This document summarizes four theories of organizational change and applies them to the case of Borders Bookstores. It introduces autopoiesis theory, chaos and complexity theory, mutual causality theory, and dialectical change theory. For each theory, it provides a brief definition and then analyzes how aspects of the theory relate to Borders' growth strategy and ultimate decline. Overall, the summary examines how Borders failed to recognize and adapt to changes in its corporate identity, ignored new opportunities presented by e-books, and did not find a balanced approach to competing with internet retailers.
4. Autopoiesis TheoryDefined: Reveals the relationship between systems and their environments.Borders BookstoresStarted as homey, but large, bookstore in Ann Arbor, MI, staffed by book lovers.Hired non-book people and narrowing selection without recognizing corporate identity change.
5. Chaos and Complexity TheoryDefined: How ordered patterns of activity can emerge from spontaneous self-organization
6. Chaos and Complexity TheoryDefined: How ordered patterns of activity can emerge from spontaneous self-organizationBorders BookstoresAttractor of e-books readers ignoredStayed with more dominant attractors - established mindsets and power basesTried surviving as discrete corporate entity
8. Mutual Causality TheoryDefined: Change is enfolded in the strains and tensions found in circular relations.Borders BookstoresGood results with continuous expansion through the early 2000s reinforced positive feedback loop.Achieved a level of growth that was unsustainable.
10. Dialectical Change TheoryDefined: Change is the product of tensions between opposites.Borders BookstoresOpened a website for 2 years, sold it to Amazon, did not open another for 10 years.Decision to not be an internet player embraced a polarized view rather than finding a way to live in internet world.
Editor's Notes
#5: Lost its identity - started as a homey, but large, bookstore in Ann Arbor, MI run by book lovers.Began hiring non-book people and narrowing selection gradually. Corporate identity still thought it was maintaining the bookish fa巽ade. True 'bookies' realized the change was happening.http://articles.cnn.com/2011-09-12/us/first.borders.bookstore.closing_1_borders-rewards-bookstore-woolworth?_s=PM:US'The death and life of great American bookstore'September 12, 2011 By Todd Leopold, CNN
#7: Shows resistance to change to new book formats such as e-books - being led by a more dominant attractor - established mind sets and power bases, tried to survive as a discrete corporate identity rather than adapt. http://articles.cnn.com/2011-09-12/us/first.borders.bookstore.closing_1_borders-rewards-bookstore-woolworth?_s=PM:US'The death and life of great American bookstore'September 12, 2011 By Todd Leopold, CNN
#9: http://articles.cnn.com/2011-09-12/us/first.borders.bookstore.closing_1_borders-rewards-bookstore-woolworth?_s=PM:US'The death and life of great American bookstore'September 12, 2011 By Todd Leopold, CNN
#11: Not an internet player About 10 years ago, Borders handed its internet operations to Amazon and did not relaunch it's own website until 2008. One Chapter Closes... --- Passing of Borders Is Serious Drama For Readers, Authors and Publishers By Mike Spector and Jeffrey A. Trachtenberg 918 words 20 July 2011Embraces one pole completely - no prescence - rather than finding middle ground.