/methodology/approach: This study reviews the literature from the fields of political economy, organizational research and international management and identifies common threads pointing towards the fallacy of basic ecological assumptions. Findings: The literature from different fields suggests that not only organizations are being selected by the environment, but the environment is also being intentionally controlled, shaped or ‘selected’ and even created by the organizations. Generalizing this argument, it is proposed that all such unidirectional approaches that fail to account for the multi directional influences should be replaced with a multidirectional approach in which all of the concerned variables are given some causal authority. Originality/value: The paper provides some insights into the unwarranted and taken for granted assumptions underlying the popular approach to organizational theorizing. It offers a guideline for organizational theorists to critically evaluate existing theories and to formulate balanced theories in future. Paper type: Viewpoint