Zhexuan Yu

Title: Building dynamic capabilities at the level of a large firm: Case study of Ericsson

Supervisor: Dr. Margit Kirs

Opponent: Jaanus Müür, MA

Defense: 22 January 2020


Abstract: Under the background of dramatic changing society, the case study of Ericsson gives an insight on exploring how does a large firm adapt to environment changes to formulate competitive advantage from the angle of building dynamic capabilities. Based on the concept of organizational ambidexterity, the approach of structural separation is explored in this study by analyzing Ericsson’s corporate incubator & accelerator – Ericsson ONE. As an exploration-orientated unit, this independent organization helps the parent company cope with the problem of discontinues change which is caused by paradoxical tensions from different organizational levels. At the same time, it enables a company’s ability in catching new business opportunities based on explorative action while keeping the existing advantage from its original development path. After empirical research, the discussion around Ericsson’s strategy on implementing ambidexterity strategy is presented at the end of this study.


Keywords: Competitive advantage, Dynamic capabilities, Ambidexterity, Corporate incubator.