Practice,Myths and Theories for Change: The Reconstruction of an East German Organization

Abstract

There have been many attempts to change organizations in East- and Central Europe in recent years. The transition perspective understanding of the situ ation in East and Central Europe has furthered such attempts. Here, it is assumed that the dominance of the transition perspective discourages the use of previous practices as a basis for organizational reconstruction, due to its emphasis on the importance of market economy experience. Instead, myths are likely to dominate. Furthermore, it is argued that there is little incentive in this context for organizations to change their theory for change, unless they were acquired by a Western firm adhering to an opposing theory.

Based on the differences over a length of time between constructions of an East German organization, it is suggested that the transition perspective emphasis on the importance of market economy experience may not only dis courage but, eventually, also further the use of previous practices as a basis for the re-construction of an organization, due to the expansion of the group of actors considered as competent constructors. The study also confirms that where a Western firm acquires a company in the East, it may indeed induce a shift in the Eastern company's theory for change.