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.

Chapter 3: Stages of Organisational Transformation in Transition Economies

Sarah Dixon

Subjects: business and management, international business, strategic management

Extract

This chapter introduces key theoretical perspectives on organisational transformation and presents an integrative theoretical framework to explain a three-stage process of organisational transformation in firms in transition economies. This framework was developed as a result of iteration between the existing literature and the empirical case study data. The case studies themselves can be found in Chapters 4–6 and the empirical grounding for the theoretical framework is presented in Chapters 7–9, which split the model into three sections. The main theoretical basis is the resource-based perspective, which is combined with aspects of organisational change and learning theories as well as institutional theory. Key concepts in the theoretical framework thus are top management team, administrative heritage, institutional embeddedness, absorptive capacity, organisational learning, operational and dynamic capabilities and strategic flexibility. Their role and relationships evolve over the stages of the organisational transformation. This integrative framework addresses one of the current challenges of strategic management research: how to develop a theory of strategic management that reduces fragmentation and synthesises different views. In contrast, most management researchers in transition economies have, to date, mainly conducted fragmented studies using either transaction cost theory, institutional theory or the resource-based view (Hoskisson et al., 2000; Meyer and Peng, 2005; Wright et al., 2005). However these fail to adequately reflect the complexity of the organisational change processes. Three notable exceptions adopt an integrated approach to organisational transformation. Filatotchev et al. (2003) examine the links between governance, firm capabilities and restructuring. Uhlenbruck et al. (2003) present...

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