Dynamic capabilities for smart manufacturing transformation by manufacturing enterprises
Tzu‐Chieh Lin, Margaret L. Sheng, Kung Jeng Wang
Abstract
This study develops a dynamic capability-based framework of maturity assessment through combinative capabilities towards smart manufacturing transformation. First, the relationship between existing maturity models and dynamics capability is investigated. The finding indicates that most maturity models cannot identify an organisation’s dynamic capability or examine this capability in a dynamic and competitive environment during the transition. On the basis of the literature and senior executives’ experiences, this study incorporates dynamics capability into the maturity model assessment developed by the Singapore Economic Development Board for empirical analysis and identification of the importance of key capabilities with influencing factors, which are included in a framework to fill the research gap. Primary data obtained from in-depth interviews are systemically examined to determine the industrial maturity level and dynamics capability driving the transformation. Drawing on this investigation, this paper proposes a conceptual framework for smart manufacturing transformation driven by dynamic capabilities that have positive effects on the transformation of manufacturing enterprises. Our main contribution is identification of the four key aspects of dynamic capability – process, technology, organisation, and transformation. Another contribution is that we provide dynamic capability-based guidance for enterprises to re-evaluate their strategies and strengthen the capabilities they require to face a changing environment.