Organisational change influencing organisational culture and subculture on dynamic sensing capabilities

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.