Managing deep restructuring:: Danish experiences in Eastern Germany

Klaus Meyer and Inger Bjerg Møller

European Management Journal, 1998, vol. 16, issue 4, 411-421

Abstract: This paper discusses the restructuring in post-socialist economies. Case evidence from East Germany illustrates that foreign investors must do more than provide crucial resources and integrate firms into global production networks. They also have to become involved in the process of organizational change in the enterprise itself. This is often inhibited by compatibility problems and discrepancies between the new strategic management and the local organizational culture which evolved under socialism. Therefore, post-acquisition management in former socialist firms needs to take an evolutionary approach to organizational change, to facilitate the process of organizational integration, and to train employees to operate in a market-economy which requires the communication of tacit managerial and organizational knowledge. This paper offers some suggestions as to how this may be done.

Date: 1998
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