A review of technological capability and performance relationship in manufacturing companies

Abstract

Manufacturing plays a very important function in the economy of most countries in nowadays age. Because of the dynamic character of manufacturing itself, its market and environmental situations, manufacturing firms are facing tremendous significance challenges. Developing countries are striving to compete in the global intense market, including Malaysia, and for that reason, this key industry needs to maintain and boost local capabilities for the economic strengthen and stability. As the technological capability (TC) has a strong involvement in the production and operation sectors which are the cornerstones of each manufacturing company, it should be improved and monitored periodically. The nature of a long term commitment of the technological capability creation and accumulation requires a huge considerable effort from a company to realize the effects of TC have on performance measures in every aspect while gaining competitive advantages and sustaining commercial success in the local and international market within their operational periods. Based from a resource-based view, it is in congruence that capabilities will promote firms' competitive advantage by improving the performance. The major intention of this paper is to have an overview on how TC actually relates towards performance measures in manufacturing companies.