The hyper-competitive global business environment of the information age has challenged many companies to transform their business models and organizational forms. Drawing from the theoretical models of Van de Ven and Poole, we propose a process theory of organizational transition that incorporates two generative mechanisms, or ‘motors’. At the individual level, we employ a teleological motor, which captures the managerial actions undertaken to promote transformation. At the organizational level, we employ a dialectic motor, which captures forces both promoting and opposing change. The model consists of three sequential phases of transition: creation, destruction, and unification. The model is grounded in an empirical study of a large company undergoing a major transition in business model and organization structure during the decade of the 1990s.
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