Environmental scanning: dynamism with rack and stack from Rasch model

Abstract

Purpose – This paper aims to propose a method for the longitudinal analysis of the environment considering both firms’ and environmental variables. Design/methodology/approach – The study is based on a sample of firms in Canary Islands (Spain) for 2000 and 2003. Managerial perceptions are considered, based on the cognitive perspective. The measurements used are the result of applying the Rasch model and the rack and stack analyses. This approach provides information about how dynamic the firms perceive the environment and also about how the items are perceived. Findings – The results show that most firms perceive that dynamism increased between 2000 and 2003. From the perspective of the environmental variables, the most dynamic are perceived to be competition, demand, consumer motivation and technological resources. Originality/value – This paper proposes a longitudinal method for environmental scanning that include both firms’ and environmental variables. It considers managerial perceptions, that is the information entering the decision making process. It is one of the first papers to study environmental scanning with Rasch model and one of the few about longitudinal environmental analyses. It opens a field of research and applications of the Rasch model in the management literature.