Abstract
The dimensions that constitute the technological innovation capabilities (TIC) can be a source to improve business performance. Based on the resource-based view and contingency theory, this paper tries to propose a conceptual model to further understand the moderating role of environmental turbulence in effecting of the firm’s TIC on firm’s business performance in the automotive industry in Malaysia. This paper then developed into concrete research hypotheses for future studies. The conceptual model will serve to guide further research in the area, which can be expected to contribute in the development of automotive industry in Malaysia. Empirical testing of this proposed model is expected in future study using survey instrument.
Highlights
There are increasing studies regarding how a firm can maintain their sustainable competitive advantage and improve firm performance in fast changing and unpredictable environments due to the globalization of markets, technological change, shortening product lifecycles and innovative new product development (NPD) [2,3,4]
One popular approach used to understand competitive dynamics is the resource-based view (RBV) of the firm. Only those firms who have the unique resources and capabilities provide the ability for competitive advantage in rapidly changing and unpredictable environments leads to higher performance
Drawing upon contingency theory and the resource-based view perspectives, we suggest that environmental turbulence may moderate the relationship between Technological innovation capabilities (TIC) and business performance
Summary
There are increasing studies regarding how a firm can maintain their sustainable competitive advantage and improve firm performance in fast changing and unpredictable environments due to the globalization of markets, technological change, shortening product lifecycles and innovative new product development (NPD) [2,3,4]. Drawing upon contingency theory and the resource-based view perspectives, we suggest that environmental turbulence may moderate the relationship between TIC and business performance This issue is important but remains mostly neglected in the existing TIC literature especially study in the automotive industry. In order to manage the high competitiveness and the various challenging business factors in the automotive industry [34] for example uncertainty about climate change policies whereby firms need to play a role in reducing global CO2 emissions through technological innovation, it is important to create better strategic planning which strongly reflects an increase in firm performance and need to reduce operation cost.
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