The dream of Agile as a savior - An institutional logic perspective - A qualitative study of an Agile transformation at Volvo Cars

Abstract

The world is evolving at an extremely fast pace, leading to organizations facing a crossroads, of either change to stay competitive, or continue business as usual and risk falling behind. A management technique claimed to help organizations to change and become flexible is the well-known fashion trend Agile. This paper explores the Agile transformation of Volvo Cars and the challenges encountered when turning the large corporation with legacy from Taylorism, to an Agile structure. Building on previous studies showing how the adoption of a management fashion trend within an organization can be categorized in three categories on a firm level, we contribute by demonstrating how these categories also exist on a lower level within the firm. We point out how departments and teams adapt the Agile concept in order for it to better fit with the business context. We illustrate how these categories is an outcome of diverse challenges being encountered during the transformation, as a result of two competing logics clashing. We find the clash is of a new market logic, including Agile, entering the organization and a corporation logic which has guided the company for many years.