The dismantling, in 1989, of the socialist mode of production and distribution in Bulgaria and Romania has marked the beginning of a turbulent and unprecedented period which has had dramatic implications on organisational survival. Some organisations have adapted well to the demands of the so called transition period, others have collapsed in no time. The paper explores the process of change from planned economy culture to entrepreneurial culture in four Bulgarian organisations and four Romanian organisations which have managed to establish themselves as quality suppliers for the Western market. The research methodology consists in in-depth interviews conducted with senior managers as well as an analysis of organisational documents. The theoretical model proposed by the paper is grounded in data, being developed according to Eisenhardt's (1989) methodology. Thus, the change from planned economy culture to entrepreneurial culture is mapped along five dimensions namely, strategic orientation, organisational structure, commitment to quality, technological innovation and control of resources. This theoretical framework has explanatory power only within the organisational settings explored, making no claims to absolute truth or generalisability. However, the model may serve as a working formula for other organisations facing similar pressures.
