Organizational change and firm growth

Galina Shirokova, Irina Berezinets and Alexander I. Shatalov

No 803, Working Papers from Graduate School of Management, St. Petersburg State University

Abstract: This article presents results from the research dedicated to the organizational change influence on the organizational short-midterm and long-term growth. The study was based on the data collected by the EBRD and World Bank during Business Environment and Enterprise Performance Survey (BEEPS) in 2002 and 2005. As an indicator of the firm growth the sales growth was applied. The hypotheses were tested with the use of OLS regressions and ordinary logistic regressions. The authors developed and introduced in the paper the classification of changes based on their scale and duration. The results of the research let the authors conclude that fast improvement and fast transformation has a bigger influence on the organizational short-midterm growth and smaller influence on organizational longterm growth. The authors didn't manage to get convincing results considering the slow improvement influence on the organizational growth. However several organizational changes which characterize slow transformation has an influence on both short-midterm and longterm organizational growth. Executive Summary is available at pp. 41.

Date: 2009
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