Environmental complexity comprises the heterogeneity and the dispersion of an organization’s markets and services. In a heterogeneous environment, an organization is grappling with a wide range of customers, service users and suppliers and other stakeholders (Dess and Beard 1984). To do this effectively, managers require more and better information-processing skills and systems, leading to much higher levels of strain on the existing resource capacity of an organization (Dutton et al. 1983). Environmental dispersion is present where an organization operates across a wide spread of geographical areas (Dess and Beard 1984). This increases the complexity of working arrangements with suppliers, customers and other stakeholders, thereby generating additional costs (Aldrich 1979), which might be reduced where services are concentrated in a narrow domain, through multi-output production or site-sharing (Starbuck 1976). Hence, on the face of it, environmental complexity tends to make high performance much harder to achieve.