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The implementation of change for incumbent multinationals : a strategic analysis of Telenor Research performed through a dynamic capability lens.

Humbert, Léa
Master thesis
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URI
http://hdl.handle.net/11250/2610936
Date
2019
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  • Master Thesis [4656]
Abstract
A common perception in the field of strategic management is that incumbent multinational

companies (MNCs) usually fail to remain relevant in their industry and rarely introduce

radical product innovation when they confront certain types of market or technological

changes. The existing theory on dynamic capabilities suggests that MNCs attempting to

change when faced with market discontinuities can draw on a certain set of capabilities to

innovate their business model. The micro-foundations of the dynamic capability framework

(the distinct skills, processes, procedures organisational structures, decision rules and

disciplines, which undergird the enterprise-level sensing, seizing and transforming

capabilities) are difficult to develop and deploy due to their idiosyncratic nature.

The purpose of this paper is to study the dynamic capability phenomenon on a real case

setting; adopting a longitudinal case study approach. The research object of this project is the

incumbent multinational company Telenor, who needs to adjust its business strategy in order

to remain a pertinent actor in its sector. This paper investigates the mechanisms through

which, the company’s research unit develops dynamic capabilities in order to sustain change

at Telenor. The sensing, seizing and transforming roles of Telenor Research are assessed

through a qualitative analysis where data have been collected through the interview of seven

research unit managers. In doing so, the findings provide an example of case application

towards the concept of dynamic capabilities.

The qualitative data collected have been analysed following a template analysis method and

sensing and seizing capabilities have been identified. These are notably supported by the

corporate open innovation philosophy and engagement towards new technologies.

Evaluation of the transformation capabilities could not, however, be fully assessed in this

research since Telenor Research does not have the responsibility to transform knowledge

into business value.

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