Managing Change, Growth and TR PDF
Managing Change, Growth and TR PDF
Managing Change, Growth and TR PDF
www.emeraldinsight.com/0262-1711.htm
JMD
38,4 Managing change, growth
and transformation
Case studies of organizations in
298 an emerging economy
Received 12 January 2018
Paul C. Hong
Revised 11 May 2018 Department of Information Operations and Technology Management,
22 July 2018
3 October 2018 The University of Toledo, Toledo, Ohio, USA
12 November 2018
7 December 2018
Tomy K. Kallarakal
Accepted 29 January 2019 Deanery of Commerce, Christ University, Bangalore, India
Mariam Moina
Christ University, Bangalore, India, and
Margaret Hopkins
Department of Management, The University of Toledo,
Toledo, Ohio, USA
Abstract
Purpose – In view of dynamic and widespread economic transformation in emerging economies, managing
organizational change and growth in this context deserves more research attention. The purpose of this paper
is to examine how three organizations in different industries manage change, growth and transformation in
their organizational ecosystem.
Design/methodology/approach – The authors conducted in-depth interviews with the leadership of three
organizations in different economic sectors in India, a country representing an emerging economy. The
authors also reviewed historical data from these organizations. Three case studies illustrating the evolution of
these organizations were developed from the data collected.
Findings – Lessons and implications from the three case studies suggest the following key elements of
effective organizational change mechanisms in an emerging economy: visionary entrepreneurial leadership;
program quality excellence; scale growth and scope expansion; network capabilities; and sustainable
stakeholders’ engagement. At the same time, this study also shows how these organizations manage change,
growth and transformation in the context of a society with strong traditions and cultural norms.
Research limitations/implications – Results and conclusions may be limited by the fact that the study is
based on three case studies. Additional studies from a variety of industries with large numbers of participants
will be helpful in more fully understanding the ways in which change, growth and transformation can best be
developed and deployed in different organizational settings.
Practical implications – The proposed model of organizational change in an emerging economy may
assist organizational leadership in designing and sustaining their change efforts.
Social implications – This study highlights the role of visionary entrepreneurial leadership and the impact of
organizational growth mechanisms on organizational value delivery capabilities and organizational reputation.
Originality/value – Lessons and implications of five growth steps of outstanding organizations in an
emerging economy context provide valuable insight for organizational change, growth and transformation in
other emerging contexts.
Keywords Emerging economies, Organizational reputation, Model of organizational change,
Value delivery capabilities, Managing change
Paper type Case study
Journal of Management
Development
Vol. 38 No. 4, 2019
pp. 298-311 It is a paradoxical but profoundly true and important principle of life that the most likely way to
© Emerald Publishing Limited
0262-1711
reach a goal is to be aiming not at that goal itself but at some more ambitious goal beyond it.
DOI 10.1108/JMD-01-2018-0011 (Arnold J. Toynbee)
1. Introduction Managing
Nations converge for shared purpose, stay interdependent for common challenges and diverge change,
into their chosen paths (Derviş, 2012; Drabble et al., 2015; Jamali and Neville, 2011; Zhao and growth and
Liu, 2010). The changing roles of emerging economies in the global marketplace are worthy of
careful examination. Emerging economies generally go through rapid transitions with fast transformation
economic growth. Two crucial growth factors – demographic and economic – make a huge
impact on the speed of change in the lives of individuals, organizations and government 299
sectors. One of the predominant emerging economies is India. Despite increasing research
attention to India’s dynamic economic growth, what has not been clearly explored are the
processes of growth and transformation of various organizations in this emerging economy
(Magala, 2016; Nairm and Vohra, 2011; Stephan et al., 2016). At the same time that India is
experiencing rapid economic growth, the country also represents a culture with strong
traditions and norms. The juxtaposition of these two factors – fast economic growth and robust
cultural conventions – presents an intriguing opportunity to examine organizational change.
In view of the research need in this regard, the purpose of our study is to identify the
change context, processes and outcomes within two organizations in the emerging
economy of India. Our paper aims to examine how these two organizations in different
contexts – a university and a social-services organization – respond to change needs and
achieve growth requirements. We first provide a general model of organizational change
processes in terms of context, structure and performance, and conduct an overview of the
organizational change literature. Next, we present our case study methods, the findings of
two case studies in terms of five aspects of organizational change. We then discuss the
implications on value delivery capabilities and organizational reputation. Suggestions for
future research are included.
Figure 2.
Case study processes:
research team and Quality Case Participants
participating Assessment Write-up Feedback
organizations
stakeholders’ relationships, key program developments, personnel issues, development of Managing
strategic alliances, internal and external engagements and future vision. change,
Through follow-up contacts the research findings were reported and confirmed the growth and
accuracy of information details. Case write-ups were then completed after quality
assessment and participants’ feedback. The senior leadership of the organizations was transformation
invited to explain the contexts of growth. To validate the interview and field visit results, we
further used internal sources, internet information and newspaper articles. In case of 303
proprietary nature, we asked permission to disclose the identity of the organizations. In all
cases, we used both internal interviews and public information available through internet,
books and articles.
Research team participating organizations. Our organizational change case studies are
as follows. We provide an evolutionary picture of these two organizations. In addition,
we present macro-trends – demographic patterns, economic growth and global middle
class makeup – for contextual information. We examine the conduct of organizations that
seek positional transitions in the regional, domestic and global markets. We further
discuss the performance of the organizations in terms of revenue growth and their
competitive position. The main premise is that change management practices are the
conduct of organizations in response to contextual demands resulting in corresponding
performance outcomes.
Table I is a summary of the structured interview questions.
For adequate representation, we chose these sectors – education and non-governmental.
We did not choose business organizations because of available research of organizational
change on business organizations (Armenakis and Bedeian, 1999; Al-Haddad and Kotnour,
2015; Brown and May, 2012; Hong et al., 2018; Singh and Hong, 2017). The selection criteria
were based on needs for organizational change research in public sector and non-profit
service sector (Nandan and Verma, 2013); meeting the case study requirements for
substantial history of growth and change evidences; key informants collaboration intent
for interview requests and support of research endeavors; and field visits and secondary
data availability.
Table II is a summary of each organizational context and their distinctions. It provides
details of the case study participants. To be consistent, we used structured questions
(Table I) to examine various aspects of organizational changes in terms of firm
context, leadership roles, organizational processes, challenging issues/problems,
stakeholders’ engagements patterns and scope, change milestones, public relations,
and prospects for future.
1 Big picture questions: a brief description of the history of the organization and work positions,
responsibilities experiences, individual and organizational perspective
2 Organizational change processes: growth stages description, time period, drivers—external and internal
3 Organizational change agents: leadership – individual and teams, roles, contribution
4 Organizational change challenges: specific issues/problems, coping/resolving methods
5 Organizational change milestones: shared vision, goal settings, successes/setbacks, achievements,
moments of celebrations
6 Stakeholders participation: engagement patterns, scope and focus Table I.
7 Public relations: methods/venues of communication of organizational work, efforts, results Structured interview
8 Looking ahead: prospect, reasons for hope questions
JMD Name of Contact/Interviews
38,4 organization/Year Nature of Size (employees)
of establishment organization Products and services Other prominent details
Vindhya-E- BPO with more than Contact center solutions, data Founder/Managing director
Infomedia Pvt 60% of its employees processing, onsite deployment Bringing business and
Ltd/2006 being persons with philanthropy together by
304 disabilities employing over 1,600
employees with many of its
staff comprising physically
challenged, hearing impaired,
socially disadvantaged women
and border cases of Autistic
CHRIST Educational Institution that offers Vice chancellor/deans and
(Deemed to be institution that offers Bachelor’s to Doctoral director of centers
University)/1969 comprehensive programs in humanities, social Employs 685 permanent
Table II. degrees programs sciences, science, commerce, teaching staff and 612
Summary of case management, engineering, non-teaching staff
study participants education and law
growth and change patterns. Growth and changes are not necessarily in linear fashion.
Like individuals, organizations also go through ups-downs in each stage. However,
change processes also suggest certain patterns of growth – from birth to competition for
survival, growth, distinction and prominence. Both organizations have not experienced all
these steps. Realistically, Vindhya is going through the third stage of growth, whereas
CHRIST (Deemed to be University) is passing through the fourth stage, respectively, for
excellence and distinction. CHRIST (Deemed to be University) has demonstrated
instructional excellence at national accreditation by National Assessment and
Accreditation Council with the highest grade of A and is in the course of developing
excellent research capabilities. These organizations are common in that their
organizations successfully implemented change management with proper steps of
transition and transformation.
Table III summarizes our model of the five essential characteristics of growth steps in
organizations: visionary entrepreneurial leadership; program quality excellence; scale growth
and scope expansion; network capabilities; and sustainable stakeholder engagement.
Each stage displays its own change driver such as visionary entrepreneurial
leadership for start-up stage, program quality excellence for competition stage, scale
growth and scope expansion for growth stage, network alliance capabilities for
distinction stage, and sustainable value leader reputation for prominence stage.
Interestingly enough, the two organizations demonstrate the visionary leadership of
founders (Vindhya) or their top administrator (CHRIST (Deemed to be University)).
The characteristic of their leadership is transformational in that a small beginning with
core members turns into sustained organizational actions (Brown and May, 2012;
Dvir et al., 2002; Kuhnert and Lewis, 1987). This type of leadership has a strong
transactional aspect through giving and taking practical intangible benefits of having
sense of shared vision, purpose and meaning through enduring early periods of
uncertainties and hardships and experiencing the joy of growth together. The sheer sense
of excitement of working together with entrepreneurial (e.g. big dreams for providing
hope for the persons with disabilities) and dynamic (e.g. tremendous sacrificial energy for
establishing a viable institution with very little resources support) founder(s) leadership
brings transformation effects through the changed lives of employees, students and
exciting outcomes.
Implications for
Managing
Stage Change driver Essential dimensions Key indicators organizational change change,
1. Start-up Visionary Solid value-based Translation of individual
Exciting stories of trials
growth and
entrepreneurial mission, daring and subsequent aspiration into value transformation
leadership organizational goals, and successes, having propositions for
superb inspirations in customers while securing
organizational goals for
words and actions
embodied by the visional
wealth creation and value
delivery for target
key individuals for
essential functions, and
305
leaders and the leadership customers passing the test of
team organizational birth and
survival conditions
2. Competition Program Design and deliver Competitive performance Focus on key product/
quality specific programs that in industry segments service offerings, while
Excellence satisfy multiple through quality implementing industry
competitive capabilities standards and quality standards and
through applying performance outcomes cross-functional
organization-wide process that exceed industry organizational
excellence performance expectations collaboration of complex
problem solving
3. Growth Scale growth Superb fulfillment of Diverse program Continuation of multiple
and scope diverse requirements in offerings to growing product/service
expansion different growing markets with increasing development offerings
segments through revenues growth and while attaining economies
internal core capabilities facilities expansion in of scales and diversity of
regional market scope
4. Distinction Network Secure establishments of Steady revenue increase, Attainment of competitive
alliance large growing loyal solid reputation among capabilities through
capabilities customer base beyond diverse stakeholders in network relationships
regional and domestic domestic market while reporting steady
boundaries streams of financial flows
and increasing strategic
partnerships results
5. Prominence Sustainable Responsiveness to Consistent definition of Demonstration of brand
value leader emerging trends through growth potential and reputation as sustainable
reputation systemic sensing efforts emphasis on steady value leader of the
by internal, external and innovation for existing industry while generating Table III.
open sources programs and disruptive productive outcomes for Essential
innovation for new the existing programs characteristics of
program creation and and innovative impacts five organizational
delivery for new programs growth steps
As shown in Table III, to translate individual leadership into institutional efforts, program
quality excellence is another distinct mark of organizational growth in the
next stage. Vindhya’s case creating business value through employing persons with
disabilities (e.g. hearing and speech impaired, visually impaired and locomotive disability)
required service excellence in key customer service program in their TV services network.
CHRIST (Deemed to be University) chose one to two key programs in each college (e.g.
business, art and science, and law) to demonstrate their national level of excellence. Scale
growth occurred as more customers appreciated the value delivery of these organizations
through continuous engagements and adoption of their service offerings. In line with these
program excellences in focused areas, the next level of growth was to expand partnerships
with enhancing network capabilities.
Implications for organizational change are to recognize specific organizational needs
for each stage. For start-up, translation of founder’s vision into value propositions for
specific customers while securing key collaborators for key functional responsibilities is
critical. More than half of start-ups do not pass the test of organizational survival
JMD conditions beyond birth. The competition stage requires organizations to focus on key
38,4 product/service offerings. At this stage, since the organization becomes visible with large
numbers of customers, they must strive to implement industry quality standards to
remain comparable with other rivals. To meet diverse requirements, cross-functional
teams strive to address the needs of complex problem solving. Organizational growth
necessitates continuous product and service development to increase the volume of
306 transactions and to provide adequate choices for customers through product/service
scope. The stage of distinction requires a growing organization to move beyond its own
capabilities and seek additional capabilities through strategic alliance endeavors.
Organization-specific competences alone are not sufficient to meet the expectations of
stakeholders. The last stage of organizational change is prominence. This stage
demonstrates how an excellent organization assumes the position of sustainable value
leader in the industry. The brand reputation of the organization is supported by
productive outcomes for the well-known programs along with innovative emergence of
new programs.
Figure 3 is a summary of the findings of the participating organizations in regard to
engagements with their stakeholders. We consider two parameters. One is a qualitative
measure in terms of organizational reputation (vertical axis) and the other one is a
quantitative measure in terms of value delivery capabilities (horizontal axis). These
organizations are common in that they start with relatively moderate value delivery
capabilities and modest organizational reputations. In their early years, they focus on value
delivery capabilities as a first priority. With the increasing value delivery capabilities,
the organizational reputation grows steadily and then rapidly. It is interesting to note that
these organizations sustain their value capabilities and their organizational reputation. Once
the organizational reputation is firmly established, the focus of the organization is to
support, sustain and enhance their value delivery capabilities beyond expectations of their
stakeholders. These two organizations (Vindhya, CHRIST (Deemed to be University)) paid
attention to the changing requirements of the world around them and directed
organizational efforts to move ahead of the trends with higher purpose. In other words,
in the early stage of development and growth, organizations are more likely to focus on
value delivery capabilities (i.e. internal competence, quality and excellence) and sustain their
organizational reputation (public perception). In that sense, the relationships between value
capabilities and organizational reputation are positively related and then taking the shape of
increasing acceleration.
High
Organizational Reputation
Figure 3.
Value delivery
Low
capabilities and
organizational Low High
reputation
Value Delivery Capabilities
5. Discussion Managing
The extant organizational change literature predominantly focuses on content, context, change,
process and criterion issues in the context of advanced economies. We have examined growth and
how organizations in an emerging economy, India, have managed change requirements
for rapid quantitative growth goals while maintaining incremental qualitative cultural transformation
norms. Organizations within this emerging economy present an interesting case study
given their unique challenges of managing growth along with respecting long-time 307
cultural traditions.
Organizations often reflect the speed of societal changes. With the rising middle class
and vibrant wealth-creating opportunities, Indian organizations respond to the need for
external growth performance requirements in terms of organizational size and revenue
enhancement. Thus, successful organizations demonstrate their rapid growth in terms of
size and financial performance measures. At the same time, organizations that thrive in the
Indian context respectfully adjust to the cultural norms in a slow and steady pace. In this
sense, the organizations in our study demonstrate their organizational change patterns as
hybrid in that they show both rapid growth measures and steady sustenance of cultural
practices. These hybrid aspects of organizational change are also distinct compared to
organizational change patterns in advanced economies such as the USA and many
European countries. Although certain aspects of change are assumed to be universal, our
study illustrates the particularity of contextual factors ( Jansson, 2013).
Our paper proposes a novel model of organizational change in emerging economies. We
discuss how organizations in this context achieve positive organizational change and long-term
performance results through five distinct stages of growth: visionary entrepreneurial
leadership; program quality excellence; scale growth and scope expansion; network
capabilities; and sustainable network stakeholder engagement. These hybrid change
patterns reflect an effective balance of revolutionary growth with incremental change
(Van de Ven and Sun, 2011). We suggest that the effective management of these transitions
between the five stages of organizational change will result in successful performance outcomes.
These growth patterns may not be exclusively noted in India, but are more broadly observable
in other cultures with emerging economies thus extending the generalizability of our results.
This study provides a valuable research model for extension and development. This
five-stage model (i.e. start-up, competition, growth, expansion and prominence) defines
essential characteristics, key indicators and implications for organizational change.
Practical implications for organizations that aspire positive long-term changes may
recognize key requirements for moving forward to the next stage of organizational
transitions. This does not suggest that all organizations will go through such growth and
change patterns. Many organizations may remain at best in the first or second stage.
However, regardless of their current position, this stage model provides a possible road map
for any aspiring organization to the next stage of transition and growth.
Organizational change practices and outcomes might be further tested in large-scale
empirical studies. In addition, studying the similarities and differences between multinational
and domestic organizations within the framework of our model would be an interesting
avenue to pursue. Subsequent papers may aim to develop benchmark instruments that
examine the organizational change mechanisms discussed in this paper with empirical data.
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