Resolving Identity Crises in Incumbent Firms: Strategy Making in the Digital Age

In today’s turbulent business environment, strategy making in incumbent firms is increasingly about managing and resolving “identity crises”, i.e. about reinterpreting established understandings of “who we are as an organization”. Based on an in-depth case study of a large European car manufacturer, this paper extends research on incumbent adaptation in two ways: First, it is shown how identity-based approaches to strategy making can unlock untapped strategic potential for directing and leading transformative change. Second, by illuminating evolving processes and practices of strategy making, the goal is to develop an integrative framework for organizing constant adaptation and mobilizing key stakeholders’ support. In essence, the results nurture hopes that if carefully managed, having a proud, long-standing identity can play out as a blessing rather than a burden.