Organizational change in knowledge-based firm

Author:Vladimir-Codrin Ionescu - Viorel Cornescu
Position:Associate Professor, Ph.D., Faculty of Business and Administration, University of Bucharest, Romania - Professor, Ph.D., 'Nicolae Titulescu' University of Bucharest
Pages:216-221
216 Lex ET Scientia. Economics Series
LESIJ NO. XIX, VOL. 2/2012
ORGANIZATIONAL CHANGE IN KNOWLEDGE-BASED FIRM
Vladimir-Codrin IONESCU
Viorel CORNESCU
ABSTRACT
For sustainable competitive advantages gain, modern organizations, knowledge-based, must
promote a proactive and flexible management, permanently connected to change which occur in
business environment. Contextually, the paper analyses impact factors of the environment which
could determine a firm to initiate a programme strategic organizational change. Likewise, the paper
identifies the main organizational variables involved in a changing process and emphasizes the
essential role which managers and entrepreneurs have in substantiation, elaboration and
implementation of organizational change models.
Keywords: knowledge-based firm, organizational change, impact factors, organizational
variables, competitive advantage.
1. Introduction
In the society and knowledge-based economy context, change is by itself the essence of
business development. Approach of change became a key-element of competitive advantage, because
only by a coordination of employees with the purpose of the fastest implementation of change,
organization may react to market pressures before a context modification. [6]
Continuous change of the organizations evolutional environment is determined by a series of
factors within which we remind technological evolution, knowledge boom, a fast moral depreciation
of products, work conditions and mutation in labour power character. [4]
Managers and entrepreneurs in modern firms, based on knowledge, must identify, analyze,
and evaluate systematically main variables of impact on the environment inside and outside the
organization. To enter the sphere of operational excellence, organizations must show flexibility,
substantiate and implement proactive business strategies, which include initiation processes and
periodical implementation of proper organizational changes. Viable organizational system is the
flexible one, which can answer favourably to any challenge of the environment. [9]
An eloquent example on what concerns the understanding of organizational change is famous
company Hewlett Packard. William Redington Hewlett, one of the co-founders o f the company,
states: “Above anything, consider change inevitable, do not try to oppose it. Always be ready for
180˚ turn when discover a new and promising direction”.
A significant number of papers, studies and articles are found in literature, which address
issues of organizational change, underlining the necessity of projecting and implementing several
programmes of organizational change in modern firms, as a sine qua non condition of competiveness.
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Associate Professor, Ph.D., Faculty of Business and Administration, University of Bucharest, Romania,
(e-mail: vladimir-codrin.ionescu@drept.unibuc.ro).
Professor, Ph.D., “Nicolae Titulescu” University of Bucharest, (e-mail: viorelcornescu@univnt.ro).

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