Untangling Organizational Change in a Chinese State-Owned Company: A Grounded Theory Case Study

Abstract

In its zeal for organizational change, a Chinese state-owned enterprise encountered a myriad of impediments. This inductive case study aims to examine and untangle the roots of those impediments through grounded theory. The research results suggest that employees’ attitudes towards change, organizational aspiration for change, and change context affect the process of change. In particular, (1) employees with higher adaptive capability on change and lower professional status are inclined to have a more positive attitude towards change; (2) higher organizational performance and poor communication of reforms decrease organizational desire or inclination for change; (3) informal influence of internal information spread promotes acceptance of reform; and (4) external influence of consultants accelerates acceptance of change. As a result, S Group implemented corresponding unfreezing change strategies, which eventually won the support for change of a majority of employees. This engaged case study also provides new insights into Bourdieu’s Practice Theory as applied in the context of Chinese state-owned companies.