Author: Ryan Jang
Jang, Ryan, 2024 Organisational dynamic capability for innovation waves in the Australian heavy industry, Flinders University, College of Business, Government and Law
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The heavy industry, a cornerstone of Australia’s economy, faces distinct challenges necessitating the adoption of advanced technologies to maintain global competitiveness. Unlike standardised manufacturing, the heavy industry requires customised technological solutions that seamlessly integrate with existing processes and infrastructure. This thesis addresses the organisational capabilities that are crucial for a successful transformation using advanced technologies, focusing on the shipbuilding, mining, and oil and gas sectors. The existing literature on organisational capability has primarily employed dynamic capability theory, concentrating on digital transformation and Industry 4.0, while neglecting the interconnected nature of Industry 5.0. Studies on organisational dynamic capabilities have often been fragmented, with limited categorisation under sensing, seizing and reconfiguring capabilities, and have seldom been conducted within the heavy industry context. Further, the existing research has inadequately explored the interrelationships among these capabilities.
This thesis aimed to investigate the organisational dynamic capabilities required for a successful transformation for the waves of innovation, namely digital transformation, Industry 4.0 and Industry 5.0, in the Australian heavy industry. The central research question explored how the Australian heavy industry builds organisational dynamic capabilities for these innovation waves. A qualitative research methodology was employed, comprising 24 semi-structured interviews with Australian heavy industry practitioners, including one Chief Operating Officer, 12 managers and 11 senior engineers, each with a minimum of three years’ experience in transformation processes in innovation waves.
The findings revealed 10 capabilities and 41 attributes under the categories of sensing, seizing and reconfiguring. Additionally, 25 interrelationships were identified, and reconfiguring capabilities, particularly leadership, communication, and cultural transformation emerged as the most significant. The thesis findings highlighted sector-specific differences, noting that, despite government transformation initiatives fostering a digital vision and strategic alignment in the shipbuilding sector, the findings may not fully capture its innovativeness. In contrast, the mining sector focuses on purpose-driven technology adoption, while the oil and gas sector is shaped by external influences. The thesis found that all three sectors exhibit distinct innovative characteristics, each driven by their unique priorities and external pressures. Age differences also affected innovation processes, with older employees providing valuable product knowledge despite resistance to new technologies, while younger employees are more open to change but may lack industry-specific expertise.
This thesis concluded that sensing (strategic foundation, knowledge management), seizing (value recognition, implementation strategies, resistance management) and reconfiguring (continuous integration, leadership, communication, cultural and skill transformation) capabilities are vital for successful transformations in the Australian heavy industry. Understanding their interrelationships, particularly the significance of leadership and communication, is critical. The implications for the Australian heavy industry include the need to develop tailored organisational capabilities aligned with sector-specific challenges. For policymakers, several strategic recommendations for navigating the innovation waves were made, including strengthening strategic foundations, fostering knowledge sharing, supporting tailored value recognition, promoting clear communication, facilitating continuous integration, enhancing leadership development, encouraging cultural transformation and investing in skill transformation. These measures are aimed at ensuring sustained competitiveness and growth in the Australian heavy industry.
Keywords: innovation, dynamic capability, technology management, industry 4, industry 5, heavy industry
Subject: Business thesis
Thesis type: Doctor of Philosophy
Completed: 2024
School: College of Business, Government and Law
Supervisor: Adela McMurray