Transforming R&D in a world-leading bicycle company (1972–2016): the dynamic capabilities perspective

Abstract

ABSTRACT This paper investigates the transformation of research and development (R&D) in a world-leading Taiwanese bicycle manufacturing firm, the Giant Company, over the last four decades. A dynamic capabilities framework is proposed that focuses on seizing corporate strategy (business model and internationalisation) and on reconfiguring the organisation of R&D (structure and capability development). A longitudinal methodology is applied to examine the Giant Company by tracking its history from its establishment to the present (1972–2016). Interviews with the chief technology officer (CTO) and top managers as well as internal documentation are used to analyse the case. The results indicate that a fine alignment between the seizing corporate strategy and reconfiguring the organisation of R&D successfully transformed the Giant Company from an engineering-based organisation (1972–1987) to a development-based organisation (1987–1999) and then to a research-based organisation (2000 onwards). The paper concludes that the R&D transformation can be wider and more cyclically integrated with corporate strategy through the dynamic capabilities approach. Theoretical and managerial implications are suggested.