Managing routine emergence: the Neste case

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Journal Title

Journal ISSN

Volume Title

School of Business | Master's thesis

Date

2017

Major/Subject

Mcode

Degree programme

Management and International Business (MIB)

Language

en

Pages

106 + app. 2

Series

Abstract

Changes in organizations and in the operating environment occur on a regular basis. In the context of organizational routines, this indicates that routines will remain, change, emerge or be unlearned. Yet, routine emergence and managerial role in routines lacks previous academic research. Managing routine emergence is a somewhat contrasting concept, which offers an interesting starting point to examine the topic. The purpose of this study is to be describe routine emergence and the managerial role in routines. The study aims to shed light on understanding the phases of routine emergence, factors affecting the emergence as well managerial role in the process and the way to verify competence in routines. To achieve this, the study adopts a practice-based view of routines. The research builds on critical realism approach. The empirical part of the research was conducted as a case study with three embedded cases of investment projects in which the emergence of new operating routines was examined. The case company was Neste, a Finnish company that operates on a global market in three business areas: oil products, renewable products, and marketing & services. Sources of data collection consisted of participant observation, 15 semi-structured interviews, and documentation. The study reveals that routine emergence consists of three main phases: routine content definition, routine learning, and routine implementation in practice. The findings indicate that routine emergence cannot be fully planned since unexpected issues take place during the routine implementation. The study highlights the importance of operator involvement in each phase of the routine emergence. “Building your own house” was seen as descriptive representation for operator involvement in projects. Interestingly, operators acquire a comprehensive understanding of the process during the project work, but still a considerable part of learning takes place during and after the routine implementation. During this period, attentiveness, ability to understand how the process works against the guidelines and planned routines, readiness to surprises, and flexibility in operations are needed. Moreover, the study shows that it is critical to verify competence in routines. This study thereby has two theoretical contributions: new routine emergence and the managerial role in routines. The research provides with four practical implications for managers: 1) managing routine emergence is essential, 2) routine content definition extends beyond a specific routine, 3) well-planned trainings enable and enhance routine learning, and 4) routine implementation implies changes to the planned routine.

Description

Thesis advisor

Sele, Kathrin

Keywords

organizational routines, routine emergence, managerial role, mindfulness

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