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Abstract
This paper addresses how organizations adapt to environmental changes in transition economies. Drawing on institutional theory, we explore the organizational processes at ten banks in three Central European countries, the Czech Republic, Hungary, and Slovenia. We describe how bank executives perceived and dealt with institutional changes. We examine the particular effects of inherited problems and new market institutions on organizations. The study illustrates the role of various constituents in organizational adaptation. In discussing the conclusions of the study, our emphasis is placed on the changes in institutional environments in transition economies.
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