The Triangular Model for Dealing with Organizational Change

Abstract

Purpose: This paper investigates, to what extent the theories developed in more stable environments are suitable for analyzing organizational changes in turbulent environments. The aim is to provide a model for analyzing organizational changes in transition economy. Methodology: Structured interviews about the implementation of organizational changes were conducted with members of top management teams twice: firstly in 2001, in 137 Estonian companies; and second in 2005, in 106 companies. Changes which took place in the 1990s, during a period of social transience in Estonian society, were compared with changes implemented in the 21st century. The interview questions were similar during both interviews. Content analysis was used to evaluate the results. Findings: The results indicate that the types of organizational change are connected to institutional environments. During societal transience, transformational changes, deepest by scope, took place in most companies. During more stable institutional stages, organizations faced a decreasing number of transformational changes. There is a mutual interdependence between the three main building blocks of the triangular change model: the type of change, the readiness to change and the process of change. Research limitations/implications: In order to draw broader conclusions, it could be necessary to conduct further empirical research in other countries. Practical implications: Managers of international firms with subsidiaries in countries in transition could consider different things: first, the institutional and cultural context: structural institutions, values and norms. Values and norms in this country determine the activities required in the preparation and implementation of changes as well as the steps to be taken in the change process. Originality/value of paper: The author connected four types of reasearch about organizational change – content research, process research, contextual research and readiness research – into the triangular model.