Understanding the role of organizational design in fostering long-term dynamic capabilities: a longitudinal case study

Purpose Organizational design has been suggested as a facilitator of an organization’s dynamic capabilities. This study aims to investigate the role of organizational design in the concept of dynamic capabilities and explores how it facilitates long-term dynamic capabilities in practice. Design/methodology/approach Empirical data were collected via a longitudinal case study conducted at a global company engaged in the development and manufacture of railway equipment. Specifically, this study focused on one of the organization’s sites in Sweden for a period of approximately five years. Findings Organizational design has a twofold impact on dynamic capabilities, functioning as both a facilitator and an impediment. It is essential for structures and processes to align with the available resources and capabilities of an organization. Moreover, managers’ beliefs and decision making significantly influence the extent to which organizational design choices effectively foster dynamic organizational performance. Originality/value This longitudinal case study contributes to the theory of dynamic capabilities by identifying key changes in an organization that is transforming to become more dynamic and the impact of organizational design on the organization’s dynamic capabilities.