Which characteristic defines 'open systems' in the context of organizational theory?

In organizational theory, 'open systems' are defined by their adaptability to changes in the external environment. This characteristic highlights the dynamic nature of organizations that function within a larger ecosystem and interact with their surroundings. Open systems are able to receive inputs from the external environment, process these inputs, and then provide outputs back into that environment, thereby facilitating continuous interaction and change.

The ability to adapt is crucial for organizations to remain relevant and effective. They must respond to various external factors such as market trends, regulatory changes, and technological advancements to sustain growth and improve performance. This adaptability allows organizations to innovate, improve their services, and meet the needs of their stakeholders.

In contrast, the other options represent characteristics of 'closed systems' or ineffective organizational practices. Reliance on internal feedback only, unresponsiveness to external factors, and isolation from external influences signify a lack of engagement with the environment, which can lead to stagnation and decreased competitiveness. Open systems thrive on feedback from outside, making the right answer not just evident but essential in understanding how organizations successfully navigate their challenges.