An alternative model for the comprehension of organizational transformation in emerging economies

Abstract

PurposeThis paper aims to comprehend organizational transformation (OT) as a permanent, continuous and iterative system, which integrates large transformations that, in turn, require smaller, additional transformations. For OT implementation, a conceptual model is proposed, called the four orders of OT.Design/methodology/approachCase study with a qualitative approach, used critical incident interviews, which were applied to describe both successful and unsuccessful events. Participants were chosen by convenience, and information was processed with Nvivo software.FindingsThe Colombian family holding studied was founded in 1974, and in its 47 years of existence, has implemented important transformations in its three companies. These showcase the four types of OT proposed, although third order support has been applied most often. The events that triggered said transformations are mainly of exogenous character, and broad responsibility was found on both the upper management and work team levels for implementation processes. This was also found for the indicator use and the various planning approaches used, depending upon the transformation type.Practical implicationsFuture research is required, so as to refine and validate the conceptual OT model proposed in other types of companies and development contexts. The proposed construct permits company managers to design and more efficiently manage transformations, while satisfying the diverse orders proposed in the theoretical model.Originality/valueAn integrative conceptual model called “the four orders of OT” is proposed and validated in a Colombian family businesses group, which is composed of three companies.