Socio‐political structures as determinants of global success : The case of Enron Corporation

Especially over the past decade, there have been numerous changes in the global marketplace which indicate that change is the only constant fact of life. These changes have increased not only opportunities but also uncertainty for organizations. The dynamic environment provides organizations with continuous feedback, to which they need to adapt. Past success masks the multinational corporation’s ability to perceive and respond to these changes. The key to survival in such a setting is culturally sensitive organizational learning. Strategic planning is necessary to cope with different levels of uncertainty encountered in foreign markets and to fully tap the new resources. Organizational effectiveness is directly influenced by the firm’s ability to achieve a “close‐fit” between the internal dynamics and the socio‐political structures. This, in turn, is possible through management practices sensitive to the local core cultural values. The Enron Power Project at Dabhol (Maharashtra, India) brings to light various socio‐political factors that have a direct impact on the organizational effectiveness, its survival and its long‐term success.