On the nature of managerial work in a transitional society: the case of Estonia at the point of transition

Abstract

We examine Estonia as a society transitioning from state socialism to market capitalism at the point of transition. We interviewed Chief Executive Officers, Vice Presidents, General Managers, Project Managers, and Functional Managers working in a variety of industries. We show that during transition, management practice has realigned itself toward capitalist values, adopted a modern management vocabulary, and puts to use any Western style management education among its practitioners. This realigned management practice emphasizes efficiency and effectiveness, with planning, organizing, leading, and evaluating as primary modes of operation. Importance is placed on leveraging technology toward competitive advantage to create value and wealth. Our findings show evidence for possible theoretical convergence that would facilitate the global portability of management practice. Valuation Insight: The value of a business depends to a large extent on its management style and environment. This paper considers management interviews in the case of Estonia to document the convergence of management to a Western style which emphasizes efficiency and effectiveness. It attaches high importance to leveraging technology for generating a competitive advantage and creating value.