Stages of Organizational Transformation in Transition Economies: A Dynamic Capabilities Approach

To authenticate to the full-text of this article, please visit this link: http://dx.doi.org/10.1111/j.1467-6486.2009.00856.x Byline: Sarah E. A. Dixon (1), Klaus E. Meyer (1), Marc Day (2) Abstract: abstract How do organizations previously dominated by the state develop dynamic capabilities that would support their growth in a competitive market economy? We develop a theoretical framework of organizational transformation that explains the processes by which organizations learn and develop dynamic capabilities in transition economies. Specifically, the framework theorizes about the importance of, and inter-relationships between, leadership, organizational learning, dynamic capabilities, and performance over three stages of transformation. Propositions derived from this framework explain the pre-conditions enabling organizational learning, the linkages between types of learning and functions of dynamic capabilities, and the feedback from dynamic capabilities to organizational learning that allows firms in transition economies to regain their footing and build long-term competitive advantage. We focus on transition contexts, where these processes have been magnified and thus offer new insights into strategizing in radically altered environments. Author Affiliation: (1)University of Bath; (2)Henley Business School, University of Reading Article note: Sarah E. A. Dixon, University of Bath, School of Management, Bath BA2 7AY, UK (s.e.a.dixon@bath.ac.uk).