Organizational Changes Resulting from the Privatization of State Enterprises

Abstract

Agency and public choice theories, though commonly used, can only provide a static approach to the study of privatization and often neglect the cultural, contextual and organizational settings of the enterprises affected by privatization. The authors present a new model which can be used to understand the organizational processes involved in a successful privatization. This article analyses the academic literature on privatization, describes the cases of two privatized Swedish companies and then offers suggestions for further research.