The problem of how firms cope successfully when the bases for competition shift is a classic one for economics and management. At this time, the U.S. automotive industry is coping with disruptive shifts due to increased concern for environmental responsibility and sustainability. Sustainability pressures are, globally, affecting consumer attitudes, public policies, supply chains and competitive strategies. This study aims to identify the roles of "dynamic capabilities" associated with successful innovation in the vehicle powertrain industry as it responds to the diverse new pressures arising from the demand for greater sustainability. Findings should be of value to other industries coping with this sustainability shift as well as to industries coping with other types of multidimensional competitive disruptions generally.
The model guiding this study posits that dynamic capabilities associated with reconfiguration of existing abilities -- including things like knowledge acquisition, realignment of understandings and strategies, and choices among outsourcing arrangements -- are key factors in firms' abilities to change successfully with their changing environments. The team will conduct several case studies to calibrate a survey instrument then conduct a two-stage panel study over the course of three years in order to test several hypotheses about direct and moderating influences of reconfiguration capabilities on the success of sustainability-related R&D projects. Four firms with significant market share in the powertrain industry are providing access to pertinent study sites and will assist in dissemination of results.
