- New Horizons in International Business series
Chapter 3: Stages of Organisational Transformation in Transition Economies
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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