Navigating Change: Insights Into Financial Institutions in Hungary and Kazakhstan

Abstract

This study investigates how financial institutions in Hungary and Kazakhstan manage organisational change in response to regulatory transformation, technological innovation, and shifting organisational expectations. Both countries represent post-socialist economies undergoing financial modernisation, yet they differ significantly in institutional design and governance culture. The objective of this research is to compare change management strategies and identify the internal and external factors that shape successful or unsuccessful transformation. A qualitative methodology was employed, based on twenty semi-structured interviews with professionals from commercial banks and financial authorities in both countries. Thematic analysis was conducted using NVivo software, guided by a framework that examined leadership, employee engagement, regulatory adaptation, and digital readiness. The results show that while both countries face similar pressures, including employee resistance, digital capability gaps, and compliance burdens, their approaches diverge. Hungarian institutions adopt structured, EU-aligned strategies with participatory leadership and planned communication. Kazakhstani banks follow regulator-driven, top-down approaches shaped by centralised institutional authority. Leadership style, organisational culture, and institutional maturity were found to be key differentiating factors. These findings underscore the importance of context-sensitive change strategies in the financial sector. Global models of change, such as ADKAR and Kotter’s framework, require adaptation to national realities. The study recommends that institutions invest in inclusive communication, staff development, and regulatory-aligned planning to improve transformation outcomes. By offering a comparative, practice-based perspective, this study contributes new insights to the literature on change management in transition economies.