Organisational Metamorphosis Through Balancing On A Tightrope : Identifying Tensions Of And Building Balancing Routines For Identity Change

Purpose: This article attempts to 1) identify tensions a manufacturing company faces when moving from a product provider towards a smart solution provider and 2) explicate how to build organizational routines to manage those tensions effectively. Design/Methodology/Approach: The study utilizes an extended, in-depth, longitudinal single case study method to capture a process in which the selected case firm is transforming its productbased business logic towards smart solution-based business logic. The explorative case study approach combined with qualitative enquiry provides a thick description on the key tensions and balancing routines. Findings: The study identifies different type of cognitive and behavioural tensions that are further classified into five dimensions: 1) short-term vs. long-term target setting, 2) tailored vs. standardized product-service systems, 3) product vs. customer mindset, 4) integrated vs. separated organizing, 5) exploitation vs. exploration in innovation. Associated balancing routines regarding managing tensions are identified. Originality/Value: This study analyses further balancing routines and coping practices a firm develops to address tensions stemming from firm’s identity change. These routines and practices are helpful to understand better how to navigate these complexities in practice.