Abstract The external circumstances that organizations confront are an impor-tant influence upon their prospects of success. The resources available within the environment, the multiplicity of stakeholder demands to be addressed and the rates of change in these, each have serious implications for organizational functioning. Nevertheless, it remains conceivable that the effects of different dimensions of the environment are not straightforwardly positive or negative, but may follow nonlinear patterns posing very different challenges at different levels. To draw lessons for public organizations seeking to understand how best to respond the circumstances that they face, this paper examines linear and nonlinear effects of different dimensions of the organizational environment on the performance of over 500 organizations using both objective and sub-jective measures of the environment. Strong support is found for the presence of linear relationships between each environmental dimension and type of measure and performance, but no evidence of statistically significant nonlinear environmental effects. The theoretical and practical implications of the findings are discussed.
Keywords Organizational environments . Performance . School districts . Empirical analysis