| In this dissertation, we study radical organizational changes in Chinese large-scale state-owned enterprises (SOEs). In the first essay, we explore mainly planned radical changes (Huy, 2001b; Newman & Nollen, 1998) in the development process of China Road and Bridge Corporation (CRBC). We combine Greiner's organization growth model (1972, 1998) and the punctuated equilibrium framework (Gersick, 1991; Romanelli & Tushman, 1994; Tushman & Romanelli, 1985), using an historical approach (Chandler, 1962, 1977; Goodman & Kruger, 1988; Zald, 1996). We introduce the concept of multiple levels planned radical changes, looking at changes both at the institutional level (government and industry) and at the organizational level (the firm: CRBC). We propose a three-dimension firm-institutional environment dynamic interaction framework. By highlighting the temporal dimension of radical organizational changes, we argue that the readiness and proper timing of the shift of technical/business core is essential to the success of planned radical change.;In the second and third essays, we explore unexpected radical changes in another large-scale SOE, the Sichuan Electric Power Corporation (SEPC). We study emotion management (Hochschild, 1979; Hochschild, 1983; Huy, 1999, 2002, 2009b) as a strategic management response in a social and natural crisis forced by a natural disaster, the 2008 China Wenchuan Earthquake. In the more qualitative second essay, we focus on leaders' emotion capacity (Huy, 1999) and the role of empathy in decision making. We propose that empathy (Confucius, 1971; Huy, 1999; Salovey & Mayer, 1990) is a critical strategic management tool, which leads to management effectiveness and enhances corporate performance in times of radical change and crisis. We also provide insights into the dynamics between decision making process and emotion management. This clarifies the role of emotion in decision making and the role of decision making in establishing a firm's emotional capability (Huy, 1999), and this interactive and interdependent dynamics is particularly important when the firm is facing unexpected radical change or crisis. We demonstrate that empathy is an effective management tool to guide and transform negative emotions generated by unexpected radical changes into positive attitude and constructive behaviour.;In the third essay, we study the middle level managers' emotion management, and their contribution to the organizational emotion capacity (Huy, 2001a, 2002) in unexpected radical changes. We propose the concept of collective actions (Fukuyama, 1995; Huy, 2009a, b; Jocobs, 1965; Putnam, 1993), a result of shared organizational goals and collective emotions created by empathy. Furthermore, we propose that empathy, as a management tool, can create collective social capital in an organization, and facilitate cooperation and coordination, especially in radical changes in times of crisis. We conceptualize our findings into an emotion-based organizational dynamics model, including three interactive and interdependent aspects: 1) collective emotions, 2) collective actions, and 3) collective social capital. We argue that emotion management can contribute to organizational collective actions and collective social capital. This framework also demonstrates that organizational members' emotions and actions can converge in dealing with unexpected radical organizational changes. As a critical emotion management tool, empathy contributes significantly in this converging process, and facilitates collective emotions, collective actions, and collective social capital actions. |
