I am afraid that can't understand what the purpose of the study is because the terms and issues are not defined. Perhaps, I am not technical enough is the problem. .
• relationship between the organization and environment ( what is this)
• environmental scanning (?)
• conventional limits of environmental scanning (?)
• does the environment mean
I took the liberty of restructuring the next to try and make things clear for me.
The main rationale of this study is to explore the relationship between the organization and environment by going beyond the conventional limits offered by environmental scanning. The aim of the study is to analyze the environmental impact and organizational response in context of small businesses in India.
The organization and environment share a closed loop interaction. Environment affects the organization followed by the generation of a response from the organization, thus completing the cycle. It implies that the effect of environment on the organization cannot be fully understood without evaluating the organizational response.
Although some studies (Chattopadhyay, 2001) of similar nature have been done in past, but they relate to developed economies like US, thus providing enough room for improvisation. The study will focus on analysis of "Response Mechanisms" developed by organizations against environmental changes, thus will be able to fill an important gap in the literature.
In earlier studies, the relationship between an organization and environment is only seen through the lenses of environmental scanning. There have been many attempts to prove the significance of environmental scanning for strategic purpose (Yunggar, 2005; Lenz & Engledow, 1986; Hambrick, 1982). Other researchers have assessed the role of managerial perceptions in environmental scanning and its effects on the organization (Barr, 1998; Mason & Lefebvre, 1997). These researches, although being effective, have overemphasized on the role of environment neglecting the contribution of the organization in this relationship.
The study will contribute towards better understanding of organization-environment interaction resulting in better organizational strategies to cope with environmental changes.