Managing paradox in sustainability transition: A case study of a Swedish contractor firm and its infrastructure Projects

Abstract

The construction sector in Sweden is engaging in a significant sustainability transition. In the process of changing and adapting, tensions among different actors become inevitable due to the contradictory nature of sustainability transition. Demands on new ways of thinking and practicing clash with the well-established and conventional ones. Competing demands from economic, environmental and social dimensions need to be considered simultaneously. This can lead to hinders if such tensions are not properly handled. The aim of the thesis is to investigate how a big Swedish contractor firm works with sustainable construction, with a focus on how three related infrastructure projects deal with the issue - reduction of climate impact of concrete constructions. Also, by adopting two closely linked theories - paradox theory and institutional logics theory, the author identifies and analyses tensions arising in the processes of decision-makings on sustainable objectives, in the levels of project and firm. Paradox theory provides a critical theoretical base for understanding, embracing and managing tensions, as it sees competing demands as contradictory yet interdependent elements and they are inherent in organizations. Paradoxical strategies focus on finding purposeful responses to tensions, living with and managing the continuous tensions rather than solving them. As a result, the main tensions that surface in the studied projects are created by 1) lack of contract, 2) lack of knowledge, and 3) lack of interconnection. By adopting the lens of paradox theory, the tensions are analysed and explained from an organizational paradox perspective, which are categorised of organizing paradox, learning paradox and performing paradox. Furthermore, institutional logic theory also offers an analytical base for explaining how environments frame and affect organizational goals and individual behaviours. The author thus studies the underlying logics behind the identified tensions. As an illustration, market logic clashes sustainability logic while confronting sustainable objectives, as different actors seek divergent organizational successes, resulting in a lack of commitment and a lack of integration in sustainability collaborations. Moreover, the established and conventional practice of project-as-anisland leads to inefficiency of knowledge transferring and organizational learning, hence relatively low ability to innovation. Finally, by embracing paradoxical tensions, the thesis suggests strategies and improvements for the contractor to manage such unsolvable tensions arising in the process of sustainability transition.