Organizational Flexibility in Emerging Economies
Chapter 9: Concluding Remarks on the Transformation Process of the Firms Analysed
9. Concluding remarks on the transformation process of the ﬁrms analysed It is beyond the scope of this book to discuss the diﬀerent ways organizations can undertake organizational change. However, the fact that the four ﬁrms analysed underwent a process of transformation throughout the 1990s means that we need at least to understand the depth and scope of such a process. Moreover, writers in the ﬁeld of organizational ﬂexibility such as Volberda (1999) point out that adaptability can be achieved because ﬂexible ﬁrms can transform when needed. For this reason, understanding how the ﬁrms in this study transformed also helps to shed light on their ﬂexible capabilities (Volberda, 1996, 1999; Djelic and Ainamo, 1999). It is therefore important to establish the basic diﬀerences between the concepts writers have used to explain change in organizations. Greenwood and Hinings (1996) diﬀerentiate between two aspects of organizational change. First, they distinguish between radical (or what we call transformational) and convergent change. It is radical not convergent change in which we are interested. Second, they draw a distinction between revolutionary and evolutionary change. For Greenwood and Hinings (1996: 1024) radical change involves the transformation of the organization while convergent change ‘is ﬁne tuning the existing orientation’. Under great pressure from the competitive environment that characterized Argentina in the 1990s, indigenous ﬁrms needed to respond rapidly and transform the company’s activities to be able to compete eﬃciently with MNCs (Toulán and Guillén, 1997; Guillén and Toulán, 1997;...
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