How dynamic capabilities have helped firms seize digital transformation during the COVID-19 pandemic

Abstract

COVID-19 and its impact on digital transformation is a subject of great interest among many industries. This thesis aim to investigate how firms have utilized dynamic capabilities to seize digital transformation during COVID-19. Thus, this study raises two main questions, (1) how and which dynamic capabilities has been utilized, (2) and how digital transformation is seized through these capabilities. There is also discussions and analysis of the impact and ramifications caused by COVID-19. We have utilized an explorative qualitative research method to investigate these questions further. The research method is done through five semi-structured interviews with five saving banks in Norway. In order to categorize and address the questions used in our interviews we have utilized a framework of dynamic capabilities in which we have sorted the different information in three different categories. Findings indicate that the banking firms themselves somewhat have negated most of the negative effects of COVID-19. Their already existing internal dynamic capabilities and digital work approach has helped them in this regard. However, their environment consisting of customers and other third-party actors has been affected in a much larger scale. In order to protect and help their customers the bank has given them more digital accessibility and freedom. During COVID-19 most interactions with third-party actors has been conducted on digital platforms. The findings suggests that this has made interactions and meetings much more efficient for all participants. There are however concerns of the long-term effects of the digital interactions. This is connected to relational and cultural values that could be negatively affected in the long-term. COVID-19 has had a reinforcing and accelerating effect on decision making, strategy planning and implementation processes. Throughout our methodical approach we have found that several internal and external factors has affected how the banks has utilized dynamic capabilities to seize digital transformation.