Strategic Renewal by Continuity and Change: A Longitudinal Process Study of ResMed Inc Running the Sleep Marathon

Abstract

This thesis introduces the concept of controlled morphing and a new dynamic capability construct – the controlled morphing process - a process enabling firms to enact purposeful change to reduce uncertainties and facilitate the (re)generation of competitive advantage and speed to market, to counter the hyper-competitive and fast-changing international business landscape. This qualitative case study contextualizes the strategic renewal phenomenon by tracing the dynamics of the resource (re)orchestration of an American-based MedTech global leader for 30 years. This study examines how a large and mature organization balances the paradox of continuity and change when managing multiple change activities simultaneously, that is, protecting value by preserving assets while creating value by enacting change for the future. The key contribution of this thesis is the conceptualization of the controlled morphing process construct as a dynamic capability, advancing our understanding of how large and mature organizations mobilize finite resources in a structured and predictable manner to (re)generate competitive advantage in highly volatile environments. This study contributes to three bodies of literature in dynamic capabilities, strategic renewal, and MNE governance by providing a holistic view of strategic renewal that infuses dynamic capabilities with the themes of interdependence, MNE differentiated network coordination, and digital transformation. Methodologically, this study uses temporality to illuminate the patterns of change and the dynamics of resources and capabilities (re)orchestration. The managerial implications extend to incumbent MedTech firms and traditional hardware manufacturers undergoing digital transformation. This improved understanding of the underlying mechanism and effects of change enables managers to better position themselves to coordinate their firms’ transformation process more coherently to create a competitive advantage continuously.