Discussing the effect of upgrade programs on the adaptation and performance of SMEs in developing countries

The contextual environment of an enterprise was defined as all external factors that affect or have potential impact on its functioning (Thompson, 1967; Emery and Trist, 1965). Moreover, for Khandwalla (1977), the environment is also the source of constraints, unforeseen problems and opportunities. In this sense, Lenz (1978: 32) argues that the environment can be defined as a “source of trends and events that create opportunities and threats for enterprises.”