THE PARADOX OF THE LIBERATED COMPANY: A SUCCESSFUL BUT UNATTRACTIVE MODEL!

Abstract

This article explores the question of why the liberated enterprise model, despite its apparent superiority, has not become the standard model, outperforming the traditional hierarchical management structure. We will being by analyzing a series of approaches that fail to explain why this model has not been widely adopted. Meanwhile, contemporary institutionalism analysis suggests the key factor in the slow spread of this model. We have compared the theses of two institutionalism approaches to the three phases of evolution of the liberated enterprise model, which include the first two phases of slow evolution and the current phase of accelerated diffusion. The institutional environment appears to be the decisive factor influencing the expansion of this model. Our aim is to demonstrate the relevance of institutionalism approaches to the problem of disseminating new management methods.