Determinants of Innovation Capabilities at Firm Level: Auto Components Sector
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Abstract
Firm characteristics are defined by rapid changes, extensive impact of globalization, hyper innovative competitors, etc and recent studies have stipulated that one of the most dynamic capabilities that leads to strongest level of competitiveness in any organisation is innovation capability. A firms' capabilities are important in providing and sustaining its competitive advantage, and in the implementation of the entire strategy. As innovation is becoming increasingly complex, therefore a wide variety of assets, resources, and capabilities are required to make such innovation capabilities successful. Therefore, innovation capability should be defined in a wide disperse scopes and levels in order to accord with the requirements of firm strategy and accommodate to the special conditions and competition environment. The need of the hour is, that many organisations have now begin to focus on the need to identify innovation capabilities, resources and strengths through an inside-out view. Innovation capabilities are not necessarily defined by a new product or service, but also through new administrative practice or process, new strategies in place to improve process performance, etc. The objective of this research paper is to identify key determinants of innovation capabilities present in an auto components cluster firms
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