From Intention to Inertia: The Triad of Tensions in Service Transformation A Case Study of Strategic Transformation in a Swedish Automotive Company from a Paradox Theory Perspective

Abstract

As industrial firms attempt to shift from solely being a product-based operation to include service initiatives, internal tensions often emerge that challenge the organization’s ability to execute strategic intentions. This study explores how such organizational tensions are manifested and managed in a Swedish multinational automotive company undergoing a strategic service-transformation. When analyzing the empirical data through the lens of paradox theory, we identify a mutually reinforcing triad of tensions: diffusion, hesitation, and identity. These tensions cut across paradox dimensions and interact over time, forming a self-sustaining dynamic that reinforces organizational inertia. Structural ambiguity (diffusion), organizational resistance (hesitation), and attachment to the product legacy (identity) continually amplify and sustain one another, making the transformation increasingly difficult despite clear strategic ambitions. This study contributes to paradox theory by illustrating how tensions are not only coexisting but interdependent, often managed implicitly in everyday practice rather than through coordinated balancing strategies. Practically, the study provides insight into why well-intentioned transformation initiatives may stall and offers a more nuanced understanding of how tensions unfold and become embedded in large industrial organizations.