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Toward a Model of Organizational Co-Evolution in Transition Economies

The paper presents a model of organization-environment co-evolution, which portrays the joint impact of organizational and environmental characteristics on organizational survival. The four organizational characteristics included in the model are: (a) control structure, (b) product strategy, (c) exchange strategy, and (d) distance to the market. The three environmental characteristics are: (a) control structures, (b) competitive structures, and (c) exchange structures. In line with the general co-evolutionary approach, the model highlights the interrelationship between micro and meso level phenomena, specifically, between firm-level adaptation and industry-level selection of organizational forms. The paper focuses on transition economies and uses the empirical evidence from these economies to illustrate the model's potential. The model, however, is sufficiently general to be applied in other organizational environments.