From a theological point of view, God is both inside and outside of the universe. It is not the same as pantheism, which says that God is the same thing as the physical universe. In panentheism, God is seen as the one who made the universe and the force that keeps it going.
He is also seen as the source of universal morality. In the works of Herakleitos, the word is often linked to the Logos, a concept in Greek philosophy that is everywhere in the universe and is how everything was made.