Abstract:
The main purpose of the study was to analyse the relationship between external environment and performance of organisation. In order to achieve the purpose of the study, six specific objectives were stated. The study was centered on institutional theory. The study adopted the causal design since the study sought to analyse the causal relationship between the variables underpinning the study. Also, since the research objectives of this study sought to test hypotheses, which are predictive-based, and the investigator seeking to collect large data that can be measured numerically, the quantitative research approach was adopted for this study. A total sample size of 159 respondents were considered. The data collection instrument for the study was questionnaire. Due to the nature of the study‟s objectives, the structural equation model was employed in analysing the objectives of the study. The study found that, there was a positive and significant relationship between political environment and organisational performance. Economic environment also found a positive and significant effect on organisational performance. Natural environment and technology environment had insignificant effect on organisational performance of Assemblies of God Hospital, Saboba. The study recommended that management must foster a culture of innovation within the organization.
