By taking advantage of the opportunities presented to it, the middle management was also able to sell the idea and practices of the collaborative network to the decision-makers of the group. This shows that changes in business operations do not always need to be initiated by the top executives; the middle management is also capable of doing it.
These are some of the findings presented by Matti Virkki, Lic.Sc. (Econ.), in his doctoral dissertation for the Aalto University School of Business. Virkki examines the changes in the fertilizer business, the main field of operations of the Kemira Corporation. As a result of the transformation, Kemira’s fertilizer division, which until then had been a functions-based business unit in the corporation, developed into Kemira GrowHow, an independent network-oriented and offerings-based company.
The transformation of the fertilizer business was total; it led to the establishment of an independent company outside the Kemira Corporation. In his dissertation, Virkki constructs an explanatory mechanism describing the creation of GrowHow and provides an answer to the question what brought about the transformation of the fertilizer business. The mechanism involved four expanding groups of actors operating across organizational boundaries. It was these groups that created GrowHow.
Virkki also concludes that the differences in opinion between the top executives and middle management of an industrial group on how the operations should be developed do not necessarily prevent the middle management from carrying out a business transformation. Despite the disagreements between the two groups, the middle management has good chances of achieving radical changes in the business operations.
Virkki developed a new way of analyzing business transformation
In his dissertation, Virkki developed a new model for examining business transformation, which is based on the analysis of the actor groups and their learning potential. Using a three-level and four-phase explanatory mechanism, he describes what was required of the business unit’s top management so that the transformation could be successfully completed.
Virkki is one of the first researchers who examine a business transformation by describing and analyzing material that also covers the actor level.
Public examination of the doctoral dissertation
The doctoral dissertation of Matti Virkki, Lic.Sc. (Econ.), M.Sc. (Mgmt), M.Sc. (Agric.), Actor groups in the transformation of the dominant business corporation - the emergence of Kemira GrowHow, in the subject area of management and international business, will be examined at the Aalto University School of Business on Friday 7 December 2012, at 12 noon.
Research Professor Raimo Hyötyläinen from VTT Technical Research Centre of Finland will act as the opponent and Professor Kari Lilja as the custos.
Representatives of the media may request free copies of the dissertation from Aalto University School of Business Communications Unit (email viestinta-biz@aalto.fi or call +358 50 566 5673). You can also order a copy of the dissertation by emailing to: toolo@ayy.fi.
The dissertation in PDF format
Further information: Matti Virkki, tel. +358 500 406 407, matti.virkki@visionleaders.fi