REACTIVE, PROACTIVE OR CUTTING EDGE COMPETENCE STRATEGIES IN MANUFACTURING - Meeting the demands of dynamic capabilities in the era of digitalisation

Abstract

Purpose: This study aims to explore how managers navigate, in order to strategically develop their workforce’s competence, in response to digitalisation. Theory: The theoretical framework used to analyse the empirical findings is based on Teece et als (1997) theory on dynamic capabilities and different strategy theories. The strategy theories are connected to the traditional approach; with deliberate or emergent strategies (Mintzberg et al, 2009), Strategy as Practice; analysing the strategies by looking at the practitioners, practices and praxis (Whittington, 2006) and Wiltbank et als (2006) analysis of uncertainty; clarifying how managers shape strategies when faced with uncertainty. Method: The research question was explored through a single case study in the manufacturing industry using a qualitative research design. Thus, seven informant interviews, and 16 semi-structured in-depth interviews have been conducted, complemented by a review of secondary documents. The data collected was coded and analysed through a grounded theory approach and presented with consideration to Wolcott’s (1994) approach on transforming qualitative data. Result: The empirical findings show that the navigation is based on the context of the business environment, the pace, level of input and challenges experienced in the business areas. The strategizing is mainly done through reactive strategies. Though, some proactive strategies are also identified. The future competence requirements anticipated by the managers are both related to skills and the mindset of people. Meanwhile, a challenge expressed is the limited level of support from HR or a strategic workforce planning process taking consideration to the current dynamic and uncertain business environment. This creates a need of a simple, easy to execute and adaptable process.