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 4: Yukos Case Study

Sarah Dixon

Subjects: business and management, international business, strategic management


This case study describes the process of organisational transformation in Yukos. To facilitate understanding, the data display in Table 4.1 provides a time-ordered and conceptually ordered summary of the case uncovering the relationships between categories and contextualising the phenomenon of organisational transformation. The basic components of the paradigm (or organisational scheme) are the conditions (answering the questions: why, where, how come and when?), the actions/interactions (answering the questions: by whom and how?) and the consequences (answering the question: what happens as a result?). The process of organisational transformation is broadly linked to the stages of development in the external context. The table summarises the description of the case study. It should not be implied, for instance, that the TMT only played a role in the first period, or that organisational learning did not occur throughout the process of organisational transformation. The starting point for the case study can be summed up as follows: The production of Yukos . . . was in long-term decline. . . .There was a big problem with cash flow; the company was close to bankruptcy. Salaries in many of the regions had not been paid for months and months. There was widespread discontent. There had been riots and even kidnappings . . . in the regions. There was really a big mess. Khodorkovsky was looking for a survival strategy and something which would help the company grow in the future. (top manager, TNK-BP, Western) TOP MANAGEMENT TEAM This section presents the findings on the Yukos TMT, describing CEO Khodorkovsky, the diversity and entrepreneurial...

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