View Full Document

Resetting The Clock - The Dynamics of Organizational Change and Failure



View the full content.
View Full Document
View Full Document

5 views

Unformatted text preview:

Resetting The Clock The Dynamics of Organizational Change and Failure Terry L Amburgey University of Kentucky Dawn Kelly Northwestern University William P Barnett Stanford University This paper suggests that when viewed dynamically organizational change can be both adaptive and disruptive Similarly when viewed over time the same forces that make organizations inert also make them more malleable These ideas are supported by dynamic models of organizational failure and change estimated on a population of 1 011 Finnish newspaper organizations over 193 years Organizational changes are found to have two consequences The first is an immediate increase in the hazard of organizational failure and the second is an immediate increase in the likelihood of additional changes of the same type In both cases however the immediate effect declines over time Finally the effects of change also depend on timing within the organization s life cycle INTRODUCTION Do organizations readily and successfully change The literature has provided various answers to this question Many influential theories have assumed that organizations are relatively malleable able to adapt when circumstances change e g Thompson 1967 Hannan and Freeman s 1977 1984 structural inertia theory challenged this view depicting a world of relatively inflexible organizations in which change is both difficult and hazardous Theorists usually consider these views to be mutually exclusive alternatives e g Scott 1987 In this spirit recent work has tried to define boundary conditions between the two views distinguishing among changes as either adaptive or disruptive and distinguishing among conditions that facilitate or impede change Hannan and Freeman 1984 Singh House and Tucker 1986 Kelly and Amburgey 1991 Haveman 1992 Because there are important differences between the two perspectives there is value in searching for boundary conditions between them but we believe that these views are not in opposition An organizational



Access the best Study Guides, Lecture Notes and Practice Exams

Loading Unlocking...
Login

Join to view Resetting The Clock - The Dynamics of Organizational Change and Failure and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view Resetting The Clock - The Dynamics of Organizational Change and Failure and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?