Fostering a Collaborative Culture: Implementing Agile Transformation in Industrial Context

Date: 1st June 2025 Level: Master’s Thesis in Industrial Engineering and Management, 30 Credits University: Mälardalen University Authors: Mohamad Anas Tahhan and Didat Islam Tutor: Bo Morberg and Per Verner, Volvo Construction Equipment Sofia Baraldi Wagrell, Mälardalen University Keywords: Agile Transformation; Servant Leadership; Psychological Ownership Purpose: The aim of the study is to investigate how industrial organisations can improve the efficiency of their decision-making through an agile transformation. The study also examines structural and cultural enablers and barriers to this transformation. Research questions: 1. How can the Technology department in Volvo CE transform its organisation to optimise decision-making through agile transformation? 2. What cultural and structural factors enable or hinder agility in Volvo CE? Method: The study has a qualitative research design and is conducted through an abductive method. This approach has allowed an interaction between the theoretical framework and empirical data. The theoretical framework has been collected based on relevance to research subjects and to investigate a case study on an organisation. Empirical data was collected through nine semi-structured interviews with employees at the researched organisation. Conclusion: The study identified that hierarchical governance structures hinder agile transformation due to rigidity and slow decision-making processes. Key enablers of agility included cross-functional collaboration, psychological ownership, and adaptive leadership. However, challenges such as cultural resistance, unclear responsibilities, and scalability issues must be addressed. A hybrid model that balances control with flexibility and emphasizes a strong, collaborative culture is essential for successful agile transformation in industrial contexts.