Environmental Scanning and Its Effect Upon Firm Performance: An Exploratory Study of the Foodservice Industry

The chief executive officers and members of their top management teams of 65 foodservice firms were surveyed to ascertain the extent of environmental scanning in support of the firm's intended strategy utilizing Hambrick's (1979) scales of frequency and interest; and, Porter's (1980) industry structure model for environmentaltraits. The effect of scanning activity on performance was determined; as was the difference in scanning levels of high versus low performing firms. Significant differences were found.