Navigating the Tides of Change - Organisational Change through the Lens of Virus Theory

Abstract

In the constant evolving and competitive environment of the automotive industry, organisational adaptability is crucial for survival and success. This thesis examines the transformative journey of Volvo Cars as it transitions to a direct-to-consumer (DTC) business model, utilising the virus theory to analyse the process and its unintended consequences. Building on the concepts of isomorphism and institutional theory, this thesis explores how Volvo Cars, through external competitive pressures and internal strategic imperatives have adopted and implemented a new business model. Through a case study, the research highlights key parts of the transformation, including infection, incubation, mutation, replication, and dormancy. The findings reveal insights into the complexities of organisational change and the internal challenges confronted during the transformation. By integrating virus theory into the analysis, this paper provides a novel perspective on organisational change, offering practical recommendations for companies undergoing similar transitions. The study contributes to the broader understanding of isomorphism and institutional change, emphasising the importance of strategic alignment and adaptability in achieving sustainable organisational success.