Environmental Scanning as a Decision-Making Support Tool: A Literature Review

Abstract

Access to relevant information became a must for the sustainability of organizations within an increasingly uncertain environment. Environmental scanning stands out as a vital strategy for examining both external and internal organizational environments, aiming to supply decision-makers with accurate, reliable, and relevant information for well-informed decision-making. Environmental scanning is conceptualized as a systematic approach through which an organization analyses its external environment in order to identify risks and discerning opportunities. This research adopts a narrative approach and aims to explore a segment of scholarly research related to environmental scanning and to highlight its contribution to the decision-making process. The review of literature has facilitated the identification of three significant contributions of environmental scanning to the decision-making: the legitimization of decisions made, the identification of early warning signals, and the minimalization of decisional ambiguity. These findings underscore the critical role of environmental scanning as a strategic tool intended to enhance decision-making within organizations facing contemporary challenges.

Keywords: Environmental Scanning, Decision-Making, decision-making process.

Classification JEL: M2, M21

Paper type: Theoretical Research