Design as a strategic lever for change in an organization: A model for in-house dynamic capability-building

Thesis to be defended on the 19th of January 2021 at 14:00 am hold at video conference

Abstract :

As a result of digitalization, the shift to an experience economy reshaping customer behavior and increased market dynamism that threaten their survival, established companies seek to renew their innovation capabilities. This context generates increased interest in the integration of Design in organizations. This integration can take several forms: from a one-off experiment within the framework of a project to the construction of a specific capability renewed by creating an entity dedicated to the practice of design. Through a longitudinal case study of the transformation of a French mutual insurance company, we study design integration through the construction and development of a dedicated in-house capability. Conducting a multi-level inductive analysis of this case (the project, the team, the organization), we propose a model for design dynamic-capability building consisting of six interrelated and mutually reinforcing key components (the resources, their deployment, the activities, capitalization on the activities, and the building and diffusion of new organizational expertise). We argue that building a Design capability consists of moving these components from a local level (which corresponds to one- off or individual-level contributions) to the organizational level. We demonstrate the changes these components induce in the organization and how this Design capability enhances two strategic orientations: the adoption of the purpose-driven company legal status (the search for a positive impact on society as an integral part of the company performance) and differentiation through singularity rather than price. We suggest that an organization’s design capability can be broken down into five dynamic capabilities of two different natures: «Designing,» «Spreading Design» and «Managing Design» correspond to Design Operations, while «Building Design» and «Transforming through Design» are higher-order capabilities that contribute to the permanent renewal of the former. While emphasizing the specificity of the organization’s mutualist character and its impact on the validity of the model, we apply the model as an analytical grid to study the Design maturity of other companies that integrate Design as an innovation capability. Enfin, we propose the use of the model developed for future research to enrich the understanding of the building of dynamic capabilities that incorporate new skills in an organization.

Jury members:

Keywords: Innovation, Organizational Transformation, Design, Dynamic Capabilities, Integration