A study of structural organisational transformation through the lens of an institutional logic perspective

Abstract

The past 40 years a universal trend of privatisation has emerged in the Western world. Privatisation of official authorities is seen as the way to create efficiency and flexibility in organisations. In doing so, profit-seeking managers implement new strategy plans to transform organisations. A qualitative case study is conducted at a company that has been transformed from being an official authority into a corporation. The management is conducting a transformation programme, called Take-off, which is currently implemented in the organisation. This transformation initiative is studied through the lens of an institutional logic perspective. The aim of the study is to describe and analyse how managers draw on different logics in order to achieve structural transformation and change mind-sets of employees. The study acknowledges that the project group of the change programme aims to implement a new mind-set that draws on the institutional logic of corporation into the organisation by converting and translating it into a transformation programme. The study shows that the closer the source of Take-off, the greater influence on mind-set of the corporate logic. The further away from the source of Take-off, the greater influence of the public logic on mind-set and action. Moreover, the study shows existence of sub-logics that reinforce main logics. We conclude that competing logics may create contradictions within an organisation, but no not have to.