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When Innovation Becomes Crisis: Organizational Inertia, National Culture, and the Challenge of Disruptive Change. The Case of Volkswagen and the EV Market
Meloni, Elena
Meloni, Elena
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Abstract
The global shift toward electric mobility represents one of the most significant technological disruptions in the automotive industry. While emerging EV firms adapted rapidly, several incumbents—most notably Volkswagen—responded more slowly despite having the scale, capabilities, and early awareness to lead the transition. This thesis investigates why Volkswagen delayed its strategic commitment to electrification and how organizational and cultural factors shaped this trajectory.
The study adopts a qualitative single-case design with embedded comparative elements, drawing on secondary data to analyse Volkswagen’s
strategic, operational, structural, and cultural dynamics in relation to the EV transition. Findings reveal that Volkswagen’s delay resulted from a multi-layered system of organizational inertia, including path-dependent strategic reasoning, temporal hesitation prior to Dieselgate, operational bottlenecks in software and platform development, and structural constraints associated with its dual-board governance system.
The analysis also shows that German national cultural characteristics—particularly high uncertainty avoidance, expertdriven consensus, and long-term orientation—reinforced stability-oriented behaviour and conditioned organizational responsiveness. Comparative contrasts with Chinese EV firms further highlight how different cultural–institutional environments influence adaptation speed.
The study contributes to innovation and organizational theory by
illustrating how internal rigidities and cultural contexts interact during technological paradigm shifts. Practically, it offers insights for managers and policymakers seeking to enhance strategic agility in industries undergoing rapid transformation.
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2025
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Keywords
Disruptive innovation, Organizational inertia, Electric vehicle transition, Strategic delay
Citation
Meloni, Elena. "When Innovation Becomes Crisis: Organizational Inertia, National Culture, and the Challenge of Disruptive Change. The Case of Volkswagen and the EV Market". BA in International Business Capstone, John Cabot University, Rome, Italy. 2025.