Ready for change in uncertain times - Organizational Capacity for Change in the Transition to New Forms of Motorisation

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Publication Type:

Conference Paper

Source:

Gerpisa colloquium, Paris (2011)

Abstract:

 

Abstract
The development of new forms of motorisation highlights perhaps impressively, which huge uncertainties automotive companies are facing today. Questions about the pace of the transition to new forms of motorisation or what new business models will occur, are just a few uncertainties in this context. Notwithstanding similar questions given in the past, the current transition differs fundamentally from previous developments in the automotive industry. While automotive companies used to cope largely with incremental changes in the past, they will be confronted in the transition to new forms of motorisation with incremental changes as well as a few radical shifts. These discontinuities put automotive companies in an awkward predicament, because under new conditions existing organizational resources and capabilities can be insufficient to achieve and sustain long-term competitive advantages. One promising approach to handle this challenge is organizational capacity for change, which combines different managerial and organizational capabilities in one extensive concept.
 
In the following paper, organizational capacity for change is referred to the automotive industry. We analyze within 44 German automotive companies (manufacturers and suppliers as well as car dealer groups) using an online-based survey, (I.) if organizational capacity for change is related to a higher firm performance, and (II.) how internal as well as external conditions affect the organizational capacity for change-performance-relation. Our preliminary analysis indicates that organizational capacity for change is positively associated with firm performance. In addition our analysis reveals that environmental uncertainty, but not prior change moderates the organizational capacity for change-performance-relation. Especially in the transition to new forms of motorisation organizational capacity for change is a crucial factor to firm performance and survival for all automotive companies.
 
 
Keywords
Automotive companies, competitive advantage, environmental uncertainty, firm performance, organizational capacity for change, organizational change

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Concéption Tommaso Pardi
Administration Géry Deffontaines

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