Environmental jolts and industry revolutions: Organizational responses to discontinuous change (original) (raw)
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Organizational Environments in Flux
Organization Science, 2001
A central debate in organizational theory concerns how organizations evolve. There are two diametrically opposing viewpoints. Adaptation theories predict that change occurs as fluid organizations adjust to meet shifting environmental demands, while selection theories predict that change occurs through the differential selection and replacement of inert organizations as environmental demands vary over time. Our paper bridges these polar opposites by using a punctuated equilibrium framework to examine organizations' responses to discontinuous industrylevel change. This framework recognizes that the histories of many industries are occasionally punctuated by dramatic exogenous shocks, such as radical technological innovation, social and political turmoil, major changes in government regulation, and economic crashes. Our central thesis is that such environmental punctuations dramatically reduce pressures and rewards for organizational inertia and thereby alter both organizations' propensities for change and their survival chances following change.
This paper examines the proposition that change is detrimental to organizational performance and survival chances. I propose that organizational change may benefit organizational performance and survival chances if it occurs in response to dramatic restructuring of environmental conditions and if it builds on established routines and competences. These propositions are tested on the savings and loan industry in California, which has experienced technological, economic, and regulatory shifts that have forced savings and loan associations to change or die. Findings indicate that most changes enhance financial performance, one is harmful to performance, and three diminish failure rates. These results support the model developed here and suggest that the question of whether change is hazardous should be replaced by the questions of under what conditions change may be hazardous or helpful and whether the direction of change affects its impact on performance and survival.
IEEE Transactions on Engineering Management, 2002
This study examines the influence of environmental, organizational, and managerial characteristics on discontinuous innovation across three industries (aerospace, electronic components, and telecommunications) that are highly dependent upon innovation for survival and competitive advantage. The authors randomly mailed survey questionnaires to 900 chief executive officers located across the U.S. and obtained quantitative data from 192 individuals. To validate these results, they conducted structured follow-up interviews of 25 executives. The findings suggest that discontinuous innovation increases with environmental dynamism and that structure and processes (intrafirm linkages, experimentation and transitioning, or sequencing from one product/project/program to another) contribute to discontinuous innovation. These results suggest that top managers are active, not passive, in influencing discontinuous innovation within their organizations.
Unpacking Continuity and Change as a Process of Organizational Transformation
Long Range Planning, 2013
We have abundant evidence to suggest that organizational transformations occur through a process of continuity and change rather than disruptive upheaval. In this study, we identify the mechanisms that characterize the process and how they impact upon the organization's potential to achieve the intended transformation. Based on an in-depth qualitative study of change in three case firms, we make three observations. First, in response to change initiatives the more strongly competing values for continuity and change are expressed, the stronger the simultaneous forces pushing back and pushing for the change, which generates an energy that propels the process of transformation. Energy permeates through the emotions that are provoked. Second, when the energy that develops through the expression of competing values is channelled into awareness-building, it compels actors to confront and debate contradictory perspectives which pave the way for a mutual exploration of change initiatives. On the other hand, when the energy is suppressed leading to awareness-blocking, there is no debate and the tussle between competing values intensifies as though in competition. Third, mutual exploration shapes continuity and change to unfurl as a synthesizing pattern, while competition between competing values invokes a polarizing pattern. A synthesizing pattern creates greater potential for the organization to reach the intended transformation than a polarizing one does. We found that when there is weak expression of competing values, little energy is generated to fuel the transformation, but it tends to stir up a preemptive defensiveness from those tending towards continuity in prevailing values. Continuity and change just drift along with little movement away from the status quo.
Cycles of organizational change
Strategic Management Journal, 1992
Much of the theory and research about change in organizations, by being presented free of rich context, creates a certain amount of confusion in the literature. This paper seeks to help remedy that situation by developing a comprehensive framework of change by organizations, built on various cycles: concentric to represent the contents and levels of change, circumferential to represent the means and processes of change, tangential to represent the episodes and stages of change, and spiraling to represent the sequences and patterns of change. This framework is fleshed out in conclusion by developing three models of change experienced by major world religions, labeled enclaving, cloning, and uprooting.
ORGANIZATIONAL CHANGE AND DEVELOPMENT
Recent analyses of organizational change suggest a growing concern with the tempo of change, understood as the characteristic rate, rhythm, or pattern of work or activity. Episodic change is contrasted with continuous change on the basis of implied metaphors of organizing, analytic frameworks, ideal organizations, intervention theories, and roles for change agents. Episodic change follows the sequence unfreeze-transition-refreeze, whereas continuous change follows the sequence freeze-rebalance-unfreeze. Conceptualizations of inertia are seen to underlie the choice to view change as episodic or continuous.
Revisiting Organizational Change: Exploring the Paradox of Managing Continuity and Change
Journal of Change Management, 2011
This article presents a conceptual review of the repository of organizational change literature from the perspective of a 'paradox lens', highlighting a clear shift in approach from trade-offs (either -or) to paradoxical thinking. This reiterates the fact that 'managing change is invariably managing paradoxes'. An analysis of emerging concepts and frameworks present in a substantial body of literature that advocate balancing the paradox of 'continuity and change' brings to light a serious deficit of empirical research and actionable framework in the area. Addressing this research gap, propositions relating to the constructs of change, continuity and organizational performance have been outlined for directed research in this area.