The limits of pivoting: a culturally informed model of resource commitments during repeated organizational transformation

Abstract

In contrast to models of organizational transformation that focus on one-time episodes of change, this study reveals limits to the number of transformations an organization can make without losing the support of key stakeholder groups. To better understand the process of repeated transformation, we study an extreme case of a medical technology startup with a history of pivoting, focusing on the degree to which employees and investors continued to support the venture. Although new ventures are often advised to be highly adaptive, we find that repeated pivoting introduces relational liabilities for even highly flexible organizations. Drawing on our analysis, we develop a culturally-informed process model of resource commitments that reveals how differences in pivoting narratives and stakeholder orientations affect the flow of support from employees and investors, even as the organization repeatedly pivots. Our model contributes to existing theories of organizational transformation, offering an enriched understanding of how organizations can narratively sustain resource commitments to enable continuous adaptation.