Implementation of Capability-Based Strategy in a Networked Process Organisation – A Constructive Case Study from CRM-process

Abstract

According to resource-based view on strategic management, an organisation must develop and utilise its internal strengths to external opportunities. The goal of this leverage is to attain the highest return in long-term perspective as possible. Dynamic capabilities is a one method to visualise and assess these internal factors, which are transforming even more complex due to a new post-modern organisational forms. Using capabilities in strategic management of an organisation addresses claims towards new emphasises and qualities in managerial work order to achieve the strategic intent of an organisation by operative activities.

This study was aimed to create a model to describe the most important factors in capability-based strategy implementation. This constructive model, originally based on academic theory, was further developed and tested in international knowledge-intensive networked processes organisation. The gained empirical evidence showed that leadership factors were considered to be most significant. These matters should be taken account as a capability and further continuously improved. Individual issues from the research data affecting to this organisational dynamic capability were clarity, two-way communication and empowerment. Also the dark side of managing by capabilities arose during the data analysis. Because the capabilities are more management philosophy than just a managerial tool, using this concept requires strong commitment and resource investments especially from top management.

The constructive case study was carried out in international industrial organisation in Finland and Sweden. The study was conducted by using in-depth interviews involving high-educated personnel from different levels of the organisation. The precise outline of this study was the customer relationship management process of the organisation.