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Strategic Inertia vs. Strategic Change: The Role of Human Capital in Fiat's Turnaround Pathway
Abstract
Increasingly dynamic, complex and unpredictable economic circumstances require continuous and systematic re-evaluations of business strategies and plans and coherent and effective strategy implementation. Adopting the Resource Based View theoretical framework this chapter is aimed at shedding light on the role of human capital in the strategic change process. Specifically, by adopting the case study methodology the chapter points out the relevance and critical nature of human capital in the complex process that has driven Fiat's competitive and financial turnaround since 2008. Through the lens of Fiat's case, the article contributes both from an academic and a practitioner point of view, to shed light on the relevance of human capital in organizational attitude change, strategy formulation, choices implementation, and more in general, in Fiat's business model re-definition. The chapter ends with case questions.
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