The interaction of market and technology in radical transformation: The case of Telecom New Zealand

Abstract

Purpose – This study aims to demonstrate the interaction of the regulatory environment and market forces with rapid technological change in the transformation of SOEs, as exemplified by Telecom NZ. Design/methodology/approach – This case study analysis explicates resource dependency and institutional forces in the process of SOE privatisation, in the first ten years of transformation, through textual analysis of data collected from company annual reports and interviews. Findings – It is demonstrated that resource dependencies on technology and capital, market forces, and the institutionalization of new structures and relationships, are as important as regulatory changes in the analysis of SOE restructuring. It is also documented that the regulatory transitions are not as clear-cut as the legislative dates and economic analyses suggest. Research limitations/implications – The research focuses on a single exemplar to explicate key interactions. While generalizable to theory, the use of in-depth case studies is context-specific. Practical implications – Both technology and market forces must be incorporated in models of public sector transformations to fully capture resource dependence and institutional effects. Originality/value – The value of the paper to academics is its integration and application of institutional theory and resource dependence theory to issues that have previously been explored primarily through economic lens. Methodologically, this paper provides an original insight into organisational change. The content analysis of annual reports, supported by interview records, reflects the importance of certain themes in organisational documents for organisational actors. To practitioners, this presents an in-depth “portrait” of one of the largest and most successful public sector transformations of its era.