Transformation of state-owned enterprises in Estonia and India: An examination of the relative influences of cultural variations

Abstract

The challenges confronted by state-owned enterprise (SOEs) in moving toward functioning in a market economy are first examined from a theoretical perspective. Four major transformational challenges–strategic reorientation, shifts in resource acquisition logic, workforce rationalization and renewal, and changing organizational configuration are identified and discussed. The relative influence of culture in meeting these SOE transformational challenges along with formulating and implementing policies for economic reforms are discussed.