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The Management Of Transformation In East German Firms

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  • PETER WITT

    (Koblenz School of Corporate Management (WHU), Otto Beisheim Graduate School- Koblenz, Germany)

Abstract

The transformation of East Germany from a socialist to a market economy has brought about the need to restructure all East German firms. Managing this transformation process is comparable to the planning and controlling of a large project in a quickly changing economic environment. The main goal for the managers of firms in transition is to ensure the survival of their companies and to reduce the time required for the restructuring processes. The purpose of this study is to assess stochastic activity network analysis as a tool for the management of transformation. Network analysis allows to identify the necessary management activities, to plan the optimal sequence of these activities, and to control ongoing transformation processes. Our experiences so far suggest that the stochastic activity network technique GERT is a well suited technique for the analysis of transformation processes. To illustrate this new application of GERT, the study presents a simulation of a GERT activity network for the transformation process of a firm. The simulation is based on more than 20 in-depth case studies conducted in East Germany.

Suggested Citation

  • Peter Witt, 1996. "The Management Of Transformation In East German Firms," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 4(01), pages 57-77.
    • Handle: RePEc:wsi:jecxxx:v:04:y:1996:i:01:n:s0218495896000058
    DOI: 10.1142/S0218495896000058
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    Cited by:

    1. Gawlik, Remigiusz & Gorynia, Marian & Teczke, Janusz, 2005. "Malopolska science and business units - in quest for the missing link," MPRA Paper 52192, University Library of Munich, Germany.

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