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 9: Organisational Learning and Dynamic Capabilities

Sarah Dixon

Subjects: business and management, international business, strategic management


In this chapter I develop a theoretical framework that explains the linkages between organisational learning and dynamic capabilities and how they affect organisational transformation. It takes the framework developed in Chapter 8 a step further by introducing the intermediary concept of dynamic capabilities between organisational learning and organisational capability outcomes. It broadly corresponds to Stages II and III of the integrative framework presented in Chapter 3. Organisational learning (Shrivastava, 1983; Fiol and Lyles, 1985) and the development of dynamic capabilities (Teece et al., 1997; Eisenhardt and Martin, 2000; Helfat et al., 2006) have become of pivotal interest to organisation scholars as well as management practice. However, the dynamics of these processes as well as their impact on organisational performance remain poorly understood. This is a particular concern for organisations facing radical change in their external environment, which thus have to accelerate their learning and the reconfiguration of their resources (Newman, 2000; Fey and Denison, 2003). Moreover, organisational learning may be subject to contextual influences that have rarely been analysed in previous research (Tsui et al., 2004; March, 2005; Meyer, 2007). In this chapter, on the basis of the empirical research, I explain how exploitation learning is linked to the deployment function of dynamic capabilities, involving the reconfiguration, divestment, creation and integration of resources to provide the operational capabilities required to survive in the market economy in the short term. On the other hand, exploration learning relates to the search and selection function of dynamic capabilities, involving...

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