Dynamic Capabilities in New Product Development: the Case of Asus in Motherboard Production

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Dynamic Capabilities in New Product Development: The Case of Asus in Motherboard Production Ing-Shane Yung, Associate Professor Department of Business Administration National Chiayi University Chiayi, Taiwan, R.O.C. Tel +886-5-2759917 ingshane@mail.ncyu.edu.tw Ming-Hong Lai*, Associate Professor Department of Business Administration No. 129, Section 3, Sun-Min Road Taichung, Taiwan, R.O.C. National Taichung University of Science and Technology Tel +886-4-24817611 mhlai@ntit.edu.tw © 2011 *Corresponding author. Email: mhlai@ntit.edu.tw 1 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 IT hardware industry. Product developments of motherboard follow standards of CPUs and chipsets. The dominant architecture of motherboard 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, 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 OEM operations and collaboration with key suppliers increase technological opportunities and mark the road ahead. Key Words: dynamic capability; motherboard; dominant design; time-to-market 2 I. Introduction In 2008, 92.4 percent of the global

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