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Strategic agility: adapting and renewing strategic direction : an exploratory case study

Glesne, Džudera; Pedersen, Madelen
Master thesis
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URI
https://hdl.handle.net/11250/2681246
Date
2020
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  • Master Thesis [3384]
Abstract
This study examines the research question: How can established firms adapt and renew their

strategic direction through agile ways of working? An exploratory case study of an IT

Consultancy Firm was conducted. 11 informants from the case company were interviewed,

where the informants represented consultants with different roles and backgrounds.

The existing literature on organizational agility has been reviewed and used to discuss the

findings of this study. Strategic agility, as a highest level of organizational agility, has emerged

as increasingly interesting and relevant topic in today's dynamic environment. Established

firms experience rapid changing business demands that require fast adaptation. Agile ways of

working have emerged as a solution when operating in uncertain environments.

The findings of the study identify that the fundamental step towards strategic agility, is agile

ways of working, including organizational structure of autonomous, cross-functional teams,

and implementation of adapted processes from agile methodologies that are in alignment of

established firms´ needs. The study locates that the crucial factors needed to enable strategic

agility, are agile management and learning culture. The absence of the enablers poses

challenges when conducting an agile transformation, as optimal performance of teams is

dependent on management and culture. This research then uncovers that through wellfunctioning agile ways of working and enablers in place, established firms achieve the

outcomes of flexibility, speed, customer orientation, and engagement. Then firms become in a

better position to adapt and renew their strategic direction.

Additionally, this study finds that the innovations taking place in established firms are limited

to the incremental type. For radical innovations to be discovered, there is a need for other

mechanisms in addition to agile ways of working, as strategic agility implies adaptation and

renewal of strategic direction when new opportunities within existing and new business models

arise.

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