Organizational coping with institutional upheaval in transition economies

Kendall Roth and Tatiana Kostova

Journal of World Business, 2003, vol. 38, issue 4, 314-330

Abstract: The radical change in corporate governance systems is fundamental to the period of institutional upheaval characterizing transition economies. Using an institutional theory framework, this paper develops a model of responses to this change. The model is tested with data from 1,723 firms in 22 countries in Central and Eastern Europe and the Newly Independent States. The results suggest that a firm's adaptation to the new governance order will be facilitated or hampered depending on the characteristics of the institutional and organizational contexts it faces. A major implication of the study is the need to consider cultural and contextual embeddedness in explaining how governance systems transform.

Date: 2003
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