Privatization and Organizational Change: Lessons from Cross-National Research

Research and Event Summaries

Project Abstract

This paper explores privatization and organizational change and is based on lessons from cross-national field research. Privatization of state-owned-enterprises (SOEs) and the introduction of competitive markets have been adopted by nations around the world as a means to reform public infrastructure and to improve delivery of goods and services. Our strategy for analyzing approaches to the study of organizational change in privatized firms is two fold. First, we undertook an extensive meta-analysis of pre and post-privatization changes. Second, we developed a model that identifies the variety of outcomes that the theory suggests are associated with privatization with a focus on changes in organizational culture and behavior. We constructed an interview protocol based on our model and conducted interviews with executives in privatized firms in Brazil, China, and Egypt during 2002 and 2003.

Based on the interviews, our research suggests that two factors play an especially critical role in changing organizational behavior in privatized firms. First, our micro-level approach offered insights into the manner in which changes in ownership and control affect the goals, values and work norms that drive organizational performances. Second, we found that changes in human resource policies and compensation systems are crucial in changing organizational cultures.

Faculty

John Forrer, Executive Director, GW Center for the Study of Globalization
James Kee, Professor, School of Public Policy and Public Administration
Kathryn Newcomer, Director and Professor, School of Public Policy and Public Administration
Michelle Amante, Graduate Research Assistant, School of Public Policy and Public Administration
Laila El Baradei, Professor of Public Administration

The GW Center for the Study of Globalization
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