Institutions and sensemaking of change: Institutional frame switching as sensemaking of microfinance in a Pakistani commercial bank

Abstract

Purpose

Scholarly research has increasingly emphasised the need for more research that provides fine-grained empirical accounts of how context plays a role in sensemaking. The purpose of this paper is to provide an in-depth look at how broader institutional context shapes the sensemaking of organisational change in a novel empirical context of a Pakistani commercial bank.

Design/methodology/approach

A qualitative inductive case study of a commercial bank using interviews and archival material.

Findings

Actors make sense of an organisational change initiative by accessing broader societal institutional logics when the field-level organisational logics are not plausible. The consequences of such frame switching may include the provocation of emotionally charged perceptions of politics and moral valuations of legitimacy.

Research limitations/implications

This study is based on a single organisational case study in a particular national context.

Practical implications

This study urges organisational change leaders to consider the role of informal interpersonal relationships and culturally shaped, and emotionally charged, perceptions of change among the change recipients, beyond the technical considerations of the industry concerned. Instead of just focussing on official interaction and top-down communication, along with creating top-level “guiding coalitions” to manage change, organisational leaders need to be sensitive to informal channels at the lower rungs of the organisation to pick emotional reactions of change recipients.

Originality/value

The study contributes to the literature on sensemaking of organisational change by showing how the institutional context, a neglected factor in the literature, impacts sensemaking. The study also contributes to the empirical literature on microfinance (MF) by providing an in-depth account of a commercial bank that introduced MF as a product line.

Citation

Khan, A.S. (2018), "Institutions and sensemaking of change: Institutional frame switching as sensemaking of microfinance in a Pakistani commercial bank", Journal of Organizational Change Management, Vol. 31 No. 3, pp. 532-556. https://doi.org/10.1108/JOCM-01-2017-0001