Organizational Change and Vested Interest

The nature of organizational change and the value of headquarters is derived from a model with costs of delay, vested interests and costs of organizational change.The value of headquarters is derived from imposed organizational change. It is viewed as an institution which is able to prevent surplus reducing endogenous commitment.Imposed organizational change is predicted in circumstances where the desired change is not urgent, the loss of accepting lower offers than in the past is above a certain level, and the costs of imposed change are lower than the costs of delay.Delay occurs and change will be voluntary in these circumstances when the situation is not perceived as urgent and costs of imposed change are high.Voluntary organizational change occurs immediately when the desired change is perceived to be urgent.Case studies are presented along these lines of thought.