Modeling drivers of organizational change

Abstract

Purpose

It is the purpose of this paper to analyze drivers of organizational change as well as their inhibitors with a particular focus on the influence of management and the environment.

Design/methodology/approach

The question will be addressed with the help of the case study of the New York Stock Exchange's (NYSE) move towards electronic trading. A system dynamical analysis of underlying forces and feedback will help elucidate the strength of mechanisms that drive or impede change.

Findings

The stepwise analysis of the model in accordance with different model boundaries reveals that neither the environment nor endogenous pressures from stakeholders and management alone are able to replicate the reference behavior; all three model elements are necessary to simulate the process of the NYSE's radical move. Additionally, with only minor changes in the underlying assumptions, the model is able to show the contrasting behaviors predicted by different streams of literature.

Research limitations/implications

The paper's contribution is limited by the number of but one exemplary case it provides.

Originality/value

The paper contributes to one of the most prominent topics in the organizational change literature and adds a valuable example of representative drivers of change. It opens the black box of organizational change by its focus on the relationship of structure and behavior as well as on the process of change.

Citation

Milling, P.M. and Zimmermann, N.S. (2010), "Modeling drivers of organizational change", Kybernetes, Vol. 39 No. 9/10, pp. 1452-1490. https://doi.org/10.1108/03684921011081123