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Organizational Transformations in Transition Economies: Hypotheses

Haas School of Business at University of California, Berkeleycarman{at}haas.berkeley.edu

Luis V. Dominguez

College of Business at Florida Atlantic Universitylvdomingu{at}aol.com

This article employs new growth theories and resource advantage/dynamic capabilities research to explain how the process of economic liberalization in transition economies (TEs) redefines the bases of competition and engenders strategic and organizational change. The changes are described in terms of existing types of organizations and new firms emerging after economic liberalization. The manuscript draws a number of propositions concerning the drivers of competitive dynamics and of marketing innovation. The propositions center on overarching regularities in the dynamic interface between market-oriented institutional reforms and changes in marketing behavior across a broad spectrum of regions and income levels and thus transcend the traditional focus on development of low-income countries per se. The manuscript first explains, from a new growth theories perspective, how institutional reforms affect the TE environment. This is followed by resource advantage/dynamic capabilities explanation of firm-level responses and the relationship between those responses and subsequent institutional changes.

Journal of Macromarketing, Vol. 21, No. 2, 164-180 (2001)
DOI: 10.1177/0276146701212007


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