Organizational change in a bank group: the merger process and its generative mechanisms

Abstract

The purpose of this paper is to describe and explain the organizational change process in a Finnish bank group. The change is illustrated by a long-term merger process, whereby the structure of the bank group has been substantially revitalized. The major findings of the study indicate that a profound structural change requires a “bottom-up” process, in which informal and relatively autonomous organizational arrangements play a significant role. It appeared that neither strong pressure from the environment nor deliberate orders from headquarters were sufficient alone to launch the merger explosion of the late 1980s. The study suggests that organizational innovation and experimentation are significant mechanisms in understanding organizational change. Minor interventions and undramatic events thus appear to be much more important than most previous studies have indicated.