Organizations do not live in a vacuum, but they are surrounded by environment. This environment is formed by the ambient society, economy, environment, culture, technological environment, legislation, public sector and public administration.
Among the organizations and the surroundings is lively exchange of inputs (e.g. technology), outputs (including externalities) and information. Surroundings puts organization various restrictions (e.g. legislative restrictions, different standards) and its organizational culture is influenced by surrounding culture (such as culture of the country).