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Organizational changes in emerging economies: drivers and consequences

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Abstract

Organizational change in emerging economies, although difficult, is inevitable. The authors study the drivers and consequences of organizational changes in an emerging economy, China. The results of a firm-level survey show that organizational changes in technical vs administrative areas are differentially driven by firms' motivation to change (past performance), opportunity to change (firm location and market orientation), and capability to change (firm ownership, managers' change attitude, and leader charisma). Furthermore, technical and administrative changes affect firm performance through distinct paths. Technical changes have a direct, positive impact on performance, whereas administrative changes enhance firm performance indirectly through technical changes, and the effect of administrative changes on performance is strengthened by the presence of a participative culture.

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Acknowledgements

This study was supported by a research grant from the University of Hong Kong and a grant from the Research Grants Council, Hong Kong SAR Government (CERG CityU 1176/97H). We thank the Departmental Editor, Professor Charles Galunic and the two anonymous JIBS reviewers for their insightful and constructive comments.

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Authors and Affiliations

  1. School of Business, The University of Hong Kong, Pokfulam, Hong Kong

    Kevin Zheng Zhou & David K Tse

  2. Department of Marketing, City University of Hong Kong, Hong Kong

    Julie Juan Li

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  1. Kevin Zheng Zhou
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  2. David K Tse
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  3. Julie Juan Li
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Correspondence to Kevin Zheng Zhou.

Additional information

Accepted by Charles Galunic, Departmental Editor, 29 June 2005. This paper has been with the author for two revisions.

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Appendix Measurement items and validity assessment
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Zhou, K., Tse, D. & Li, J. Organizational changes in emerging economies: drivers and consequences. J Int Bus Stud 37, 248–263 (2006). https://doi.org/10.1057/palgrave.jibs.8400186

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