From Competence to Competitive Advantage Transferring Strategic Capabilities for Quality and Excellence in Nordic Manufacturing and Warranty Services Master’s thesis in Industrial Engineering and Management TOBIAS KARLSSON NILS MANN DEPARTMENT OF TECHNOLOGY MANAGEMENT AND ECONOMICS CHALMERS UNIVERSITY OF TECHNOLOGY Gothenburg, Sweden 2025 www.chalmers.se www.chalmers.se Master’s thesis 2025 From Competence to Competitive Advantage Transfering Strategic Capabilities for Quality and Excellence in Nordic Manufacturing and Warranty Services TOBIAS KARLSSON NILS MANN Department of Technology Management and Economics Division of Innovation and R&D Management Chalmers University of Technology Gothenburg, Sweden 2025 From Competence to Competitive Advantage Transfering Strategic Capabilities for Quality and Excellence in Nordic Manufactur- ing and Warranty Services TOBIAS KARLSSON NILS MANN © TOBIAS KARLSSON, 2025. © NILS MANN, 2025. Supervisor & Examiner: Kaj Suneson, Innovation and R&D Management Master’s Thesis 2025 Department of Technology Management and Economics Division of Innovation and R&D Management Chalmers University of Technology SE-412 96 Gothenburg Telephone +46 31 772 1000 Cover: Alstom produced M33 Trams being taken into commission by Göteborgs Spårvägar. Typeset in LATEX Printed by Chalmers Reproservice Gothenburg, Sweden 2025 iv From Competence to Competitive Advantage Transferring Strategic Capabilities for Quality and Excellence in Nordic Manufac- turing and Warranty Services TOBIAS KARLSSON NILS MANN Department of Technology Management and Economics Chalmers University of Technology Abstract Established research on capabilities and competitive advantages consists mainly in evaluating a capability in its current capacity, even when future predictions of a sustainable advantage are in focus. Connections to capability transfer are generally in the direction that effective knowledge transfer results in, or supports, a com- petitive advantage or a strategic knowledge resource. This thesis examined the reverse relationship of how competitiveness and availability of resources could influ- ence the transfer process of an organization looking to move a strategic capability into warranty operations. This was done through four research objectives: (1) As- sessing the competitive environment; (2) Identifying barriers to capability transfer; (3) Selection of a recipient site; and (4) Transfer process and training. Specifically the study aimed to fulfill these objectives within the scope of a multinational cor- poration (MNC) transferring a capability into warranty operations. The chosen method of accomplishing the objectives was through an qualitative, ethnographic case study of abductive nature, studying Alstom Rail, a rolling stock manufacturer with Nordics warranty operations. The study found that the warranty industry only regards quality up until a certain point after which additional performance is excessive but instead requires a broader profile of the capability to be transferred from serial production. Key barriers to the transfer included lack of motivation of the staff, financial incentives to resist warranty work, and lack of ownership and rep- resentation in the organization. The findings indicated that the capability transfer process should dynamically adjust itself so that the transferred capability fits the competitive scope of the warranty industry and align with available resources. Ad- ditionally, the study introduces the concept of resource-based barriers to capability transfer, which was specifically found related to facility conditions. The results of the study contributes to the scientific field of research on warranty industries by applying established theory in a new context and suggest new concepts or resource barriers in capability transfer processes. This highlights a need for future research to differentiate resource barriers from competitive misalignment, division of resource barriers and evaluating the organizational implications from actively managing the transfer process. Keywords: Competitive Advantage, Resource-Based View, Knowledge-Based View, Capabilities, Strategy, Barriers, Resource Barrier, Multi-National Corporations, Warranty. v Acknowledgements This master’s thesis was conducted during the spring of 2025 at the Department of Technology Management and Economics, as part of the Master Program Quality and Operations Management at Chalmers University of Technology. Firstly, we would like to extend our gratitude to our supervisor Kaj Suneson, for his invaluable guidance, support and encouragement through this thesis. His insight- ful perspective, wisdom, and constructive feedback has contributed greatly to the quality of the research process and the final report. We are thankful for the discus- sions that challenged our thinking and ability to see the broader picture. Thank you! Secondly, we would like to extend our thanks to our supervisor at Alstom, Magnus Karlsson, for his warm support and willingness to assist us throughout our thesis. We truly appreciate the trust, encouragement, and kindness you showed us and are happy for your guidance. Thirdly, we wish to thank all the people at Alstom whom we have had the privilege to interview, or otherwise shared their knowledge and experience with us. Your con- tributions made this thesis possible, and we would not have been able to conduct this research without you. Also, thank you to the people we meet ar the Motala site, who took time out of their day to welcome us and make sure our stay was memorable. Finally, we would like to thank our thesis opponents for their constructive feedback. Your perspective contributed to the quality of the thesis. Thank you for your time invested in our report. Tobias Karlsson & Nils Mann, Gothenburg, May 2025 vii List of Acronyms Below is the list of acronyms that have been used throughout this thesis listed in alphabetical order: EAB European Adhesive Bonding KBV Knowledge-Based View KB Knowledge Barriers KPI Key performance indicator MNC Multi National Corporation RBV Resource-Based View RO Research Objectives ix Contents List of Acronyms ix List of Figures xiii List of Tables xv 1 Introduction 1 1.1 Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.2 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1.2.1 Limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1.3 Alstom Rail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2 Theoretical Framework 7 2.1 Definition of Capabilities . . . . . . . . . . . . . . . . . . . . . . . . . 7 2.1.1 Dynamic Capabilities . . . . . . . . . . . . . . . . . . . . . . . 7 2.1.2 Competitive Advantage . . . . . . . . . . . . . . . . . . . . . . 8 2.2 Resource-Based View . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 2.2.1 VRIO Framework . . . . . . . . . . . . . . . . . . . . . . . . . 10 2.2.2 RBV, Capabilities and Competitiveness . . . . . . . . . . . . . 11 2.3 Knowledge-Based View . . . . . . . . . . . . . . . . . . . . . . . . . . 13 2.3.1 Definition of Knowledge . . . . . . . . . . . . . . . . . . . . . 14 2.3.2 The Transfer and Sharing Perspective . . . . . . . . . . . . . . 14 2.3.3 Donor and Recipient Characteristics . . . . . . . . . . . . . . 15 2.3.4 Knowledge Characteristics . . . . . . . . . . . . . . . . . . . . 16 2.3.5 SECI Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 2.3.6 Bridging Ties . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 2.3.7 Transfer Barriers . . . . . . . . . . . . . . . . . . . . . . . . . 20 2.3.8 Knowledge Transfer in Multinational Corporations . . . . . . 20 3 Research Objectives 23 3.1 Assess Competitive Environment . . . . . . . . . . . . . . . . . . . . 23 3.2 Identify Barriers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 3.3 Recipient Site Selection . . . . . . . . . . . . . . . . . . . . . . . . . . 23 3.4 Transfer Process and Training . . . . . . . . . . . . . . . . . . . . . . 24 4 Method 25 4.1 Research Design and Strategy . . . . . . . . . . . . . . . . . . . . . . 25 4.2 Ethnographic Study . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 4.3 Research Process - Sprint Workflow . . . . . . . . . . . . . . . . . . . 26 4.4 Data Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 4.4.1 Interviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 4.4.2 Workshop . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 xi Contents 4.4.3 Participant-as-Observer . . . . . . . . . . . . . . . . . . . . . 30 4.4.4 Company Documents . . . . . . . . . . . . . . . . . . . . . . . 31 4.5 Data Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 4.5.1 Thematic Analysis . . . . . . . . . . . . . . . . . . . . . . . . 32 4.5.2 Gap Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 4.6 Sprint Review Meetings . . . . . . . . . . . . . . . . . . . . . . . . . 32 4.7 Ethical Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . 34 4.8 Research Trustworthiness . . . . . . . . . . . . . . . . . . . . . . . . . 35 4.9 Use of Artificial Intelligence (AI) . . . . . . . . . . . . . . . . . . . . 35 5 Empirical Findings 37 5.1 Interviewees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 5.2 Findings from Sprints . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 5.2.1 Sprint 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 5.2.2 Sprint 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 5.2.3 Sprint 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 5.2.4 Sprint 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 5.3 Remarks and Frequencies Across Interviews . . . . . . . . . . . . . . 48 5.4 Gap Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 5.5 Workshop . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 6 Implications 53 6.1 Competitive Assessment . . . . . . . . . . . . . . . . . . . . . . . . . 53 6.1.1 Industry Based Competitiveness in Warranty Operations . . . 53 6.1.2 Resource Based Competitiveness in Warranty Operations . . . 54 6.2 Identify Barriers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 6.2.1 Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 6.2.2 Financial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 6.2.3 Organizational . . . . . . . . . . . . . . . . . . . . . . . . . . 56 6.2.4 Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 6.3 Managerial Implications . . . . . . . . . . . . . . . . . . . . . . . . . 57 6.3.1 Recipient Site Selection . . . . . . . . . . . . . . . . . . . . . . 58 6.3.2 Transfer Process and Training . . . . . . . . . . . . . . . . . . 59 7 Discussion 61 7.1 General Discussions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 7.2 Future Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 8 Conclusion 63 Bibliography 65 A Interview Template I xii List of Figures 1.1 A perspective showing how capabilities can potentially be transferred for a predetermined purpose in a strategic context. . . . . . . . . . . . 3 1.2 The organizational structure of Alstom illustrating the link between project and site. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2.1 The SECI model, illustrating the different stages of knowledge cre- ation. Adapted from Nonaka (1994) Authors’ own copyright. . . . . . 18 4.1 Working sprint methodology with a continuous feedback loop for effec- tive alignment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 4.2 The structure of the bi-weekly sprint review meeting with stakeholders. 33 5.1 Barriers in collecting data between functions within the organization. 44 5.2 Process steps involved in adhesive bonding of window frames. . . . . . 46 5.3 The resulting board after a completed aim workshop with technicians in Motala. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 xiii List of Figures xiv List of Tables 2.1 The categorization of resources in three broad types according to J. Barney (1991). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 2.2 The categorization of resources in three broad types according to Grant (2021). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 4.1 Relevant methods used in investigating the four research objectives with what type of data extracted. . . . . . . . . . . . . . . . . . . . . . 28 5.1 Summary of the interviewees who agreed to an interview. . . . . . . . 37 5.2 Overview of objectives across sprints with new findings. . . . . . . . . 38 5.3 Thematic remarks and frequencies across interviews. . . . . . . . . . 48 5.4 Comparison of parameters for Motala service in Sweden highlighting the differences between the current state and a desired state. . . . . . 50 xv List of Tables xvi 1 Introduction This chapter provides the reader with a contextual foundation for the the- sis by outlining the background and rationale behind the study. It starts with an introduction to the research background that led to identified gaps and a thesis purpose. The chapter then presents an overview of the case company, Alstom Rail, along with a description of its relevance to the phenomena to be studied. 1.1 Background For certain firms, industries, or markets, it is common to attach warranty agreements to sales contracts as a way to instill confidence in the quality of a delivered product. Such agreements typically include maintenance or repairs at little to no cost to the customer, even potentially free of charge. Research is limited to how competitive requirements on resources or knowledge, as well as the transfer of capabilities, relate to the warranty industry. The gap in the research field becomes apparent when a warranty contract results in new capability requirements placed on the warranty operations. A company looking to offer a new warranty capability would therefore be forced to consider the required resources and knowledge to successfully transfer or acquire it. Established research, such as J. Barney (1991) provides a comprehensive founda- tion to understand what constitutes a capability and how companies and organiza- tions compete with each other from a resource-based perspective. One researcher, with the aim of focusing mainly on threats to the external market in the field of competitiveness, is Porter (2008) who introduced strategies such as cost leadership, differentiation, and focus as ways to achieve competitiveness. J. B. Barney (1995) presents the VRIO framework, which describes how a resource or capability must be valuable, rare, inimitable and organizational to provide a sustained competitive advantage. In addition to the Resource-Based View, there are some proponents of the Knowledge-Based View that expand organizational capabilities, arguing that knowledge embedded within an organization can be seen as a vital strategic re- source (Grant, 1996). Some authors even argue that knowledge is one of the most important, if not the most important strategic resources for competitiveness (Bergh et al., 2025; Drucker, 1993; Liyanage et al., 2009). The concept of knowledge and associated definitions have been further discussed by Paulin and Suneson (2015), differentiating between knowledge as an object that can be contained and knowl- edge as a contextual construction interrelated to the individuals involved. Opting for something more resembling the former definition, this paper draws in- spiration from previous research on intra-organizational knowledge transfer such as Van Wijk et al. (2007)’s definition of knowledge transfer as an influencing process 1 1. Introduction of exposed actors as well as Easterby-Smith et al. (2008) dissecting both donor and recipient characteristics as well as aspects related to the knowledge itself that could enable knowledge transfer. Existing research highlights several aspects that would disrupt the transfer process. Knowledge stickiness (Szulanski, 1996), lack of knowl- edge explicitness (North & Kumta, 2018), transfer costs (Teece et al., 1997) and casual ambiguity (Szulanski et al., 2004) are some examples. However, discussions about the effectiveness of the transfer itself could be considered insufficient when evaluating a transfer process’s appropriateness in a competitive setting, especially for an organization with a certain strategic ambition. Although recent efforts by Kengatharan (2019) determined that increasing social and human knowledge from transfer processes results in higher productivity and, in turn, contributes to a com- petitive advantage, the reverse effect of adapting a transfer process to fit a strategic competitive ambition could be of further interest to organizations operating in cer- tain environments. During actual transfer, barriers can influence the transfer process and hinder effective knowledge transfer or capability deployment. Barriers can be of different nature, where Riege (2005) categorize barriers at three different levels. Tanriverdi and Iacono (1999) introduces the concept of economic barriers where there is a failure to create a business model attractive to all stakeholders. Husain et al. (2017) connects barriers to RBV and transfer of technologies, which is an elaboration of the work of J. Barney (1991) and Porter (2008). One thing is evident, while barriers to knowledge transfer have been extensively discussed in different dimensions, such as technological (Riege, 2005) or cultural (De Long & Fahey, 2000), industry specificity is less studied with respect to how general barriers behave in a surrounding context. 1.2 Purpose Building on themes and concepts such as competitiveness, knowledge transfer, and capabilities from the introduction earlier, the purpose of this thesis is to explore how competitive strategies can influence the process of transferring capabilities, in the context of warranty and special processes, within a multinational corporation. In- terestingly, how organizational conditions affect the transfer process with economic or knowledge barriers and the transfer mechanism that affect the final outcome of a transferred capability. Therefore, The purpose of this thesis is to evaluate the role of competitiveness in the capability transfer processes of multinational corporations operating in the warranty industry. And to evaluate how warranty-, and MNC-specific conditions affect the ca- pability transfer process. 2 1. Introduction Figure 1.1 illustrates the situation of how a specific competitive environment, such as that in warranty operations, could affect how a capability would be transferred to that environment by showcasing specific competitive priorities. Figure 1.1: A perspective showing how capabilities can potentially be transferred for a predetermined purpose in a strategic context. The findings of this thesis aim to contribute to an increased knowledge of how competitiveness can influence the international transfer of a capability into warranty operations. 1.2.1 Limitations The thesis will be subject to limitations. This is to better focus on the task at hand agreed upon with Chalmers University of Technology and Alstom Rails. The limitation will act as a constraint to better frame the purpose and ensure a clear direction of the project throughout the semester. Considering the scope of the thesis and the time constraints, the current limitations include: • The effects of time-related constraints, such as deadlines, project duration, and delays, will not be studied. 1.3 Alstom Rail An organization that aims to transfer a capability is Alstom Rail, an international manufacturer of trains and trams with repair and maintenance operations in the Nordics. Due to different European and national standards for tram manufacturing, a mandatory technique called Adhesive Bonding for securing of windows panels and similar parts is accompanied by restrictions and requirements regarding staff com- petence and safety measures. Although Alstom employs bonding specialists in their European production sites, the Nordic organization does not house the capability, and instead outsources bonding work to an external company based in Germany. The decision to outsource bonding to an external company instead of utilizing an in-house resource from, e.g., Germany was based on a financial forecast conducted by Alstom. It indicated a small cost savings in selecting the external provider. Due to financial strain and strategic ambitions, as well as labor laws prohibiting prolonged temporary employment of technicians, the company decided to develop bonding capabilities within the Nordics. Alstom is therefore facing a strategic deci- sion regarding the extent, location, and implementation of how the capability should 3 1. Introduction be transferred with respect to their competitive aspirations and business model. Considering the situation at Alstom, it serves as a suitable case company throughout this thesis and acts as an example to better explore the idea of utilizing competence as a competitive advantage. Some of the benefits of this collaboration include access to relevant data, implementation of theory, and the ability to evaluate the findings in a realistic setting. As the case company currently does not employ any bonding capabilities in the Nordics, it offers a unique opportunity to examine capability de- ployment in a context with reduced bias from earlier attempts. Alstom’s organizational structure, illustrated in Figure 1.2 can be divided into two divisions: projects and sites. The projects are responsible for securing contracts (such as the Gothenburg M33 and M34 trams) and maintaining customer relation- ships; they are an immaterial actor that generates revenue without carrying out the operational tasks. Instead, material work is placed at the various Alstom sites, which in turn can be further divided into production or service. Production sites offer efficient serial production of new rolling stock additions, while service sites need to address maintenance and warranty demands from both internal projects and external customers. Figure 1.2: The organizational structure of Alstom illustrating the link between project and site. Another distinguishing factor in the railway industry is that contracts often span large time frames, often including a substantial amount of service and warranty work before the final customer takes over. With a warranty period extending over mul- tiple years and several thousands of kilometers in traffic, customer claims account for a substantial amount of a projects service operations. This means that while a vehicle could be manufactured abroad, a considerable service commitment is usually required on the deployed fleet in a Nordic country. A contract-specific measure related to the warranty period is Availability, defined as 4 1. Introduction the percentage of vehicles that are operating as opposed to those that are taken out of commission to undergo maintenance or claim related repairs. Availability as a KPI (key performance indicator) is, therefore, central to many of the projects and, in turn, the service sites. 5 1. Introduction 6 2 Theoretical Framework This chapter presents the theoretical foundation upon which the result and analysis of the thesis will be based. It provides an understand- ing of Capabilities and Dynamic Capabilities, the Resource-Based View (RBV) with Resources and Competitiveness followed by an exploration of the Knowledge-Based View (KBV) with important concepts of knowledge such as Knowledge Transfer and Barriers. The theoretical framework is structured to introduce both a foundational under- standing and more specific insights. Many of the sections begin with thoroughly established concepts that provide the basic knowledge for the research, which is then followed by more extended and in-depth concepts within each respective field that aim to be applied and related to the findings. The reader is encouraged to view the theory as a layered approach to understand not only the basics but also how the scientific field has evolved. By presenting and selecting an appropriate def- inition of knowledge as well as distinctions of the knowledge sharing and -transfer concepts, the thesis establishes its position in the academic field among authors using other variations of the definitions. Doing so aims to help readers and gives a direction and place in literature overviews or other scenarios where it might be of central interest. However, in other cases such details regarding definitions are ex- cessive, meaning that some readers could, for example, use the transfer and sharing concepts as synonymous and still utilize a majority of the content. 2.1 Definition of Capabilities A capability refers to a firm’s capacity to deploy and coordinate resources, often in combination, using organizational processes for a desired outcome (Amit & Schoe- maker, 1993; Collis & Montgomery, 2008). Amit and Schoemaker (1993) further describe how capabilities are embedded within firm routines and often based on in- formation, meaning tangible or intangible processes that develop over time due to complex interactions such as experience and learning. That a capability consisting not only of resources or knowledge alone, but through an interaction of both, has been supported by Eisenhardt and Martin (2000) using the RBV perspective and Nonaka et al. (2000) using the KBV perspective. 2.1.1 Dynamic Capabilities The dynamic capabilities framework extends the RBV by exploring how firms main- tain competitive advantage in changing environments. Dynamic capabilities focus on a firm’s ability to adapt, renew, and reconfigure resources over time (Teece, 2007; Teece et al., 1997). 7 2. Theoretical Framework A dynamic capability can be defined as the firms ability to integrate, build, and reconfigure internal and external competences to actively address changing envi- ronments. This definition is very relevant in industries affected by technological disruption, global competition, and innovation (Teece, 2007). Furthermore, dy- namic capabilities are not functional routines themselves but rather competencies in how a firm modifies and adapt their existing resource base through incremental steps which can be divided into three core areas, evolving through a progression of activities. These activities create, apply, and protect knowledge and are known as Combinative Capabilities which drives value, Integrative Capabilities, which drives costs and finally, Protective Capabilities which concern return appropriation. Combinative Capabilities refer to a firm’s ability to synthesize and apply existing knowledge to develop new services and processes (Kogut & Zander, 1992). These capabilities explore how a company can coordinate diverse specializations and trans- late these into a certain result. The process involves identifying knowledge (e.g., a knowledge map) and making tacit knowledge accessible. The available knowledge is transferred through the SECI model as described by Nonaka and Takeuchi (1995). Finally, knowledge can be used for value creation. Integrative Capabilities refer to a firm’s ability to address cost-efficiency and coordination that ensure knowledge is applied within an organization where it is most needed. Grant (1996) describes two principles to consider when integrating knowledge, aggregation and transferability. Aggregation understands who has the knowledge, while transferability understands how difficult or costly it is to transfer and internalize. Integration mechanisms include rules and directives (plans, scheduling, forecasts, etc.), sequencing (transformation steps in a timely manner), routines (patterns trig- gered by signals or choices), and finally group solving and decision making (more personal and communication intensive interaction) (Grant, 1996). Protective Capabilities refers to the protection of knowledge that has been cre- ated and deployed to secure return on investments. Andersén (2012) describes how protective capabilities involve steps to effectively preserve knowledge and reduce the risks of imitation by competitors. This includes legal protection such as patents or non-disclosure agreements (NDAs). Mechanisms such as code of conduct and mobility restrictions to reduce the risk of information leakage. 2.1.2 Competitive Advantage Competitive advantage refers to a firm’s ability to create more value than its com- petitors. This is mainly through an offering of more superior services, products, or through operational efficiency that is sustainable over time. Often, competitive advantage allows for a firm to outperform their competitors, usually measured in profitability and market share (Porter, 2008). Porter further describes three basic approaches to competitive strategies: 8 2. Theoretical Framework 1. Cost Leadership: A company provides goods and services at a lower cost than their rivals. 2. Differentiation: A company offers a unique value of significance to the cus- tomer that justifies a premium price for the distinctiveness. 3. Focus: A company focuses on a narrow competitive scope within an industry and tailors its strategy for this particular segment. Often, focus is combined with the two strategies mentioned above, creating variants. Porter’s framework mainly emphasized external market positioning, while the RBV, as introduced by J. Barney (1991), shifts the focus inward where competitive ad- vantage is derived from resources and capabilities. According to J. Barney (1991), a company achieves a competitive advantage when it implements a value-creating strategy, often measured through the VRIO frame- work. This value-creating strategy should not be implemented simultaneously by any current competitor, creating an advantage. If this advantage is maintained, it is also considered sustainable. Grant (1991) elaborated on this and emphasized how competitive advantage should also consider coordination and integration, that is, how well the firm deploys and aligns in accordance to strategic goals. 2.2 Resource-Based View The Resource-Based View of the Firm is a theoretical framework in strategic man- agement that explores what differentiates firms and how they can achieve a sustained competitive advantage (Hooley et al., 1998). The theory emerged as a response to earlier strategic theories such as the work published by Michael Porter, particularly his organizational view, focusing mainly on the external market forces. The RBV focuses mainly on competitive advantage within the firm and how a firm can lever- age its resources and capabilities (J. Barney, 1991; Wernerfelt, 1984). While a capability can be seen as the "how", a resource, on the other hand, can be seen as the "what". Resources in the strategic management literature are defined as assets (tangible or intangible), knowledge, processes, and technologies within an organization that can be used to implement and support strategies (J. Barney, 1991). Barney further describes that resources can be categorized into three types, as seen in Table 2.1. 9 2. Theoretical Framework Table 2.1: The categorization of resources in three broad types according to J. Barney (1991). Physical Human Organizational Facilities Training Firm Structure Machines Experience Culture Geographical Location Employee Skills Routines Raw Material Intelligence Information Control and Coordination Systems For a resource to be considered a source for competitive advantage, it must fulfill the VRIO criteria which will be expanded on in Section 2.2.1. Grant (2021) expanded this definition of resources with a more operational and integrated perspective. His categorization consists of the following three types as seen in Table 2.2. Table 2.2: The categorization of resources in three broad types according to Grant (2021). Tangible Intangible Human Capital Patents Skill, "Know-How" Securities Copyright Motivation Buildings Reputation Abilities Equipment Culture Although tangible resources can be observed more easily, intangible resources are often those that drive value and contribute to a sustained competitive advantage. For that reason, in this thesis, Grants’ view is very relevant considering the intangible nature of a special process. The distinction between tangible and intangible assets aligns well with the focus of deploying capabilities and knowledge across geographical locations. 2.2.1 VRIO Framework To evaluate whether a firm’s resources and capabilities can create a sustained com- petitive advantage, J. B. Barney (1995) introduced the VRIO framework, which stands for Valuable, Rare, Inimitable, and Organized. This framework serves as a tool to assess the internal resources of the firm. Barney further describes the four components as follows: Valuable A resource is valuable if it exploits business opportunities and neutralizes external threats. The resource provides value to the customer and allows the firm to perform activities more efficiently than competitors. Rare A resource is rare if it is not widely possessed by competitors. Resources such as technology, talent, or a powerful brand can lead to uniqueness. An important 10 2. Theoretical Framework consideration is that it is important that the resource also contributes meaningfully to strategic differentiation; otherwise it simply offers competitive parity with com- petitors. Inimitability A resource currently possessed by a firm must be costly or difficult for a competitor to imitate or copy. Inimitability can be hindered by various aspects such as casual ambiguity, unique historical conditions or social complexity. Organized Finally, an organization must fulfill this criterion to effectively capture value from its resources and capabilities. This includes having an appropriate struc- ture with processes in place to leverage their resources to create value. Without it, no matter how valuable the resources are, they will fail to deliver a competitive advantage. An important factor to recognize is that resources are dynamic, that is, they change over time. Their value can erode over time considering that they are affected by firm decisions, trends, and technological advancements. Therefore, it is important to regularly reassess and analyze the available resources in an organization and invest in new resources over time (J. Barney, 1991; Collis & Montgomery, 2008). 2.2.2 RBV, Capabilities and Competitiveness Herrmann (2008) compares the view of a market and its national institutions as a competitive alignment with the Resource-Based View on competitiveness and found that a majority of pharmaceutical firms aligned their competitive strategies with resources rather than nationalities. This is further evolved by Andersén (2010) suggesting that the RBV as presented by J. Barney (1991) leads to a number of managerial implications. Among resource diversification, customer relations, and human resource management, he points out the necessity of acquiring the appro- priate resources when imitating the capability of a competitor. Using the same principle for a transfer rather than a capability, this aspect could be relevant for a company that is carrying out a kind of internal imitation process. Collis (1994) examines the view of capabilities as sources of sustainable competitive advantages in a more skeptical light and proposes a number of possible fallbacks for organizational capabilities. First, a capability could lose its competitive properties through several reasons, such as erosion following the fact that firms are likely to adopt new competitive strategies or experience changing market environments, for example, the capability becoming less rare. Similarly, a capability could be both replaced or surpassed by another one. Second, according to Collis (1994) the com- petitive threat in the realm of capabilities is greater than when simply comparing resources, which would generally be easier to define, predict, and limit within an industry. However, a new capability could include ambiguity that makes it difficult to understand its value and copy its characteristics. Although such aspects might appear to be correspondingly advantageous to the competing firm as a competitor, it is important to note that their culminating effects negatively impact the ability to enjoy a sustained competitive advantage (Collis, 1994). 11 2. Theoretical Framework A similar factor behind what Collis (1994) calls "the infinite regress" of sustainable competitive advantages from capabilities is the fact that competitors that recog- nize the inimitability in a capability will be inclined to challenge it with another, accepting the strength in its position. Two proposals are made to counteract the regressing advantages, one being a constant evaluation of the surrounding context. This means that the capabilities that are likely to provide a sustained competitive advantage differ between industries and points in time, and instead of desperately trying to define and evaluate such capabilities, organizations should aim to position themselves to simultaneously build new ones while acknowledging the large uncer- tainty (Collis, 1994). Another approach to build competitive advantages though capabilities is to gradually compete on one level within the capability at the time. This would generally mean adopting the so-called best practices before moving on to subsequent levels. However, since no connection between level positioning and com- petitive environments is made, the approach cannot guarantee more success than the broader perspective on competitiveness. Lafuente et al. (2016) builds on the RBV and VRIO framework (J. B. Barney, 1995) with an important distinction. Instead of evaluating each resource in isolation, they argue that a systemic approach is necessary that includes the resources and their interactions together to assess competitiveness. Arguments include the fact that some resources could provide obstacles to fully utilizing others, such as a deficient digital system that obstructs skilled workers from reaching their full capacity. A practical competitive index consisting of several pillars of competitiveness aims to capture the full competitive strength of resources. Some of the pillars more relevant to manufacturing firms are human capital, networks, decision making, competitive strategy, and internationalization. 1. Human capital: refers to employees and factors such as education, the share of employees participating in training programs or the uniqueness of human capital. 2. Networks: refers to the reliance on external assistance in the development of the business or the uniqueness of the networking relationships. 3. Decision making: refers to the application of different sources of information, the sharing of this information, or the knowledge transfer of administrative operations. 4. Competitive strategy: refers to the direction of the strategy, if it is defensive or proactive, or uniqueness of a firm’s strategy. 5. Internationalization: refers to the uniqueness of location. Lafuente et al. (2016) refers to the concept of configuration as the degree of strategic alignment according to a theme across the resources. For an organization with a sin- gle pillar showing large differences in its configuration compared to the other pillars, 12 2. Theoretical Framework its suggested to target the bottleneck area with specific investments. However, an organization with more aligned pillars should instead employ a harmonization strat- egy that aims to improve the general alignment of the pillars collectively (Lafuente et al., 2016). Furthermore, the larger firms in the study saw an increased com- petitive performance from enhancing the configuration by its strongest alignments, while the smaller firms would ideally aim to correct weaknesses in its configuration of pillars. Beamish and Chakravarty (2021) explains how the RBV was developed for single countries, product-centric organizations, and in the realm of MNCs generally only applied to non-diversified organizations. Similarly to Lafuente et al. (2016), they argue that the competitive assessment of a resource or capability should take into account the surrounding resources and conditions, such as the spatial, economic, and institutional barriers that MNC´s face. Although an MNC can leverage own- ership advantages, such as product knowledge, capabilities, and management pro- cesses, these aspects may not be easily transferred across geographical boundaries. A consequence is that an MNC should consider location-specific constraints that can hinder effective transfer of a capability and complement the existing understanding with other studies to understand competitiveness in MNCs. Specifically, evaluat- ing the value, rarity and transferability (inimitability) of a capability or resource must be done according to local conditions, and not on a firm level, particularity in diversified organizations (Beamish & Chakravarty, 2021). 2.3 Knowledge-Based View The Knowledge-Based View of the firm is an extension of the Resource-Based View of the firm. The idea is that knowledge can be seen as a strategic resource that an organization possesses (Curado & Bontis, 2006; Grant, 1996; Grant & Baden- Fuller, 1995). The KBV highlights organizational knowledge, which can be seen as explicit, tacit, and difficult to imitate as a primary source to achieving a sustained competitive advantage compared to traditional models that emphasize physical and financial resources. Kengatharan (2019) describes how KBV emerged as a response to the increasing importance of intellectual capital, innovation, and learning in shaping performance such as efficiency and customer value. Authors such as Kogut and Zander (1992) and (Spender, 1996) have elaborated on the KBV and explored how knowledge is created, shared, and applied in organizations. They further describe how knowledge can be seen as more than simply an input and an output. It can serve as a dynamic force that contributes to the integration and coordination between and within teams. KBV at the core describes knowledge as something that resides within an individual but also within an organization’s routines and systems. This type of knowledge can be explicit, meaning knowledge that can be communicated, or tacit, meaning knowledge that is embedded within experiences and is difficult to transfer. Explicit and tacit knowledge will be elaborated on in more detail later in this chapter. Due 13 2. Theoretical Framework to the nature of knowledge and how it behaves, the KBV is concerned with how knowledge can be transferred and integrated within or between a firm. 2.3.1 Definition of Knowledge To be able to study knowledge, it is important to define it in order to transfer and manage it effectively. Knowledge may seem intuitive, but there are multiple definitions and interpretations in the literature. Knowledge at a foundational level is often described as "justified true belief", a philosophical view (Artemov, 2018; Hay, 2008; Nonaka, 1994). Nonaka (1994) further described how "justification" is the process of screening to achieve truthfulness, which determines the quality of the created knowledge. In a context of organizational and strategic management, knowledge is viewed more as a strategic resource that allows for adaptation and innovation (Grant, 1996; Nonaka, 2007). Furthermore, King and Zeithaml (2003) argue that knowledge is more than just an asset, it is context dependent, more specifically within an organizational context, and is tied to its social construct. Knowledge differs between industries, divisions, and roles and cannot be treated universally. They further describe how managing knowledge requires language to effectively distinguish what is relevant from what should be ignored. Milton (2007) suggested that knowledge can be observed in a more practical setting. Knowledge can be acquired and then structured through processing such as interviews or workshops. These methods are important in con- verting tacit knowledge to more explicit knowledge in an actionable form. Knowledge can be defined by four aspects known as the "DIKW hierarchy" which consists of data, information, knowledge, and wisdom (Ackoff, 1989; Zins, 2007). Data, meaning the basic building blocks that serve as input. Information, meaning data that have been processed and structured in patterns such as models. Knowl- edge, meaning the ability to act on information and enable decision making. Finally, Wisdom, meaning the types of accumulated content of the human mind. This hier- archy, also known as the "Knowledge hierarchy" has also been subject to criticism. Frické (2009) described the hierarchy as unsound and methodologically undesirable. An adopted definition of knowledge most suitable for the thesis according to the authors of this study is: A resource and context-dependent, strategically valuable, justified true belief that enables decision-making within a capability. Despite the different interpretations, one thing that many authors agree on is that knowledge is a critical organizational resource (Grant, 1996; Nickerson & Zenger, 2004; Nonaka & Takeuchi, 1995). 2.3.2 The Transfer and Sharing Perspective The ability of an organization to develop and deploy capabilities in an efficient manner depends on its ability to manage knowledge mechanisms, such as knowledge 14 2. Theoretical Framework sharing or knowledge transfer. Knowledge sharing refers to an organization’s sys- tematic way of collecting and sharing knowledge to facilitate organizational learning (Hoe, 2006; Nonaka & Takeuchi, 1995). It plays an important role in ensuring learning in individuals and teams, enabling firms to respond to changes, contribute to innovation, and maintain strategic alignment (Teece, 2007). However, knowledge sharing is often hindered by people, behavioral, and operational challenges that make the transfer of know-how and expertise difficult (Argote & Ingram, 2000). These challenges are relevant to understand when developing capabilities, where organi- zations need to ensure that competencies are transferred and embedded efficiently between locations and the team and overcome knowledge-related barriers. Knowledge transfer "refers to the process through which actors, teams, units, and organizations receive, exchange, and are influenced by the experience and knowl- edge of others" (Van Wijk et al., 2007). It also contributes to improved financial performance through the development of imitable capabilities (Szulanski, 1996). One foundation of theory on knowledge transfer has been presented by Easterby- Smith et al. (2008) where both the characteristics of the donor and the recipient, as well as the knowledge itself, are taken into account. While the study mainly concerns inter-organizational transfer, similarities with intra-organization transfer such as the presence of cultural barriers motivate the appropriateness of utilizing the framework as a base for diving deeper into the theory around knowledge transfers. 2.3.3 Donor and Recipient Characteristics Absorptive Capacity Important to consider is that the effectiveness of the process depends on the orga- nization’s ability to absorb capacity. That is, its ability to recognize, assimilate and use new knowledge (Cohen & Levinthal, 1990). If an organization lacks the nec- essary infrastructure, the risk of knowledge loss increases due to inefficiencies and inconsistencies in capability development. Furthermore, a larger number of knowl- edge sources has a negative effect on the absorptive capacity of acquiring companies, while a larger size of the organization itself enhances the absorptive capacity of a firm due to more accessible and diverse resources (Van Wijk et al., 2007). Intra-Organizational Transfer Capability and Stickiness To effectively transfer knowledge within an organization, it is important to ensure that capabilities are not isolated with certain teams but adapted and spread across different levels and locations. Szulanski (1996) describes the challenges an organi- zation faces when transferring knowledge, which is know as "knowledge stickiness". This concept describes how information is difficult to extract and apply in new set- tings, which is very relevant for an organization operating across different regions and cultures. Another aspect of intra-organizational knowledge transfer is the casual ambiguity related to the knowledge itself and how the negative consequences of it are less prevalent within organizations than between (Van Wijk et al., 2007). Although in- creasing organizational size also tends to facilitate knowledge transfer through more 15 2. Theoretical Framework diverse resources (Cohen & Levinthal, 1990), indications of a reverse relationship with firm maturity and centralization showed that older organizations with more self-supporting units experience greater difficulties (Van Wijk et al., 2007). Motivation Easterby-Smith et al. (2008) makes the case for understanding the motivation to teach and learn in the donor and recipient respectively, as both aspects not only in- fluence the success of knowledge transfer operations but also influence one another. Intrinsic motivation comes from satisfaction with the employee’s self-defined goals or with the content of the activity itself (Ko et al., 2005). This motivation is crucial for the transfer of tacit knowledge, as it is difficult to codify. Furthermore, Ko et al. (2005) suggests that an organization should deliberately select intrinsically motivated individuals, rather than challenge the level of intrinsic motivation with an extrinsic aspect that was found to be far less impactful. However, Extrinsic motivation like salary, can instead be a trigger to initiate knowledge transfer and ensure early efforts in a knowledge transfer process. 2.3.4 Knowledge Characteristics Easterby-Smith et al. (2008) structures the influential characteristics of knowledge itself in the three dimensions of tacitness, ambiguity, and complexity. Unlike the knowledge-sharing approach which regards knowledge as the interplay between ac- tors, this coincides with the knowledge-transfer definition by Ko et al. (2005) utiliz- ing a donor and recipient model, with knowledge as an objective resource that can be communicated, learned and applied. At the same time, Van Wijk et al. (2007) offers the perspective that increasing complexity and degree of tacitness contribute to knowledge ambiguity, which in turn has a direct impact on knowledge transfer. Explicit and Tacit Knowledge Within the Knowledge-Based View, there are two types of knowledge that are dis- tinct, tacit and explicit knowledge. These two primary forms were introduced by Polanyi (1966), which explains the nature of knowledge and what is required to manage it. Polanyi famously stated "We can know more than we can tell", which indicated that tacit knowledge is often deeply embedded and subconscious within an individual or organization, based on experience and difficult to articulate. Explicit knowledge, on the other hand, can be seen as formal, structured and eventually transferred and codified more easily (North & Kumta, 2018). Tacit knowledge includes wisdom, know-how, intuition, and insights which an indi- vidual has gained through personal reflection, experience, and practice. Lam (2000) even argues that one of the most effective ways in acquiring tacit knowledge is through experience, where sharing each other’s thinking process is otherwise very challenging. Tacit knowledge becomes deeply embedded within an individual’s ac- tion, which makes it difficult to communicate directly due to it being context-specific and often part of an individual’s unconsciousness. Explicit knowledge refers to infor- mation and knowledge that can be documented and communicated through formal 16 2. Theoretical Framework training, manuals, etc. (Grant, 1996). Grant (1996) further describes that the primary role of a firm is to manage and integrate tacit knowledge within the individual, considering that explicit knowledge is already more easily communicated and transferred. Moreover, the organization serves as a way of coordinating and applying individual knowledge towards a certain goal. Ambiguity Understanding and correctly extracting information from the donor is time consum- ing both within and between organizations, with ambiguity placing additional strain on the transfer process (Van Wijk et al., 2007). Although the mentioned benefit of ambiguity protecting knowledge from leaking or being stolen could be less preva- lent when transferring knowledge within the organization, the appropriate degree of knowledge ambiguity appears to be a critical determinant of organizational knowl- edge transfer. Szulanski et al. (2004) identifies a crucial aspect of casual ambiguity in that it separates explicit formal knowledge from the actual complete routine prac- tices that the organization wishes to transfer. Consequently, with high-performing processes requiring understanding in order to be transferred a limitation is placed upon the successful extent of the transfer operations. The destructive effect of ambi- guity is further enhanced by a high degree of trust between the donor and recipient, especially present in intra-organizational relationship, where it will remain unchal- lenged and allow pervasive assumptions dictate the content of knowledge instead. On the topic of transforming and developing capabilities, Collis (1994) goes so far as to say that casual ambiguity is a complete deterrent by definition. This follows the assumption that the holistic understanding of the capability cannot be attributed to a certain actor but rather is tacitly distributed across the organization, meaning that the causes and condition of how it contributes to a competitive advantage remain unidentified. Any attempts of transferring, replicating, or developing such capabilities are therefore not predictable (Collis & Montgomery, 2008). 2.3.5 SECI Model The SECI model, as described by Nonaka (1994) describes how knowledge can be transmitted in four different stages, Socialization, Externalization, Combination and Internalization. It describes a continuous and dynamic process through which an organization creates and transmits knowledge by converting between tacit and explicit knowledge for learning, as highlighted in Figure 2.1. Nonaka and Takeuchi (1995) later expanded on the model and describes the SECI model as a "spiral of knowledge", a sequential evolution of knowledge, where knowledge is created between the stages. The SECI model focuses on a holistic view, where the process creates new knowledge. Unlike a linear model in knowledge management, the SECI model describes the interaction between explicit and tacit knowledge as a source of innovation and learning. According to Nonaka and von Krogh (2009), the interaction is not a simple process, there is a discussion whether or not new knowledge created can be observed as different poles or as a continuum, where the contradiction between tacit and explicit knowledge exists. 17 2. Theoretical Framework Figure 2.1: The SECI model, illustrating the different stages of knowledge creation. Adapted from Nonaka (1994) Authors’ own copyright. The four stages as described by Nonaka (1994) can be defined as follows: Socialization refers to the conversion of tacit knowledge to tacit knowledge be- tween individuals and involves experience-sharing, observations, and imitation. The setting is often informal, for example, mentoring a new employee, completing an apprenticeship, or learning by doing on the job. Usually, the individual acquires skills without written documentation, with shared experience being the primary goal. Nonaka (1994) further described how socialization enables the transmission of deeply embedded knowledge within an organization. Externalization refers to the conversion from tacit knowledge to explicit knowledge through insights or ideas into a formal concept. Usually, this step occurs through dialogue and reflection and is essential for capturing an individual’s expertise so it can be shared and reused by others within the organization. This process can be an enabler for collective understanding and create new ideas or models of learning. Combination refers to the conversion of explicit knowledge into a more complex form of explicit knowledge, involving reconfiguration by sorting and re-categorizing knowledge. This includes integrating data from different sources, such as documents or meetings, and using these to create new forms, such as guidelines or formal pro- cedures. This stage is important in larger corporations where knowledge requires effective collection and organization to support decision-making and standardization. Internalization refers to the process of converting explicit knowledge back into tacit knowledge. This is done through learning by doing or repeated actions. In this stage, the process of "trial-and-error" is common, where employees internalize knowledge until it becomes intuitive. Acting on explicit knowledge, reflecting, and 18 2. Theoretical Framework then internalizing it. Together, these four stages form a knowledge spiral, where explicit and tacit knowl- edge interact and allows for continuous learning (Nonaka & Takeuchi, 1995). Although Nonaka’s work is rich in theory and provides a conceptual foundation for understanding knowledge, recent research has tried to operationalize the find- ings into a practical setting in organizations. Farnese et al. (2019) argue that each stage can be supported by specific tools or mechanisms that contribute to a better understanding of the SECI model that is more actionable. For example, Farnese et al. describes how Socialization can be nurtured by more experienced colleagues providing less experienced colleagues with constructive feedback through direct in- teraction. Furthermore, Externalization may involve structured reflection, which means examining mistakes made in order to prevent the same mistake from reoccur- ring. Moreover, Combination relies on organizational communication with formal practices and digital tools, for example, communication tools and internal databases, so that an employee can be kept informed. Finally, Internalization is supported by hands-on training and exercises in real work scenarios. 2.3.6 Bridging Ties Apart from relationship constellations that exist within a geographic location, other network links to distant divisions or external actors are usually present in large international organizations. McEvily and Zaheer (1999) examined the connection between a firm’s ability to identify and utilize competitive capabilities and the het- erogeneity of its external network connections through a number of bridging ties. Here, bridging ties were defined as a way through which the organization can ex- ploit information opportunities (structural holes) in its network, embodied by the amount of redundancy in the network, the infrequency of interactions, and the geo- graphic dispersion. The presence of bridging ties is therefore largely dependent on the organizational structure and consequentially its network connections, with high non-redundancy, infrequency, and dispersion leading to increasing ties, spanning over more structural holes. Networks that present a large amount of bridging ties, and diversity in its knowl- edge sources enjoys a more responsive process to develop competitive advantages (McEvily & Zaheer, 1999). The authors specifically identify ties to regional institu- tions such as universities as advantageous relationships that can provide access to knowledge in areas that otherwise would be unavailable to the organization. It also seemed like the mere existence of bridging ties indicated a proactive development of competitive capabilities independently of the institution itself. The strength of the links did not appear to be of any significance in their study, which would contradict elements of the theory of structural holes in networks as presented by Burt (1992) while acknowledging that the infrequency of the connection points is not necessarily the best measure of relative strength (Granovetter, 1973). 19 2. Theoretical Framework 2.3.7 Transfer Barriers While knowledge can be seen as critical for competitive advantage, the actual ap- plication within an organization can often be hindered by barriers. Paulin and Suneson (2015) describes how knowledge barriers (KB) have been applied from dif- ferent points of view. For example, KB has been described as having not enough knowledge due to education in a particular area or topic. That the perceptual sys- tem in a human or group has an insufficient number of contact points to convert information to knowledge. Similarly, Szulanski (1996) have studied knowledge transfer and identified barriers such as casual ambiguity, knowledge that lacks clarity in how or why it works. Lack of retentive capacity, when the receiver lacks prior knowledge and the ability to ab- sorb and the new knowledge. Arduous relationship, when interpersonal friction and hardship hinder the willingness to share knowledge between the source and recipient. Riege (2005) expand this understanding and categorize KB into three levels: 1. Individual Barriers: This refers to an individual’s lack of trust, fear of sharing due to the belief that it will jeopardize their job security, or differences in educational levels. 2. Organizational Barriers: This refers to internal competitiveness within dif- ferent business units, poor communication, or a physical work environment that restricts effective knowledge sharing. 3. Technological Barriers: This refers to the lack of integration of IT systems, the lack of compatibility between IT systems and processes, or the lack of training in regard to new systems and processes. Another barrier to knowledge transfer, as suggested by Tanriverdi and Iacono (1999) is economic barriers, defined as the failure to create a business model that is attrac- tive to all stakeholders. In addition, the impact of new markets from the adopter’s perspective is said to be a major concern. This barrier could be reduced by attach- ing reimbursements or compensations to the business model in question. Husain et al. (2017) elaborates on Porter (2008), J. Barney (1991) and Riege (2005) to connect the RBV with barriers to the transfer of technologies. Some of the suggested barriers are related to knowledge transfer barriers, such as the topic of motivation from lack of awareness, limited forecast and planning, and lack of clear demand. Other barriers relating to the resources of the recipient are lack of human resources, lack of infrastructure, and excessive government intervention and regula- tion. Lastly, Husain et al. (2017) targets the larger organization with barriers from lack of communication and inadequate information and technology systems. 2.3.8 Knowledge Transfer in Multinational Corporations Gooderham (2007) presents a framework that interlinks knowledge transfer in MNC’s with dynamic capabilities by determining a number of variation sources in knowl- edge transfer. The paper highlights that dynamic capabilities are a necessity in 20 2. Theoretical Framework successfully transferring knowledge across the external spatial, social and technical distances as suggested by Ghemawat (2001) by providing internal coordination and consistent links between units. The perspective of MNC as a knowledge network and the view on knowledge itself is a resemblance of the previously discussed (King & Zeithaml, 2003) definition, with structural-, relational- and cognitive social cap- ital being paramount to knowledge transfer (Gooderham, 2007). Structural social capital in this context refers to the relationships within the network itself, which could facilitate both the development of dynamic capabilities similar to the narra- tive of (McEvily & Zaheer, 1999) and facilitate the remaining two types of social capital through social interaction points. The relational dimension concerns the nature of the ties, where one of Gooderham (2007)’s main propositions is that a higher degree of relational social capital, or trust, will result in a higher degree of knowledge transfer. This is contradicted by a more nuanced addition of McEvily and Zaheer (1999) which emphasizes that large amounts of trust could obstruct knowledge transfer as it deters clarification. Lastly, cognitive social capital refers to the shared understanding of a given context, including terminology and systems. In doing so, cognitive social capital was also found to support the building of trust in MNC relationships (Gooderham, 2007). Although some aspects of MNC knowledge transfer models concern the definition of knowledge and its characteristics, the sourcing of knowledge should also be taken into account. MNC’s are naturally diverse and can therefore obtain knowledge not only internally from other units within the organization but also externally for in- stance from local education institutions, or a combination of both.Asmussen et al. (2013) suggest utilizing a combination of the knowledge sharing perspective and a resource-based view as it rules out what called "the bathtub perspective" on knowl- edge stock that is sometimes overflowing and instead advocates for a contextually changing knowledge resource. Furthermore, maintaining and transferring knowledge is associated with financial costs, which is increased by heterogeneity in its source (Asmussen & Goerzen, 2013). Another aspect that Asmussen and Goerzen (2013) highlights as affected by heterogeneous sourcing is the unwanted accommodation effect, where a unit alters their existing beliefs or knowledge as local information takes residence in the organization. This could lead to loss of knowledge that is valuable to the rest of the organization, as the knowledge is not only cumulative in a bathtub but context dependent and therefore exposed. When it comes to deliberately developing capabilities and enabling intra-MNC knowledge transfer Gooderham (2007) suggests three managerial practices, namely motivational mechanisms, transmission channels, and socialization mechanisms. Mo- tivational mechanisms are a recurring theme in knowledge transfers in MNC’s, and draw inspiration from the motivational aspect in the framework presented by Gupta and Govindarajan (2000) where diffusion of knowledge from one division in the or- ganization is opposed by actors that enjoy a information monopoly. Similar tenden- cies in the recipient are mentioned as potential barriers emanating from ego-defense mechanisms and power struggles. Here, knowledge is defined more as a stock item in the organization that can be transferred in one direction, which is more consistent 21 2. Theoretical Framework with Grant (1991) although the study did not go more into effects of the nature of knowledge itself, such as the degree of tacitness. Transmission channels influence the degree of structural social capital as managers can use formal proximity, that is, grouping divisions and units together, and the design of intranet systems to create social pathways where interaction can occur (Gooderham, 2007). The third practice aims to create socialization mechanisms that can internalize organizational goals and create mutual understanding. Ad- dressing cultural diversity is suggested as a key point in generating cognitive social capital while at the same time addressing motivational barriers. Chen and Lovvorn (2011) extends on the previous MNC model with the division of social capital into structural, relational, and cognitive dimensions. Similarly to Gooderham (2007), both formal and informal integration mechanisms are men- tioned to increase structural social capital, but in addition to trust and reciprocity, the study suggest that commitment and identity play a crucial role in increasing relational social capital. Although the definition of knowledge here is again more that of a resource, with certain costs associated with the creation, handling, and distribution of it, it is worth mentioning that the success of knowledge transfer in this study is measured by speed. 22 3 Research Objectives This chapter present key objectives. The objectives aims to bridge the gap between the theoretical framework and practical applications observed within the case company. The chapter presents four objectives, each with an individual area that will be the main guideline and observed simultane- ously in sprints to systematically explore organizational capabilities and how they can be deployed. This thesis is based on objectives rather than research questions. This is because the research process consists of an agile method using sprints where the objectives are explored simultaneously in each sprint. Two of the objectives, which are assess competitive environment and identify barriers mainly focus on descriptive explo- ration of the underlying contextual conditions. The other two, which is recipient site selection and transfer process and training, focus more explicitly on the transfer process and its content. These objectives will iteratively and collectively collect empirical findings that will be used to understand the implications. 3.1 Assess Competitive Environment The first objective is to understand how a competitive environment affects the ca- pability transfer process, the initial step could identify the competitive priorities in question. Determining specific aspects of the warranty operations that would affect how a capability is evaluated as a competitive advantage provides a foundation for examining the effects on the transfer process itself. 3.2 Identify Barriers With an established strategically appropriate target, an organization would turn its attention to the actual transfer of the capability in question. To better understand how this process is affected by being situated in a multinational corporation and the warranty operations, the objective is to identify barriers and other aspects that could hinder a successful capability distribution. Such aspects could be related to individual, organizational, or economic barriers that might serve as a barrier to effective transfer. 3.3 Recipient Site Selection After assessing and understanding the initial conditions, the objective is to propose how an organization can effectively initiate a program related to the deployment of 23 3. Research Objectives capabilities at a site. The proposal will consider multiple aspects, for example, staff and facilities. Initiating at a specific site allows for a better understanding of how well the organization manages deployment. Later, this site can serve as a reference point or a benchmark for other service sites in different geographical locations to better navigate the challenges of implementation. 3.4 Transfer Process and Training After determining the appropriate location, the objective is to establish a process through which the capability should be transferred. Considerations include the distribution and characteristics of training resources, conditions, and a suitable time frame to distribute the capability. Taking into account the interactions and necessary relations of these factors, a complete approach can be developed with standardized elements. 24 4 Method This chapter introduces the reader to the methodological approach. First, the research design and strategy followed by a description of the research process, then the data collection and data analysis methods. It introduces the agile sprint-based workflow that organizes data collection in an itera- tive manner. Finally, ethical consideration and research trustworthiness, which ensure that the research has been conducted responsibly. 4.1 Research Design and Strategy This thesis adopted a case study design, combining different methods and incorpo- rating a qualitative research approach to analyze the transfer of capabilities within an organization. According to Bell et al. (2019), a case study involves a detailed analysis of a particular case over a period of time to understand complex phenom- ena within their context and works well with a qualitative approach. A qualitative research approach can be described as "a research strategy that usually emphasizes words rather than numbers" (Bell et al., 2019). This approach enabled a deeper understanding of how a special capability and the knowledge required to manage it were transferred. Moreover, to understand how challenges are perceived by people engaged in the work in the company with their insights regarding the situation. Bell et al. (2019) further describes how a research strategy is commonly classified as inductive or deductive. An inductive strategy means that empirical observations of the case company form the basis for the insights, while in a deductive setting, the testing is more strict of pre-existing hypotheses (Bell et al., 2019). However, given the iterative nature of the study, where empirical insights and theoretical frameworks were refined in parallel, the research adopts an abductive approach as described by Dubois and Gadde (2002). An abductive strategy is suitable for a case study when the goal is to develop theoretical understanding through the matching of theory and empirical observations. This approach of using a combination aligned well with the structure with ongoing interpretations and refinement of perspectives. 4.2 Ethnographic Study The thesis partially adopted an ethnographic study format that was carried out in the case company. However, the researchers are aware that the study is not strictly an ethnographical study due to certain factors. None of the authors has been com- pletely immersed within all of the company divisions but have spent enough time to be able to draw insights. Bell et al. (2019) describes an ethnographic approach as "intense researcher involvement in the day-to-day running of an organization, so that the researchers can understand it from an insider’s point of view". The ethnographic tendencies of the study were supported by one of the authors being employed in the 25 4. Method company prior to and during this thesis. Additionally, since the transfer process itself was being prepared largely within the activities of the thesis, it was not a day-to-day operation that required constant company presence. An example of this is the sprint review meetings, elaborated further in this chapter. It was valuable that only one of the authors had prior experience within the organization, as this created an interesting exchange of perspectives with the one who did not. One consequence of such data collection layout where many data points are col- lected by being present in the company is that the empirical findings at many times become unstructured. Any data without clear origins can be assumed to come from various situations that occurred in the company during study periods, such as coffee talks, jokes, or comments attached to other topics. The study allowed for a better understanding of the company culture and workplace behaviors, with current issues related to special processes. These two aspects are described by Bell et al. (2019) as common focus areas during the conduct of an ethnographic study. In addition, Bell et al. (2019) describe how it is important to remember that conducting a full-scale ethnographic study requires the researcher to spend a considerable amount of time over a long period. Considering the scope of this project, the study could be considered to be a micro-ethnography, which involves focusing on a particular aspect due to time constraints (Bell et al., 2019). 4.3 Research Process - Sprint Workflow The research process in this thesis adopted an Agile-inspired workflow utilizing sprints. The agile methodology was originally developed in a software development context (Beck et al., 2001), and has since been applied in other contexts due to its ability to promote flexibility, stakeholder engagement and responsiveness to change (Conforto et al., 2014). The thesis was conducted with regular stakeholder meetings that ensured efficiency and continuous alignment both academically and also with the case company. The activities were divided into a weekly meeting with a representative from Chalmers University of Technology, while a 14-day sprint cycle engaged key stakeholders in the case company. This allowed for feedback loops and continuous alignment due to emerging insights. To ensure accountability and create a sense of urgency, a scrum board with a desig- nated team with a product and a sprint backlog contributed to a structured method with clear objectives and ensured that the information flow was effective. This aligns well with agile practices of using collaborative planning and visual workflows (Rigby et al., 2016). The sprint-inspired methodology was suitable for this thesis due to its dynamic nature. The case company had already initiated an internal project aimed at devel- oping the competence and capabilities within their organization in the Nordic region. 26 4. Method In this way, the project was able to continuously align with the case company and ensured relevance and facilitated the exchange of ideas. There were also multiple stakeholders involved, especially Alstom, which created uncertainty regarding ob- jectives and milestones. Regular, structured interval meetings helped mitigate these challenges. Figure 4.1: Working sprint methodology with a continuous feedback loop for effec- tive alignment. Throughout the thesis, in each sprint, the objectives were explored simultaneously across sprints, rather than isolating each aspect to a certain phase. Observing each aspect at the same time allowed the project to remain adaptable to new develop- ments and ensuring continuous alignment with the case company. If the project focused all its attention on one aspect, there was a risk of major changes if an obsta- cle or unanticipated event occurred. For example, the third objective considers the choice of a first site that could have been decided in one of the first sprints. However, if constraints related to language, training, or resources are only addressed in the fourth sprint, a sequential process might contradict earlier recommendations. Ob- serving each question, the project could integrate findings in a later stage without risking proposed solutions already in place. The project consisted of a total of four sprints. This was in part due to time con- straints, where the thesis had set aside time corresponding to five sprints, and a result of enough findings collected at the point of completion. In the beginning, time was needed to initiate the study and also to finish the project towards the end. The four sprints were conducted in between and were considered enough to explore the four research objectives. Each method required to investigate the research objectives is listed in Table 4.1 with the type of data the method extracts. It summarizes which research objectives are relevant for which method. Although most of the methods investigated all four research objectives, workshop and company documents where more relevant in understanding knowledge specifically due to the format of the workshop and the nature of the documents. 27 4. Method Table 4.1: Relevant methods used in investigating the four research objectives with what type of data extracted. Method Type of Data Relevant Research Objectives (RO) Data Collection Methods Interviews Qualitative insights into current issues with ca- pabilities and knowledge transfer RO1, RO2, RO3 & RO4 Workshop Shared perceptions, chal- lenges and potential solu- tions RO2 & RO4 Participant-as-Observer Contextual data on capa- bilities and knowledge RO1, RO2, RO3 & RO4 Company Documents Documented procedures, formal structures, past ef- forts RO2, RO3 & RO4 Data Analysis Methods Thematic Analysis Synthesized themes from qualitative data RO1, RO2, RO3 & RO4 Gap Analysis Identification of discrep- ancies between existing and ideal state RO2, RO3 & RO4 Mixed Method Sprint Review Meetings Observation and team feedback RO1, RO2, RO3 & RO4 4.4 Data Collection The main data collection method in this thesis has been interviews. However, to achieve a more credible result, the concept of triangulation has been applied. Bell et al. (2019) describes triangulation as the use of more than one method or data source in the study and works well in a qualitative research strategy. To achieve this, the thesis facilitated a workshop on site, as well as studied internal documents along with observations at the company. Each method has a motivation for how they contribute to the research objectives and is compiled in Table 4.1 for quick 28 4. Method reference. 4.4.1 Interviews The main data collection component during the sprints consisted of narrative in- terviews. This method provided valuable information on each research objective. Although most of the interviewees were able to provide plenty of information, cer- tain stakeholders had perspectives more relevant for the four research objectives. The more senior employees provided valuable insights regarding Research Objective 1 and 2 in particular. Employees engaged with the training program could provide information regarding Research Objectives 3 and 4. The interviews were conducted digitally in cases where participants were located outside of Sweden, e.g., Germany or Greece. The sampling technique consisted of purposive sampling and snowball sampling. Bell et al. (2019) describes purposive sampling as how participants are chosen strategically, which means that respondents were deliberately selected to collectively represent multiple functions and organiza- tional divisions, while the topics and prepared questions were similar. Moreover, with snowball sampling, interviewees recommend other relevant interviewees (Bell et al., 2019), which in turn is time-efficient and invites the people who are probably the most relevant for this study. By observing multiple perspectives on common topics, the combination of respondents aimed to provide not only role specific or contextually dependent insights, but also show potential conflicts of opinions or lack of communication. The interview topics were shared with the respondents 4-5 days before to offer some degree of preparation; however, the line of questioning and particular details were kept undisclosed in an effort to discourage respondents from communicating and aligning on answers, which would discredit findings related to the communication issue. The interviews were recorded and automatically transcribed using AI tools, which is recommended by (Bell et al., 2019). They further describe how recording serves as an important tool in not only remembering what people say but how they say it. Both researchers took individual notes, which were compiled into key takeaways immediately after each interview. The takeaways were then compared and sum- marized before being sent to the respondent for confirmation. The process aimed to minimize the risk of missing important takeaways and to refine the subjective judgment of relevance and significance. The most important takeaways from the interview were then compiled and summarized. Similarities or agreement between remarks were identified, as well as any contradictions. Remarks were sorted accord- ing to the thesis objective they most closely concerned with as a way to keep track of how balanced the sprint turned out to be and the holistic progress of it. The interviews were conducted until thematic exhaustion was reached, that is, until the interviews no longer contributed significantly to new insights. Towards inter- views 7 and 8, overlapping patterns and recurring themes started to emerge, which 29 4. Method shifted the focus to other aspects of the report such as analyzing insights or exploring potential implications. 4.4.2 Workshop The workshop, or "focus group", conducted in this thesis focused on exploring a specific topic to gather insights from a group of participants at a greater depth. Conducting a workshop was important to collect valuable information on Research Objective 2 and 4, as these insights contributed to the understanding of barriers and the willingness to absorb knowledge. Bell et al. (2019) describes how a focus group is characterized by "an emphasis in the questioning on a particular fairly tightly defined topic". This allowed for a discussion and collection of insights from different perspectives. The focus of the workshop in this thesis was to verify the information previously gathered from interviews and to also understand the perspective of the technicians on site who are directly affected by a special process, e.g., bonding. Some of the interviews had previously discussed the training program that a technician is re- quired to complete to be allowed to perform the Bonding procedure. Of four or five technicians, only one was able to pass it and, for that reason, the focus of the workshop explored the training program. The method used, as described by Alänge (2009) was an Affinity Interrelationship Mapping (AIM) session, exploring the barriers to knowledge absorption and training participation. The method consists of 10 steps and allowed an open and structured environment in which participants generated ideas around a guiding question and then organized these ideas to find the root causes. The guiding question were as follows: Why would someone not want to participate in a bonding training pro- gram? Participants were chosen according to convenience sampling, meaning those who were available at the time to participate (Bell et al., 2019). Three technicians par- ticipated with varying levels of experience and different ages, which gave different perspectives and insights on the topic. The workshop was held in the third sprint, with preparations made in the first and second sprints. In the final sprint, the insights uncovered were used in the implications. 4.4.3 Participant-as-Observer As part of the data collection, a study visit was made to one of the company’s ser- vice depots in Sweden. In this depot, the adhesive bonding process is performed on the trams. The visit allowed the researcher to directly engage in the context where knowledge would transfer, offering insights into interactions, tacit knowledge, and context-dependent learning processes which contributed to Research Objective 3 and 30 4. Method 4. In addition, the interaction with technicians allowed a better understanding of how capabilities can be adapted or reconfigured in a different setting, for example, introducing an aspect of competitiveness, which contributed to Research Objectives 1 and 2. The observation followed the participant-as-observer role, described by Bell et al. (2019), in which the observer is identifiable as a researcher, is present, and actively participates in the setting to better understand. The technicians had been informed of our presence and proceeded with a demonstration of the process at each step of the procedure. They further explained the methods and answered questions about the chemicals used, the protocols to follow, and the skills required. 4.4.4 Company Documents The thesis incorporated a range of internal documents provided by the case com- pany. The material includes formal training material, standard requirements, and criteria for special processes. The purpose of analyzing these documents was to gain a deeper understanding of the formal structure of special processes and to validate the claims from the interviews to increase credibility. The documents offer a useful contrast to the more dynamic and subjective insights gained from observations and interviews with its more formalized representation of practices and policies, which contributes to Research Objectives 2, 3 and 4. Bell et al. (2019) describes how documents, especially in case study research, can provide valuable background information about the company and its history. More- over, they further describe how documents can serve as a good way to build up a "timeline" perspective due to the previous managerial decisions made and docu- mented. To assess the trustworthiness of the documents, Bell et al. (2019) highlights four criteria: 1. Authenticity: is the documents of genuine origin? 2. Credibility: is the content free of errors? 3. Representativeness: is the document typical of its kind? 4. Meaning: is the content clear and comprehensible? All material was provided by the case company by authorized personnel. The doc- uments were free of errors, and had they been subject to such, the appropriate employee at the company would have been notified. The technical terminology and formatting were comprehensible, although advanced. 4.5 Data Analysis After the initial data collection, the data gathered were compiled and analyzed. The main method was thematic analysis, which Bell et al. (2019) describes as the most 31 4. Method widely used strategy for qualitative data analysis. In addition, a gap analysis was performed to understand the current state in comparison to the desired state of the service depot. 4.5.1 Thematic Analysis Following the transcriptions and the cleaning of the data, a thematic analysis was performed. According to Bell et al. (2019), thematic analysis can be described as a method that involves the search for themes and patterns in data sets. This is suitable when research aims to understand how participants interpret environments. The analysis allowed for a systematic identification of recurring patterns, remarks, and frequencies across interviews, providing a structured approach to uncovering insights relevant to Research Objective 1, 2, 3 and 4, such as how knowledge is transferred and competitive priorities. It is important to mention that the thematic analysis did not place weight on the different remarks and frequencies. Instead, it allowed for an understanding of whether multiple roles and different divisions had the same view or were all affected by a particular insight. Displaying similarities or contradictions in this way aimed not to give a conclusive importance metric in the thesis scope, but to show what different stakeholders viewed as important and if others shared that opinion. 4.5.2 Gap Analysis A gap analysis was performed that compared the current conditions of a service site with the desired future state. Kim and Ji (2018) describes the gap analysis as a tool to identify where gaps are and the difference between the current situation and "what ought to be". The analysis can contribute to a better understanding of the critical areas where managers should take action (Kim & Ji, 2018). The idea was to highlight potential barriers and understand what was missing to ensure that bonding could be performed long-term at the site. The analysis allowed for identify- ing shortcomings, as well as revealing inconsistencies contributing to both Research Objective 2, 3 and 4. The gap analysis was made possible after visiting the depot, observing, and inter- viewing the technicians. The analysis identified critical defections, such as unclear process ownership, the state of the facility, and safety procedures. The method was iterative across multiple sprints, using findings from interviews, observations, and documents. 4.6 Sprint Review Meetings After each sprint, stakeholders were invited to a sprint review meeting that presented the findings of that particular sprint. This allowed for continuous alignment and feedback on the findings. The structure of the presentation can be seen in Figure 4.2. The sprint summary summarized the activities that had taken place, followed by the finding of these activities. The implications highlighted similarities and con- tradictions in relation to the theory explored in the thesis. The final step consisted 32 4. Method of planning the next sprint with an update to the sprint backlog. After the presen- tation, the meeting was open for suggestions and discussion of additional topics and comments related to the findings. The meeting opened up for discussions regarding the research objectives and how the process can better align to keep investigating in an efficient way, subsequently contributing to Research Objective 1, 2, 3 and 4. Figure 4.2: The structure of the bi-weekly sprint review meeting with stakeholders. The sprint review meeting functioned as both a data collection method and an ana- lytic forum. The empirical findings from the sprints were presented to stakeholders, and the discussion offered a valuable opportunity to observe how the participants interpreted, processed, and challenged those findings. Sprint Review 1 The first sprint review meeting was held with 13 participants representing services, technical training, production operations and product introduction support, as well as different managerial functions. The meeting focused on presenting the initial scope of the thesis and the research objectives the study would explore. The main findings from the first sprint were presented, which were mainly from the first 7 interviews conducted. The meeting then turned into a discussion regarding the next steps. Sprint Review 2 The second sprint review meeting presented an attempt to conduct a financial analy- sis, forecast demand, and gap analysis. Most of these had been difficult to complete because of unavailable data. For that reason, the meeting focused on discussing the availability of data and the lack of communication channels, highlighting the barriers identified between functions and the need for representation and ownership. Sprint Review 3 The third sprint review meeting presented the study visit to the service depot where an interview and workshop was held. The AIM-workshop was presented with the findings which was very valuable because it allowed the white collar workers to un- derstand the priorities of the blue collar workers. Moreover, a process map was presented that highlighted where explicit and tacit knowledge was the most promi- nent in the chain of events. Finally, the previously started gap analysis was finalized and presented, highlighting the current state compared to a desired state. Sprint Review 4 The final sprint review meeting focused on summarizing the work so far. It presented 33 4. Method the activities that had been made with similarities and contradictions between the different data collection methods. The findings so far in relation to competitiveness, knowledge transfer with barriers and ownership and representation was presented. 4.7 Ethical Considerations Ethical considerations are important in maintaining trustworthiness and rigor of qualitative research, considering that most of the data collected in this thesis is from structured interviews. According Bell et al. (2019), ethical research ensures that the study is conducted in a respectful manner with respect to participants and the data. There are four main criteria for the evaluation: 1. Credibility: Ensure findings and insights acculturate reflect the participants experience. 2. Transferability: Understanding and creating "thick descriptions" to enable application in other environments. 3. Dependability: Adopting an "auditing" approach where records are kept to maintain consistency and transparency. 4. Confirmability: Ensure the research is conducted in good faith without per- sonal values influencing the result. Ethical considerations have been part of each step in the process throughout this thesis, particularly during interviews when interacting with employees. Moreover, Bell et al. (2019) highlights four ethical principles that should be considered when conducting business research: Harm to Participants In this thesis, the risk of harm to the participants was close to zero. Each interview was conducted online due to the fact that participants involved were located in various geographical locations such as Sweden, Germany, Greece etc. The information shared during the interviews was treated confidentially. Participants were not subjected to risks such as emotional or professional. The use of insights was treated in a way that avoided misrepresentation and would not jeop- ardize their professional standing. To ensure this, at the end of an interview, key takeaways were sent to the participant for confirmation. Informed Consent Participants was informed of the purpose of the research and how their participation and the provided data will be used. When interviews were recorded, the participant was informed of this and provided the opportunity to ac- cept or decline participation under these conditions. Invasion of Privacy To protect the privacy of participants, the names of the partic- ipants were kept anonymous in the report. Sensitive data from internal documents or from the interviewee was treated with discretion. Considering that this work was performed at Alstom, it was important to ensure that Alstom understood and could affect how their data and privacy were handled to safeguard sensitive information. 34 4. Method Alstom had the right to participate and to oversee how their data were used and to control company details. Deception This study and the reporting were conducted without deception. Com- munication and reporting reflect the true intent of the research and the data is transparent. The integrity of the participants was respected and their insight was presented in a way that reflects their true meaning. The integrity of the research was conducted without bias and objectively to ensure proper citation of previous work with a fair and correct image of the work already recognized. 4.8 Research Trustworthiness This study has been designed to ensure trustworthiness in its different phases. Mul- tiple methods were used to validate the results of interviews and workshop with, for example, observations, which adds to credibility, with findings based on more than one perspective (Bell et al., 2019). Various methods contributed to the principle of triangulation as described by Bell et al. (2019). The anonymity of the interviewees should be kept to avoid negatively affecting any participant, both emotionally and professionally, according to good research ethics (Bell et al., 2019), a principle that was honored in this thesis. To ensure dependability as described by Bell et al. (2019), the interview transcripts were kept if consent was given to record them on the company hard drive. Multiple different stakeholder were invited to the interviews. This ensured that the study considered many different perspectives which is recommended by Bell et al. (2019). Sensitive documents have been securely stored on the organization’s internal sys- tems, which ensures data integrity and confidentiality. The theoretical framework was designed with academic sources published in peer- reviewed scientific journals. The articles were reviewed to ensure that one does not "reinvent the wheel" as described by Bell et al. (2019). The research process has been clearly documented and systematically followed wit