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The principle of enactment assumes that organizations do not have to submit to existing forces

in the environment; they can, in part, create their environments through strategic alliances with

stakeholders, investments in leading technologies, advertising, political lobbying, and a variety

of other activities. 14 Of course, smaller organizations are somewhat limited in their ability to

infl uence some components of their environments on their own. For example, a small restaurant

fi rm may have a diffi cult time infl uencing national government agencies and administrators.

However, smaller organizations often band together into trade groups, such as the National

Restaurant Association, to infl uence government policy on pressing issues like minimum wage,

immigration policy, and health - care costs. Also, they may form alliances with other entities. The

Global Hotel Alliance is one example, in which Omni Hotels, Kempinski Hotels & Resorts,

Pan Pacifi c Hotels and Resorts, Rydges Hotels & Resorts, Marco Polo Group, Dusit Hotels &

Resorts and Landis Hotels & Resorts have joined forces to compete against the mega chains. 15

In addition, even a small fi rm may be able to exert a powerful infl uence on its local operating

environment. The key to enactment is understanding that a fi rm does not necessarily have

to adapt completely to the forces that exist in its operating environment. It can at least partly

infl uence certain