The case of Saab Automobile AB; From core capabilities into core rigidities - A trajectory towards demise
Abstract
This master thesis is addressing the case of Saab Automobile AB, creating a full historical
reconstruction using primarily extensive quotes derived from semi-structured interviews with
former Saab employees and other relevant actors. The aim is to depict and discuss the roots
behind the company’s historically unique capabilities and its trajectory towards failure, together
with the influence of General Motors’ ownership in this detrimental process. The empirics
suggest that Saab’s sustained competitive advantages were mainly based on core capabilities
derived from historically determined knowledge accumulations. However, the huge success of
the company based on engineering core capabilities paradoxically evolved into core rigidities
which enhanced a technocratic culture, decreasing the strategic and organizational fit with
General Motors. This cultural clash was nevertheless not the only reason for Saab’s demise;
low production volumes and General Motors’ mismanagement created a situation where the
development of dynamic capabilities were inhibited. Due to the lack of reconfiguration of
knowledge assets, the core capabilities of the firm faded over time, leading the company into
becoming a shadow of its past, unable to cope with future challenges. This path towards demise
ended in December 2011 when Saab Automobile AB, an icon of the automotive industry, went
into bankruptcy.
Degree
Master 2-years
Other description
MSc in Knowledge-based Entrepreneurship
Collections
View/ Open
Date
2016-09-21Author
Buzzoni, Giacomo
Eklund, Magnus
Keywords
Automotive
M&A
Cultural clash
Sustained competitive advantages
Core capabilities
Core rigidities
Dynamic capabilities
Reconfiguration
Series/Report no.
Master Degree Project
2016:148
Language
eng