Effect of ownership restructuring and intensity of competition on strategy and structure of state-owned enterprises: An integrated framework

Restructuring of state-owned enterprises (SOE) has been debated for past three decades. This topic has been studied by various researchers across the globe. However, literature is unable to provide an integrated framework to understand and comprehend the process of SOE restructuring. This piece of work is trying to learn the basics and intricacies of SOE operations, while functioning in its environment. Scope of work maps the dynamism in environmental forces, which pose either change of ownership or that in intensity of competition of industry on one hand, and corresponding organizational adaptation through unique posture with respect to its environment on the other. In contrast to an economist, who mainly considers organization as a black box, effort is made to understand the intricacies of organizational internal processes of functioning and transactions within and across the functional boundaries. This effort is oriented towards understanding the complexities both within the organization and in its interaction with environment. Focus of work remains at strategic orientation of corporation with environment, and structural issues like decentralization in decision making, adaptation through standardization and formalization, and through innovation and learning. The present attempt draws from exhaustive study of two engineering corporations, which had gone through the process of SOE restructuring.