Developing dynamic capabilities for new product development in business ecosystem

Abstract

Governments in emerging economies have introduced a variety of technological catch-up strategies in order to develop national creative capacity. These initiatives have been introduced with the key objectives of developing new product development (NPD) capabilities in their local small and medium-sized enterprises. Few will be disappointed with the fact that NPD capabilities have faded away from companies with more technology-intensive capabilities over the years. But how have these skills been nurtured in a business ecosystem that strives to make businesses more dynamic? Specifically, what is the help flow from the value network of the business ecosystem? How do companies and organisations work in particular industries that have benefited the entire value chain of the market ecosystem? This qualitative paper addressed two in-depth case studies of companies receiving business and technical support from the high-tech ecosystem. Case study was chosen as an inclusive approach and aimed to focus primarily on interviews with key informants. Observation and record review approaches are used to improve the results. Themes emerge from the findings, including: (1) support for firms' NPD in terms of commercialization of research outputs; (2) proof of firms' ability to reconfigure complex capability upgrade capabilities; and (3) the ability of firms to adapt to evolving environments by delivering high-tech products that meet regulatory requirements and consumer demand. There is evidence that the business environment in terms of the government support programme for high-technology sectors has created the effect of enhancing innovation capabilities in NPD processes. These skills contribute to production, distribution and product improvement activities in the innovation phase. They provide an example of the role and how to promote the dynamic capabilities of companies in the production of new goods. The key implication is to strengthen our understanding that these skills are based on the ability of companies to adapt to an evolving world by delivering high-tech goods that meet regulatory requirements as well as consumer demand.