Tahiya Hussain Ine Reinemo Master Thesis Network Capabilities in Project-Based Organizations: A Case Study of Avantor AS Hand-in date: 01.09.2016 Campus: BI Oslo Exam Code: GRA 19003 Name of Supervisor: Lena Bygballe Programme: Master of Science in Business - Major in Strategy “This thesis is a part of the MSc programme at BI Norwegian Business School. The school takes no responsibility for the methods used, results found and conclusions drawn." Master Thesis GRA1903 01.09.2016 Content CONTENT ........................................................................................................................................ I! 1. INTRODUCTION ........................................................................................................................ 1! 1.1 BACKGROUND .......................................................................................................................... 1! 1.2 PROBLEM STATEMENT .............................................................................................................. 2! 1.3 EMPIRICAL SETTING ................................................................................................................. 3! 1.4 AGENDA ................................................................................................................................... 5! 2. RESEARCH METHODOLOGY AND METHODS ................................................................. 7! 2.1 RESEARCH STRATEGY ............................................................................................................... 7! 2.2 DATA COLLECTION ................................................................................................................. 12! 2.4 DATA ANALYSIS – MATCHING, DIRECTION AND REDIRECTION ............................................. 18! 2.5 ENSURING QUALITY IN THE RESEARCH .................................................................................. 19! 3. THEORETICAL FOUNDATION ............................................................................................ 22! 3.1 A NETWORK BUSINESS CONTEXT ........................................................................................... 22! 3.1.1 Strategizing in a Network Business Context .................................................................. 25! 3.1.2 Network Capabilities ..................................................................................................... 26! 3.1.3 The Creation of Network Capabilities ........................................................................... 28! 3.2 COMPLEX PROJECT AS A NETWORK SETTING ......................................................................... 32! 3.2.1 Challenges in Complex Projects .................................................................................... 33! 3.2.2 “No project is an island” ............................................................................................... 34! 3.3 NETWORK CAPABILITIES IN PROJECT BASED ORGANIZATIONS (PBOS) ................................. 35! 3.3.1 Project Capabilities as a Response to Uncertain Environments ................................... 36! 3.3.2 Organizational Capabilities as Important Building Blocks ........................................... 38! 3.3.3 Dynamic Capabilities in order to Improve Network Capabilities ................................. 39! 3.4 TOWARDS A FRAMEWORK FOR UNDERSTANDING NETWORK CAPABILITIES .......................... 40! 3.4.1 Establishment of Relationships ...................................................................................... 41! 3.4.2 Maintain Relationships .................................................................................................. 42! 3.4.3 Learn from Relationships ............................................................................................... 44! 3.4.4 Learning Loop, Making the Process Iterative ............................................................... 44! 3.4.5 Dynamic Perspective of the Process .............................................................................. 46! 4. FINDINGS AND ANALYSIS .................................................................................................... 47! 4.1 BACKGROUND AND CONTEXT ................................................................................................ 47! 4.2 OVERVIEW OF CASE COMPANY .............................................................................................. 50! 4.2.1 The Organization ........................................................................................................... 51! 4.2.2 The Properties and Projects of Avantor ........................................................................ 51! i Master Thesis GRA1903 01.09.2016 4.2.3 The Network of Avantor ................................................................................................. 53! 4.2.4 The Re-location of BI Business School .......................................................................... 54! 4.3 CREATE AND SUSTAIN NETWORK CAPABILITIES IN AVANTOR ............................................... 55! 4.3.1 Foundation for making Nydalen an Attractive Area ...................................................... 56! 4.3.2 Establish Relationships .................................................................................................. 58! 4.3.3 Maintain Relationships .................................................................................................. 63! 4.3.4 Learn from Relationships ............................................................................................... 67! 4.3.5 Summary ........................................................................................................................ 68! 5. DISCUSSION .............................................................................................................................. 70! 5.1 THE NETWORK CAPABILITIES CREATION PROCESS ................................................................ 70! 5.1.1 Establish Relationships .................................................................................................. 70! 5.1.2 Maintain Relationships .................................................................................................. 73! 5.1.3 Learning from Relationships .......................................................................................... 76! 5.2 HOW TO SUSTAIN NETWORK CAPABILITIES ........................................................................... 77! 5.2.1 The Iterative Process in Avantor ................................................................................... 77! 5.2.2 Dynamic Capabilities Sustaining Network Capabilities ................................................ 80! 5.2.3 Main issues Contributing to the Strategizing in Networks ............................................ 81! 6. CONCLUSION ........................................................................................................................... 83! 6.1 KEY FINDINGS ........................................................................................................................ 83! 6.2 MANAGERIAL IMPLICATIONS .................................................................................................. 85! 6.3 LIMITATIONS .......................................................................................................................... 86! 6.4 FURTHER RESEARCH ............................................................................................................... 87! 7. REFERENCE LIST ................................................................................................................... 89! 8. EXHIBITS ................................................................................................................................... 98! EXHIBIT 1: INTERVIEW GUIDE AVANTOR ..................................................................................... 98! EXHIBIT 2: INTERVIEW GUIDE BI ............................................................................................... 100! EXHIBIT 3: INDUSTRY OVERVIEW .............................................................................................. 101! EXHIBIT 4: OVERVIEW OF AVANTOR’S PROJECTS AND PROPERTIES ........................................... 103! EXHIBIT 5: COPY OF BI AND AVANTOR CONTRACT ................................................................... 104! 9. APPENDICES ........................................................................................................................... 115! Appendix 1- Preliminary Thesis Report ................................................................................ 115! ii Master Thesis GRA1903 01.09.2016 Acknowledgements We would like to thank our supervisor, Lena Bygballe, Associate Professor and Head of Centre for the Construction Industry at the Department of Strategy and Logistics at BI Norwegian Business School. Her guidance’s and insights on the relevant topics and theory provided a solid foundation to our research. Especially her expertise within the construction industry has contributed to our analysis. In addition, sharing her knowledge and reflection has been invaluable throughout the whole process. Lena’s help and referrals to key individuals within Avantor AS and BI Norwegian Business School has been the key instrumental to this thesis. Furthermore, we are grateful for the time and commitment provided by the management at Avantor AS including Managing Director Øystein