The Theory Of Economic Change

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Introduction Change is often seen as a destabilizing element, but it is necessary for a company to change since it enables to adapt to the environment and its evolutions. But before applying any change, the company needs to strategically reflect on the change management and implement a management team that will be able to support the contributors in order to anticipate and then fight the resistance to change. The theory of economic change (R. Nelson and S. Winter, 1982) highlights the ability for a company to adapt to environmental evolutions thanks to its learning capacity. A great competitive environment, networks and thoughts globalization, ubiquitous communication or even size strategies make companies take more into account…show more content…
It refers to the process that accompanies the life of any business dealing with instability and development of its environment. The ‘change management’ means the entire process that goes from the perception of an organizational problem in defining a framework of actions that enables the development, selection and implementation of a solution under optimal conditions for success. Different types propose a classification of the different changes that can take place within a company. Among these include a classification that examines the areas of change: economic, legal, social, technological, ecological, cultural, political, organizational, and strategic while another studied the change according to its characteristics: global or partial, slow or fast, marginal or major. Similarly, according to that change is marginal or major; it is possible to distinguish different degrees of changes: the setting, the reform, restructuring or even the rebuilding. While the adjustment and reform are conventionally managed by the company in its daily operations, restructuring and rebuilding, for their part, are true organizational change. Both types of change lead to a real transformation of the processes at work in the company and a real "cultural revolution." These changes, by their propensity to generate resistance, must be subject to special management. Change can also be studied, according to the behaviour adopted: led-directed, spontaneous or planned (typology of H. Mintzberg).
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