Legacy removal as a core dynamic capability for incumbent MNCs facing disruptive change

Established multinational companies (MNCs) facing not only strong competition but also disruptive change often die. One key factor is their inability to divest themselves of legacy resources. Kodak is a generic example of this. In spite of sensing, seizing, and even some transformation, it failed because of a failure to remove legacy resources. We view legacy removal as a significant managerial activity and as a critical dynamic capability. In the divestment process, it involves political skills in dealing with affected stakeholders. Employing a case study of the mobile telephony MNC, Telenor, we develop insights into managerial activities intended to ensure legacy removal. In its first period of legacy removal in the 1990s, Telenor was able to evolve from a state-owned domestic operation into an MNC. Digitalization and the need to become a digital services provider means that it is currently engaged in a second period of legacy removal.