Dynamic capabilities in new product development: the case of Asus in motherboard production

Abstract

This empirical research applies the dynamic capability perspective to the field of new product development. Our major focus is in the time-to-market competition of motherboard production in the information technology hardware industry. Product developments of motherboards follow standards of CPUs and chipsets. The dominant architecture of motherboards has been set by Intel and elaborated by Asus. This research studies how processes, positions, and paths of Asus improve its new product development performance. The result shows that sustainable competitive advantages of Asus stem from high-performance routines both inside and outside the firm. The process of integration and coordination, the process of learning, practicing and accumulation of core competence, and the process of reconfiguration and transformation work jointly to shape the best practices in its industry. Positions of technological teamwork and supply chain clustering consolidate its competitive advantages. Learning from original equipment manufacturer operations and collaboration with key suppliers increase technological opportunities and mark the road ahead.

Keywords:

• dynamic capability
• motherboard
• dominant design
• time-to-market