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Organizational changes in emerging economies: drivers and consequences

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Author Info

  • Kevin Zheng Zhou

    (School of Business, The University of Hong Kong, Pokfulam, Hong Kong)

  • David K Tse

    (School of Business, The University of Hong Kong, Pokfulam, Hong Kong)

  • Julie Juan Li

    (Department of Marketing, City University of Hong Kong, Hong Kong)

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. Journal of International Business Studies (2006) 37, 248–263. doi:10.1057/palgrave.jibs.8400186

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Bibliographic Info

Article provided by Palgrave Macmillan in its journal Journal of International Business Studies.

Volume (Year): 37 (2006)
Issue (Month): 2 (March)
Pages: 248-263

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Handle: RePEc:pal:jintbs:v:37:y:2006:i:2:p:248-263

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Cited by:
  1. Ciprian Stan & Mike Peng & Garry Bruton, 2014. "Slack and the performance of state-owned enterprises," Asia Pacific Journal of Management, Springer, vol. 31(2), pages 473-495, June.
  2. Trien Le & Amon Chizema, 2011. "State ownership and firm performance: Evidence from the Chinese listed firms," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 2(2).
  3. Li, Julie Juan & Zhou, Kevin Zheng, 2010. "How foreign firms achieve competitive advantage in the Chinese emerging economy: Managerial ties and market orientation," Journal of Business Research, Elsevier, vol. 63(8), pages 856-862, August.
  4. George E. HALKOS & Dimitrios BOUSINAKIS, 2012. "Importance And Influence Of Organizational Changes On Companies And Their Employees," Journal of Advanced Research in Management, ASERS Publishing, vol. 0(2), pages 89-102, December.
  5. Chung, Goo Hyeok & Du, Jing & Choi, Jin Nam, 2014. "How do employees adapt to organizational change driven by cross-border M&As? A case in China," Journal of World Business, Elsevier, vol. 49(1), pages 78-86.
  6. Zhou, Kevin Zheng & Li, Caroline Bingxin, 2010. "How strategic orientations influence the building of dynamic capability in emerging economies," Journal of Business Research, Elsevier, vol. 63(3), pages 224-231, March.
  7. Jie Wu & Xiaoyun Chen, 2012. "Leaders’ social ties, knowledge acquisition capability and firm competitive advantage," Asia Pacific Journal of Management, Springer, vol. 29(2), pages 331-350, June.

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