University of Oulu

Dynamic capability influence on strategic agility : a case study in energy conservation industry

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Author: Tikkanen, Pauli1
Organizations: 1University of Oulu, Oulu Business School, Department of Management and International Business, International Business
Format: ebook
Version: published version
Access: open
Online Access: PDF Full Text (PDF, 1 MB)
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Language: English
Published: Oulu : P. Tikkanen, 2014
Publish Date: 2014-06-02
Thesis type: Master's thesis
Tutor: Ahokangas, Petri
Reviewer: Ahokangas, Petri
Hurmelinna-Laukkanen, Pia
The thesis examines the influence of dynamic capabilities on strategic agility in a dynamic industry. The study considers what types of capabilities influence strategic agility of the case companies and in what ways. The study is connected to the theory discussions on strategic agility and dynamic capabilities in the field of strategic management, also connecting to issues in international business and management. The study was a personally built case. The subject arose from the theoretical issues and was linked to companies in a dynamic field which was found from energy conservation industry. Two executives from two companies were interviewed during December 2013 and January 2014. The interviewees were of executive or management positions in the companies. The interviews were completed through a half structured format to complement a case study method of research. The results showed that dynamic capabilities and strategic agility and be combined in international business study. The research showed that capabilities and dynamic capabilities do influence parts of strategic agility in the case companies. It was possible to present the results in figure form as well. In the thesis the companies were mainly analyzed separately but the influence on strategic agility came mainly from production concepts, sales organization and product development. It was understandable for Finnish companies that their dynamic capabilities were linked to product issues. Strategic agility which was affected by these dynamic capabilities was mainly on agility towards customers, reactivity to market changes and abilities to deliver tailor made or at least highly customized solutions to customers. The main contribution to managers was that despite the high velocity or dynamism in market, the changes and agility must be in a controlled way to ensure enough consistency in business. Reacting and moving all the time is difficult and costly which is why there must be careful consideration on which strategic opportunities and threats are pursued or countered. The information on market dynamism and demands of strategic agility should be constantly evaluated in companies. There must be careful evaluation of what can be pursued and to what extent. The information flow and learning from it must be acknowledged in dynamic energy conservation industry, where development through routines also plays an important role for case companies. The results were understandable and reasonably reliable in the context of this thesis. The methods used in the work created different types of useful ideas and can be utilized to an extent in case companies. The thesis does not aim to generalize to a larger context.
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