Pathways of Change: Organizations in Transition

Abstract

This article discusses and illustrates organizational changes as initiated by ownership transition. It develops and elaborates three different pathways that organizations might follow through the process of transformation from government departments to state‐owned enterprises, and then to privately‐owned companies: the incremental, radical and reductive pathways. The research reported here is based on 11 case studies of New Zealand privatized companies. The pathway approach develops and extends existing models of transitional organizational trajectories, emphasizing the importance of antecedent conditions of organizational development, current environmental patterns and the strategic choices of the government and new owners.