Abstract
PurposeThis paper aims to offer a conceptualization of how and why corporate level strategic change may build on historical differentiation at business unit level.Design/methodology/approachMethodologically, an historical case study of Nokia Corporation's drastic business model transformation between the years 1987 and 1995 is reported.FindingsThe conceptual and historical work results in a process model of business model change, demonstrating how central business units feed strategic alternatives and capabilities to the corporate‐level transformation process.Practical implicationsThe results highlight the importance of corporate level “market mechanisms' that allow promising strategic alternatives to emerge and select out inferior options. In this process, a key mechanism is the exchange of executives and cognitive mindsets between business units and corporate headquarters (CHQ).Originality/valueThe reported research offers an original contribution by showing the dynamic interplay of cognitive and organizational change processes, and highlighting the importance of building on existing capabilities and competencies despite the pressure to demonstrate strong turnaround activities.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
