How public bodies deal with technological uncertainty over time. An exploratory analysis through dynamic capabilities lenses

The public actors are not exempt by the technological uncertainty, which increasingly affects both the private and public sector. Public organizations, and private actors, handle such uncertainty by deploying dynamic capabilities, which are defined as the ability of an organization to adapt to change (Teece et al., 1997; Schoemaker et al., 2018). This study wants to investigate how public organizations deal with technological uncertainty through dynamic capabilities. In particular, it highlights the effect of time on the development of sensing, seizing, and transforming capabilities and what are the elements that inhibit and enhance technological development.

This thesis consists of an exploratory study, adopting a case study strategy, and investigates how public organizations deal with technological uncertainty over time. The Norwegian Tax Administration is the case company participating in this research. First, a review of the literature on dynamic capabilities and technological development has been performed to gain more knowledge on the topic. Subsequently, primary qualitative data have been collected through semi-structured interviews and secondary qualitative data through the company’s reports that were later analysed with coding techniques. The research consisted of an iterative process in which the information gained through the data collection served to refine the research question further. Although the literature has been utilized as the theoretical basis for carrying out the analysis, the findings reported new insights to dynamic capabilities theory.

The empirical findings report that sensing, seizing, and transforming capabilities change over time. The organization increases and strengthens the stock of dynamic capabilities over time, and it is possible to individuate elements that inhibit and enhance the development of dynamic capabilities, thus affecting the organization’s ability to deal with technological uncertainty.

This thesis enriches the literature on dynamic capabilities and the public sector by investigating the topic adopting a time perspective. Moreover, this study is particularly relevant for managers of public agencies and officers of governmental bodies because it highlights the relevance of people and processes, as well as the great importance of contextual elements that affect the ability of a public organization to deal with technological uncertainty over time.