Capability Building in the Indian Automobile Industry: A Study of Maruti Suzuki India Limited

Abstract

In the era of global competition, firms, in general, should develop innovative capabilities for their survival and growth. Firms rely either on their internal technological capabilities or their external linkages as the sources of innovation. With the pace of technology development, access to knowledge and resources from outside the firm is becoming increasingly important .The study analyses the capability building as seen in expenditure on ‘Research and Development’ in the leading auto manufacturer in India, Maruti Suzuki-a joint venture between the Indian government and Suzuki Motors Corporation, Japan. The analysis shows that the Maruti Suzuki has integrated and built internal and external competences to address the rapidly changing environment and has consolidated its position as the top automobile manufacturer with the right blend of capacity building activities.