Assessment of the dynamic capabilities of indian electronics system design manufacturing industry and their impact on industry performance from the new product development perspective

Abstract

The main challenge faced by managers in an uncertain environment is to make sound newlinedecisions on managerial interventions to retain the firm s competitiveness. The dynamic newlinecapability perspective is a means to achieve this end. Drawing upon the dynamic newlinecapability literature, first, the study operationalises the dynamic capability of a firm newlinethrough sensing, learning, integrating, and coordinating capabilities. The electronics newlinesystem design and manufacturing industry, especially the new product development newlineactivity, is chosen as the setting of the research considering the high level of the market newlineand technological dynamism experienced by it. Through extensive literature review on newlinethe new product development (NPD), the research identifies competitiveness, the newlinesatisfaction of the customer, cost of product development, and time-taken for product newlinedevelopment as the four metrics of NPD performance for empirical validation. Next, the newlineimpact of dynamic capability on the new product development performance is analysed newlineand empirically validated based on the samples collected from one hundred and twenty- newlinethree NPD units employing multiple regression and analysis of variance. The analysis newlineresults report that dynamic capability has a statistically significant impact on competitive newlineperformance, customer satisfaction, and development time, three of the NPD newlineperformance metrics chosen for the research. The impact on development cost is not newlinestatistically significant. Next, this study proposes that the dynamic capability is a strategic newlinecapability, and quality management capability and technology management capabilities newlineare operational capabilities of the NPD units. As a pioneering work, this study analyses newlinethe mediating role of quality management capability and technology management newlinecapability in the relationship between the dynamic capability and the new product newlinedevelopment performance.