Professional articles
Many of the articles here are based on original articles, books and lectures from both Norwegian and international academic communities. The content has been processed, summarized and placed in a larger context, with the goal of making the subject matter more accessible and more relevant in today's digital society.
The site is updated continuously – a bit like digitization: you're never quite done.
Professional articles
Strategy and the Internet – Michael Porter on Digital Strategy and Sustainable Competitive Advantage
What happens when new technology changes the way businesses compete? Does the internet create completely new rules of the game – or does it reinforce the importance of good strategy?
In this classic scholarly article, Michael Porter challenges the notion that technology alone creates competitive advantage. Porter argues that the internet only creates lasting value when it is integrated into a business's overall strategy, value chain, and work processes.
The article shows how digital solutions can strengthen existing competitive advantages through better information flow, closer interaction with customers and suppliers, more efficient processes and clearer strategic choices. At the same time, Porter warns against treating digitalization as an isolated initiative without anchoring in the core activities of the business.
More than twenty years after publication, the perspectives are still relevant. In an era characterized by artificial intelligence, platform economics, and rapid technological development, Porter reminds us that long-term value creation is still about people, clear priorities, and the ability to build unique positions in the market.
The article is particularly relevant for managers, students, advisors and anyone who works with:
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digital strategy
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innovation and business development
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customer experiences and omnichannel
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organizational development
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value chains and competitive advantage
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technology, management and change
For readers of The Invisible Capital, this is an important reminder that technology does not replace strategy – it enhances it. Lasting competitive advantage is created when people, processes and digital tools work together.
The article about Williams-Sonoma shows how the company spent many years building one of the world’s most successful combinations of physical retail and e-commerce. While many traditional retailers viewed e-commerce as a threat to their stores, Williams-Sonoma chose early on to invest heavily in digital customer journeys, logistics, content creation and data-driven customer insight. The result was an omnichannel strategy in which stores, catalogues, e-commerce and the brand experience supported one another rather than competing internally.
The case is particularly interesting because it shows how long-term investment in technology, user experience and customer value can create strong growth over time. For The Invisible Capital, it is a good example of how modern value creation takes place through the interaction between people, technology, content and customer experience – not through short-term cost-cutting alone.
The note “Why Friendster Collapsed – and Why MySpace Grew” draws on analyses and reflections by media researcher danah boyd and shows how early social networks were shaped by technology, culture and user behaviour. The analysis highlights how Friendster initially experienced strong growth, but gradually lost users because the platform became technically slow, too rigid and poorly adapted to how people actually wanted to use the service. At the same time, MySpace succeeded in creating a more flexible, user-driven environment where youth culture, music and identity-building in particular were given greater space.
The case is interesting because it shows that digital services do not compete on technology alone, but also on culture, belonging and the ability to understand how people actually want to express themselves and interact digitally. The analysis also illustrates how quickly strong digital positions can decline when technological problems, poor user experience or a lack of understanding of users’ needs are allowed to develop over time. For The Invisible Capital, this is an important example of how digital platforms must evolve through the interaction between technology, people and culture – not simply through technical solutions and growth figures alone.
Read the article: Why Friendster Collapsed – and Why MySpace Grew
Read the article: Why Friendster Collapsed – and Why MySpace Grew
The note “Why Friendster Collapsed – and Why MySpace Grew” draws on analyses and reflections by media researcher danah boyd and shows how early social networks were shaped by technology, culture and user behaviour. The analysis highlights how Friendster initially experienced strong growth, but gradually lost users because the platform became technically slow, too rigid and poorly adapted to how people actually wanted to use the service. At the same time, MySpace succeeded in creating a more flexible, user-driven environment where youth culture, music and identity-building in particular were given greater space.
The case is interesting because it shows that digital services do not compete on technology alone, but also on culture, belonging and the ability to understand how people actually want to express themselves and interact digitally. The analysis also illustrates how quickly strong digital positions can decline when technological problems, poor user experience or a lack of understanding of users’ needs are allowed to develop over time. For The Invisible Capital, this is an important example of how digital platforms must evolve through the interaction between technology, people and culture – not simply through technical solutions and growth figures alone.
The idea supporter's dilemma:
Why do some of the best ideas never become reality?
Many organizations want more innovation, but research shows that the path from idea to action is often more complicated than we think. In this research review, we take a closer look at the article The Idea Endorser's Dilemma by Wayne Johnson and Brian J. Lucas, which examines why leaders sometimes hesitate to support employees' creative suggestions.
Through five studies, the researchers show how status, recognition, and risk influence innovation decisions. The results point to an interesting paradox: Leaders may lose more status if an idea fails than they gain if it succeeds. This may help explain why good ideas often face resistance, even in organizations that want to be innovative.
The article provides valuable insight for managers, employees, innovators and anyone concerned with how new ideas are developed into actual value creation.
Read the full research review
