Development of a composite dynamic capability index for benchmarking new product development performance: an empirical study among industries in electronics sector

Pratap Kumar Surendran Nair, T. Radha Ramanan and Muhammad Shafi Keelath

International Journal of Process Management and Benchmarking, 2021, vol. 11, issue 6, 839-863

Abstract: The study is an attempt to develop a unique composite dynamic capability index to assess the capability of the new product development (NPD) unit and benchmark its performance with respect to competition. Combining the concepts of dynamic capability, quality management capability and data envelopment analysis (DEA), a unique composite dynamic capability index is proposed. New product development (NPD) units in the electronics industry are specifically chosen for the study due to its environmental dynamism where dynamic capabilities play a significant role in maintaining competitiveness. The proposed index is validated through an empirical study among 50 NPD units in the electronics manufacturing sector. The index is able to explain 71.1% of the variance in competitive performance, 62.8% variance in customer satisfaction and 46.8% variance in development time - three of the four NPD performance parameters chosen for analysis. The application of DEA suggests specific targets for improving the efficiency of the NPD process.

Keywords: composite index development; dynamic capabilities; new product development; NPD; performance measurement; benchmarking; multi-criteria decision making; quality management; data envelopment analysis; DEA. (search for similar items in EconPapers)
Date: 2021
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