<abstract xmlns="http://www.w3.org/1999/xhtml"><p>State-owned companies are typically trapped in a bureaucratic system that means they experience difficulties undertaking changes and adapting to environmental changes. Whenever these companies attempt a strategic maneuver, a series of complex bureaucratic procedures must be followed. As a result, the companies are late in responding to environmental changes. This study discusses how the state-owned companies transform their organization with the support of dynamic capabilities. XT Square, a company owned by the local government in Indonesia, is used as the subject of analysis. XT Square is engaged in property. During the course of its organizational transformation, the company found it difficult to fit with customers’ needs because of the difficulties in understanding market conditions. The company then established alliances with other firms to overcome resource shortages. The results of the analysis demonstrate that the process of building these alliances was not linear; rather, it was iterative in nature. At a certain level, XT Square is required to undertake trial and error. At the end of the paper, a suggestion for further research is provided.</p></abstract>

State-owned companies are typically trapped in a bureaucratic system that means they experience difficulties undertaking changes and adapting to environmental changes. Whenever these companies attempt a strategic maneuver, a series of complex bureaucratic procedures must be followed. As a result, the companies are late in responding to environmental changes. This study discusses how the state-owned companies transform their organization with the support of dynamic capabilities. XT Square, a company owned by the local government in Indonesia, is used as the subject of analysis. XT Square is engaged in property. During the course of its organizational transformation, the company found it difficult to fit with customers’ needs because of the difficulties in understanding market conditions. The company then established alliances with other firms to overcome resource shortages. The results of the analysis demonstrate that the process of building these alliances was not linear; rather, it was iterative in nature. At a certain level, XT Square is required to undertake trial and error. At the end of the paper, a suggestion for further research is provided.

Alliances as Dynamic Capability to Support Organizational Transformation: Empirical Findings from a State-Owned Enterprise

Foundations of Management

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

State-owned companies are typically trapped in a bureaucratic system that means they experience difficulties undertaking changes and adapting to environmental...

Alliances as Dynamic Capability to Support Organizational Transformation: Empirical Findings from a State-Owned Enterprise

Published Online: May 22, 2019

Page range: 93 - 102

DOI: https://doi.org/10.2478/fman-2019-0008

Keywords
alliance, dynamic capabilities, collaboration, organizational transformation, knowledge management

© 2019 Anjar Priyono et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Alliances as Dynamic Capability to Support Organizational Transformation: Empirical Findings from a State-Owned Enterprise

Published Online: May 22, 2019

Page range: 93 - 102

DOI: https://doi.org/10.2478/fman-2019-0008

Keywordsalliance, dynamic capabilities, collaboration, organizational transformation, knowledge management

© 2019 Anjar Priyono et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
alliance, dynamic capabilities, collaboration, organizational transformation, knowledge management