Abstract
Reference to the organizational history is an essential part of how managers determine what actions an organization should take in the present and future. However, prior research does not explain how references to different periods of the organization’s past are associated with different types of strategic transformation initiatives. In our longitudinal study of Ericsson, we explore various ways in which an incumbent firm can leverage its past through history frames to facilitate strategic transformation and legitimize nascent strategies. Our framework illustrates how a combination of environmental and organizational contextual factors influence the interpretation of organizational decision-makers and how they can accordingly frame the organization’s recent and distant past in their communications. Our findings reveal mechanisms through which senior managers can shape stakeholders’ understanding of change to navigate the tension between continuity and change.
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