Evolution of Strategies and Dynamic Capabilities in the Auxiliary Private Education Sector During the Coronavirus Pandemic

Zinkevicius, Jonas

4. semester

Entrepreneurial Engineering, Master

2021

2021-06-02

67

COVID-19 caught many firms off guard and made customers more cautious. This thesis examines how small and medium-sized enterprises (SMEs) in Lithuania’s auxiliary private education sector (private education services that complement formal schooling) adapted their strategies and “Dynamic Capabilities” (the ability to adjust and reorganize quickly) during the pandemic, and what can be learned. We conducted a comparative multiple case study based on three in-depth semi-structured interviews with SMEs and supporting secondary sources. Using content analysis, we looked for patterns across cases. To make cases comparable, we set prerequisites so all firms faced similar market conditions. The study focuses on how these SMEs developed Dynamic Capabilities, formed strategies under uncertainty, used (or lacked) foresight, and handled risk and crisis management. We also relate the cases to existing theory and discuss external influences and near-term trends in the sector. Findings show that firms shifted from in-person to remote (digital) delivery of educational services. This required further development of Dynamic Capabilities and close monitoring of fast-changing customer needs. Even companies with strong competitive advantages were significantly challenged; Dynamic Capabilities helped but did not provide full protection when customer behavior changed rapidly and unpredictably. Risk and crisis management were largely ad hoc, raising the question of whether more systematic foresight could have reduced the impact—or whether the crisis was an unforeseen shock that accelerated digital transformation and set a new direction for the sector.

COVID-19 ramte mange virksomheder uforberedte og gjorde kunder mere forsigtige. Denne afhandling undersøger, hvordan små og mellemstore virksomheder (SMV’er) i Litauens supplerende private uddannelsessektor (ydelser, der supplerer den formelle skolegang) tilpassede deres strategier og "dynamiske kapabiliteter" (evnen til hurtigt at tilpasse og omstille ressourcer) under pandemien – og hvad vi kan lære af det. Vi gennemførte et komparativt fler-casestudie baseret på tre dybdegående, semistrukturerede interviews med SMV’er samt supplerende sekundære kilder. Med indholdsanalyse identificerede vi mønstre på tværs af sagerne. For at gøre dem sammenlignelige fastsatte vi forudsætninger, så virksomhederne stod over for lignende markedsvilkår. Studiet fokuserer på, hvordan SMV’erne udviklede dynamiske kapabiliteter, lagde strategier under usikkerhed, brugte (eller manglede) strategisk fremsyn og håndterede risiko- og krisestyring. Vi relaterer også casene til eksisterende teori og diskuterer eksterne påvirkninger og kortsigtede tendenser i sektoren. Resultaterne viser, at virksomhederne flyttede fra fysisk til fjern (digital) levering af undervisningsydelser. Det krævede yderligere udvikling af dynamiske kapabiliteter og tæt opmærksomhed på hurtigt skiftende kundebehov. Selv virksomheder med stærke konkurrencefordele blev kraftigt udfordret; dynamiske kapabiliteter hjalp, men gav ikke fuld beskyttelse, når kundeadfærden ændrede sig hurtigt og uforudsigeligt. Risiko- og krisestyring var i høj grad ad hoc, hvilket rejser spørgsmålet, om mere systematisk fremsyn kunne have dæmpet virkningen – eller om krisen var et uforudset chok, der accelererede den digitale transformation og satte en ny kurs for sektoren.

[This apstract has been rewritten with the help of AI based on the project's original abstract]

Dynamic capabilities ; Corporate Foresight ; Foresight ; Crisis Management ; Risk Management ; Business Strategy ; Resource Based View ; Porter's Diamond ; Porter Diamond Theory of National Advantage ; Coronavirus ; Corona ; SME ; Small and Medium Enterprise ; Small and Medium Enterprises ; Auxiliary Private Education Sector ; Auxiliary Private Education ; Private Education ; Case Study

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