Abstract:
In the fast-growing pace of today’s business, Multinational Enterprises (MNEs) are
faced with turbulent external environments and challenges within the organisations
itself. It is these challenges that drive an organisation to rearrange its competitive
presence in response to these environmental nudges. Organisations that are unable
to understand or configure their ecosystems may face being compromised by the
environment in which they exist. Organisational culture, through numerous
literatures, has an inherent linkage to organisational performance; however, it would
be incomplete to not consider the effects on dynamic capabilities.
This research assumes a conventional approach to understand the influence of
organisational culture on dynamic capabilities, specifically, the dynamic sensing
capability. Applying a granular level approach in the research, the preferred culture
types that influenced dynamic sensing capabilities were also identified. A further
exploration of the interconnectedness of the MNE’s head office and subsidiary
relationship was crucial to exposing the influence on dynamic sensing capabilities.
This research highlights the importance of how the environment consisting of
organisational culture critically influences the activities of the organisation.
The key outcomes of this research from an academic perspective indicated that the
type of organisational culture had an influence on the fluidity of adopting dynamic
sensing capability within the MNE. The research from a business perspective
highlighted that the interviewees were cognisant of the organisations need to
become dynamic, however, they were limited by the structure of the organisation.
