Jacob Nymark Poulsen

: a case study of Danfoss´ Core & Clear strategy and its implications for the company´s performance during the COVID-19 pandemic

Abstract

The literature on dynamic capabilities is lagging behind on case studies that can assist the strand in achieving theory status. Therefore, this thesis’ contribution is a case study of Danfoss and the impact of its Core & Clear strategy, which the company implemented in the aftermath of the GFC. The research examines, firstly, if Danfoss improved its financial
performance in 2020 (the COVID-crisis) compared to 2009 (the GFC) before the Core & Clear strategy was implemented in 2010. I also take the preceding years for each crisis into account, making the entire period of analysis span from 2000 to 2020. Here I find that the Core & Clear strategy is correlated to improvements in all variables that relate to efficiency and profitability, meanwhile, revenue growth was worsened. Secondly, I inspect Core & Clear’s impact on Danfoss’ dynamic capabilities. Based on semi-structured interviews, I conclude that Danfoss improved all propensities of dynamic capabilities based on Barreto’s (2010) definition. Lastly, I triangulated these conclusions with third-party experts, which supported that Danfoss’ Core & Clear strategy would have improved the company’s ability to handle the COVID-crisis. The implication of the research is, firstly, a support of the links from dynamic capabilities to profitability and efficiency. Secondly, I find that dynamic capabilities are important for Danfoss’ industry and environment, contributing to a resolution of these disputes in academia. Lastly, further research would enrich the literature by substantiating
these findings through other methods such as longitude, comparable research designs and observational studies.

Date of Award	2 Jul 2021
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Ricardo Reis (Supervisor)