Organisational Transformation in the Russian Oil Industry

Organisational Transformation in the Russian Oil Industry

New Horizons in International Business series

Sarah Dixon

Four longitudinal case studies of Russian oil companies are drawn upon to explain the process of organisational transformation. The book highlights how and why this process differs between companies within the same industry, explores the complexity of the change process and discusses the importance of the top management team. The links between organisational learning, dynamic capabilities and the implementation of change are analysed. An interesting insight into the constraints and enablers of organisational change is also provided. The framework developed from this study can be successfully applied to other organisations wishing to bring about organisational change.

Preface

Sarah Dixon

Subjects: business and management, international business, strategic management

Extract

The oil industry in general, and the Russian oil industry in particular, is the focus of much media attention, with an emphasis on political machinations, geopolitics, economic power and corruption. The turn of the century was a period of rapid change in the Russian oil industry, with the privatisation of the industry in the early nineties being followed by a return to a significant amount of state control from 2003 onwards. The chaotic days of Yeltsin’s presidency in the nineties, when rampant capitalism was allowed to have sway, gave way to stricter rule under Putin from 2000. The early promise that Putin would bring much needed stability, but nevertheless continue to promote the market economy, failed to materialise. By 2003 Putin had already put Khodorkovsky, CEO of Yukos – the most successful Russian oil company, into gaol and started to nationalise the assets. The recent presidential elections in March 2008 have reinforced the status quo with the likelihood of a continuing strong involvement of the state in industries critical to the economy. This book provides a new perspective on the happenings from the early 1990s until 2005, looking at the Russian industry from the inside, examining the internal workings of four Russian oil companies in order to derive an understanding of how to achieve organisational transformation in conditions of radical institutional upheaval during the transition from a planned to a market economy. Sadly the most successful company no longer exists. My interest in this research derives from my background as...