Preventing Inertia: Levaraging the Usage of Facebook as a Dynamic Capability

Abstract: Background – Inertia describes a state whereby companies develop slower relative the pace of change experienced by their environment, something most organizations experience at least once in their lifetime. Being in the state of inertia and consequently failing to adapt to change cause new businesses to replace old ones. Therefore, it is important for firms to be dynamic, which enables them to quickly recognize opportunities and threats. A way for companies to answer to these changes is to possess dynamic capabilities, which is found to be a solution for inertia. Digital innovation has played a key role in the evolution of dynamic environments. In order for companies to adapt to changing environments, the need for digital adaptation is becoming increasingly crucial. As a result, digital and social platforms have rapidly emerged throughout society, forcing companies to act to avoid stagnating in their development.   Purpose - This thesis aims to analyze how the utilization of Facebook as a dynamic capability can prevent inertia through the microscope of the Dynamic Capability Framework.   Method - Empirical data was collected through an interview study with employees at strategy and digital media consultancy firms. The participants possess extensive knowledge in the field of strategic implementation of social media. Primary data was gathered through semi-structured interviews and was analyzed in relation to the reviewed theory within inertia, dynamic capabilities, and digital innovation, by a thematic analysis. Findings - The findings of this thesis indicate that by dynamically utilizing Facebook, companies can extensively explore markets. This allows companies to continuously align existing resources by adapting and acting on identified trends within markets. Since these are actions within the Dynamic Capability Framework, a conclusion can be drawn that the usage of Facebook can be a dynamic capability. The usage of Facebook can therefore prevent organizations from entering the state of inertia. The findings further show that in order for the utilization of Facebook to be a dynamic capability, companies must possess extensive user skills and competencies. This research adds to the existing theory of digital media and business development by examining the usage of the social media platform, Facebook, through the lens of the Dynamic Capability Framework.