Influence Factors in Change Methods Choice and Their Impact On Change Deficiencies: A Case Study of Construction Industry in Transition Economy*

Journal for East European Management StudiesBand 14 Nr. 3, Juli 2009

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Zusammenfassung


The basic purpose of this research is to examine if influence factors in change methods choice are linked to an inappropriate approach (i.e. deficiencies) towards change. A combination of qualitative and quantitative approaches to research work was applied. The data were obtained by a semi-structured interview together a questionnaire, and then processed using the method of factor analysis and multiple regression. Based on research findings we can conclude that between the factors of choice of change methods and deficiencies in the implementation of change taken as a whole, there is no direct link. However, two dimensions of the factors in the choice of method of change have a positive influence on deficiencies arising during the implementation of change.

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Influence Factors in Change Methods Choice and Their Impact On Change Deficiencies: A Case Study of Construction Industry in Transition Economy*

1. Introduction

The extensive changes in business operations, which are the result of globalization, the development of new technologies and the escalation of market competition, require companies to adopt new ways of responding to challenges from the environment. In order to improve their competitive position, and thus to increase business successes, management introduces changes. Changes to companies can originate from spontaneous, intuitive management measures, as is possible in simple companies and in stable external environments (Cesnovar 2003). In more dynamic and complex external and internal company environments, however, it is more appropriate to introduce a deliberate and formalized process of change, which is known as the method of change. Such approaches foresee a range of various measures or steps which management must implement in the company in order for the changes to be successfully realized and for their positive consequences to be preserved in the long term. Following the research studies of the consultancy firm Bain & Company (Rigby 2001), which in the year 2000 comprised 451 world companies in North and South America, Europe and Asia, it was found that the companies studied were using on average 10 different methods of change out of a range of more than 65. Here it is recognized that the methods of change are situationally or contingently conditioned, which means that their success is dependent on the organization's operating environment, type of organization, current phase in the organization's life cycle, culture of the organization and style of leadership (Nohria 1996; Rigby 2001).

Although numerous professional articles and papers have been presented at conferences on the advantages of individual methods of change, there are unfortunately still relatively few scientifically based research studies which would advise top management on matters such as: which method in the given circumstances is the most suitable, what the positive and negative effects of a particular method may be, which approaches are complementary and which are exclusive, what forms of initial knowledge are required and, last but not least, what the suitability of an indi...

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