Organisational adaptation: the factors considered by executives in the short-term insurance industry when making decisions

Abstract

The need for this research stemmed from the lack of a practical understanding and framework on how organisational adaptation really works. Research thus far has been largely practitioner orientated and focussed on the theoretical constructs of adaptation. The report explores how and why organisations adapt in an effort to remain relevant, sustainable and profitable. The research investigated the components of organisational adaptation, their constructs and the individual theories behind them. Based on a comprehensive review of literature, the de jure model (Figure 7) of organisational adaptation was developed around the concepts and theories extracted from this review. This conceptual model was tested through in depth interviews with 12 C-level executives from the short-term insurance industry to assess its validity. Emerging from the research findings, the de facto model of organisational adaptation (Figure 11) provides a practical illustration of organisational adaptation and an integrated view of its components. The model validated elements of the literature and provided new insights in this area of research. In addition, it is a practical framework that can be used by organisations across all levels of hierarchy to encourage robust, comprehensive decision making and drive the adaptive process