Impact Of Strategic Change on Ericsson Company Performance Through Organizational Learning

Abstract

This study examines the role of strategic change on Ericsson's company performance through organizational learning, where to form a strong strategic change requires TMT knowledge capabilities, organizational commitment and transformational leadership. This study uses a quantitative and qualitative approach. Data is collected from 92 business units in Ericsson's 23 regional branches in the Asia & Australia Region. This study uses Structural Equation Modeling (SEM) analysis, where the results of this research analysis indicate that company performance will increase from the indirect influence of TMT knowledge capabilities and organizational commitment mediated by strategic changes and organizational learning. However, transformational leadership does not have a significant effect on strategic change so that transformational leadership has no effect on performance. Some of the factors that hinder transformational leadership at Ericsson include limited authority and cultural differences between leaders and leadership areas.

Keywords: TMT knowledge capability, organizational commitment, transformational leadership, strategic change, organizational learning, organizational performance