Conditions of Radical Transformation in State-Owned Enterprises

Abstract

This study analyses the key contributors to radical organizational change in five New Zealand state-owned enterprises during their ownership transition between 1985 and 1995. Abrupt government reform policies, organizations' market positions, realization of rapid technological innovation, proactive managerial actions and the new owners' strategic intent are established as key conditions of radical change in state-owned enterprises. We integrate our findings with institutional theory and resource dependency theory to argue that organizational dynamics in times of uncertainty depend on deinstitutionalization of old and institutionalization of new patterns of resource dependency.