Role of manufacturers' market-related capabilities in developing market-oriented codevelopment and competitive advantages in an emerging market

This study investigates how a manufacturing supplier's market-related capabilities (marketing and market-linking capabilities) affect market-oriented codevelopment (buyer oriented and competitor oriented) and, in turn, its competitive advantage. A manufacturing supplier with high levels of marketing and market-linking capabilities has positive effects on buyer-oriented codevelopment; however, only high levels of marketing capabilities lead to competitor-oriented codevelopment with local partners. In addition, both types of market-oriented codevelopment have positive effects on manufacturing suppliers' competitive advantage, namely, innovation, location and internalization. The central theme of this paper is that applied knowledge and collaboration in local markets based on market-related capabilities are key characteristics that enable manufacturing suppliers to compete both locally and globally.