How can incumbents survive in dynamic environments: The case of the automotive industry

Amidst the volatility, uncertainty, complexity, and ambiguity of today's business landscape, firms face multifaceted challenges adapting to dynamic environments. Two overarching research gaps stand out within the scholarly discourse on firms navigating such terrain. First, ambiguity persists regarding the appropriate analytical level for studying firms in dynamic contexts. Second, there is a limited consideration of non-technological resources' role in shaping firms' adaptive capabilities.
To address these gaps, this thesis delves into how firms adapt to disruptive environments, particularly in the context of the COVID-19 pandemic, with a focus on the global automotive industry. The study extends the concept of organisational capabilities and contributes to strategic management literature by scrutinising dynamic capabilities pre- and post-pandemic (2020 - 2023).
The research comprises four semi-independent chapters based on data collected from 77 interviewees across 68 companies. It assesses dynamic capabilities, explores agile market navigation methods, develops a strategic flexibility model, and examines differentiation strategies. Together, these chapters underscore the importance of agility, adaptability, strategic resource allocation, and digitalisation in response to disruptive events in the automotive industry.
The first chapter evaluates dynamic capabilities in the automotive industry, emphasising agility and adaptability post-COVID-19. The second chapter explores agile methods for navigating market opportunities, advocating for their adoption beyond software project management. The third chapter develops a model of strategic flexibility, highlighting operational simplification and collaborative partnerships. Lastly, the fourth chapter delves into differentiation strategies, stressing the integration of digital capabilities and sustainability.
This thesis offers insights into strategic automotive decision-making in dynamic environments during the COVID-19 pandemic, emphasising the critical role of internal and external knowledge, managerial self-awareness, and digitalisation. Despite disruptions caused by the pandemic, opportunities for adaptation and growth have emerged, underscoring the adaptive nature of strategic management.