Interpreting the successful transformation of Shell's advertising activity 1997‐2002

Abstract

Purpose

Between 1997 and 2002, Shell changed the way it organised its advertising activity, switching from a local approach to a global organisation. The transition was significant, given the group's long history of decentralisation. It was also very successful. This paper explores how this transition was made by applying the theoretical lenses of the resource‐based view (RBV) and dynamic capability view (DCV).

Design/methodology/approach

Qualitative data were collected in 2002 from key executives in Shell and J.W. Thompson from which observations were made about Shell's transition and the change process. These observations are then explored further by applying the theoretical lens of the RBV and its natural extension, the DCV, testing what could be learned from the practical application of these theories.

Findings

A dynamic capability is identified as a significant reason for Shell's success. A second important factor was that Shell did not attempt to copy an organisation with an apparent superior capability. The paper concludes that firms generally should search for internal asymmetries on which to build resources.

Originality/value

The RBV and DCV are not new as approaches to strategic thinking, but they do remain mainly of interest to the academic community at the theoretical level. There is little empirical work that makes the concepts easily accessible to practitioners through example and translation into “everyday” experience. This paper makes a contribution in this area.

Citation

Verity, J. (2005), "Interpreting the successful transformation of Shell's advertising activity 1997‐2002", Management Decision, Vol. 43 No. 1, pp. 72-85. https://doi.org/10.1108/00251740510572498