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Organisational Adaptation Or Environmental Selection? an Enhancement of the Evolutionary Change Theory Based on a Study of the New Zealand Electricity Industry

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Organisational Adaptation Or Environmental Selection? an Enhancement of the Evolutionary Change Theory Based on a Study of the New Zealand Electricity Industry Lincoln University Digital Thesis Copyright Statement The digital copy of this thesis is protected by the Copyright Act 1994 (New Zealand). This thesis may be consulted by you, provided you comply with the provisions of the Act and the following conditions of use: you will use the copy only for the purposes of research or private study you will recognise the author's right to be identified as the author of the thesis and due acknowledgement will be made to the author where appropriate you will obtain the author's permission before publishing any material from the thesis. Organisational Adaptation or Environmental Selection? An Enhancement of the Evolutionary Change Theory based on a study of the New Zealand Electricity Industry. A thesis submitted in partial fulfilment of the requirements for the Degree of Doctor of Philosophy at Lincoln University by Hafsa Ahmed Lincoln University 2014 Abstract of a thesis submitted in partial fulfilment of the requirements for the Degree of Doctor of Philosophy. Abstract Organisational Adaptation or Environmental Selection? An Enhancement of the Evolutionary Change Theory based on a study of the New Zealand Electricity Industry. by Hafsa Ahmed Alterations to social, economic and political conditions demand that organisations change to survive under new settings. Hence, the study of organisational change is an important topic within organisational studies as theorists continue to examine "how" and "why" organisations change. The Evolutionary Change Theory proposed by Van de Ven and Poole (1995) represents a model of organisation change which is cyclical in nature and progresses through stages of variation, selection, and retention. Originally a process explained by Darwin in biology as "natural selection", it made its way to organisational theory with Hannan and Freeman’s seminal work on population ecology (1977). However, critics argue that natural selection is too deterministic as it denies managerial intentionality and freewill while also ignoring the strategic decision making abilities of organisational actors (Aldrich & Pfeffer, 1976; Lewin, Weigelt, & Emery, 2004). The critiques have provided a basis for examining the relevance of various external and internal influences on the process of organisational change following the mechanism described by the Evolutionary Change Theory. For the present study, an enhanced model of the Evolutionary Change Theory was developed after a review of the relevant management literature. In order to appraise the proposed enhanced Evolutionary Change Theory, this research examined changes in the New Zealand electricity industry since 1984 by utilising a process research approach. The research relies on archival data; however, it also involved real time data collected during the period from 2008 to 2012. By developing an account of important incidents throughout the change process and coding them into predefined stages of change, it was possible to crtically examine the enhanced model of change. Each incident was also ii examined to identify the role and contribution of external environmental forces along with the influence of various stakeholders. The research provided insights into how various events impact organisational change, particularly when examining it from an evolutionary perspective. The effects of external environmental influences – social, political, economic and legal were evident. “Dissatisfaction” appeared to be a precursor to variation in order to initiate the change process. The research also documented “adaptation” as a necessary stage within the evolutionary change process clearly highlighting the adaptability of organisations. Additionally, the different stakeholders – primary, secondary, external and internal who had the ability to influence change in the New Zealand electricity industry – were identified. Keywords: Organisational change, evolutionary change, adaptation, stakeholders, process research, evolutionary change theory, New Zealand electricity, privatisation. iii Acknowledgements All thanks and credit in completing this thesis goes directly to God who provided me with a wonderful support network. He gave me the best of parents who always guided and provided direction. They ensured I had the best of education from the very beginning of my life. I always aspired to be like my father and get a PhD. Thank you, Rana Mahjabeen and Dr. Shabbir Ahmed. He also helped me find the best husband a girl can ever have. Razi - he is the reason and motivation which kept me going over the past few years. It was not possible without his support.. not just financial but even more. Thank you for taking care of me and our two little angels Hussain and Zahra while I spent numerous hours working on my research. Thank you for the numerous trips to different coffee shops to keep me motivated. I promise, the next few years are dedicated to his professional pursuits! Hussain and Zahra – I owe you both a special thank you for being patient since the day you were born. Also a special mention to all my family and friends who encouraged me through out this journey. Thank you to my amazing supervisors, Dr. Michaela (Misha) Balzarova and Dr. David A. Cohen who have guided me through this journey. It was not possible without both of you. Misha and David you have both been excellent and supportive throughout the process by giving constructive feedback and friendly help. I would also like to thank an earlier member of my supervisory team Professor. Clive Smallman who assisted me in various aspects of this research initially. I would also like to express my gratefulness to Professor Paul Dalziel who kindly provided his valuable time and inputs towards my research. I would also like to thank Dr. Ramzi Addison and Mr. Jack Radford who believed in my research capabilities and offered me work as a Research Assistant for their project. This provided me with confidence and financial stability at a much needed time. Additionally, I would also like to thank Dr. Mark Wilson who offered me helpful advice at many times and was kind enough to take me on-board in one of his research projects. The wonderful staff in the Commerce Faculty and the Library, especially Anne Welford and Eileen Seymour who have always helped me, deserve a special mention. It is indeed hard to mention everyone by name as there are a number of people who assisted me through this unforgettable experience; however, I really appreciate everyone who has contributed in one way or another. Finally, I extend my gratitude to Lincoln University who provided me with an opportunity to pursue my dream and complete my PhD. iv Table of Contents Abstract ....................................................................................................................................... ii Table of Contents ......................................................................................................................... v List of Tables ............................................................................................................................. viii List of Figures .............................................................................................................................. ix Chapter 1 INTRODUCTION ....................................................................................................... 1 1.1 Change in Organisations ...........................................................................................................1 1.2 Overview of Organisational Change and its Theories ...............................................................2 1.3 Organisational change and evolution .......................................................................................3 1.3.1 The Evolutionary Change Theory ................................................................................. 4 1.4 Research Issues .........................................................................................................................5 1.5 Research Objectives ..................................................................................................................5 1.6 Research Method ......................................................................................................................6 1.6.1 Process Research .......................................................................................................... 6 1.6.2 Research Setting........................................................................................................... 7 1.7 Research Contribution ..............................................................................................................8 Chapter 2 ORGANISATIONAL CHANGE ..................................................................................... 10 2.1 Explaining Organisational Change.......................................................................................... 10 2.1.1 Organisational change – Based on tempo of change.................................................11 2.1.2 Organisational change explanation - Based on themes .............................................14 2.2 Evolution and Organisational Change .................................................................................... 17 2.3 The Two Perspectives – Adaptation and Selection ................................................................ 18 2.3.1 Selection Perspective .................................................................................................18 2.3.2 The Adaptation Perspective
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