Abstract
The paper aims to propose a structured multi-dimensional framework linking higher organisational capabilities such as dynamic capabilities (DC) and new product development (NPD) performance as a means by which the sustainable competitive advantage can be realised. The study lends support to supply chains that enable the firms to generate an economic surplus into the future. For this purpose, this study examines the complex inter-relationships between DC and performance in NPD using a multiple-criteria decision analysis (MCDA) approach using automotive industry data. The components of the DC model including the three capacities of sensing, seizing, and reconfiguration have been operationalised in cases featuring extensive supplier involvement in NPD projects. The findings of the study highlight that superior NPD performance including effectiveness, efficiency, and product content can be explained well by identifying and evaluating the effects of the organizational and managerial processes underlying the micro-foundations of DC.
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