Transforming organizational identity under institutional change

Purpose – The objective of this paper is to report a case study investigating how organizational identity evolves during institutional change within a UK building society. Design/methodology/approach – The paper employs an inductive case study, which is appropriate for examining such change processes. It builds on grounded theory, considered appropriate for such an explanatory research. Findings – The paper finds that: institutional change, especially regulation and practice changes, serves as the trigger to increasing salience of identity issues, i.e. identity ambiguity, legitimacy crisis and perceived identity obsolescence; leadership, organizational culture and strategic exercises are salient apparatuses to tackle identity problems caused by external pressure; and a new identity is formed as a result of the managerial interventions, characterised by the rediscovery of historical roots, modernization and dualism. Research limitations/implications – The paper provides an account of identity change, given a broader business environment change context within which the organization operates. Utilizing qualitative study of one case may be taken as a limitation. Originality/value – The theoretical contribution reflected in the findings has implications for the interfaces between identity and institutional environment and organizational culture.