Privatization, organizational change and performance: evidence from Indonesia
Journal of Organizational Change Management
ISSN: 0953-4814
Article publication date: 31 August 2010
Abstract
Purpose
The purpose of this paper is to examine the relationship between privatization of state‐owned enterprises (SOEs), organizational change and performance. It explores the processes by which privatization affects corporate performance through the internal changes within organizations in a developing country context.
Design/methodology/approach
The methodology involved the use of a survey questionnaire. Responses were obtained from 86 managers in 86 organizations, comprised of SOEs, privatized firms and private enterprises in Indonesia.
Findings
Cross‐sectional analysis shows that there had been a statistical significant difference across the types of ownership pertaining to organizational elements that were expected to change. The evidence suggested that privatization brought about important alignments among the organization's goals, design elements and resources and between the organization and its competitive environment.
Practical implications
The implications of the study are discussed in relation to the organizational changes that take place in the transition from public to private sector ownership. The study contributes to our understanding about the relationship between ownership‐performance by providing an organizational change perspective on the examination of privatization‐performance effect.
Originality/value
The paper provides insights into how privatization processes alter the behavior, incentives and performance of formerly SOEs in Indonesia.
Keywords
Citation
Yonnedi, E. (2010), "Privatization, organizational change and performance: evidence from Indonesia", Journal of Organizational Change Management, Vol. 23 No. 5, pp. 537-563. https://doi.org/10.1108/09534811011071270
Publisher
:Emerald Group Publishing Limited
Copyright © 2010, Emerald Group Publishing Limited