MasterPrograminAccountingandFinanceBUSN79DegreeProject–AccountingandManagementControl

Spring2017

UsingManagementControlSystemsasaPackageforachievingOrganizationalAmbidexterity

Authors:EmmieFreijSimonWenglertEkbergSupervisor:RolfLarsson

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Abstract

Title: Using Management Control Systems as a Package for achieving OrganizationalAmbidexterity

Seminardate:May29,2017

Course:BUSN79BusinessAdministrationDegreeProjectinAccountingandFinance

Authors:EmmieFreij&SimonWenglertEkberg

Supervisor:RolfLarsson

Key words:Organizational ambidexterity, Innovation, Management Control Systems as aPackage(MCSP),Exploration,Exploitation.

Purpose: The purpose of this thesis is to investigate how Axis Communications AB, asuccessfulcompanywithinaconstantlyevolvingindustry,isusingMCSPtofosterinnovationwhilesimultaneouslysecuringprofitstoday.Thetheoreticalconceptcalled“Ambidexterity”describesthechallengesofbalancingthesetwoobjectives,andhowsuccessfulcompaniesstillmanage to do this. Our starting point is that the simultaneous use of differentMCS,constitutingaMCSP,canbeusedasawaytoachieveambidexterity.BystudyinghowAxisisusingMCSP,weaimtobroadenthefieldofresearchonifandhowMCSPcanbeusedasawaytoachieveambidexterity.

Methodology:Aqualitative,mainlyinductiveresearchapproachconsistingofasinglecasestudywaschosentobeabletoanswertheresearchquestion.

Theoretical perspectives: The theoretical foundation is built upon theory regardingambidexterity,innovationandManagementControlSystemsasaPackage(MCSP).

Empiricalfoundation:Theempiricaldata iscollectedwithconsiderationtothesixsourcesof data that is recommended for case studies. For example, data was collected throughinterviews and email correspondence as well as from annual reports and the company'swebpage.

Conclusions: We find support for that the MCSP in Axis does indeed facilitate theachievement of ambidexterity in severalways. In Axis’ casewehave found that planningseems to be the core component of theMCSP facilitating ambidexterity, as it appears tohave a balancing effect on exploration and exploitation. This balancing effect, however,would probably not have been achieved without the effects coming from combiningplanningwiththeculturalandadministrativecontrols.Thecyberneticcontrolsandrewardsand compensation seem to have a mere complementary role in the achievement ofambidexterity. Further, we find that the MCSP is providing necessary conditions for acombinedstructuralandcontextualapproachtoambidexterity,which is identified inAxis.OurfindingsshowthatalthoughbalancingeffectsarepresentfromtheMCSPinAxis,thereseems to be a slight skew towards fostering exploration. This could be either due to theincreasedneedtopromoteexplorationduetotheusualbiastowardsexploitationorduetothe fact that the fastgrowinganddevelopingmarketofNetworkSurveillanceTechnologyrequiresthisslightlyskewedbalancetowardsexploration.

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Acknowledgement

Wewould liketoexpressourgratitudetothepeoplewhohavemadethisthesispossible.First, wewould like to thank our supervisor Rolf Larsson, who has given us support andguidance throughout the entire process. Second, we would like to thank AxisCommunicationsABfortheircollaboration,generosityandwarmwelcome.AspecialthanksisdirectedtowardstheindividualsinAxiswhoparticipatedinthestudyandgaveussomeoftheirprecioustime,valuableinsightsandinspiration.Third,wewouldliketothankourpeerreviewersforgivingtheirfeedbackandinput.Lastbutnotleast,wewouldliketothankourfamilyandfriendsfortheirsupportandunderstanding.

EmmieFreij SimonWenglertEkberg

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TableofContents

1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 1.1Background........................................................................................................................61.2ProblematizationandResearchQuestion..........................................................................81.3Purpose..............................................................................................................................91.4DefiningMCS,MCSP,InnovationandAmbidexterity.......................................................101.5Disposition........................................................................................................................11 2. Research method and design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 2.1QualitativeMethodApproach.........................................................................................132.2CaseStudy........................................................................................................................132.2.1SelectionofCaseandInterviewees............................................................................14

2.3DataCollection.................................................................................................................152.3.1Threeprinciplesfordatacollection...........................................................................152.3.2Sixsourcesofdata.....................................................................................................16

2.4Critiqueagainstqualitativeresearch...............................................................................172.4.1ValidityandReliability...............................................................................................18

2.5Ethicalconsiderationsonthechosenmethod.................................................................19 3. Theoretical foundation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 3.1Achievingambidexterity..................................................................................................203.1.1Critiqueonambidexterity..........................................................................................21

3.2IdentifyingtheMCSP........................................................................................................213.2.1Administrativecontrol...............................................................................................223.2.2Culturalcontrol..........................................................................................................233.2.3Cyberneticcontrol......................................................................................................233.2.4Planningcontrol.........................................................................................................243.2.5Rewardandcompensationcontrol............................................................................243.2.6CritiqueontheMCSP.................................................................................................24

3.3MCSPuseforambidexterity.............................................................................................253.4AmbidexterityandtheMCSP...........................................................................................263.4.1MCSforinnovation....................................................................................................263.4.2Critiqueontheframework.........................................................................................28

4. Empirical f indings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 4.1AxisCompanyBackground...............................................................................................294.2InnovationinAxis.............................................................................................................304.3MCSPuseinAxis..............................................................................................................334.3.1Culturalcontrols........................................................................................................334.3.2Planningcontrols.......................................................................................................344.3.3Cyberneticcontrols....................................................................................................354.3.4Rewardsandcompensation......................................................................................374.3.5Administrativecontrols..............................................................................................374.3.6TheMCSPidentifiedatAxis.......................................................................................38

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5. Analysis and discussion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 5.1AchievingambidexterityinAxis.......................................................................................405.2Axis'MCSPandAmbidexterity.........................................................................................415.3TheinfluenceofstrategicconceptsforMCSoninnovation............................................455.4DiscussionofFindings......................................................................................................47 6. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 6.1Conclusion........................................................................................................................506.2Limitations........................................................................................................................516.3Contributions...................................................................................................................526.4Suggestionsforfurtherresearch......................................................................................53 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Appendix1-InterviewGuide.................................................................................................59Appendix2-Casestudyprotocol..........................................................................................61Appendix3–Axisinnovationtimeline...................................................................................64

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1.Introduction

Thischapter introduces thereader towhat the thesismainlywill coverandprovidessomebasic knowledge about the area in general. First, the background information about thespecificareaof interestforthisthesis ispresented.Thenextsectiondiscussestheresearchproblem and the research question is presented. The chapter ends with presenting thepurposeofthisthesisanddefiningcentralconcepts.

1.1Background

Historyhasshownnumerousexamplesofleadingcompaniesfindingthemselvesoverrunbyits competition. Two recent examples are Kodak, the once leading camera and filmtechnologycompanybeingonthevergetobankruptcyin2012(Svahn,2012)andNokia,theleadingmobilephonecompanythatdefinedthemobileindustryforoveradecade,thatin2013soldofftheirDevices&ServicesdivisiontoMicrosoftafterfailingtoenterthesmartphonetake-overoftheindustry(Gsmarena,2015).Thereasonsfortheeventualfallofgreatcompaniescanbeseveral,howeveronefactorthat is relevant inbothcasesmentioned istheinabilitytoforeseeoradapttochangesintheindustry.

Inanever-changingworld,theabilitytoforeseeandadapttochangesiscrucialandithasbeenstatedthattheabilityofbeinginnovativeiscrucialforthesurvivaloftheorganization(March, 1991; Tushman & O’Reilly, 1996; O’Reilly & Tushman, 2013). The notion ofexplorationreferstoinnovativenessandtheseekingofexpandingthecurrentknowledgeinordertosecurefutureviability(O'Reilly&Tushman,2013)andisthusaprerequisiteinthefaceofachangingenvironment.However,duetoexplorationbeingrelatedtouncertaintyandcosts,manycompaniesfocustoolittleonexplorationandinsteadfocusonexploitation.Exploitation refers to using previous innovations and current knowledge to generaterevenues today (O'Reilly & Tushman, 2013). March (1991) first brought up the need forcompanies inuncertain andevolvingenvironments tobeable tobalanceexplorationandexploitation simultaneously, an ability that was to become referred to as organizationalambidexterity (Gschwantner & Hiebl, 2016). Since then, organizational ambidexterity hasbeenclaimedtobeacentralcomponentoflong-termcompanysuccessinseveralacademicarticles(Raisch&Birkinshaw,2008;O'Reilly&Tushman,2013;Ogrean,2016)andpositivelyassociated with growth (Auh & Menguc, 2005) and innovation (Tushman et al., 2010).Although the logic behind organizational ambidexterity, hereafter referred to asambidexterity,issimpletheactualadoptionofambidexterityisdifficult.Thedifficultyliesintheconflictingobjectivesofexplorationandexploitation,wheresomestructuresaremoresuitableformeetingexploitativeobjectiveswhileotherssupportexplorativeobjectives,thuscompetingforscarceresources(Duval,2016).Also,thenatureofhumanandorganizationallearningleadstotheriskoffocusingmoreononethantheother(March,1991;Levinthal&March,1993),generallyabiastowardsexploitationduetothegreaterprobabilityofshorttermsuccess(O'Reilly&Tushman,2013).

Severalways of resolving this balance have been discussed and the role ofManagementControl Systems (MCS) in achieving ambidexterity has gained increasing interest. ThetraditionalviewofMCSasrigidandinhibitingofanyinnovativenesshasbeenreplacedwiththeviewofMCSas flexibleanddynamicwith theability to foster innovation (Chenhall&

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Moers, 2015). In addition to thenowwidelyacceptedversatilityofMCS, researchon theeffects and interconnectedness of several MCS used simultaneously has gained interest.Theory about Management Control Systems as a Package (MCSP) claim that manycompanies uses several different MCS simultaneously, that together create positive ornegativesynergiesontheachievementof thedesiredoutcomes.AstheeffectivenessofasingleMCSdependsonthecombinationofMCS,theyshouldnotbestudiedandevaluatedin isolation but as a "package" (Malmi & Brown, 2008). This view is shared by Sandelin(2008) and Kennedy and Widener (2008), who argue that studying the individual MCSwithout taking into consideration the effects of the whole MCSP can lead to inaccurateconclusions being drawn of their effects. Combining the extended view onMCS and theeffectsoftheMCSPhasledthewayinexploringthedynamicpossibilitiesofMCSPandthus,the possibility for MCSP to be used for achieving both exploitative and explorativeobjectives.ThecurrentliteratureonMCSPandambidexterityhassuggestedthatarangeofMCS can be used to effectivelymanage exploration and exploitation, and hence achieveambidexterity(Gschwantner&Hiebl,2016).

Theindistinctdefinitionofambidexterityaswellasexploitationandexplorationhasledtovery disparate adoptions of the concepts (O’Reilly & Tushman, 2013). It is thus ofimportancetoclarifythedistinctionsmade.Anextensivenumberofacademicarticlesrelateambidexteritytoinnovation,whereincrementalinnovationcorrespondstoexploitationandradicalinnovationtoexploration(seeforexampleBedford,2015andAgostinietal.,2016).Incremental innovation, or exploitative innovation (Agostini et al., 2016), refers torefinementsofcurrentproducts,servicesorprocessesinordertoimprovesomeaspectofthe production process or offering (Smith, 2015). Radical innovations, or explorativeinnovations (Agostini et al., 2016), are innovations that fundamentally change existingproducts, services or processes to offer something completely new (Smith, 2015). Thevalidityof theproposedrelationbetweenambidexterityand innovationhasrecentlybeenstrengthenedbyAgostinietal. (2016)who in theirstudyshowstatisticalevidence for thelinkbetweenambidextrousorganizationsandwhattheycall“innovationambidexterity”.Forthis reasonandsince thedistinctionbetweenexplorativeandexploitative innovationsaremorestraightforwardthandefiningthedistinctionbetweenexploitationandexplorationingeneral, in this thesis we adopt the view that innovativeness, in terms of being able tobalance the introduction of both radical and incremental innovations, is a way to beambidextrous. This distinct definitionof ambidexterity also facilitates the identificationofambidextrous organizations. Finding an industry that demands innovativeness andidentifying a long-term successful companywithin this industry suggest an ambidextrousabilityinthecompany.

One industry which has seen great changes over the past decades is that of the PrivateSecurity Industry. The solid growth of the Private Security Industry has been driven byincreased feelings of insecurity, new regulations and outsourcing of security services(Freedonia, 2015; Moran, 2015). Technology is of increasing importance in the industry,with surveillance technology making the security industry more efficient through thepossibility to cover much vaster spaces, improved imaging processing and automaticanalytics tools, making a large number of live-guards abundant (Freedonia, 2015; AxisCommunications, 2017a). The video surveillancemarket,which had amarket turnover of

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30.37 Billion USD in 2016, is estimated to reach 75.64 Billion USD in 2022 (Markets andMarkets,2017).Whilethemarketgrowthoverthepastyearsandtheforecastssuggestthesupportandpositive trendof theuseof video surveillance is far fromseeinganend, thepowerandintrusivenessofcurrentsurveillancetechnologyleadstocritiqueandopposition.The industry isunder scrutiny from themedia, activists andorganizations suchasPrivacyInternational (Toor,2016).Thecompanies inthe industrymustthuskeepupwiththefasttechnologicaldevelopmentsandtheincreasesandchangesindemandinthemarketwhilebalancing the risks of restrictions being imposed from the on-going debate of theintrusivenessandpowerofthesurveillancetechnology.

AxisCommunicationsisthemarketleaderinthesurveillancetechnologyofNetworkVideoand Video Encoders (Axis Communications, 2017a). Founded in Sweden in 1984 AxisCommunications,hereafter referred toasAxis,hasover theyearsmadegreatchanges totheirproductandserviceofferings,startingwithnetworkprinterinterfaces,changingfocustonetworkcamerasandtodayofferingawiderangeofsurveillanceandsecuritysolutions.Axis ability to adapt and evolve their operations, products and services has proven to beextremelysuccessful,evidentfromtheachievedmarketleadershipstatusinseveralmarketsover the years including network printing, network optical storage solutions andnetworkvideo. Since 1996 their focus has beenwithin video surveillance, constantly being on thetechnologicalforefrontintheindustry(AxisCommunications,2017b).Theirbusinessmodelhas ledtoamarket leadershippositionwithaturnoverof7,39billionSEKandover2600employees worldwide in 2016 (Axis Communications, 2017a). Their longevity in the fastchangingvideosurveillance industrysuggeststhepresenceofambidexterityandtheirsizesuggeststheneedfortheuseofMCSorMCSPtomanagetheorganization.Axiscouldthusprovide a useful case company for studying ambidexterity and MCSP and the relationthereof.

1.2ProblematizationandResearchQuestion

Although ambidexterity has become a subject of ample interest of researchers since theintroductionoftheconcept,theunderstandingofhowcompaniesresolvethecomplexityofachieving ambidexterity in practice is limited, leading to the need for more qualitativeresearch on the subject (O'Reilly& Tushman, 2013). Bedford (2015) argues thatMCS arecentralwhenacompanyistryingtobalanceexplorationandexploitationandGschwantnerandHiebl(2016)intheirliteraturereviewspecificallycallformoreresearchontherelationbetweenMCSandambidexterity.Withthisinmind,MCSinrelationtoambidexterityisaninterestingareaofresearchforourthesis.

Searchingdatabasesofacademicjournalsnoempiricalcasestudieshavebeenfoundaimingto investigate the relation between theMCSP and ambidexterity.Gschwantner andHiebl(2016)madeacontributiontothesubjectthroughtheirliteraturereviewandcategorizationaccordingtotheMalmiandBrown(2008)MCSPframework.GschwantnerandHiebl(2016)conclude that several studies have shown support for the usefulness of various forms ofMCS in achieving ambidexterity and that a MCSP rather than a specific MCS may benecessarytoachieveambidexterity.

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SincepreviousempiricalcasestudiesstudieshavenotadoptedtheholisticviewoftheMCSPthereis,accordingtoMCSPtheory,ariskthatthesynergiesbetweenallthecontrolsystemspresent have been overlooked, leading to an unconsidered factor affecting the results.PerforminganempiricalcasestudywiththepurposeofinvestigatingtherelationbetweenMCSPandambidexterityallowsfor(1)providingfurthersupportforpreviousresultsontherelationbetweenMCSandambidexteritywhile(2)addingtothepreviousstudieswiththeholisticviewofMCSPtheory inorderto(3)takeafirststeptoevaluatetheeffectsofthesimultaneoususeofdifferentMCSonthepursuitofambidexterityand(4)furtherincreasetheunderstandingoftherelationbetweenMCS,MCSPandambidexterity.Gainingabetterunderstanding of how MCSP can be used to achieve ambidexterity should be of bothacademicandpractical interestas itcouldaid inthedesignofMCSPtomakepossiblethesimultaneouspursuitofexplorationandexploitation.Ourresearchquestionisthus:

HowcanMCSPbeusedtoachieveorganizationalambidexterity?

In order to answer this question several levels of analysis are needed. First we need toidentify theMCSPpresent in the companyby identifying the combinationofMCS inuse.Second, following the findings of Gschwantner and Hiebl (2016), we need to understandhowtheseMCSareusedandinwhichconditions.Third,therelationofthedifferentMCStoexploitation and exploration needs to be analysed in order to understand the relationbetweentheMCSPandambidexterity.

Duetothecomplexityoftheresearchquestion,athoroughinsightandunderstandingofthecompany in question is needed, suggesting an in-depth case study as the appropriatemethod. Having identified Axis as an appropriate case company for studying MCS andambidexterity,wealsoseeAxisasausefulcasecompanyforMCSPandambidexterity.Theirsize,ageanddiversityofoperationssuggest theneedfor thesimultaneoususeofseveralMCS, thus constituting a MCSP. Due to the scope of this study and need for in-depthunderstandingofthestudiedcompany,thisstudywillfocusonasinglecompany.Arefinedresearchquestionisthus:

HowdoesAxisuseMCSPtoachieveorganizationalambidexterity?

1.3Purpose

The purpose of this thesis is to investigate how Axis Communications AB, a successfulcompany within a constantly evolving industry, is usingMCSP to foster innovation whilesimultaneously securing profits today. The theoretical concept called “Ambidexterity”describesthechallengesofbalancingthesetwoobjectives,andhowsuccessfulcompaniesstillmanage to do this. Our starting point is that the simultaneous use of differentMCS,constitutingaMCSP,canbeusedasawaytoachieveambidexterity.BystudyinghowAxisisusingMCSP,weaimtobroadenthefieldofresearchonifandhowMCSPcanbeusedasawaytoachieveambidexterity.

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1.4DefiningMCS,MCSP,InnovationandAmbidexterity

AsthefocusofthisthesisisonhowAxisisusingtheMCSPtofosterexplorativeinnovationwhileatthesametimebeingprofitabletoday,theabilityofbeingambidextrous,thereisaneedtoclearlydefineMCS,MCSP,innovationandambidexterity.

There are many definitions of MCS, therefore a clarification of our definition in use isneeded. One of the oldest definitions of MCS is presented by Ouchi (1979, p.833), whodefines MCS as "mechanisms through which an organization can be managed so that itmoves towards its objectives". Otley (1999, p.364) provides a more detailed definitionwherehedefinesMCSas"asystemthatprovidesinformationthatisintendedtobeusefulto managers in performing their jobs and to assist organizations in developing andmaintaining viable patterns of behaviour". Malmi and Brown (2008, p.290) present that"managementcontrolincludeallthedevicesandsystemsmanagersusetoensurethatthebehaviours and decisions of their employees are consistent with the organization'sobjectivesandstrategies,butexcludepuredecision-supportsystems".Finally,ChenhallandMoers (2015, p.1) defineMCS as "a set ofmany formal and informal input, process andoutputcontrolsthatareusedbymanagementtoachieveorganizationalgoals;thecontrolsare connected by many complementarity relationships". Although somewhat different,these definitions of MCS are based on a similar principle: systems used to achieve setobjectives.

For the purpose of this thesis it is important to clarify the distinction betweenMCS andMCSP.InmostorganizationsseveralMCSareusedsimultaneously.MalmiandBrown(2008)states that if theseMCSweredesigned and coordinated intentionally the combinationofMCScouldbedefinedasaMCSas it isone integratedsystem,howeverthis isnotusuallythecase.SincethedifferentMCSinuseareintroducedatdifferenttimesandbydifferentinterestgroups,theyshouldbeviewedasseparateMCSusedincombinationasapackage,aMCSP,andnotasoneuniformMCS(Malmi&Brown,2008).

Smith (2015) defines innovation as the commercialization and diffusion of inventions.Damanpour andGopalakrishnan (2001) provides a general definitionof innovation as theadoption of new ideas or behaviours in the products, services, systems, policies, andprogrammes,inordertohelptheorganizationtoadapttochangesintheenvironmentandto therebymaintaineffectivenessandcompetitiveness.Thus, innovationcanbeseenasasuccessfulexploitationofnew ideas. Ithasbeenstatedthattheability tobe innovative iscritical for the survival of the organization (Burns & Stalkers, 1961; Tushman & O'Reilly,1997).

Woods (2016)pointsout thatorganizationalambidexterity,or theability to succeedbothwiththecompany'scorebusinessaswellaswiththeplanningofthefutureandinnovation,is a very important concept for companies to be able to survive in the market.Ambidexterity refers to a company's ability to balance exploration and exploitation.Exploration refers to coming up with new inventions that in the future will generaterevenuestothecompany,whileexploitationisaboutusingpreviousinventionstogenerate

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revenuestoday.Thus,explorationisaboutdevelopingnewcompetencestobeabletoservenewcustomers,whileexploitationisusingthecompany'salreadyexistingcompetencestoserve their current customers (O'Reilly & Tushman, 2013). Tushman and O'Reilly (1996)presentthatexploitationischaracterizedbyshort-termhorizons,efficiencyandrefinement,while exploration in contrast is characterized by long-term horizons, experimentation,innovation and adaptability. O'Reilly and Tushman (2013) as well as Hill and Birkinshaw(2014)explainthatthefocusinmanyorganizationsisonexploitationforthereasonthatitisassociatedwith certainty, efficiency and short-termgains,while exploration in contrast ischaracterized by uncertainty, inefficiency and costs. This is in line with the view thatexplorationisaboutacquiringnewexternalandtacitknowledge,whileexploitationisaboutrefiningtheexistingandexplicitknowledge(Levinthal&March,1993;Chebbietal.,2015).March (1991) points out that exploration is related to things such as risk taking, search,variation, flexibility and experimentation, while exploitation is related to efficiency andrefinement.Duncan (1976) stresses that for anorganization tobe ambidextrous it has toboth be efficient in managing the existing demands as well as adapt to changes in theenvironment. Ithasbeenstressedthatanorganizationneedstobeable to focusonbothexplorationandexploitationtobeabletosurviveinthelong-term(March,1991;Tushman&O'Reilly,1996;Raisch&Birkinshaw,2008;O'Reilly&Tushman,2013).Thebackgroundtothisisthatorganizationsthatonlyfocusonexploitationwillbeabletoincreasetheirshort-termrevenues,butwillprobablynotbeable toadapt to thechanges in theenvironmentandtechnologyintheindustry.Whereasorganizationsthatonlyfocusonexplorationwillbeabletoadapttothesechangesintheindustryandbeinnovative,ontheotherhandthoseorganizations face the risk of missing out on the returns on invested capital (Raisch &Birkinshaw,2008).Furthermore,somerecentstudieshaveindicatedthatMCSmayactuallybeusedtofosterambidexterity(Gschwantner&Hiebl,2016). Inourstudywewillusetherelationbetweeninnovationandambidexterity(Agostinietal,2016)asawaytodefineandidentify ambidexterity, where incremental innovation corresponds to exploitation andradicalinnovationtoexploration.

1.5Disposition

In order to give an overview of this thesis an outline of the contents of the remainingchaptersispresentedbelow.

Chapter2–Researchmethodanddesign: In this chapterweexplainhow thequalitativesingle case studyhasbeenexecuted,motivateswhya case study is themostappropriateresearchmethodforthestudy,andpresenthowtheselectionprocessofthecasecompanyand intervieweeshasbeendone. Thereafter thedata collectionmethod ispresentedanddiscussed.Thechapterendswithadiscussionaroundcritiqueagainstqualitativeresearch,wherethereliabilityandvalidityofthestudyisanalysed.

Chapter 3 – Theoretical framework: The purpose of this chapter is to present thetheoretical foundationofthethesis. Inordertoanswertheresearchquestionweneedtoconsider (1) how ambidexterity is achieved, (2) how to identify theMCSP in use and (3)understandhowandwhythisMCSPisusedinordertorelateMCSPandambidexterity.Thechapter starts with an introduction to ambidexterity and the approaches and modes toambidexterity are presented. Thereafter the used framework for management control

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systemsasapackage(MCSP)ispresented.ThechapterendswithdiscussingtheconnectionbetweenambidexterityandtheMCSPbypresentingtheory for therelationbetweenMCSandinnovationstrategiesandpreviousstudiesonMCSPandambidexterity.

Chapter 4 – Empirical findings: The purpose of this fourth chapter is to present theempirical material. The chapter starts with a thorough description of the companybackgroundtofacilitatethereader’sunderstanding.ThereaftertheworkwithinnovationatAxis is described and the timeline for its innovations presented. The chapter endswith athoroughreviewofhowtheMCSPisusedinAxis.

Chapter5–Analysisanddiscussion:Inthischaptertheempiricalfindingsarediscussedandanalysedagainstthetheoreticalfoundationinordertoanswerourposedresearchquestion.

Chapter6–Conclusion:Inthisfinalchapterwepresentthefindingsandconclusionsofourstudy.Wealsodiscusslimitationsandpracticalandacademiccontributionsofourstudyaswellaspossibilitiesforfutureresearch.

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2.Researchmethodanddesign

In this chapter we explain how the qualitative single case study has been executed,motivates why a case study is themost appropriate researchmethod for the study, andpresent how the selection process of the case company and interviewees has been done.Thereafterthedatacollectionmethodispresentedanddiscussed.Thechapterendswithadiscussionaroundcritiqueagainstqualitativeresearch,wherethereliabilityandvalidityofthestudyisanalysed.

2.1QualitativeMethodApproach

Aqualitativemethodapproachhasbeenused in this studyas itwasevaluated tobe themost appropriate to fulfil the purpose of this thesis. The purpose of this thesis implies aneed for an interpretation-oriented method where focus is on really understanding thebusiness, and for this reason a qualitative research approachwas appropriate (Bryman&Bell,2011).Mainlyaninductiveapproachisusedinthisthesis,aswearefollowingtheAxis-story.Thisisdonewithinthefocusareaofthisthesis,namelyambidexterityandinnovationrelatedtoMCSP,inthewaythatappliedtheoryisbasedonthecollecteddata.Byadoptingthis method we believe that we will be able to address the purpose of the thesis in anappropriateway.However, it is necessary tomention that it is very difficult to bepurelyinductive.Aspreviouslymentionedwearemainly inductive,andwiththatwerefertotheprocess of moving back and forth between theoretical and empirical data to be able toincrease theunderstanding.This is in linewithhowYin (2009)presents thata case studyshouldbeexecuted,namelythatoneshouldgobacktotheorytobeabletoexplainwhatisstressedempirically.Thisprocessshouldberepeatedasinaloop,backandforthbetweentheoryandempiricism(Yin,2009).

As the intentionwas to investigatehowAxishasbeen successful inbalancingexplorationandexploitationandhow this is related to itsMCSP, it is interesting toalso seehow theemployeesperceivethis.Aqualitativemethodapproachisspecificallyusefulininvestigatinghow individuals perceive the situation and the surroundings (Bryman & Bell, 2011). AsmentionedbyAgostinietal. (2016)aqualitativeresearchapproachisalsoappropriateforgetting an understanding of the complex nature of how organizations manageambidexterity.

However, therearesomeshortcomingsrelatedtotheuseofaqualitativeapproach.First,the results can be very subjective as it depends on how the researchers view thewholesituation. Additionally, when doing a qualitative research study it can be hard both toreplicate the study as well as generalize the findings (Bryman & Bell, 2011). Theseshortcomingswillbediscussedinmoredetailinbothsection2.2and2.4.

2.2CaseStudy

AspointedoutbyBrymanandBell(2011)therearedifferenttypesofqualitativeresearchapproachesthatcanbeused,andtheoneusedinthisthesisisacasestudy.Astheaimofthis thesis is to answer questions that are of the type "how" and "why" aswell as get a

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thoroughholisticviewoftheorganization,acasestudyisthemostappropriateapproachtouse(Yin,2009).Inaddition,Scapens(1990)stressesthatcasestudiesisacommonresearchmethodintheareaofmanagementcontrol.Thebenefitsofcasestudiesisthattheyofferapossibilitytoreallyunderstandthenatureofmanagementcontrolinpractice,suchaswhichtechniquesandsystemsthatareusedandinwhichway(Scapens,1990).

BothYin(2009)andBrymanandBell(2011)presenttheinabilitytogeneralizethefindingsasthemostcommonshortcomingofcasestudies.WehaveconductedasinglecasestudyaboutAxis.Theuseofa singlecase studywas found logical,as it isnot reallypossible tomakeanappropriatecomparisonbetweenAxisandanothercompany.AsnotedbyBrymanand Bell (2011) a case study is not generalizable as it probably is not representative tosimilarcompanies,andthereforethefindingsshouldinsteadbegeneralizedthroughtheory.This way the study's generalizability can be assessed by investigating the quality of thetheoreticalconclusionsthatisbuiltupontheempiricaldata(Bryman&Bell,2011).

Case studies can further be classified into descriptive, experimental, explanatory andexploratory(Ryanetal.,2002).Thiscasestudyisbothdescriptiveandexploratoryasitseeksto investigatetheabilityofbalancingexplorationandexploitation,whileatthesametimedescribing how Axis use the MCSP to achieve ambidexterity. Descriptive case studiesdescribethetechniques,systemsandproceduresthatcurrentlyareusedinpractice,whileexplanatory case studies tries to explain the reasons behind the used practice (Scapens,1990).BjörklundandPaulsson (2003) stress thatexploratory studiesoftenareusedwhenlookingfordeeperunderstandingandarethereforesuitablewhenwantingtobothdescribeandexplainaphenomenon.

2.2.1SelectionofCaseandInterviewees

When deciding on a case company, we started to look at innovative companies in theMalmö/Lund region thathadbeenaround forawhile, and therebycould fit inunder theconceptofAmbidexterity.WecontactedAxisbecauseitsvisionis"innovatingforasmarter,saferworld" (AxisCommunications,2017ap.8)aswellasother factorswith thecompanywere consistentwithour criteria for the case company.Wegot apositive response fromAxisthatwantedtoparticipateinourstudy.

Axis is themarket leader innetworkcamerasandCCTVandhasbeenfor thepast twentyyears. Their innovativeness has led them to always be at the forefront of the industry,seemingly always lying one step ahead of its competition, however at the same timesuccessfullyutilizingtheavailableproductbasetosteadilyincreasetheirturnoverfromyeartoyear(AxisCommunications,2017a).

Duetothe lackofpossibility togetagoodoverviewof thecompanyand itsdepartmentsfrom the start, we struggled a bit with identifying which interviewees that would beinteresting.FirstweidentifiedtheDirectorandHeadofBusinessControlasanappropriateandknowledgeableinterviewee.Thefactthathehasbeenworkinginthecompanyfor13years and in different positions, was a great benefit for our study as he was very

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knowledgeablebothaboutthewholeAxis-storybutalsoaboutthedifferentMCSinplace.Additionallyhe isworkingas theControllerofNewBusiness,whichwasvery relevant forour focus on innovation (LinkedIn, n.d.). From there on the sampling method "snowballsampling"wasused,whichBrymanandBell (2011)explainaswhentherelevant initiationcontactprovideuswithotherrelevantcontactsforourstudy,whichinturnalsoprovideuswithcontacts.

TheAxis headoffice is located in Lundwith all the central support functions, such as forexampleFinance,Operations,NewBusinessandSales.Thishasbeenadvantageous,asithascontributed to thatwehavebeenable toexecuteourstudy inabetterwaybyhavingallfunctionsandpeopleofinterestwithinreach.

2.3DataCollection

As pointed out by Yin (2009) and Bryman and Bell (2011) it is important to be preparedbeforestartingwiththedatacollection,asthesuccessoftheentirecasestudyinvestigationisdependentuponit.Thingssuchasbeingabletoaskgoodquestionsandtointerprettheanswersareofgreatimportance(Yin,2009).

2.3.1Threeprinciplesfordatacollection

Yin(2009)presentsthreeprinciplesfordatacollection;useofmultiplesources,creationofadatabaseforthecasestudy,andcreationofanevidencechain.Thebenefitsofthesixdatasources, which will be discussed further below, can be maximized by using these threeprinciples. The principles apply to all the six data sources, and if these are applied in acorrectwaytheycanimproveboththevalidityandreliabilityofthecasestudyinformation.

Triangulationisthebasiswhenitcomestotheuseofmultiplesources,asitfacilitatesthevalidationofdatabyusingtwoormoresourcesasverificationofthesameinformation.Theneed for multiple sources is considerably larger for case studies than for other types ofresearchmethods.Inthisthesiswehavefocusedoncollectingdatafrommultiplesources,toincreasethevalidityofourstudy.Theprincipleofcreatingadatabaseforthecasestudyrefers to the importance of how the collected data is organized and documented. In ourstudy,thecasestudydatabaseconsistsofnotesandaudiorecordsfromtheinterviewsandemail correspondenceaswellasannual reportsand thehomepageofAxis.Additionallyacase study protocol has been created,which is included in the case study database. Thethirdprinciplereferstocreatinganevidencechain,whichisimportanttobeabletoincreasethereliabilityofthecasestudyinformation.Inthisthesisthisprinciplehasbeenfollowedbyusingcitations fromthe interviews,and thatboth the interviewguideaswell as thecasestudyprotocolisavailabletothereader.Thiscontributestoincreaseboththetransparencyandreliabilityofthestudy(Yin,2009).

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2.3.2Sixsourcesofdata

Whendoingacasestudyitisfavourabletousemultiplesourcesasitcontributestoprovidemoreconvincingandaccurate findingsandconclusions.Therearesixsourcesofdatathatcan be used for case studies, which are; interviews, personal notes, direct observation,participative observation, physical artefacts and formal written sources. As the availableevidencehavedifferentstrengthsandweaknesses,thesedifferentsourcescancomplementeachother(Yin,2009).

InterviewsandpersonalnotesTheinterviewsareconductedwithemployeesinkeypositionswithinthefieldofinnovationandmanagementcontrolatAxis.Yin (2009)presents that interviewscanprovideanswersrelated to both "how" and "why", which is appropriate for the research question of thisthesis.Thereasonforwhywechosetodointerviews,insteadofforexamplesurveys,isthatinterviewsaremoreflexibleaswellasprovidingbothabetterunderstandingandadditionalinformationasfollow-upquestionscanbeasked.Semi-structuredinterviewswerearranged,whichareseenasappropriateforaqualitativestudyasitenablesadialogue.Thisstructureisappropriate inthiscase,aswewishtoobtaindatawithoutriskingto influencing itwithourownopinionsandpotentialbiases,butsimultaneouslyguidingtheinterviewintherightdirection.Theinterviewswereheldattheinterviewees'office,tobothfacilitateforthemaswellasmakingthemfeelcomfortable(Bryman&Bell,2011).Theinterviewswererecorded,to increase both the reliability and transparency of the study. Additionally, Malmi andBrown(2008)stressthatitisnecessarytouseinterviewsasadatacollectionmethodwhenstudyingtheMCSPinordertoensurethatthedata,informoftheanswers,iskeepingahighquality. For our semi-structured interviews we developed an interview guide with thequestions,with theaim that thiswould facilitate the reader'sunderstandingand increasethe transparencyof the study (Appendix 1). The structureof the interviewguidewas setwiththeMCSPframeworkinmind,andthemainfocuswasinnovation,ambidexterityandmanagementcontrol.Theempiricalpartwill,toalargeextent,alsofollowthestructureoftheinterviewguide.Further,whenwewrotetheinterviewquestionswehadinmindthattheintervieweeshouldnotbeabletojustansweryesornotothequestions.Therefore,weused question of the type "how" and "why". The interview guide was sent to theinterviewees before the interview with the aim to achieve good discussions and richanswersattheinterview.

Table1–InterviewsInterviewdate

Name Title/Position Duration Recorded

19thApril2017

RickardDahlroth

DirectorandHeadofBusinessControl,ControllerofNewBusiness

1h50minutes Yes

25thApril2017

MartinRasmusson

BusinessControllerforProducts&CTOandHR

55minutes Yes

28thApril2017

YlvaBexelius ProjectManagerforNewVideoProducts

1h35minutes Yes

8thMay2017 KentFransson

GlobalProductManagerforPTZCameras

55minutes Yes

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Table2–EmailcorrespondenceEmaildate Name Title/Position Topic3rdMay2017 YlvaBexelius ProjectManagerforNew

VideoProductsClassificationofinnovationprojects

3rdMay2017 NicklasOlofsson R&DDirectorforFixedCameras

Rewardsrelatedtoinnovationandpatents

3rdMay2017 NilsOlsson DirectorofIntellectualPropertyRights

Rewardsrelatedtoinnovationandpatents

12thMay2017

AnnaJeppsson R&DDirectorforPTZCameras

Roadmap,budgetandprojectbudgets

ObservationsandphysicalartefactsDuringourvisitsatAxis'headofficesomeobservationsweremadeunintentionally,mainlyaboutthecorporateculture,whichprovideduswithvaluableinformationaboutthecontextit isoperating in.Byvisiting thebreakfasthall,wegotaglimpseof thecorporateculture,and could there observe the ongoing interaction and communication between theemployees.Additionally,wegota guided tour inAxis ExperienceCentre thatprovideduswithuseful informationabout thedifferentproducts and the company'shistory. Someofthephysicalartefactsat theofficealsoprovideduswith insightsabout theculture,whichincreasedouroverallunderstanding.However,ithastobementionedthatwedidnotusethe data collection methods observation and physical artefacts in the exact way as Yin(2009)describesit,asthesewerenotrelatedtothemainpurposeofourthesis.Thesewereinsteadusedinaninformalwayandasacomplementtotheothersources,mainlyjusttoincreaseourunderstandingofthecompany.FormalwrittensourcesThe formal written sources consist of academic articles accessed from LUBsearch andGoogleScholar,aswellastextbooksfromthelibraryatLUSEM.Additionally,datahasbeencollected from the company's annual reports andwebpage and external sources such asnews articles. As pointed out by Yin (2009) these kinds of formal written sources areobjectiveinthewaythattheyarenotcreatedasaresultofthecasestudy.Forexampletheannualreportisveryusefulasitisaccurate,quantitativeandcoversalotofactivities.2.4Critiqueagainstqualitativeresearch

Despite the presented strengths of the chosen research method, there are also somelimitationsrelatedtoitthathavetobementioned.Thereisalwaysariskthataqualitativestudy can become subjective, as the researchers' opinions and biases can influence thestudyandtherebyalsotheresults(Bryman&Bell,2011).Anotherproblemwithqualitativestudies is the difficulty to generalize the results, which means that the findings orconclusions from this case study will not be applicable in another setting or context(Scapens, 1990; Yin, 2009). Further, Yin (2009) stresses that case studies have receivedmuchcritiquefornotbeingscientificenough,andthereforenottrustworthy.Thereforeitisofgreatimportancethattheprocedureiscarefullyandaccuratelydone,bothwhenitcomestopreparations,executionandwriting.Throughoutthewholeprocesswiththethesis,thedirectives fromYinhavebeenapplied.Anexampleof thesedirectives is thatacasestudy

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protocol (Appendix 2) has been created to increase the reliability of the case study (Yin,2009).

Thecritiqueaboutthelimitedtransparencywithinqualitativeresearchoftenstemsfromalackof informationabouthowtheplanningandexecutionof thestudyhasprogressed.Acasestudy isnotgeneralizableas itprobably isnotrepresentativetosimilarcompaniesatother locations. Therefore the results from thequalitative study shouldbegeneralized totheory.Theassessmentofthestudy'sgeneralizabilityisdonebyinvestigatingthequalityofthetheoreticalconclusionsthatisbuiltuponthequalitativedata(Bryman&Bell,2011).

However,webelievethatthefindingsfromthiscasestudywillcontributetobroadeningtheknowledge about howMCSP canbeused as away to achieve ambidexterity, despite theinability to generalize the findings from this case study. To be able to assess the overallqualityandtrustworthinessoftheresearchmethod,thecriteriavalidityandreliabilitywillbediscussedfurther.Itisimportanttokeeptheseinmindthroughoutthewholeprocessofthethesis,andnotjustinthebeginning(Yin,2009).

2.4.1ValidityandReliability

Validity is about assessing whether the conclusion shown in the study is based on thecollectedmaterialandrelatedtothepurposeofthestudy.Thus,validityisfocusingontheability to investigate what was intended to be investigated. High validity is thereforeobtainedwhenonesucceedstomeasurewhatonealreadyfromthebeginningintendedtomeasure(Bryman&Bell,2011).

AccordingtoYin (2009)therearetwotypesofvalidity thatarerelevanttoconsidertobeabletoensurethatthesinglecasestudykeepsahighquality,theseareconstructedvalidityandexternalvalidity.Theconstructedvalidityreferstodatacollection,andawaytoachievehighvalidityistousemanydifferentsources.Constructedvaliditycantherebybeincreasedifmultiplesourcesofdataareused.Byconductingfourinterviewsandobtainingadditionalinformation from the company's website, annual reports and email correspondence, theconstructed validity of the thesis increase as we not only rely on one source of data.External validity is focusing on the actual research design and is about using relevanttheorieswhendoingasinglecasestudy(Yin,2009).Externalvalidityreferstotheextenttowhich the findingsof the study canbe generalized. The findings froma single case studycannotbegeneralized,howeveritcancontributetobroadentheunderstandingandfieldofresearch (Bryman& Bell, 2011). Yin (2009) also presents internal validity, but this is notapplicablefordescriptivestudies,andisthereforeoutsidethescopeofthisthesis.

Reliabilityreferstowhethertheresultsfromastudywillbethesameifitisrepeated,orifitwill beaffectedby temporary factors. If the study isexecutedmany timeswith the sameresult,itmeansthatthestudyhashighreliability.Tobeabletoachievehighreliability,themethod has to be totally independent of who is doing the study (Bryman& Bell, 2011).Thus,theconceptreliabilityaimstominimizethedifferenterrorsandbiasesthatcanoccurwhen doing a case study (Yin, 2009). To put it in a simple way, it means that another

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researcher should be able to do the same study and thereby also end upwith the sameresultsandconclusions.

Asthethesisisbasedonpersonalinterviewsandemailcorrespondenceitishardtoensurehighreliability.Thisisduetothattherealwaysisariskthattheinterviewer,orreceiverofthe email, does its own interpretations of the answers. To increase the reliability of thestudy,theinterviewshavebeenrecordedtobeabletogetamorecorrectinterpretationoftheinterviewees'answers.Thereisnopossibilitytocontrolthereliabilityofthedatawhenitcomestothingssuchastheanswersaccuracyanddependability,howeverwecanreflecton it to be able to get opportunities to increase the reliability (Bryman& Bell, 2011). Asreliabilityreferstothepossibilityofreconstructingthestudywithsimilarresultsusingthesameapproach(Yin,2009),wehavecarefullydocumentedtheworkthroughouttheprocesstoincreasethereliabilityofthestudy.Atoolthatcanbeusedtoincreasethereliabilityofacasestudyistoformaprotocolearlyintheprocess,beforetheactualcasestudyhasbeenexecuted.Thecasestudyprotocolprovidesaclearpictureofwhatthepurposeofthecasestudyisandhowitshouldbeexecuted.Finally,theprotocolprovidesthecasestudywithahigherlevelofreplicabilityasitworksasacleartemplatethatotherscanfollow(Yin,2009).

2.5Ethicalconsiderationsonthechosenmethod

It is important to consider the ethical implications of the methodological choices made.BrymanandBell(2015)suggestfollowingfourmainethicalprinciples:harmtoparticipants,lack of informed consent, invasion of privacy and deception. In order to avoid harm toparticipants,suchasinducedstress,theinterviewshavebeenconductedinanenvironmentchosenbytheintervieweesandnoconfidentialinformationhasbeenrequestedthatcouldbeharmfulforthecareeroftheintervieweesortothecasecompany.Allparticipantshavevolunteered to participate in our study and agreed to the interviews being recorded anddocumentationsuchasphotosfromthecompanyvisitshavebeenaskedforconsent.Theserecordingsanddocumentationshavebeenavailabletotheauthorsonly.Nointervieweehasrequested anonymity, otherwise this wish would of course have been respected. Thepurposeofthestudyandtheinterviewguidehasbeenpresentedtoallparticipantsbeforetheiragreementonparticipatinginthestudyinordertoensureinformedconsent.Further,we have stayed within the boundaries of the information presented to the intervieweesbeforehandtoavoid invasionofprivacybycollecting toomuch information.Noquestionshavebeenrequestedtobeleftout,however,ifthiswouldhavebeenthecasethiswouldofcoursehavebeen respected.Toavoiddeceptionwehavebeenopenandclearaboutourintentionswiththestudyanditisimportanttomentionthatnoconflictofinteresthasbeenpresentamongsttheauthors(Bryman&Bell,2015).

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3.Theoreticalfoundation

Thepurposeofthischapteristopresentthetheoreticalfoundationofthethesis.Inordertoanswer the research questionwe need to consider (1) how ambidexterity is achieved, (2)howtoidentifytheMCSPinuseand(3)understandhowandwhythisMCSPisusedinordertorelateMCSPandambidexterity.Thechapterstartswithanintroductiontoambidexterityand the approaches and modes to ambidexterity are presented. Thereafter the usedframeworkformanagementcontrolsystemsasapackage(MCSP)ispresented.Thechapterends with discussing the connection between ambidexterity and theMCSP by presentingtheory for the relation between MCS and innovation strategies and previous studies onMCSPandambidexterity.

3.1Achievingambidexterity

Thewayorganizationscangoaboutbalancingexplorationandexploitationhasbeenstudiedrelating to different approaches andmodes of ambidexterity. The academic research hasidentified three different approaches for ambidexterity: sequential, structural andcontextual (O’Reilly& Tushman, 2013). Sequential ambidexterity refers to alternating thefocus between exploration and exploitation over time, thus periodically realigning thestructures, to achieve ambidexterity. Structural ambidexterity refers to balancingexplorationandexploitationsimultaneouslybyusingseparatesubunits.Theseparateunitsspecialize in either exploration or exploitation but are held together by common values,strategicintentandtargetedlinkingmechanismstoleveragesharedassets,makingpossiblethe achievement of ambidexterity on an organizational level. The third approach iscontextual ambidexterity. Contextual ambidexterity focuses on the individuals in theorganization,suggestingthatambidexteritycanbeachievedbyprovidinganorganizationalsetting where the employees individually balance exploratory and exploitative focus(O’Reilly&Tushman,2013).

However,O'ReillyandTushman(2013)liftthediscussionthatacontextualapproachprovesdifficult inexplainingexplorativeendeavourssince theseatsomepointwouldrequire theinvolvement of senior management for resources and legitimacy. This discussion can beseentoapproachtheviewofBirkinshawandGupta(2013)thattheseparateapproachestoambidexteritydoesnotpresent thewholestory, ratherambidexterity isanestedconceptthatispresentatseverallevelsoftheorganizationsimultaneously.Whathavetraditionallybeen discussed as separate approaches to ambidexterity are now increasingly seen ascomplementaryandsimultaneousconstructs(Agostinietal.,2016).Intheirstudy,Agostiniet al. (2016) find interrelatedness between structural and contextual ambidexterity,suggesting that these approaches can reinforce each other. Improved performance hasbeen shown to be more related to ambidexterity when ambidexterity is observed atdifferentorganizationallevels(Junnietal.,2013).Thiscombinedapproachtoambidexteritycanbeachieved through integrating theorganizationaroundaculture formedby the topmanagement, linking it toastructureandcontext toresolvetensions,payingattentiontoformaldivisionsoftasksandinternalmechanismsaswellascontext(Agostinietal.,2016).

Inadditiontothedifferentapproaches,ambidexteritycanbeundertakenthroughdifferent“modes”. These modes are: internal, alliance and acquisition (Duval, 2016). The internal

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mode means that ambidexterity has been achieved internally within the organization,referredtoas“withinmodes”.Thesecondmode,alliance,referstoachievingambidexteritythrough the cooperationwith alliance partners and the thirdmode, acquisition, refers toachievingambidexterity throughpurchasingeither theexploreorexploit capability.Usingthelasttwomodes,ambidexterityisreferredtoasbeingachieved“acrossmodes”(Duval,2016). The intra-organizational modes are usually categorized within the structuralapproach to ambidexterity, however it could be discussed that all approaches toambidexterity could be undertaken at all modes. The inter-organizational and intra-organizational approaches have been claimed to be complements rather than substitutes(O’Reilly&Tushman,2013).

3.1.1Critiqueonambidexterity

Interestingly, though researchers have agreed upon that organizational ambidexterity isimportantforfirmperformanceandlong-termsurvival(March,1991;Tushman&O´Reilly,1996),wehave identified that the studieshavebeenconducted invaryingwaysand thatthereissomeinconsistencyinhowthetermorganizationalambidexterity isused.Junnietal. (2013) argue that the relationship between ambidexterity and firm performance, to alargeextentismoderatedbymethodologicalchoicesaswellasbycontextualfactors.RaischandBirkinshaw(2008)raisecritiqueagainstthatcontributionsarecomingfromavarietyofresearchdomains,whichallhave theirownwayofdiscussingambidexterity.Further theyarguethatthishasledtothattheoriginalfocuseddebateonorganizationalambidexterityhasbecomebothdisconnectedandcomplex.Inaddition,thishasleadtoadiffusionofhowthevocabularyisused,whichinturnleadstoadiffusionrelatedtothespecificeffectsoftheconcept (Raise & Birkinshaw, 2008). O´Reilly and Tushman (2013) also point at that theindistinctdefinitionofambidexterityaswellasexplorationandexploitationhasledtothatthe concepts have been adopted in differentways. Raisch andBirkinshaw (2008) suggestthatacomprehensiveframeworkthatintegratesthevariousinsightsfrompriorsearchwhilespecifying the dominant relationships between the most relevant variables, would bebeneficialforthefieldofresearch.Anothercriticismagainststudiesregardingambidexterityis that there isnoclarityaroundhowtoempiricallymeasureorganizationalambidexterity(Birkinshaw&Gupta,2013;O´Reilly&Tushman,2013).Afterallthereisabroadconsistencyamong researchers about the concept of ambidexterity as well as its effects, but, aspreviously mentioned, a clearer definition of the vocabulary would be beneficial for thefuturefieldofresearch.

3.2IdentifyingtheMCSP

MalmiandBrown(2008)presenttheconceptualframeworkManagementControlSystemsas a Package (MCSP), that argues that theMCS should not be studied in isolation. Theystresstheimportanceofstudyingitasapackageasthedifferentcontrolsaffecteachother.The MCSP includes administrative, cultural, cybernetic, planning, and rewards andcompensationcontrols(Malmi&Brown,2008).

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IthastobementionedthattheMCSPbyMalmiandBrown(2008)isnottheonlyframeworkforstudyingMCSP.However,asmentionedbyGschwantnerandHiebl (2016)theMCSP isanappropriate framework touse,as it iseasier tounderstand,providesagoodoverviewand is more detailed than other similar frameworks. For these reasons, this MCSPframeworkhasbeenchoseninthisthesis.

Figure1.Managementcontrolsystemspackage(Malmi&Brown,2008,p.291).

3.2.1Administrativecontrol

Administrative control is about controlling the employees’ behaviour in different kinds ofways. This can, for example, be done by examining how the organizational structure andhierarchy are built up, as these two factors are affecting how the relations between thedifferentlevelsareworking.Further,administrativecontrolcanalsobeexertedthroughthepolicies and procedures that are present in the organization, partly by clarifying whatresponsibilitiestheemployeeshaveandpartlythroughspecifyinghowtheirtasksshouldbedone. Administrative control is divided into three subgroups, namely organizationalstructure,governancestructure,policiesandprocedures(Malmi&Brown,2008).

Theorganizational structureanddesignworksasanadministrativecontrolas itorganizestheindividualswithintheorganization.Thegovernancestructureisaboutthestructureandcompositionoftheboard,aswellasofdifferentkindsofmanagementandprojectgroups.Governancealsoincludestheformallinesofauthorityandaccountabilityintheorganizationand the systems that facilitates the coordination of activities. Thus, the governancestructureclarifiestheemployees'obligationsandauthorizationsintheorganization(Malmi&Brown,2008).Policiesandproceduresarealsoaformofadministrativecontrol(Malmi&Brown,2008),andtheyarecloselyrelatedtoSimons'(1994)boundarysystem,thatreferstorisks thatshouldbeavoided.Theboundarysystemhasa limitingrole in formofsettingaminimumacceptablelevelofperformanceorbehaviour(Simons,1994),thisisforexampleoften present in the company's code of conduct. Thus, Malmi and Brown's (2008)administrativecontrolencompassesSimons'(1994)boundarysystem.

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3.2.2Culturalcontrol

Culture can often be hard to define, but corporate culture is usually defined as a set ofvalues, beliefs and social norms that are shared by the majority of the employees andthereforeareinfluencingtheirthoughtsandbehaviour(Flamholtzetal.,1985;Fisher,1995).Thus, thecorporatecultureconsistsofvaluesandsocialnormsthatthemanagementandsenioremployeesshareandworktoimplementinthecompany.

Culturalcontrolcanbeveryefficientininfluencingtheemployees'behaviour,andtherearethreedifferentaspectsofculturalcontrols;value-basedcontrols,symbol-basedcontrolsandclan controls (Malmi & Brown, 2008). The value-based control is developed by Simons(1994),whopresentsitasabeliefssystem,whichisrelatedtoandbuiltonthecorevaluesofthecompany.Thebeliefssystemsworkasaguideinthewholecreativeprocessofwherethe company explores new opportunities (Simons, 1994). Symbol-based control is forexamplewhentheofficeisdesignedinaspecialwayinordertofacilitatethedevelopmentofaparticularculture(Schein,1997).Ouchi (1979)developedtheconceptofclancontrol,which refers to the fact thatduringsocialization individuals themselves tend toalignwithdifferent values. The socialization process can be done on an organizational level or insmallergroupssuchasatadepartment.Clancontrolfacilitatestheestablishmentofvaluesandbeliefsthroughceremoniesandritualsoftheclan(Ouchi,1979).GschwantnerandHiebl(2016)discusshowtheculturalcontroldescribedintheMalmiandBrown(2008)frameworkisbroader than thebeliefs system inSimons' (1994) leversofcontrol framework.Culturalcontrol asdescribedbyMalmiandBrown (2008) also includeelementsof Simons' (1994)interactivecontrolsincethesecontrolsarenotonlyusedtocommunicatevaluesbutcanbeusedtocreateacultureofcommunicationandcollaboration(Gschwantner&Hiebl,2016).

3.2.3Cyberneticcontrol

Cyberneticcontrolisdefinedas"aprocessinwhichafeedbackloopisrepresentedbyusingstandardsofperformance,measuringsystemperformance,comparingthatperformancetostandards, feeding back information about unwanted variances in the system, andmodifying the system's comportment" (Green & Welsh, 1988 p.289). To put it simply,cybernetic control is the traditional viewaboutwhat systemorwhich tools a company isusingtocontroltheorganization.Generally,controltoolssimplyaimtofacilitatethecontrolofacompanybymeasuring,comparingandfollowinguponresultstobeabletocomeupwithsuggestionsforimprovements.Therearesomecharacteristicsrelatedtothetoolsforcybernetic control. These are that the control tools should be quantitativelymeasurable,thereshouldbeperformancestandardsorgoalsthatshouldbemet,andthereshouldbeafeedbackprocesswhereperformanceandstandardiscompared.Ifthereareanyvariances,theseareanalysed tobeable tomake improvements (Malmi&Brown,2008).CyberneticcontrolisverymuchrelatedtoSimons(1994)diagnosticcontrolsystem,asmuchfocusisonthemostimportantperformancevariablesforthecompanyandiftheperformanceisgooditwillberewarded.

Fourbasic cybernetic systemsare included in theMCSP typology, and thesearebudgets,financialmeasures,non-financialmeasures,andhybridmeasures(Malmi&Brown,2008).In

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manyorganizationsbudgeting is central to theMCS (Bunceetal., 1995), and is thereforeseenasacommoncyberneticsystem.Financialmeasuresarecommoncontroltoolsastheyholdemployeesaccountable for specificareasandareclosely related to target setting. Inthelastcoupleofyearsnon-financialmeasureshavebecomepopularandthefocushereisondriversofperformance.Finally,hybridperformancemeasuresareamixofbothfinancialandnon-financialmeasuresandthemostadoptedhybridperformancemeasureistheBSC(Malmi&Brown,2008).

3.2.4Planningcontrol

According toMalmiandBrown(2008), thecompanyestablishgoals throughplanningandtherebyitisabletocontrolboththeworkandbehaviourwithintheorganization.Planningisalso helpful when it comes to clarifying what level of effort and what behaviour thecompany isexpecting fromtheemployees,aswellasaimingto facilitatethecoordinationbetween the internal departments. Additionally, planning is used as a tool for controllingtheactivitiesinthecompanyandensuringadesiredlevelofproductionisreached.Planningcontrol isdivided into strategicplanning that sets thegoals for the long-term,andactionplanningthat ismoretacticalandshort-termoriented. Ithasbeenshownthatplanning iscloselyrelatedtomanagementcontrolastheplanningclarifiesthecompany'sgoal.Thatacompanyhascleargoalsisofgreatimportanceforitsperformance,becausetheemployeesbecome aware of which goals the company are striving for and what behaviour that isexpectedfromtheminordertoreachthesegoals(Malmi&Brown,2008).GschwantnerandHiebl(2016)relateMalmiandBrown's(2008)planningcontrolstoSimons(1994)interactivecontrol, as the interactive control lever focusesonplanning activities and challenging theunderlyingassumptionsofcurrentactivities.

3.2.5Rewardandcompensationcontrol

Rewardandcompensationsystemsareusedformotivatingand improvingtheemployees'performancebycreatingcongruencebetweentheindividual'sandthecompany'sgoalsandactivities. The ideabehind this is that individuals thataremotivatedand rewardedput inmore effort than those that do not get it (Bonner & Sprinkle, 2002). Malmi and Brown(2008) present reward and compensation system as a separate control in their typology,althoughtheserewardsareoftencloselyrelatedtocyberneticcontrols.Thereasonbehindthis is that rewards and compensations also can be provided for other reasons, andtherefore they need to be separated (Malmi& Brown, 2008). Reward and compensationcontrolissimilartoSimons(1994)diagnosticcontrolsystems,wheregoodperformancesinimportantareasarerewarded.

3.2.6CritiqueontheMCSP

GeneralcritiquehasbeendirectedtowardstheideaofstudyingMCSasapackage.Grabnerand Moers (2013) claim that the MCSP perspective is not suited for investigatinginterdependenciesbetweenMCSandthatthisholisticapproach"hasnotyetsucceededinadvancing our knowledge on the configuration ofmultiple control practices" (p.418) andmightbedescribedastooambitious.AdditionallytheyclaimthatifMCSareassumedtobe

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interdependentitiscrucialtodeveloptheoryonthisinterrelatedness,somethingcurrentlylacking (Grabner &Moers, 2013). The lack of guidance inMCSP theory for assessing theMCSP is a concern that is also raisedbyO'Gradyetal. (2016)andOtley (2016)pose thatmuch is still to be done in order to create a general framework that is useful for validlycomparingtheresultsoffuturestudies.

Bedfordetal. (2016)approachsomeof thiscritiquebyclaiming their studyshowhowanunderstandingofMCSPcanindeedinformtheanalysisofMCSandpresentevidenceforthecombined use of severalMCS affecting the outcome of individualMCS. Also, their studyshow evidence for equifinality, i.e. several different MCSP being equally effective for aspecific contingency, as well as interdependencies between MCS being affected by thestrategiccontextofthefirm.However,theyalsodiscussthattheirstudyinsinuatethat"theeffectivenessofmostMCpracticeswithinapackageappearstobeprimarilyattributabletotheirfitwithcontextratherthanwitheachother"(p.23)andthusthattheassumedextentofinterdependencyofMCSappearstobesomewhatoverstatedintheliterature.Evenifthisconstitutesasignificantstep forMCSPtheory, stillmore theoryneeds tobedeveloped inordertoprovidethesoughtafterguidanceonMCSPinterrelatedness.

3.3MCSPuseforambidexterity

ThearticlebyGschwantnerandHiebl(2016)isparticularlyrelevantforthisstudyasitistheonly article found connecting ambidexterity andMCSP and even using the framework byMalmiandBrown(2008).ThroughtheirliteraturereviewandclassificationaccordingtotheMCSP framework they suggest that the use of a MCSP can support the achievement ofambidexterity through combining MCS with different effects on exploitation andexploration.TheirfindingsoneachMCSPcategoryispresentedbelow.

CulturalcontrolsCanhaveapowerfulinfluenceonachievingambidexterity,particularlyincombinationwithother MCS. Effective social norms enable informal controls and can thereby partiallysubstitute formal controls and balance exploration and exploitation. Exploration can befacilitatedthrough,forexample,opencommunication,afreeflowofinformation,showingtolerance towards negative outcomes and providing the flexibility necessary for reactingproactively to changes. Exploitation can be promoted through a rule following anddisciplined environment. Cultural controls are, however, especially suited for fosteringexploration while exploitation may also be achieved through more formal controls(Gschwantner&Hiebl,2016).

PlanningPlanningcanbeusefulforbothexplorationandexploitation.Explorationisfosteredthroughplanningcontrolsthatservetheinformationofemployees,integrateknowledgeandhaveafeed-forward orientation, providing a basis for open communication and discussion ofcurrentactionplansandthereforeallowemployeestorecognizechanges.Exploitation,ontheother hand, is fostered throughmere actionplanningwhich restrains the employees'freedomofaction,focusingemployeebehaviourontheorganization’sobjectives.Thus,to

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achieve ambidexterity, planning should be used in combination with controls with anopposingeffect(Gschwantner&Hiebl,2016).

CyberneticcontrolsCaninfluencethebalancebetweenexplorativeandexploitativemeasures.Combiningfeed-forwardandfeedbackcontrolscanprovideorientationthroughtransparencyandguidanceinperformanceandstillprovidespaceforemployeestoexplorenewwaysofsolvingproblemsandtomotivatethemandcanthushelpthemachieveabalancebetweenexplorationandexploitation(Gschwantner&Hiebl,2016).

RewardsandcompensationCansupporttheachievementofambidexteritybyactingtoaligntheindividuals'aimswiththe organization's objectives. However, these controls come with the risk of having adistorting influence that endangers the achievement of ambidexterity and must thus beusedwithgreatcare(Gschwantner&Hiebl,2016).AdministrativecontrolsTight structures that limit the behaviour of the employees, seeking predictability throughstandardized procedures support exploitation, while exploration is supported throughstructuresprovidingflexibilityandfocusonsearchingandrealizingnewopportunities.Thus,administrative controls, just as planning controls, also benefit from being combinedwithopposingcontrolstoachieveambidexterity(Gschwantner&Hiebl,2016).3.4AmbidexterityandtheMCSP3.4.1MCSforinnovation

SincetherelationbetweenambidexterityandMCS is ratherunexplored, the linkbetweenambidexterity and innovation becomes useful by broadening the available academicfoundationforthisstudy.AprominentcontributiontoconnectingMCSandinnovationhasbeenmade by Davila (2005). Davila (2005) proposes a framework for the use ofMCS tofosterinnovation.Theframeworkisbaseduponthetypeofinnovation(radical/incremental)andthelocusofinnovation(topmanagement/day-to-dayactionsintheorganization).Iftheinnovation is radical it redefines the company's future strategy in a radically new way,whereas if it is incremental itmoremodifies thecompany'scurrentstrategystepbystep.Thenewideasthatinturncanleadtoinnovationcancomebothfromtopmanagementandfrom the employees within the organization. The use and design of the MCS differsdependingonbothwhichtypeofinnovationandlocusofinnovation.Thus,theroleoftheMCSdiffersbetweenthedifferentinnovationstrategies(Davila,2005).

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Figure2.StrategicconceptsforMCS(Davila,2005,p.42).

Since our focus is on the MCSP, as opposed to a single MCS, we will have to use thisframeworkinatransferredsense.AlthoughDavila(2005)describeappropriatedesignsofaMCSaccordingtothechosenstrategicconcept,itcanbearguedthatthesameoutcomecanbetheresultofacombinationofcontroltoolsthathavenotbeendesignedandcoordinatedintentionally, i.e. a MCSP. Davila's (2005) framework provides a theoretical foundationspecificallyfocusedontheeffectofhowaMCSisused,thusthisframeworkcanbeappliedinorder to furtheranalysehow thedesignanduseof theMCSP foster innovationand inturn its effect on ambidexterity. As shown in the figure above there are four differentinnovationstrategies;deliberate, intendedstrategicactions,autonomousstrategicactionsandstrategicinnovation(Davila,2005).TheseinnovationstrategiesandtheirrelationtotheMCSwillbediscussedfurtherinmoredetail.

DeliberatestrategyInthedeliberatestrategytheideas,whichareclosetothecurrentstrategy,comefromthetopoftheorganizationandisimplementedstepbystep.TheroleoftheMCSisthereforetosupportthecompany'scurrentstrategyandtotranslateitintoactionplansthatinturnwillgeneratevaluetothecompany.Thus,muchfocusisonefficiencyandspeed(Davila,2005).TheroleoftheMCSforthedeliberatestrategyisrelatedtoSimons(1994)boundarysystem,as it stresses what risks to be avoided, and to the diagnostic control system, as it takeactions if there are some deviations as well as that budgets and other standardizedperformance measures are used for comparing the targets with the outcomes (Davila,2005).IntendedstrategicactionsTheintendedstrategicactionsarecharacterizedbythatideas,whicharecloselyrelatedtothe company’s current strategy, comes from all parts of the organization and areimplementedstepbystep.InthissituationtheroleoftheMCSistoactasaframeworktobeableto,throughoutthewholeorganization,refinethecurrentstrategy.Insteadofseeingdeviations fromexpectationsassomethingbad, it ishereseenasopportunities totake inincrementalinnovationsthatapplytothecompany'scurrentstrategy.TheroleoftheMCSistotakeinasmuchinformationaspossibletotheorganizationandtocapturethislearning(Davila,2005). It is closely related toSimons (1994) interactive control system in thewaythattopmanagementpersonallyisinvolvedinthesubordinates'decisionsandencouragetoa discussion around the strategic uncertainties that is related to the company's currentstrategy. For example, the budgetary planning can encourage employees to explorealternatives.AdditionallytheMCS,suchasabudgetforexample,cancontributetoadialoganddiscussionatalllevelsintheorganization(Simons,1994).

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AutonomousstrategicactionsAutonomous strategic actions are characterized by innovative ideas that comes from theemployees within the organization and that are radical in the way that can change thecompany's current strategy. Autonomous strategic actions is described as a process ofvariation, selection and retention. This means creating an appropriate setting forinnovations to arise, imposing a context that helps selecting among the differentalternativesandfinallyadaptingtheorganizationtomakebusinessofthenewinnovationsbybringingthenewradicalinnovationsintothestructuralcontext.Muchfocusisspentoncreating an appropriate setting for where innovations can arise. Since, in general, theprobability for radical innovations to occur is quite low, one wants to increase thepossibilities as much as possible. The culture has been identified as the most importantfactorbehindcreating this innovativesetting.Thestrategicconceptautonomousstrategicactionsputmuchemphasisonmotivating theemployees toexploreandexperiment. It iscloselyrelatedtoSimons’(1994)beliefssystem,asitisfocusingonmotivatingthemembersoftheorganizationtoexploreandexperimentbeyondthelimitsofthecurrentstrategy.ThebeliefssystempresentedbySimons(1994)isbuiltuponstrongcorevaluesthataresharedwithintheorganization.Interestgroups,suchasprojectsteams,thatbringtogetherpeoplewith different training and experience as well as having external collaborations promotevariationandthusinnovation.TheroleoftheMCSistocreateaninnovativeculturewithintheorganizationthatencouragesthisnewrefinedstrategyandalsomotivateemployeestocontinuetogrowanddevelop.Providingslackintheavailabilityofresourcesandprovidingformal systems for identifying and supporting new ideas constitutemore formalways offosteringautonomousstrategicactions(Davila,2005).Davila(2005)stressesthatstrategyisabout choosing and that imposing strategic boundary systems make exploration andexperimentationmorestructured.StrategicinnovationTheideasforstrategicinnovationcomefromthetopoftheorganizationandareradicalinthewaythattheyredefinethecompany'scurrentstrategy.TheMCSroleistosupportthisradical change in the company's strategy by for example recruiting the right employees.Thus,itisfocusingonbeingentrepreneurialbydiscoveringnewideasandthenexploitthem(Davila, 2005). The MCS for strategic innovation is linked to Simons (1994) interactivecontrolsystem,as theMCSprovide informationtoallmembersof theorganizationaboutthe opportunities for radical innovations. As discussed by Lorange et al. (1986, in Davila,2005), strategic innovation benefits from aMCS thatmonitor the environment carefully.Topmanagementneedtobeinformedaboutallthebusinessopportunitiesthatcomewithforexamplenewtechnology,changesinregulationsandtrendsincustomerneeds.TheMCSplay an important role here, when it comes to for example scenario planning of thesedifferentopportunitiesinthemarketenvironment.Additionally,theMCSisalsoimportantwhen it comes to leveraging the learning associatedwithmonitoring of the environment(Davila,2005).3.4.2Critiqueontheframework

When looking forcritiqueagainstDavila's framework foruseofMCSto foster innovation,nothingisfound.Itcanbequestionedwhynocritique,sofar,hasbeenraisedinacademiaagainsttheframeworkanditscomponents.

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4.Empiricalfindings

Thepurposeof this fourth chapter is topresent theempiricalmaterial. The chapter startswith a thorough description of the company background to facilitate the reader’sunderstanding.ThereaftertheworkwithinnovationatAxisisdescribedandthetimelineforitsinnovationspresented.ThechapterendswithathoroughreviewofhowtheMCSPisusedinAxis.

4.1AxisCompanyBackground

Axis Communications was founded in Sweden in 1984, starting out as a developer andproducer of protocol converters for connecting PC printers to IBM mainframe networks(AxisCommunications,2017b).Already inthisbeginningofAxis, thefoundersrealizedtheneedtodevelopanadaptivecapabilityduetothewidespreaddiscussionsofthe"deathofthe IBM mainframe", leading to the creation of an open and innovative internalenvironment at Axis. This adaptive capability led to Axis going from number two in theindustry of IBM mainframe network printing to expanding their product and servicedevelopment and production to become pioneers in network connectivity, becomingnumbertwointheindustryofnetworkprintersandnumberoneinnetworkopticalstoragesolutionsbetween1990and1998(AxisCommunications,2017b).

It was not until 1996 that Axis started developing cameras, inventing the world's firstnetwork camera, theNeteye 200 (Axis Communications, 2017b). The camerawas able toproduce no more than three frames per minute, however still providing extraordinarybenefitsforagreatnumberofcompaniesthatdidnotneedmoreandrevolutionizingvideosurveillancebygoingfromanalogueintodigital.Beingthefirstproviderofnetworkcamerasthey quickly realized that many potential customers were lost due to the inability tointegratethenewtechnologytotheirexistingCCTV(closedCircuitTelevision)systems.Axisthen continued focusingon IP connectivity, resolving the integration issue in 1998with avideo encoder that allowed existing CCTV systems to be integrated to the latest IPtechnology aswell asdeveloping their first ownvideo chip, theARTPEC-1, inorder tobeabletoimprovetheirnetworkvideoproducts’performance.Thisledtotheintroductionin1999oftheworld’smostpopularnetworkcameraatthetimeforfiveconsecutiveyearsandsettingthestandardforhownetworkproductsweretobedesigned(AxisCommunications,2017b).

By2002Axishadsuccessfullytransformeditselffromaconnectivityspecialistintothegloballeader in the network video market (Axis Communications, 2017b). Since then Axis hascontinued to be the global market leader in network video, always being at thetechnological forefront of the industry (Axis Communications, 2017b;Dahlroth, interview,19th April 2017). In 2015, Axiswas acquired by Canon but is still being run as a separateentity(AxisCommunications,2017b;Fransson,interview,8thMay2017).TheacquisitionhasledtothatAxishasgotaccesstoalotofnewtechnologiesandpatents,whichofcoursehasbeenveryuseful (Fransson, interview,8thMay2017). TodayAxishasamarket leadershippositionwithin the surveillance technology of network video and video encoders, with aturnover of 7,39 billion SEK and over 2 600 employees worldwide in 2016 (AxisCommunications,2017a).

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AcorecomponentofAxis'businessmodelhasbeenitspartnershipmodel.FromstartAxishashadanindirectsalesmodelthathasbeenrefinedbutkeptthroughouttheyears(AxisCommunications, 2017b), creating long-term loyal partnerships that provide Axis withmarket knowledge through open and close dialogue (Axis Communications, 2017a). ThisallowsAxistorapidlyidentifyandrespondtomarketchangessuchasnewtrends,customersegmentsandbusinessopportunities(AxisCommunications,2017a).

4.2InnovationinAxis

WhatcanbeseenfromAxishistoryisthatitisagreatlyinnovativecompanywiththeabilityto change focus if needed.BasedonAxis' ownpresentationof companymilestones (AxisCommunications, 2017b; Axis Communications, 2017c) and the displayed product andmicrochipstimelineinAxisExperienceCentre(AxisExperienceCentre,2017),wehavemadean illustrationof theproduct and servicedevelopment timelineofAxis since its foundingwhichcanbefoundinAppendix3.All introductionswhichcanbeseenasradicallynewtothemarketand/ortothecompanyarepresentedasnewrows,showingexploration,whilemore incremental developments are presented as extended lines on the timeline,representing exploitation. Axis has followed the strategy of introducing a new line ofbusiness with a product built initially from standard components in order to verify themarket,beforecreatingtheirownspecializedmicrochips(orapplication-specificintegratedcircuit,ASIC)inordertoimproveperformance,reducepowerconsumptionandreducecost(Axis Experience Centre, 2017)which can be seen as gaps in theMicrochip timeline. Thefigure(seeAppendix3)wasshownfortheGlobalProductManager,whoconfirmedthatthefigureprovidedacorrectviewofthecompany'sdevelopmenthistory.

A great amountof resources are invested in researchanddevelopment (R&D)each year,withR&Dexpenditureamountingto1233MSEKin2016ofwhich77MSEKwascapitalizedas development expenditures. Network cameras are still the most important productcategory, however an increasingly important share of the product portfolio comes fromsoftwareandsolutions(AxisCommunications,2017a).Thecurrentfocusisdescribedas“anewwaveofinnovation”(AxisCommunications,2017b),notonlyfocusingontechnologicalimprovementsbutonprovidingcompletesolutionstoendcustomers,takingagreaterandbroaderserviceresponsibility(AxisCommunications,2017a).Thishasledtothecreationofthe business unit “NewBusiness”,which focuses on everything that lies beyond networkvideo,suchasnetworkconnectedspeakers,physicalaccesscontrolsystems(PACS),IPdoorstations,analyticstoolsandCloudBasedconnectivitytechnologycalledAVHS.Throughoutthetechnological improvementsandextendedproductandserviceofferings,akeydesignprinciple is easy installation and open IP protocols enabling third party development.Although Axis’ primary growth strategy is organic growth, recently strategic acquisitionshave become a new strategic pillar to Axis. In 2016 three companieswere acquired thatwere identified to supplementAxis’ service offeringwith new knowledgewithinNetworkDoor Stations (NDS) and analytics tools. The identification, managing and integration ofstrategic acquisitions also lie under responsibility of the New Business department (AxisCommunications,2017a).

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Dahlroth(interview,19thApril2017)describedthedevelopmentofNewBusiness,startingoutasaprojectaimedat capturingall ideasnot related tonetworkcameras.TheprojectconstitutedawayforanyindividualwithinAxistopresentideasandgetapprovaltostartupaproject.Theproject-teamwasthenresponsibleforstartinguptheseprojectsandtofindatemporary substitute for the positions becoming vacant during the period for the newprojects. In thebeginning therewereno limitsonwhatkindof ideascouldbesubmitted,however when the project was redefined as its own function, New Business, certaindirectivesweresetinordertogettheincomingideasmorefocused,(1)ithadtobepossibletosellthroughAxis'currentdistributionnetworkand(2)berelatedtonetworkconnectivity.

Thesourcesofnew ideas for innovationsaremanyandAxisactively seeks tocatch theseideas. In addition to capturing ideas fromwithin the organization the productmanagerskeepcontinuouscontactwithpeople in theirnetwork thathave thorough insight inwhatthe customers see as well as keeping a close look on the competitors. For example theCustomer Centre and Sales department get information directly from customers, eitherthroughcomplaintsorsoughtafterfunctionalities,andnewimposedlegislationanywhereinAxis'activemarketscan leadtothecreationofnewinnovations(Dahlroth, interview,19thApril 2017). Fransson (interview, 28th April 2017) adds that Axis has ambassadors indifferentregionsaroundtheworld,withthepurposetobeclosertomarketinordertobeable to pick up new trends in customer needs as well as new technology. The productmanagersaretheonesresponsible forcollectingall these ideas,creatinga"wish list"andprioritizingtheseideasaswellasbreakingitdowntoa"roadmap"outliningwhatneedstobedoneandwithinwhichtimeframe(Dahlroth, interview,19thApril2017).Theroadmapscreate the connections between the different functions and the overall strategy. This isdone inordertoensurethatthefocusanddirection isunitedacrossall theprojects inallfunctions (Bexelius, interview,28thApril2017).TheGlobalProductManagerexplainshowheisseekingoutnewideasveryactively,forexampleheandhiscolleaguestraveltoJapanonceayeartogetinsightsinthestateoftechnology.Japanisfaraheadwhenitcomestotechnology, and these visits have proven very useful in providing ideas and insights thathavebeenusedatAxis(Fransson,interview,8thMay2017).

ThewayinnovationsarepursuedinAxis isthroughprojects(Bexelius, interview,28thApril2017;Dahlroth,interview,19thApril2017;Rasmusson,interview,25thApril2017).Bexelius(interview,28thApril2017)arguesthattheprojectstructureisveryusefulwhenitcomestoworkwithinnovationasitfacilitatesquickdecisions,whichinturnleadstothattheproductwill be out on themarket and available for the customersmuch faster. The projects arebasedonself-organizing,cross-functionalteamsthatfollowaniterativeprocessthataimstostreamlinetheprojectdevelopmentandpromotecontinuouslearning(Bexelius,interview,28th April 2017). The projects are completed following a stage-gatemodelwhich providedeadlinesfortheachievementofstepstowardstheaimedforfinalfunctionality(Dahlroth,interview, 19th April 2017; Bexelius, interview, 28th April 2017). The projectmethodologyensures that the project members are always on track and that the project progress iscontinually evaluated. The roadmaps help all company functions being “on-board” theprojectprocess,sothatforexamplesalesknowwhentheyshouldbepreparedtoentertheprocess(Dahlroth,interview,19thApril2017).Theredoesnotseemtobeanydifferenceinhow the projects are managed if the project is engaged in incremental or more radical

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innovation(Dahlroth,interview,19thApril2017;Rasmusson,interview,25thApril2017).Theonlydifferences lie in thesizeof theprojects in termsof timeand resourcesneededandthatmoreradical innovationsattractmore topmanagementattentionofhowtheprojectadvances (Dahlroth, interview,19thApril2017).However, theProjectManager thinks thatthere could be a difference in the tightness of budget targets depending on the level ofinnovationofaprojecttogetherwiththeestimatedpaybacktimeoftheproject'sinnovation(Bexelius, interview,28thApril2017).Thisview is toa largeextentconfirmedby theR&DDirectorforPTZ,whoexplainthatprojectsarecategorized into"protect","challenge"and"innovate", which are evaluated from different types of investment calculations. An"innovate"project iswhenAxis is focusingontotallynewideas inordertobuild itsbrandand to push the technological frontier forward. As these "innovate" projects aremoreofstrategiccharacter,thesecannotbeevaluatedwiththesameinvestmentcalculationcriteriaastheotherprojects.Forexample,onecanseehowthesalesincreaseshaveamorelong-term development horizon than the other types of projects (Jeppsson, email, 12th May2017).

Themarket is a central concern in every innovation.Axis focuseson specific segments intheirdevelopment,forexampleretailandtransportaretwoofthecurrentelevencustomersegments for New Business (Axis Communications, 2017a; Dahlroth, interview, 19th April2017).Ifaprojectisnotseentomeetmarketneedsitcanbediscontinuedatanypointinthedevelopmentphaseandallpeopleworkingwithinnovationarerequiredtomeetanendcustomerwithinoneyeartomakesurethattheinnovationscreatedarenotdisconnectedto theoneswhoare touse theproduct (Dahlroth, interview,19thApril2017).TheGlobalProductManagerexplainedthattechnologicalinnovationsandstandardsarelargelydrivenby consumer electronics, making it very important to follow. Introductions such as SDmemory cards and HD resolution were a result of following the developments on theconsumerelectronicsside(Fransson,interview,8thMay2017).

“Thepurchaserisalsoafamilyfatherormotherandiftheyhaveheardthat´thisisthebesttechnology’,thenbyusingthisinourmarketing,thatwealsousethistechnology,wehavea

linkandtheyrecognizeit”(Fransson,interview,8thMay2017).

Axislooksatwhattheconsumerwantsratherthanwhatthecompetitorsaredoingorwhatis possible to do with today's technology, "it is not worthwhile to introduce a newtechnologytodayifnooneunderstandswhatitis"(Fransson,interview,8thMay2017).

However,Axisisnotonlyfocusingonnewinnovativeprojects,upgradeprojectsofpreviousproducts are seen as equally important. As the competitors tend to copy Axis' successproducts it is important that adevelopmentplan for the follow-upproduct is formulatedimmediately.Theseupgradeprojectsareseenasquitesimpleprojects,astheyknowwhatfeaturesneedtobeupgradedaswellastheapproximatetimehorizonforwhentheneededtechnologywill be available. These refinementsof existingproducts contribute tomakingsurethecompetitorsdonotpresentbetterversionsofAxis'successfulproductsandkeepingupthehighsales (Fransson, interview,8thMay2017).Bexelius (interview,28thApril2017;email, 3thMay 2017) explains that the project category for product development called

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"Protect" is focused on upgrading existing products. Thus, protect projects are aboutprotectingthesaleyouhaveandtobeabletodothisAxisneedstoidentifywhatitisthatactually is protecting the product (Bexelius, interview, 28th April). One solution can be tofrequently upgrade the product so that the competitorswill remain one step behind. BycontinuouslyupgradingsuccessfulproductswithnewandimprovedfeaturesAxismakesurethattheyalwaysareaheadofitscompetitors(Fransson,interview,8thMay2017).Bexelius(interview,28thApril2017)explainsthatdirectlyafterthatthefirstbatchofanewproductisdeliveredtothecustomers, thepost-productionworkstartswheretheyareworkingontheyieldtobeabletoimprovetheproductionandmakeadjustments.Shestressesthatthemain focus is toquickly get thenewproductouton themarket, before the competitors,after thatadjustmentscanbemadeor,asshesays,"or franklystart focusingonthenextupcomingproduct instead" (Bexelius, interview,28thApril 2017). The "challenge"projectscould be described as the opposite to "protect" since these projects are aimed atchallenging chosen competitors in certain areas judged as lucrative (Jeppsson, email, 12thMay2017).Thus,thechallengeprojectsstartsattheotherend,lookingatwhatsuccessfulproductsthecompetitorshaveandcreatingtheirownversionsoftheseproducts.

Rickard explained that since Axis is on the technological frontier it is difficult to findpossibilities to outsource and to some extent to buy in technology, so it is a balance ofoutsourcing, partnering up and developing in-house, always looking at what is the mostcost-efficient(Dahlroth,interview,19thApril2017).Therecentacquisitionshavebeenmadeon these premises, judging that the knowledge and technology portfolio gained throughtheseacquisitionsarestrategicinAxis'broadenedfocuson“outoftheboxsolutions”andismore difficult or expensive to achieve internally (Axis Communications, 2017a; Dahlroth,interview,19thApril2017).

4.3MCSPuseinAxis4.3.1Culturalcontrols

The focuson the corporate culture inAxis is very strong, and it is argued that the strongcorporate culture is a key factor behind Axis' successful growth as the culture promotesinnovation and development (Axis Communications, 2017d). The core of the culture isexpressedinthreecorevaluesorguidingprinciples;“thinkbig”,“alwaysopen”and“actasone”(AxisCommunications,2017d;Dahlroth,interview,19thApril2017).Thinkbigreferstolookingoutsidethebox,strivingtoalwaysimprove,expand,challengeanddevelop.Alwaysopenmeansbeingopentocommunication,makingiteasytomeetandcommunicatewitheachother, also across formalhierarchical positions, listening andbeingopen to ideasofothers.Finallyactasonereferstotheculturalcomponentofworkingtogether,notfocusingonselfishinterestsbuthavingcommonstrivesandcommongoals(Dahlroth,interview,19thApril 2017; Rasmusson, interview, 25th April 2017). These guiding principles are presentthroughouttheorganization,allowingcommunication,andtransparencyoverallfunctions.WhenRickardDahlrothfirststartedinAxis,theorganizationwassmallenoughforeveryoneto gather in the assembly hall forweekly updates on all the importantmatters, howevernowitisuptothedifferentmanagerstomakesurethetransparencyiskeptandthatalltheguidingprinciplesare followedandunderstood in their function (Dahlroth, interview,19thApril2017).Tobring theentireorganization together,Axisengage itsemployees inmany

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different gathering events, workshops on the core values and every year follow-ups andevaluations are made based on the core values (Axis Communications, 2017d; Dahlroth,interview, 19th April 2017; Rasmusson, interview, 25th April 2017). For Axis it is vital toactivelyworktofortifyitscorevaluesamongallemployeestobeabletocontinueitsrapidgrowthandglobalexpansion(AxisCommunications,2017d).

When it comes to new ideas and innovations the core value "Always open" is central.Fransson(interview,8thMay2017)explainsthatheisalwayskeepinghisdooropenandthatheencouragestheengineerstotellhimabouttheirideas.Atleastonceaweekanengineerwalks into his room to tell him about a new idea, and these kinds of conversations arealwaysprioritizedeven ifsomethingelse isscheduled.Hearguesthatthis isan importantstatement in order to show that new ideas always are welcome and given the highestpriority.Additionally,innovation-daysarearrangedatAxistoencouragecreativityaswellasfurthershowingthatnewideasand innovationsareencouragedandprioritized(Fransson,interview, 8th May 2017). Failure is seen as an important part of learning and Axis thusprovidesacultureacceptingoffailure(Fransson,interview,8thMay2017).Topromotetheopen culture the breakfast also plays an important role as it encourages communication,interactionand collaborationbetween theemployees (Handelskammaren,2013;Bexelius,interview,28thApril2017;Fransson, interview,8thMay2017).Also,theopenofficedesignandmultipleareasforinteractionfostertheculturalvaluesofAxis(Dahlroth,interview,19thApril2017).

Anotheressentialelementinfosteringthecorporatecultureisthroughrecruitingtherightemployees.AlotofeffortisputintofindingandrecruitingemployeesthatfitAxis'cultureand values (Handelskammaren, 2013; Bexelius, interview, 28th April 2017; Rasmusson,interview, 25th April 2017), "HR works a lot with teaching the culture to the new onescominginbutalotofworkisdonealreadyintherecruiting"(Bexelius,interview,28thApril2017; Rasmusson, interview, 25th April 2017). This is especially important for a companygrowingatthespeedthatAxisisgrowing,inordertokeeptheculturefromchanginginanunsolicitedway(Bexelius,interview,28thApril2017).

4.3.2Planningcontrols

The planning in Axis looks a bit different depending on which function you study. Thefunctionsdirectly involved in innovation,NewBusiness andProducts andCTO,have theirplanning completely circled around the projects they are involved in while the otherdepartmentshaveaplanningmorebasedaroundactivitiesneededtomeettheforecastedgrowthofAxis(Dahlroth,interview,19thApril2017).Threelevelsofplanningareusedinthefunctionsfocusedoninnovation:businessplans,roadmapsandprojectplans.

TopmanagementhavedefinedtheoverallstrategicframeworkinwhichAxis istooperatesuch as the vision, “innovating for a smarter, safer world”, and the focus on networkconnectivity, but are not involved in the detailed plans of what is to be done and how(Dahlroth,interview,19thApril2017).Theseniormanagementdoeshoweverhaveproductmanagers that are responsible for creating a business plan for the upcoming 12months,basedonalltheinformation,ideasandinputspickedup,determiningbroadlywhattrends

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aretobeseeninthecomingyear(Fransson, interview,8thMay2017).Businessplansarealso created for the upcoming 24 and 36months.However, theGlobal ProductManagerstressesthat it ishardtocreateabusinessplanwithsucha longhorizon,asnewfeaturesand ideas constantly are coming up. Sometimes the CTO presents directives of things hewantstoseeinthebusinessplanforacertainproductgroupinwhichcasethesedirectivesof course needs to be taken into consideration. The business plan is presented to theproduct group steering committee and when approved, it is used in formulating thepreviouslymentionedroadmap(Fransson,interview,8thMay2017).

The roadmap constitutes the overarching plan for the projects to be undertaken in theupcoming36monthsandisrevisedeverysixthmonth.TheRoadmapfunctionasawaytogettheproductmanagerstoputtheirideasdownonpaper,becausetherehastobeaplanfor the company onwards (Fransson, interview, 8thMay 2017). Every week the productmanagersmeettodiscusstheircurrentprojects,statusandmattersofconcerninordertocoordinate the different product groups' innovation endeavours (Fransson, interview, 8thMay2017).TheR&DDirectorforPTZCamerasexplainsthattheyaimtocreaterealisticandslightly optimistic roadmaps, so that they should be able to execute all the proposals(Jeppsson,email,12thMay2017).Theroadmapsaredetailedinthesensethattheydefinewhatisaimedforduringtheperiodandarebrokendownintoproductproposalswhichinturnprovidethebasisforprojectplanning;providingdeadlinesandassigningprojectteams(Bexelius, interview,28thApril2017).Howeversincetheprojectsareaimedat innovation,thereisnowaytoelaboratelyplanhowtheprocesswillprogressanditrecurrentlyhappensthatnewdetailsor innovationsoccurduringaproject thatalters theoriginalprojectplanand product proposal (Bexelius, interview, 28th April 2017; Dahlroth, interview, 19th April2017; Fransson, interview, 8th May 2017). The product proposal does not provide anytechnicaldetailsmorethanthebasics, forexample that theproductshouldbeable tobeconnectedtoanetwork.Instead,theproductproposaldescribesthevisionoftheproduct,providingguidanceinwhatisaimedfor.TheGlobalProductManagerstressesthatbyonlyexplainingthevisionoftheproductfortheengineerstheywillbeabletothinkfreelyandnotbe tied to technical details.Heusually alsowrite thathewants "never seenbefore"-features inhisproductproposals,whichput somepressureon theengineers to comeupwith ideasaboutwhatthenewfeaturecouldbe,sometimestheysucceedandsometimesnot, however the important thing is to stress the need andwish to push the boundaries(Fransson,interview,8thMay2017).Theprojectsspecificallyfocusedoncreatingsomethingnever before seen are classified as pure Innovate projects (Bexelius, interview, 28th April2017).Theprojectprogress is followedupweekly. Ifchangesareproposed, timesarenotheldoranyotheraspectisnotaccordingtoplanthereisdialogueastowhythisisandhowtoproceed(Bexelius,interview,28thApril2017;Dahlroth,interview,19thApril2017).Thusitisadynamicprocesswithconstantcommunication.

4.3.3Cyberneticcontrols

Budgets, or rather rolling forecasts, are a central part of the management controlthroughout the organization (Dahlroth, interview, 19th April 2017; Rasmusson, interview,25th April 2017). There is no real difference between how the budgets are used in thedifferentfunctionsonlythatthetwofunctionsfocusedoninnovationhavebudgetsdirectly

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distributabletoall itsprojects insteadoftheactivitybasedbudgetsoftheotherfunctions(Dahlroth,interview,19thApril2017).Budgetsarefollowedupmonthlyinallfunctionswiththecontroller(Dahlroth, interview,19thApril2017;Jeppsson,email,12thMay2017)andifchangesaresought,thebudgetisnotkeptoranyotheraspectisnotaccordingtoplanthereisdialogueastowhythisisandhowtoproceed(Dahlroth,interview,19thApril2017).TheR&D Director for PTZ Cameras explains that the meetings provide the Directors withinformationabouthoweverythingisgoing,sothattheycanassignactionsandresourcestowhere it isneeded.Thus, the information fromthemeetingprovides themwithguidanceabout "go ahead" or "no go" decisions in the day-to-day decisions (Jeppsson, email, 12thMay2017).Thewaybudgetsareusediscloselyconnectedtothewaytheplanningisbuiltup.ResourcesaredividedaccordingtothemostpressingneedinAxisandmanagershaveamandatetoredistributeresourcesinordertomakesurethemostefficientandeffectiveuseofresources(Bexelius,interview,28thApril2017;Dahlroth,interview,19thApril2017).

Theprojectmanagerexplainedthattheuseofbudgetsisnotverystrictattheprojectlevel.Duetotheiterativeprocess,constantlycommunicatingwiththesteeringcommitteeoftheproject, there is continuous deliberation on how to proceed andmake trade-offs to staywithin budget or increase the budget (Bexelius, interview, 28th April 2017). If a certainfunction is sought after and/or a specific timeframe is set there is noproblem to get thebudget increases needed (Bexelius, interview, 28th April 2017). Jeppsson (email, 12thMay2017)stressesthatthebudgetfortheproductsegmentsshouldbefollowed.Someprojectswillbeoverbudgetandsomeunderbudget,whichisacceptableastheyarelookingattheaggregatedresultofallprojects.Furthersheexplainsthatitisimportantthattheprojectsisreflectingaroundthecoststhatisrelatedtotheiractions,itisfinetotakeoncostsbuttheyhavetobeconscious.Thus,aprojectshouldnotuseuptheassignedresourcesjustbecausethey are under budget, these resources should instead be used in another context, asanotherprojectmaybeneedtotakeonsomeextracosts(Jeppsson,email,12thMay2017).

"Inpracticethereisnotmuchfocusifoverbudget,ratherafocusonwhythey[thecosts]havearisen,forexample,'wehaveaproblemwithX,howshouldwesolveit'andsoon.Thereisnotmuchfocusonthecosts,asIsaid.Thisisbecauseitisaninnovationcompanythatissuccessful,wherethefocusismoreongettingtothemarketquicklyinsteadof

controllingcosts"(Bexelius,interview,28thApril2017).

NeithertheGlobalProductManagerexpressesthatheisaffectedbythebudget.Hestressesthatitismoreaboutthattheresourcesinformofengineersarelimited,sowhenaproject-team is available he has to prioritize which product proposal they should focus on first(Fransson, interview,8thMay2017).Aspreviouslymentioned,theestimatedpaybacktimeseemstohaveaneffectonhowthebudgetsareused.WhenthepaybacktimeisasshortasismostoftenthecaseforAxisthereisnotmuchneedtokeepastrictbudget,however,forproducts with longer payback times, such as accessories, the budget is more important(Bexelius,interview,28thApril2017).TheR&DDirectorforPTZCameras,whoisresponsibleforPTZ'sbudget,explainthattheyarelookingatsomefactorsinthedifferentsegmentstobeable tobalance thebudget in thebestpossibleway.Forexample, theyanalyse if theyneed to focus more on a specific area and how old the products are in the differentsegments.Decisionsaremadeaboutifitistimetoupdatesomeproductlinewiththelatest

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technology, inorderto increasethesales.Additionally,whendecidingonhowthebudgetshouldbebalancedtheyarealsolookingatsalesfigures,trendsandbuyingpatternsintheindustry(Jeppsson,email,12thMay2017).

4.3.4Rewardsandcompensation

Informal rewards are used rather frequently. Finding things to celebrate is seen as animportant aspect of feeling inspired, acknowledged and appreciated, “You work towardssomethingandthenyoucelebrate, insteadof feelingthatwehaveworkedwiththesamethingfor20yearswithoutachievingsomething”(Dahlroth,interview,19thApril2017).Theseinformal rewards can be directed towards the acknowledgement of individual efforts orgroupefforts,howeverthecelebrationisasharedevent.Itisuptoeachrespectivemanagertofindthingstocelebrate(Dahlroth,interview,19thApril2017).

Formal monetary rewards are used for the application and approval of new patents(Olofsson,email, 3rdMay2017;Olsson,email, 3rdMay2017;Rasmusson, interview,25thApril2017).Themonetaryrewardisdividedintotwosteps,firstapercentageoftheamountis rewardedat theentryofanewpatentapplicationthat isdeemedreasonable, thentheremainingamountispaidifthepatentisapproved(Rasmusson,interview,25thApril2017).Fransson(interview,8thMay2017)explainsthattheamountisanextramonthlysalary,andbesidesthattheemployeealsogetshisnameastheinventoronthepaperforthepatent.Thisformalrewardismeanttoencourageemployeestoinnovate,showingthatnewpatentsareimportantmilestonesandtryingtofurtherensurethatallgoodideasarecollectedandnone are missed (Dahlroth, interview, 19th April 2017; Rasmusson, interview, 25th April2017).Theseformalrewardscanbebothonanindividualorgroupleveldependingonthecircumstancesbehindthepatent(Fransson,interview,8thMay2017;Rasmusson,interview,25thApril 2017).Additionally there is alsoanon-monetary reward for theoneswhohavesentinanapplicationforanewpatent.Thisconsistsofanannualpresentationanddinner,where the innovative employees are celebrated (Fransson, interview, 8th May 2017;Olofsson,email,3rdMay2017;Olsson,email,3rdMay2017).

4.3.5Administrativecontrols

Theorganizationhasafunctionalstructuredividedintoeightfunctions(Dahlroth,interview,19th April 2017). Two separate functions are focused on innovation: Products& CTO andNew Business. Products & CTO are focused on innovations regarding network video andassociatedsoftware,whileNewBusinessfocusoneverythingoutsideNetworkVideoaimingtobroadentheproductandserviceofferingtocreatemoreallencompassingsolutionsforchosen customer segments (Dahlroth, interview, 19th April 2017). Further, these twofunctions are divided into product groups,meaning they havedifferent responsibilities intermsofwhattodevelop(Bexelius,interview,28thApril2017).

The topmanagement is setting theoverall strategyand long-termvisionof thecompany,howeverthegrassrootslevelhaveratherfreehandsonhowtomakethissetstrategyandvision happen (Dahlroth, interview, 19th April 2017). The organization structure ishierarchicalbuttheopennessofthecorporateculturemakesthecompanyappearashaving

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amoreflatorganizationstructure(Dahlroth,interview,19thApril2017;Fransson,interview,8thMay 2017). Asmentioned the innovations aremanaged in projects, giving rather freehandswithinaprojectphasewhilestillkeepingaconstantevaluationoftheprojectsattheendofeachtollgate,andusuallymoreoftenthanthat(Bexelius,interview,28thApril2017;Dahlroth,interview,19thApril2017).

4.3.6TheMCSPidentifiedatAxis

Inorder to summarize theempirical findingson theMCSP inusewehavemadeFigure3basedontheMalmiandBrown(2008)MCSPframework.TovalidateourfindingsthefirstversionofthefigurewasshowntotheGlobalProductManager,whoendorsedthatwehadidentifiedandunderstoodthekeycontrolsystemspresentatAxis.Whatwehaveaddedtothe framework by Malmi and Brown (2008) is an indication of the importance of eachspecific MCS as we felt this would be a valuable contribution in providing a moreinformative view of the MCSP identified in Axis. The more central the MCS, the moreelevateditispresentedinthefigure.

Figure3.MCSPidentifiedinAxis(ownelaborationbasedonMalmi&Brown,2008p.291).

We can see that elements from allMCS categorizations byMalmi and Brown (2008) arepresent. However, it is worth mentioning that both financial, non-financial and hybridcybernetic controls are absent. This means Axis has chosen not to adopt any of thecybernetic control systems that have gained extensive attention and popularity both inacademiaandpracticeoverthepastdecades,suchastheBalancedScorecard(BSC).Insteadplanninghasreoccurredasacoreelementofcontrolatall levelsoftheorganization,thusappearing tobeat theheartof theMCSP. This is followedby cultural andadministrativecontrols,whichappear tohaveaclearsignificanceonthecontrolof thecompany,having

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strongcorevaluesandteamsascentralmanagementtools.Thecyberneticcontrolsaswellas rewards and compensation have a more peripheral role where budgets are used,however not particularly strictly, and having rewards that are not connected to anycybernetic control system or specific target, but to the occasional occurrence of an ideabeingfiledand/orapprovedforpatenting.Thedottedlinebetweenplanningandcyberneticcontrol inFigure3accentuatesthecloserelationbetweenthemandthearrowshowsthedirectionoftherelation,wherebudgetsareassignedaccordingtotheroadmapandprojectplanswhenitcomesto innovation,whileforotherareasbudgetsaremadethroughusualbudgetforecasting.

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5.Analysisanddiscussion

In this chapter the empirical findings are discussed and analysed against the theoreticalfoundationinordertoanswerourposedresearchquestion.

5.1AchievingambidexterityinAxis

As illustrated in the Axis innovation timeline (Appendix 3), Axis is a company which hascombinedexplorationandexploitation,both intermsofradical ideaswithin itsgivenfieldbut also looking beyond their current strategy, andmaking incremental developments toexistingproductofferings.Axishasbeenabletosurviveandthriveoverthepastdecades.Bypushing the development on themarket, repeatedly redefiningwhat can be donewithinnetworkvideo,andnotbeingafraidtochangeorexpandtheirfocusifneeded,itseemsthatAxishastheagilitytomeetbothcurrentandfuturedemands.

LookingathowambidexterityhasbeenachievedinAxisintermsofmodesandapproachesto ambidexterity, a few interesting observations can be noted. At a first glance, it seemsratherobviousthatwhatO’ReillyandTushman(2013)describeasastructuralapproachtoambidexterity isused inAxis,where theorganization isdivided into subunitsallowing forsimultaneously pursuing exploration and exploitation. Axis has separate units involved indifferentkindsofinnovation,inAxis’casehoweverthesubunitsengagedininnovationaredividedintoproductgroupswhereeachproductgroupismoreorlessbalancingexplorationandexploitation individually, insteadof focusingononeor theotherspecifically.Thewaystructuralambidexterity is realized inAxis seems tobe through theprojects;eachprojecthasitsdefinedfocuswheresomeprojectsareaimedatexploratoryoutcomesandothersatexploitative outcomes. The projects allow each product group subunit to simultaneouslybalanceexplorationandexploitation.Thus,theapproachtoambidexterityresemblesthatofthe structural ambidexterity described by O’Reilly and Tushman (2013), however at aprojectteamlevelinsteadofsubunitlevel.

Axis actively seeks new ideas from all individuals throughout the organization. The openculture and active encouragement of new ideas facilitates the possibility of these ideasactually coming through. The ideas canbeof radical or incremental nature and lead to a“pool” of new ideas. Combinedwith constantly spanning the environment, knowledge ofwhatcanbedonewithcurrentcompetencesandwhattheywanttodointhefuture,Axishas an abundant foundation for determining what to do next, picking elements ofexploitationaswellasexplorationthatfittheassesseddirectionforward,stillbeingflexibleenough to change thisdirection if necessary.Axis clearly relyonalert individuals,both intermsof comingupwithnew ideas aswell as pickingup relevant information from theirimmediate environment, for example sales personnel talking to customers. The productmanagersconstituteacentralroleintheachievementofambidexteritybybeingresponsibleforcapturingallideasandinputandtocreatethebusinessplanandroadmap.However,asFransson(interview,8thMay2017)explained,theproductproposalspresentedtoguidetheprojects are visions rather than specifications, allowing for much freedom in terms ofdevelopment.Also,almostallproductproposalshaveanincludedaimforsomething“neverbeforeseen”,butitisuptotheprojectmemberstoachievethisornot(Fransson,interview,8th May 2017). Hence, the approach to ambidexterity in Axis might not be as

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straightforward as first seemed, rather it might represent a version of the combinedapproach to ambidexterity, where structural and contextual elements are usedsimultaneously.

The description by Agostini et al. (2016) on how to apply a combined structural andcontextualapproachseems tocomportwithAxis.Theorganization is integratedaroundaculture formed by top management, providing a context supporting the individuals’balancingofexplorationandexploitation,whilehavingorganizationalstructures,plansandteamsthatprovideastructureandcontexttoresolvetensionsandprovideafocusfortheindividuals.ThewayAxisapproachesinnovationthusprovidesanempiricalexampleofhowa combined structural and contextual approach to ambidexterity can be attained. TheimportanceofMCSPelementsseemstobecentral,suchasthecultureandadministrativecontrols.Theactualbalancingofexplorationandexploitationtakesplaceonseveral levelsof the organization where the constant search for ideas, input and environmentaldevelopmentsprovidestheabilitytomakeinformeddecisionsonhowtomoveforwardandmakeincrementalaswellasradicalinnovations.

Further, all threemodes toambidexterity, internal, allianceandacquisition (Duval,2016),havebeenobserved.Whathasbeendiscussedso farhasconcernedthe internalmodetoambidexterity,however,wecanseehowO’ReillyandTushman’s(2013)claimofintra-andinter-organizational approaches to ambidexterity being complements rather thansubstitutesisthecaseinAxis.Partnershipsareanimportantsourceofinnovation,whichcanbe classified as an alliance mode to ambidexterity. Fransson (interview, 8th May 2017)described how close relations with suppliers have led to the development of productofferings, ifasupplierpresentssomethingradicallynewthiscouldbecomearadicallynewinnovationforAxisaswell.Also,strategicacquisitionshavebeendescribedasacentralwayto ensure the availability of valuable new knowledge and technologies to meet theirbroadenedfocusonoutoftheboxsolutionswhenassessedtobemorecosteffectivethantoachievethisinternallyandmorestrategicthantooutsource.

Hence, Axis approaches ambidexterity from several angles, both internally and inter-organizationally.LookingtotheoryitseemsAxismakeuseofthereinforcingeffectpossiblefrom combining contextual and structural approaches (Agostini et al., 2016) as well ascomplementing the internalcapabilitieswithexternalcapabilitiesbyusingboth intra-andinter organizational modes to ambidexterity. This comprehensive way of approachingambidexterityhasprovedeffectiveforAxisanditseemslikelythatthiswayofapproachingambidexterity would be preferable for more companies as the resulting abundance ofinformation, ideas and alternatives to act upon provides a solid basis for achievingambidexterity.

5.2Axis'MCSPandAmbidexterity

Fromthe illustrationpresented inFigure3oftheMCSPidentified inAxis it isevidentthatelements from all MCS categorizations by Malmi and Brown (2008) are present. TheimportanceofeachMCS identifiedhasbeendiscussedbriefly in4.3.6and isshowninthe

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figure. However, the importance of each MCS is for our study twofold, (1) how muchemphasisseemstobeputonaspecificMCS,i.e.howisitusedandperceived,whichiswhathas been touched upon. This helps understand (2) how the particular MCS appears toinfluencetheachievementofambidexterityinthecurrentMCSPsetting.

BeginningouranalysisatthetopoftheMCSPframework,theculturalcontrolsseemtobeacore component of Axis’ control system. The culture is expressed as important by allinterviewees as well as on the companywebsite and annual report for Axis success andinnovativeness.Throughthe interviews italsobecameclear that there isagreat focusonmaintainingtheculturethroughrecruiting,socializationprocesses,officedesign,follow-upsandputtingthecorevaluesintopracticethroughtheday-to-dayactivitiesofmanagers.Theculture is very aimed at promoting transparency, communication and innovation,encouraging continuous learning and pushing the limits and showing acceptance towardsfailures as they are seen as part of the learning process. This correspondswellwith howcultural controls have been found to promote exploration (Gschwantner & Hiebl, 2016).GschwantnerandHiebl’s (2016) findingthatculturalcontrolsaremostappropriatelyusedforfosteringexplorationsuggestsAxis’cultureisanimportantelementoftheachievementof ambidexterity. Also, as culture has been seen to partly substitute for more formalcontrols(Gschwantner&Hiebl,2016),thestrongcultureinAxiscouldexplainwhytheuseofformalcontrolsisrelativelyscant.

PlanningcontrolsseemstobeattheheartofAxis’MCSP.TheplanningcontrolsusedinAxisoperate on several levels. The business plans define the future focus in terms oftechnological and market developments and get the go-ahead from the product groupsteeringcommittee.Thus thebusinessplans constituteaway tomake sureAxis’ strategyandcurrentinterestsarefollowed.Theroadmapsbreakdownthebusinessplansintomoreexecutional steps, which lay the foundation for the project plans. Thus, the plans areformulated by middle management (product managers), sometimes being influenced bysenior management (CTO), discussed and eventually accepted by senior management(product group steering committee) and then broken down by middle management tolower levelsof theorganization.Hence, theplanning is toa largeextent formulatedwithsenior management involvement. However, as the ones responsible for formulating theplans(productmanagers)arealsotheonescollectingallideasfrominsideandoutsidetheorganization, they can be influenced by ideas presented by grassroots level of theorganization.Also,theratherundetailedplansaswellastheoftenprovidedspecifiedaimofsomething “never before seen” (Fransson, interview, 8th May 2017) leaves it up to theprojectteammemberstowhattheexactoutcomeofaspecificprojectis,beitofradicalorincremental nature. However, the classification of the projects, “protect”, “challenge” or“innovate”,canaffectthenatureoftheinnovationresultingfromacertainproject.This ispartly due to the outlook on what is expected to be achieved but also through thecategorization’s effect on the budget, which is discussed below. The high level ofinteractions stemming both from the corporate culture and the interactive design of theplanningprocessaswellasfollow-upsontheprogression,keepalllevelsoftheorganizationintuneofaimsandobjectivesaswellasofhowthingsareprogressing.Determiningwhateffecttheplanninghasontheachievementonambidexterityisnotentirelystraightforward.From Gschwantner and Hiebl’s (2016) findings we can see elements promoting both

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exploration and exploitation. On the one hand, the planning has a great focus on Axis’objectives, starting with the business plan and senior management involvement, thusrestrainingemployee freedomofactionbyproviding theborderswithinwhich innovationshould take place and specifications that need to bemet. This corresponds to facilitatingexploitation(Gschwantner&Hiebl,2016).OntheotherhandtheplanningusedinAxisalsoserve the information of employees and provide a basis for open communication anddiscussion of current action plans, given the dynamic nature of the product content, andthus project content, which can be influenced by the project teammembers. This morecorresponds to facilitating exploration (Gschwantner & Hiebl, 2016). It could be that theplanning in Axis has a balancing effect on exploration and exploitation by providingelementsfacilitatingboth.Axisplansforbothradicalandincrementalinnovations,butalsolet the individuals involved influence the outcomes through the dynamic and interactivenature of the plans and projects and allowing changes to the originally plannedspecifications.Theplanningthusseemstobecloselyrelatedtothecombinedstructuralandcontextual approach to ambidexterity discussed in 5.1, bymaking use of individuals anddifferentprojectstobalancebothexplorationandexploitation.

The Director and Head of Business Control described budgets as the central part of themanagement control system. Indeed it is theonlyMCSpresent in thecybernetic controlscategory,whicharetraditionallyseenasthecontroltoolsavailabletomanagers,howeverfromthe interviews itbecameclear that thebudgetsareoftennotacriticalconcern.TheGlobalProductManagerhadnobudgettofollowandtheProjectManagerforNewVideoProducts expressed that there was not much focus on the budget at all. However, thestrictnessof followingthebudgetappearstobe influencedbythetypeofprojectathandand the estimated payback time of the products. If the payback time is estimated to beshortthereisnodifficultyfortheProjectManagerstoincreasethebudget,however,fortheprojectsclassifiedas“innovate”projectsthetimehorizonisallowedtobelongerastheseprojects are seen as strategic, even though they tend to have a slower sales growth, bemoreexpensiveandthushavealongerpaybacktime.Thus,theroleofthebudgetseemstobetomakesurethattheprojectswithlongerpaybacktimeandalesserlong-termstrategicsignificancearestillprofitable.Fortheotherprojectsthebudget is justaguideline,whichcanbealteredaccordingtotheproject’sdevelopmentprogress.AccordingtoGschwantnerand Hiebl (2016) cybernetic controls can be useful in influencing the balance betweenexplorationandexploitation,dependingonhowtheyaredesigned.InAxis’caseitishardtosayhowtheuseofbudgetsinfluencetheachievementofambidexterityapartfromaimingtoensurecurrentprofitabilityoftheproductportfolioofferedatanypointintime.Thelackof focusonbudget canbedue to the fact that thepayback time formostproject are soshortsothatexceedingthebudgetdoesnotreallyaffecttheprofitabilityintheend,ratherit is a strategic decision in order to be first to themarket. Bexelius (interview, 28th April2017) expressed this thought that since Axis is currently such a successful company thefocus ison innovatingandgettingtothemarketquickly insteadofcontrollingcosts.Thus,cyberneticcontrolsseemtohavealimitedimportanceintermsofcontrolandinachievingambidexterity in Axis. However, the budgets’ close relation to planning controls helpsdevelopthebasisforcommunicationandbringintheaspectofprofitability.Thus,althoughthebudgetsdonotappeartobeindividuallycentraltoachievingambidexterityinAxis,theydo seem to complement the planning controls in balancing exploration and exploitation.

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Also,althoughcostsarealimitedconcernatthemomentitcouldbecomemoreimportantinthefutureifmarketsmatureandcompetitionincreasesfurther,makingbudgetsamorecentralcontroltool.

Rewardsandcompensation inAxisaremainly focusedon innovations.Theonlymonetaryrewards used are for filed and approved patents. Also, the individuals that have filedpatentsareacknowledgedyearlyonthedinnerevent.Otherwise,itisuptoeachrespectivemanager to decide on things to celebrate. Thus, the only specified basis for rewards areinnovations,andmorespecificallynewpatents.Hence,theintentionoftheserewardsistofurther emphasise the encouragement of innovativeness. Gschwantner and Hiebl (2016)arguethatrewardsandcompensationneedbeusedwithcareasthesecontrolscomewiththe risk of distorting the balance between exploration and exploitation. In Axis’ case thiswouldmean the riskofdistorting thebalancemore towardsexploration.Whetherornotthisisthecaseishardtoprove,however,sincecomingupwithideasappropriateforpatentfilingisadifficultfeat,itseemsunreasonablethatextensivefocuswillbeaimedatcomingupwithsuchideasandsetasideexploitativeinnovation.Rather,theserewardscouldcreateanalertnesstowardswhichideascouldbepatented.Nevertheless,itisclearthatthemaineffectonambidexterityoftherewardspresentisfosteringexploration.

The administrative controls present in Axis are closely aligned to, and affected by, thepreviously discussed parts of the MCSP. The organization structure and governancestructure isveryhierarchicalonpaper,however,giventheeffectofAxis’culturalcontrolsand interactive elements of the planning, the actual perceived organization in practice isprimarily flat. Employees can, and are encouraged to, communicate across hierarchicallevels.Individualsareassignedspecificareasofresponsibilitybutmuchresponsibilityisalsosharedamongteammembers.Teamsareanimportantpartoftheadministrativecontrolsas plans are evaluated, discussed and coordinated in teams (product group steeringcommitteesandtheproductmanagementteammeetings)andinnovationsarepursuedinproject teams. Axis’ administrative controls create the setting where structuralambidexteritycanbeachieved,wheretheprojectapproachtoinnovationappearessential,as discussed in 5.1. The project approach to innovation used in Axis provides theprerequisites for achieving the aimed for specifications by combining cross-functionalknowledgeandself-organizing,promotingagility,efficiencyandeffectivenessinthepursuitofinnovation.Thus,theadministrativecontrolsaidtheachievementofambidexterityboththrough providing the structural conditions needed as well as having an importantcomplementaryroletotheplanninginAxis.

HavinganalysedtheidentifiedMCSPinAxiswecanreflectuponthejointeffectoftheMCSinuseonachievingambidexterity. Interesting tonote is thatwehave foundno individualMCS specifically fostering exploitation while two MCS are found to specifically fosterexploration,namelyculturalcontrolsandrewardsandcompensation.Thisindicatesaslightbias towards exploration. However, considering the seemingly limited centrality of thereward system in Axis, previously discussed, the appropriateness of using the culturalcontroltospecificallyfosterexploration(GschwantnerandHiebl,2016)andthefactthatthebalanceismostoftenskewedtowardsexploitation(March,1991;Levinthal&March,1993andO'Reilly&Tushman,2013),thisseemingbiastowardsfosteringexplorationthroughthe

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MCSP is not necessarily inappropriate. The remaining threeMCS categories in theMCSPframework (Malmi & Brown, 2008) have been found to aid in balancing exploration andexploitationofwhichone, thebudgets, ismerelyof limited importance incomplementingtheplanning.However, thebalancingeffectsof theseMCSarenotprimarilyderived fromthe isolated design of eachMCS. Rather it is a result of an extensively interactive use oftheseMCS,asdescribedbySimons(1994),togetherwitheffectsfromthecombineduseofthe differentMCS. Fromour analysis it seems like three parts of theMCSP are themostcentral infosteringinnovationandachievingambidexterity:culturalcontrols,planningandadministrativecontrols.TheseMCSappeartocomplementeachotherandcreatesynergiesthataidtheachievementofambidexterity.InisolationtheseMCSwouldthusprobablyhavehaddifferenteffects.WhetherthiswouldobstructAxis’ambidextrousabilityisnotpossibleto say, however, it is possible to claim that their current use of a MCSP is effective infosteringthisability.

5.3TheinfluenceofstrategicconceptsforMCSoninnovation

TheframeworkbyDavila(2005)hasbeenuseful inourcaseas itconnectsMCS,or inthiscase MCSP, to innovation. By analysing our findings through the lens of Davila's (2005)frameworkwe can seewhetherAxis' useof a combinationofMCS is in linewithDavila's(2005)proposedrelationbetweenMCSandinnovationandgetanadditionalangleonouranalysisoftheeffectoftheMCSPontheachievementofambidexterity.

ThroughthisstudyitisclearthatAxisisoperatinginthestrategiccontext,astheyareopentonewideasandwillingtotryoutnewthingsevenif it liesoutsidetheircurrentstrategicfocus.Topmanagementisnotcoordinatingtheactionssoastobeinlinewiththecurrentbusinessstrategy,whichwouldbethecaseifAxiswereoperatinginthestructuralcontext(Davila, 2005). In contrast to the straightforward determining of the type of innovationdefining strategic change in Axis, it is not as straightforward determining the locus ofinnovation. Ithasbeenfoundthattheideasabout innovationscomefromtheemployees,mainly the engineers,within the organization.However, it has also been seen that theseideas always are communicated to upper-level first, in order to get an approval to startexploring the idea.Sinceall levelsof theorganizationare involved indefining the typeofinnovation for each project it becomes difficult to define where the most prominentcontribution comes from. Thus, the question if Axis is using the strategic conceptautonomous strategic actions or strategic innovation is not easy to answer as they arehavingcharacteristicsofbothconcepts.Ananalysisaroundthetwostrategicconceptswillfollowwith the purpose to clarifywhich of themAxis ismainly using. As pointed out byDavila(2005),theorganizationhastochooseoneofthem.

Strategicinnovationischaracterizedbythattheideasareradicalinthewaythatitredefinesthecurrentstrategyandthat innovativeideascomefromtopmanagement(Davila,2005).WehaveseensignsforthisinthecaseofAxis,forexamplewhentopmanagementdecidedon creating the department New Business, in order to try out things outside its currentstrategy.This isanexampleof the topmanagementdefininganewstrategy, settingnewboundaries for the strategic focus. As explained by Davila (2005) the role of theMCS instrategic innovation is to support radical changes by for example recruiting the right

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employees, which to a very high extent is applicable in the case of Axis. Axis is alsoconstantlyworkingwithmonitoringtheenvironment,forexamplebytravelingtoJapantogetinspirationofnewtechnologyandnewtrendsandlisteningtomarketneedsbykeepinga close dialogue with its regional ambassadors and the sales department as well as itsdistributersand integratorsamongstothers.Lorangeetal. (1986, inDavila,2005)pointedoutthatstrategicinnovationbenefitfromaMCSthatmonitortheenvironmentinthewayAxisisdoing,inorderfortopmanagementtobeawareofforexamplenewtechnologyortrendsincustomerneeds.Davila(2005)arguesthattheMCSisimportantfortheleveragingoflearningthatisassociatedwithmonitoringtheenvironment.Finally,ithasbeenstressedthat strategic innovation is closely linked to the interactive control system presented bySimons(1994).Axisisverymuchfocusingonencouraginglearninganddevelopmentofnewideas and the importance of the extensively interactive elements of Axis MCSP wasdiscussedin5.2,clearlyshowingasignificantuseofinteractivecontrolsystems.

Hence, several characteristics of Axis consort with the strategic concept of strategicinnovation.However,strategicinnovationdoesnotfullyacknowledgethesignificanceoftheemployees for radical innovations in Axis. The strategic concept autonomous strategicactionsischaracterizedbyinnovativeideascomingfromindividualsorsmallgroupswithinthe organization, and that these ideas can change the company’s current strategy in aradical way (Davila, 2005). Davila (2005) stresses that autonomous strategic actions canhappenanywhereintheorganizationwithouttopmanagementbeingawareofit,whichhasbeenseentobethecaseinAxis.Ashaspreviouslybeendiscussed,individualsonalllevelsof theorganizationarepartof realizing the innovations inAxis,however, the innovationsmainlyemanatefromtheengineers,i.e.lowerlevelsoftheorganization.InAxis,muchfocusis directed towardsmotivating the employees to explore and experiment. This relates toSimons (1994) beliefs system and is something Davila (2005) argues to be importantcharacteristicsforautonomousstrategicactions.TheonlyboundariesforinnovationsinAxisarethattheyshouldberelatedtonetworkconnectivityandbepossibletosellthroughAxis’currentsaleschannel,whichseemstobeprovidingfocusratherthanbeingrestraining.AsDavila(2005)stresses,strategyisaboutchoosing,andimposingstrategicboundarysystemsmake exploration more structured in the autonomous strategic actions. Autonomousstrategicactionsisdescribedasaprocessforvariation,selectionandretention,creatinganappropriatesettingforinnovationstoarise,imposingacontextthathelpsselectingamongdifferent alternatives and finally adapting the organization to make business of the newinnovations (Davila, 2005). Axis has created a MCSP that constantly motivates andencouragestheemployeestodevelop,imposedboundarieswithinwhichinnovationshouldbe focused and has successfully commercialized the new innovations and broadenedstrategicfocus.Additionally,thefactthatAxisbringtogetherpeopleinprojectteamswithdifferenttrainingandexperience,provideslackintheavailabilityofresources,haveexternalcollaborations and provide formal systems for identifying and supporting new ideas areaccording to Davila (2005) other indications of an organization operating in the strategicconcept autonomous strategic actions. Thus, although Axis show characteristics of bothtypesofstrategicconcepts,aftersomefurtheranalysisonthesubjectitseemsthelocusofinnovation lies in the day-to-day actions rather than top-management. Innovations comefromtheemployeesinadirectway,whiletopmanagementmakedecisionsthatleadtonewinnovations in an indirectway. Thereby it can be stated that Axis is currentlywithin the

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strategicconceptofautonomousstrategicactions.However,Davila(2005)arguesthatthisdoesnothavetobeseenasastaticstate,astheorganizationdynamicallycanmovefromonestrategytoanother.

Oneofthereasonsforwhyitisimportanttodecideonwhichofthestrategicconceptstheorganizationisusing, isbecausewhatisseenasthemostappropriateMCS,orinthiscasetheMCSP,differsbetweentheconcepts(Davila,2005).ForAxis,aswellasothercompaniesoperating inthestrategicconceptautonomousstrategicactions, theroleoftheMCS is tocreateaninnovativeculturewithintheorganizationwheretheemployeesaremotivatedtogrowanddevelop.Inthisregard,itisclearthatAxishassucceeded.WhatisworthnotingistheresemblancebetweentheautonomousstrategicactionsdescribedbyDavila(2005)andthe theory on contextual ambidexterity described by O’Reilly and Tushman (2013). BoththeoriesemphasisethecentralityoftheindividualsandwhileDavila(2005)doesnotdiscussthe balancing of exploration and exploitation, he does discuss retention as part ofautonomousstrategicactions.Intheretentionstagenewradicalinnovationsinthestrategiccontext are brought into the structural context, thus implying more incrementaldevelopments.Hence,bothexploration,intheformofradicalinnovations,andexploitation,in the formof incremental innovations,arepartofautonomousstrategicactions.Davila’s(2005) framework does not add to our theoretical basis of how the balancing betweenexplorationandexploitationisachieved,howeveritaddstoourdiscussionbyaccentuatingand further explaining the role of the MCSP in promoting individuals’ autonomy ininnovation.ByillustratinghowAxis’MCSPprovidesamandateforradicalinnovationsonanindividuallevel,theframeworkcanalsobeseentoreinforceourassertionthatacontextualapproachtoambidexterityispresentinAxis.

5.4DiscussionofFindings

Severalpoints canbe lifted following theanalysisof ambidexterity and theMCSP inAxis.Firstly,Axisseemtooperatetoalargeextentaccordingtotheory.Evidencehasbeenfoundof a combination of contextual and structural approach to ambidexterity as described byAgostinietal. (2016), theadoptionof severaldifferentMCSconstitutingapackagewhichcanbedefinedandillustratedusingMalmiandBrown's(2008)MCSPframework,aswellasconfirmingmanyofthefindingsbyGschwantnerandHiebl(2016)onhowdifferentMCScanbe effectively combined in aMCSP to create synergies which foster the achievement ofambidexterity.However,at thesametimesomefindings liftelementsthathavenotbeenimplied in current theory.Forexample, that combiningallmodes toambidexteritywithacombined contextual and structural approach to ambidexterity, which essentially meanstakingonthewidestpossibleapproachtoachievingambidexterity,canbesuchaneffectiveway of achieving ambidexterity. O'Reilly and Tushman (2013) suggest a complementarynature of internal and external approaches to innovation, however, our findings furtherspecifies this discussion to suggest that allmodes to ambidexterity (internal, alliance andacquisition)discussedbyDuval(2016)arecomplementaryaswellastheircompatibilitywiththecombinedstructuralandcontextualapproachtoambidexterity.Also,theuseofprojectsin structural ambidexterity is something that has not been stressed in current literature,however,beingseeminglycentralinAxis’case.

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ThefindingsbyGschwantnerandHiebl(2016)areextendedfromourfindingsbysuggestingthat ambidexterity can be achieved without combining MCS with completely opposingeffects on exploration and exploitation in aMCSP. Instead, the synergies created by theMCSP can lead to individual MCS having a balancing effect, rather than specificallyfacilitating either exploration or exploitation. In Axis’ case we have found that planningseems to be the core component of theMCSP facilitating ambidexterity, as it appears tohave a balancing effect on exploration and exploitation. This balancing effect, however,would probably not have been achieved without the effects coming from combiningplanningwiththeculturalandadministrativecontrols.Thecyberneticcontrolsandrewardsand compensation seem to have a mere complementary role in the achievement ofambidexterity.

Further, using Davila’s (2005) framework for MCS effect on innovation gave additionalsupport for Axis’ MCSP being successful in promoting exploration stemming from theindividuals in the organization. The link between Davila’s (2005) framework andambidexterity has not been made in any of the articles found, however, even if thisframeworkdoesnothelpconfirmingthebalancingeffectoftheMCSP,weclaimthatitdoesgive further insight on how the MCSP is connected to the contextual approach toambidexterityasobservedinAxis.

Thus, through our findings we claim that the MCSP in Axis does promote ambidextrousability in several ways. In order to summarize our findings we present a model of ourfindingsinFigure4.AlthoughourfindingsmaynotbegeneralizableandprovideamapfordesigningaMCSorevaluatingtheMCSPpresentineverycontextandtypeoforganization,thisstudydoesconstituteasteptowardssuchunderstanding.

Figure4.Summaryoffindings:theeffectoftheMCSPonachievingambidexterityinAxis.

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ItisimportanttonotethesettinginwhichAxisoperateswhenevaluatingthefindingsinthisthesis. Axis operates on an extensively volatile market, driven by fast technologicaldevelopmentsandincreasingdemandforsurveillancetechnology,andspecificallynetworksurveillancetechnology.Inthissettingtheneedforexplorationmightbesomewhatgreaterthantheneedforexploitation,meaningthebalancebetweenexplorationandexploitationmightbesomewhatskewed.Thiscouldexplainwhy, forour findings, theorycouldmainlyconnect theMCSP and its use to exploration, seemingly creating an imbalance betweenexplorationandexploitation.Nevertheless, inAxis’ case this skewedbalance seems tobetherightbalanceat thismoment.However, ina futurewherethesettingmight lookverydifferent,theappropriatebalancemayshift.Thus,itcouldbethattheMCSPthatwehaveidentified in Axis is an appropriate MCSP for a more exploratory phase. Implicit inambidexterity is the suggestion that the balance between exploration and exploitationmeansanequalengagement inbothover time.However, it seemsas though this fails toconsidertheuniquesettinginwhichacompanyoperatesandshouldthusnotbeanendinitself.Thisisnotsayingthattheacknowledgementofambidexterityiswrong,itismerelyareminderofwhatshouldnotbeinaccuratedevelopmentsoftheconcept.Ambidexterity,webelieve,shouldbekeptastheconceptofhavingtwofocuses,explorationandexploitation,in order to avoid becoming blind sighted on one. This is regardless of the actual balancebeingequalorslightlyskewed,astheappropriatebalancemostlikelywillchangeovertime.Ambidexterity then is the capability of being alert and flexible to changes occurring bothwithinandoutsidetheorganization,simultaneouslylookingaheadandtothepast.Allinall,thisisnothingnew,howevertheconceptofambidexteritybringsusclosertohowthiscanbeachieved,andinourcase,howMCSPcanaidinthisachievement.

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6.Conclusion

In this final chapterwepresent the findingsandconclusionsofour study.Wealsodiscusslimitationsandpracticalandacademiccontributionsofourstudyaswellaspossibilitiesforfutureresearch.

6.1Conclusion

ThepurposeofthisthesiswastoinvestigatehowAxis,ahighlysuccessfulcompanywithinan evolving industry, is using MCSP to foster innovation while simultaneously securingprofits today. Thus, the aim has been to investigate howMCSP can be used as away toachieveambidexteritybyansweringtheresearchquestion:

HowdoesAxisuseMCSPtoachieveorganizationalambidexterity?

We find support for that the MCSP in Axis does indeed facilitate the achievement ofambidexterity inseveralways. InAxis’ casewehave foundthatplanningseemstobe thecore componentof theMCSP facilitatingambidexterity, as it appears tohaveabalancingeffectonexplorationandexploitation.Thisbalancingeffect,however,wouldprobablynothavebeenachievedwithouttheeffectscomingfromcombiningplanningwiththeculturalandadministrativecontrols.Thecyberneticcontrolsandrewardsandcompensationseemto have a mere complementary role in the achievement of ambidexterity. Our findingssuggest that ambidexterity can be achieved without combining MCS with completelyopposingeffectsonexplorationandexploitation inaMCSPas suggestedbyGschwantnerandHiebl(2016).Instead,theinteractivedesignofaMCSandthesynergiescreatedbytheMCSP can lead to individual MCS having a balancing effect, rather than specificallyfacilitatingeitherexplorationorexploitation.

Further,wefindthattheMCSPisprovidingnecessaryconditionsforacombinedstructuraland contextual approach to ambidexterity, which is identified in Axis. Also, the internalmodetoambidexterityiscomplementedbybothexternalmodestoambidexterity(allianceandacquisition)describedbyDuval(2016).LookingtotheoryitseemsAxismakeuseofthereinforcingeffectpossiblefromcombiningcontextualandstructuralapproaches(Agostinietal., 2016) aswell as complementing the internal capabilitieswith external capabilities byusingbothintra-andinterorganizationalmodestoambidexterity.ThiscomprehensivewayofapproachingambidexterityhasprovedeffectiveforAxisanditseemslikelythatthiswayof approaching ambidexterity would be preferable for more companies as the resultingabundance of information, ideas and alternatives to act upon provides a solid basis forachievingambidexterity.However, it is important to take intoconsiderationthesetting inwhich Axis is currently in. Our findings show that although balancing effects are presentfromtheMCSP,thereseemstobeaslightskewtowardsfosteringexploration.Thiscouldbeeither due to the increased need to promote exploration due to the usual bias towardsexploitation(March,1991;Levinthal&March,1993andO'Reilly&Tushman,2013)orduetothefactthatthefastgrowinganddevelopingmarketofNetworkSurveillanceTechnologyrequiresthisslightlyskewedbalancetowardsexploration.Thus, itcouldbethattheMCSPthatwehaveidentifiedinAxisisanappropriateMCSPforamoreexploratoryphase.

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Toconclude, thisstudyconstitutesasteptowardsunderstandingthewayMCSandMCSPcanbeusedtohelpachieveambidexterity.Fromwhatwehavebeenabletofind,ourstudyis the firstempirical case studyexamining the relationbetweenMCSPandambidexterity.Thus,ourfindingsprovidepossibilitiesforfuturestudieswithintheresearchfieldinordertoconfirm, modify or oppose our findings supporting the relevance of MCS and MCSP inachievingambidexterity.

6.2Limitations

Firstly, it has to be mentioned that this thesis has several limitations concerning theresearchdesignandmethodology.The limitationsofaqualitativemethodwerediscussedmore in depth in chapter 2.4 and the limitations related to case studies in chapter 2.2.Additionally, shortcomings related to contextual factors are common in case studies. Anexample is that the culture is very complex, which often every person has differentinterpretationsof.However,wehavetriedtoexplainthecorporatecultureinthewaythatalignswithallourfourinterviewees'opinionstogetherwithourotherusedsourcesofdata.

Further, the definitional ambiguity present of used concepts has to be mentioned. Thedistinctionbetweenexplorationandexploitation isnotalways cleareither in theoryor inpractice.Also,theconceptofambidexteritysuffersfromunclarityofitsactualconstitution.The unclear definition of ambidexterity as well as of exploration and exploitation canthereforehaveinfluencedourstudyandtherebytheresults.However,inourthesiswehavetriedtobespecificastohowwedefineanddistinguishbetweenallourconceptsused.Forexample,asisseeninthefigureofAxisinnovationtimeline(Appendix3)thedistinctionforexploration has been set to when a new product-group is launched. This distinction hasbeendoneasitisinlinewithhowAxislooksatitsinnovations.A"real"innovationforAxisiswhen they do a technological advancement, often in the form of a totally new product-group.Also,wehavechosentofocusoninnovationsinordertodefineambidexterity.Thesedistinctionsofcourseinfluenceourconclusionsdrawn.Forexample,evenifinnovationhasbeenshowntobecloselyrelatedtoambidexterity,itcomeswiththeriskofgivingapartialpictureoftheachievementofambidexterity.

Finally,thescopeofthisstudycanalsobeseenasalimitingfactor,sinceduetothegiventimeframewewerenotabletoconductamorethoroughinvestigationofAxis'sMCSPandobserve the innovation processes in the projects. Although we felt that we got theinformationneeded,itcanbeseenasalimitationthatweonlyhadfourinterviews.Itwouldhavebeenpreferabletoalsointerviewtheemployeesweonlywereintouchwiththroughemail,howeverduetothecompany's limitedresourcesoftimeweweregratefulfortheirresponsesbyemail.As thedifferentdepartments atAxis areworkingwith innovations indifferent ways, it would have been desirable to conduct interviews with representativesfromalldepartmentsinordertovalidateourfindingsfurther.Although,directobservationsof thecorporatecultureweremade informally fromourvisitsat theoffice, itwouldhavebeenbeneficialtoalsocollectdataabouttheactivitiesinAxisthroughdirectobservationsina formalway.This couldhavebeendonebyparticipating in theproject teams'meetings,listentothediscussionsaroundtheroadmapandbudgetaswellasobservingtheengineersdailywork.

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6.3Contributions

This study contributes to the research field of MCSP, innovation and ambidexterity inseveral ways. Firstly, this study has contributed by offering the first empirical case studyidentifiedthataimstoinvestigatetheMCSPinrelationtoambidexterity.Bytakinginseveraldifferent relevant theoretical concepts and linking them both to each other and to theempirical material from our case company this study has contributed by providing acomprehensive picture of how a successful innovative company is managing to balanceexploration and exploitation, namely being ambidextrous, and the possible influence oftheir MCSP on this ability. As many technological innovative companies, due to thetechnological advancements worldwide, currently are growing out of its customs for anentrepreneurialcompany,webelievethatourfindingscanworkasaguidanceofhowitispossibletoworkinordertobeabletoachieveorganizationalambidexterity.

Further, the study has contributed by endorsing the theories constituting our theoreticalfoundation. Firstly, the findings support the proposition byMalmi andBrown (2008) thatMCSPisausefultheoreticalconceptinidentifyingandevaluatingthedifferentMCSpresentin an organization by directing attention to the interrelatedness and synergies betweenthese MCS. Also, the proposed usefulness of MCSP in achieving ambidexterity byGschwantnerandHiebl(2016)issupported,however,furthersuggestingthatambidexteritycan also be achieved without combining MCS with completely opposing effects onexploration and exploitation. Instead, the synergies created by the MCSP can lead toindividual MCS having a balancing effect, rather than specifically facilitating eitherexplorationorexploitation.Third,our findingshavestrengthenedthestatementbyDavila(2005)thatMCScanbeusedinordertofosterinnovation.Finally,thecombinedstructuraland contextual approach to ambidexterity discussed by Agostini et al. (2016) has beenobserved, additionally indicating a complementarity between the different modes toambidexteritydescribedbyDuval(2016).

Although the empirical evidence is too limited in order to generalize our findings, theempiricalfindingsfromthisstudystillcontributetobroadentheunderstandingofhowtheMCSPcanbeused inorder toachieveorganizationalambidexterity.This isespecially trueconsidering the limited understanding on the subject at present as well as the currentlyscant empirical support for proposed relations between MCSP and ambidexterity. Inaddition,we hope that this thesis can contribute to shed light on the, for us, interestingresearchareaofambidexterity, innovationandMCSP,andmore importantly, the linkagesbetweenthem.

Apartfromacademiccontributionsthefindingsinthisstudyarealsoofpracticalinterest.Asambidexterity has been shown to be a central component of long-term company success(March,1991;Raisch&Birkinshaw,2008;O'Reilly&Tushman,2013;Ogrean,2016;Woods,2016) the aim to develop an ambidextrous ability should be of significant interest topractitioners.Thisstudyproposes that thewaytheMCSP isdesignedandusedcan fosterthe achievement of ambidexterity. Thus,managers can influence the development of anambidextrous ability and this thesis provides guidance on what can be essentialcharacteristicsofsuchaMCSP.Also,evenifthedetailedunderstandingoftherelationship

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between MCSP and ambidexterity is far from developed, the mere attention towardsambidexterityasaconceptissomethingthatshouldbeemphasised.Thecapabilityofbeingalert and flexible to changes occurring both within and outside the organization,simultaneously looking ahead and to the past is nothing new. However the concept ofambidexteritybringsusclosertohowthiscanbeachieved.

6.4Suggestionsforfurtherresearch

We believe that ambidexterity related to management control, in general, is an area ofgreat interest for future research. In a world with a rapid changing environment, newtechnologiesandshortproduct-lifecycles,companiesareforcedtobeintheforefrontwhenitcomes to innovationwhileat thesametimemanaging tomakeprofit today inorder tosurvive on themarket. As innovative companies are becomingmore andmore common,thereisaneedforfurtherresearchontherelationbetweenambidexterity,innovationandmanagement control. Firstly, it would be interesting to see several studies of differentinnovative industries in order to see if these studies will strengthen the connections wehave seen in our study. It would also be interesting to see if contextual factors, such ascountry,haveanimpactonthefindings.

Second, it could be that thewide approach to achieving ambidexterity identified in Axis,combining all modes (Duval, 2016) and a combined approach (Agostini et al., 2016) toambidexterity,isapreferredstrategy.Thisissomethingthatcouldbeinvestigatedfurther,performingamorequantitativetypeofstudy.Also,acknowledgingandstudyingtheroleofprojects in structural ambidexterity further would be interesting as projects allows foreffectiveinnovationwithlessresourcesaswellasprovidingainteractivecontrolcontext.

Further,asdiscussed in the limitationsof thisstudy, the limitedscopeandtimeframehasnecessitated several delimitations. For example, our focuson innovation can, even if it iscloselyrelatedtoambidexterity,giveapartialpictureoftheachievementofambidexterity.Logically,morepartsof theorganizationare central in creatinga successful business. Forexample, the distribution network in Axis in terms of reaching the market is somewhatoutside our focus, however, seemingly relevant for success, since even if an organizationcan be ambidextrous in every other respect, they will not survive if not being able tosuccessfully sell their products or services. This problem has to do with the concept ofambidexteritysufferingfromunclarityofitsactualconstitution.Thus,theresearchersinthisfield must also progress on the agreement of clear definitions and distinctions ofambidexterityinordertofacilitatefocusedfutureresearch.

Finally, further research is needed about the interrelationships and linkages between thedifferent controls in theMCSP. This is needed inorder tobe able to investigatehow thecontrols work together and if they support each other in a positive or negative way. Byconducting a study like this, the aim is to find out what combinations of MCS areappropriateforachievingambidexterity.

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Appendix

Appendix1-InterviewGuide

Inlinewiththepurposeofthisthesis,questionssuchas“Whatareyoudoing?”,“Howareyoudoing it?”, and “Whyare youdoing it?”havebeenasked to the intervieweesatAxisCommunications.

Generalquestions1. TellusaboutyourselfandyourexperienceatAxis?

Administrativecontrol2. HowdoestheorganizationalstructureatAxislooklike?3. WhereisthedivisionbetweenNewBusiness,R&DandTechnology?Whythis

division?4. Howdoesthemanagementrespectivetheboardlooklike?Doyouhavesome

othergeneralresponsibilitygroupswithinthecompany?5. DoesAxishavesomepoliciesinplacethateveryoneintheorganizationhasto

follow?Culturalcontrol

6. Howwouldyoudescribethecorporateculture?7. ArethereanysocialnormswithinAxis?Andwhicharethey?

Cyberneticcontrol8. Howdoesthemanagementcontrolofyourdepartmentlooklike?Isthereany

differencefromotherdepartmentsinsomeway?9. WhatdoyouconsiderasthemostimportantMCSforthecompanyasawhole?

Whydoyouconsiderthisasthemostimportant?10. Howstrictisthebudget?Doyoufollowupthebudgetcarefully?11. Howstrictarethedifferentprojectbudgets?Dotheydifferbetweendifferent

typesofprojects?Ifyes,howdoesitdiffer?Planningcontrol

12. Howdoestheplanninglooklikeforyourdepartment(short/long-term,detailed/overall,etc.)?Whydoesitlooklikethis?

13. Whodoestheplanning?14. Howistheplanningused?

Rewardsandcompensationcontrol15. IsAxisusinganyrewards(formal/informal)?Ifyes,which?16. Doesthesedifferbetweenthedifferentdepartmentswithinthecompany?

Innovation17. Howshouldyoudescribetheworkwithinnovationwithinyourdepartment?Does

thisdifferfromotherdepartmentsintheorganization?Ifyes,inwhatwayandwhy?

18. HowdoyouconsiderthattheMCSaffectsthecompany'sworkwithinnovation?(Limit/Foster)

19. Howmuchfocusisspentontotallynewproducts/innovationsandalreadyexistingproductsrespectively?

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20. Isitsomethingyouwouldliketoaddontotheworkwithinyourdepartmentortheworkwithinnovationinthecompanyasawhole?

InnovationandMCS(relatedtoDavila)21. HowdoesinnovationsmainlyoccuratAxis?22. HowdoyouclassifytheinnovationprocesswithinNew

Business/R&D/Technology?23. Isitfromseparatedepartments/individuals/groups/managementthatinternal

innovationscomefrom?Iffrommanydirections–isitsomedifferenceofhowradicaltheseinnovationsare?

24. Areinnovationscreatedwithinclearlystatedlimitsorwithmorefreehands?25. DoyouhaveexperiencefromthatchangesintheMCShasbeendoneatAxiswith

thepurposetofosterinnovation?26. Arethedifferenttypesofinnovation(radical/incremental)somethingyouatAxis

haveinmindwhendesigningtheMCS?

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Appendix2-Casestudyprotocol

1.Introductiontothecasestudyandtheroleoftheprotocol1.1Thecasestudy'sresearchquestionandhypothesis

Researchquestion

HowdoesAxisuseMCSPtoachieveorganizationalambidexterity?

Hypothesis

We believe that Axis is using a combination of structural and contextual ambidexterity,mainly internally but also complemented with alliance and acquisition. Contextualambidexterityismainlyachievedbyastrongcorporateculturethatsupportinnovationandanopengovernancestructurethatcreatesbetterinternalcommunication.Additionally,webelievethatAxis isusingstructuralambidexterityas it ishavingdistinctdepartmentswithdifferent specified tasks and goalswhich in turn lead to that different levels of focus onexplorationandexploitationispresentatthedepartments.

Cybernetic, planning, aswell as reward and compensation controls is something thatwebelieve is used in Axis, but that it is used in differentways between departments. As anexample,weexpectthatitiseasiertogetadditionalresourcesinthedepartmentsthatarefocusingonexploration.Whenitcomestorewardandcompensation,webelievethatit isrelatedtowhatfocusthat ismost importantforthedepartment,suchassalestargetsforSalesandnumberofnewproductsandpatentforNewBusinessandR&D.Additionallywebelieve that innovative contexts, which the employees at Axis is operating in, is closelyrelatedtointrinsicmotivationandthereforewedonotexpecttofindanextensiverewardsystematAxis.Finally,webelievethatthecorporateculturewithinAxisisstrongandthatsomeofaclancontrolispresent.

1.2Thecasestudy'stheoreticalframework

The case study is built on theory about innovation, ambidexterity, MCS and MCSP. Thetheory Management Control Systems as a Package (MCSP) has been used to relate theidentifiedactivitieswithinthecompanytothedifferentcontrols,toprovidethereaderwithabetteroverviewandfacilitatetheunderstanding.

1.3Theroleoftheprotocolasahelpingtoolforthecasestudy

The role of the protocol is to provide help and support for being able to execute a casestudyinbothascientificandefficientwayaspossible.Bydocumentingtheprocessofthestudyalreadyfromthebeginning,theprotocolfunctionasasupportofhowthestudycanbeexecuteinthebestpossibleway.Inaddition,thecasestudyprotocolprovidesthereaderwithanunderstandingoftheplanningandexecutionofthestudy,whichleadstothatboththetransparencyandreliabilityofthecasestudyincreases.Finally,bydocumenting,intheprotocol,howthestudyhasbeendone,thereplicabilityofthecasestudyincreases.

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2.Approachfordatacollection2.1Thepersonstobevisitedoremailed

Interviews

Interviewdate

Name Title/Position Duration Recorded

19thApril2017

RickardDahlroth

DirectorandHeadofBusinessControl,ControllerofNewBusiness

1h50minutes Yes

25thApril2017

MartinRasmusson

BusinessControllerforProducts&CTOandHR

55minutes Yes

28thApril2017

YlvaBexelius ProjectManagerforNewVideoProducts

1h35minutes Yes

8thMay2017 KentFransson GlobalProductManagerforPTZCameras

55minutes Yes

Emailcorrespondence

Emaildate Name Title/Position Topic3rdMay2017

YlvaBexelius ProjectManagerforNewVideoProducts

Classificationofinnovationprojects

3rdMay2017

NicklasOlofsson R&DDirectorforFixedCameras

Rewardsrelatedtoinnovationandpatents

3rdMay2017

NilsOlsson DirectorofIntellectualPropertyRights

Rewardsrelatedtoinnovationandpatents

12thMay2017

AnnaJeppsson R&DDirectorforPTZCameras

Roadmap,budgetandprojectbudgets

2.2Planfordatacollection

The interviews should be performed during week 16, 17 and 19 at the interviewees'workplace. Four employees at Axis will be interviewed; two Business Controllers, oneProjectManager, and one Global ProductManager. The interviewwith the Director andHeadofBusinessControl/ControllerforNewBusinessisplannedtotakearoundtwohours,whiletheotherinterviewswillbelimitedtoaroundoneoroneandahalfhour.

2.3Preparationsbeforethevisits

Beforethefirstvisitatthecompanywewillreadinmoredetailaboutthecompany,tohaveasagoodoverviewaspossibleoverhowthecompanyisoperating,sothatthefocuscanbeplacedontherightandmostinterestingthings.Despitethattheinterviewsisplannedtobesemi-structured will questions be prepared, whereof a selection will be sent to theintervieweestogivethemapossibilitytoprepare.

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3.Casestudyquestions3.1Keyquestions

• Howdoestheinnovationprocesslooklike?

• Howdoestheorganizationandcorporateculturelooklike?

• DoyouthinkthattheMCSatAxisaffectstheworkwithinnovation?Why,andinwhatway?

• HaveyouexperiencedthatchangeshavebeenmadeintheMCSwiththeaimtofosterinnovations?

Above,someofthekeyquestionsfortheinterviewsarepresented.SeetheInterviewGuideinAppendix1foramoredetailedpresentationoftheinterviewquestions.

3.2Evaluation

After the interviews have been carried out will the theories of MCSP, innovation andambidexterity be applied to the empirical information retrieved from the interviews.Thereafterwillweanalysethecasecompanyinordertobeabletoanswertotheresearchquestionforthisthesis.

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Appendix 3 – Axisinnovationtimeline

ExtractsfromAxisinnovationtim

eline.BasedonAxisExperienceCentre,2017;AxisCom

munications,2017bandAxisCom

munications,2017c.

Appendix3–Axisinnovationtimeline