Differences in implementing management and organization development directions between domestic and foreign companies in Estonia

Purpose – The purpose of this paper is to find out which contemporary management ideas have been implemented in Estonian business organizations and what are the differences between domestic and foreign companies in the field of management innovation. Design/methodology/approach – Experts selected among management development approaches that were most frequently reflected in Harvard Business Review , Fortune Magazine and in the ProQuest database 8 direction that are most relevant for the survey in the transition economy context. The survey format is a qualitative questionnaire submitted to top managers in 141 Estonian enterprises. Findings – The most frequently followed management development directions are balanced scorecard/management by objectives, supply chain management, learning organization, and total quality management. General differences between contemporary management directions in the domestic‐ and foreign‐owned companies researched are not significant. The initial hypothesis that contemporary management directions implemented in Estonian enterprises are mainly based on knowledge transfer by foreign enterprises or investors is not affirmed. Research limitations/implications – By using only a selection of management directions, it is not possible to draw final conclusions about the development process of management practice. The nature of the sample does not allow the authors to draw conclusions about all business sectors in Estonia. Practical implications – The results provide insight into the value of contemporary management directions for Estonian enterprises and enable the authors to make some forecasts about future management trends in Estonia depending on domestic and foreign ownership of enterprises that can be taken into consideration in management training programmes. Originality/value – The paper provides an overview of innovations in management practice in a transition economy that has not been researched earlier by using a tool that operationalizes contemporary management directions.