DESIGN MANAGEMENT CAPABILITY ASSESSMENT FROM THE PERSPECTIVE OF COMPANIES PURSUING DIFFERENT BUSINESS STRATEGIES IN GLOBAL VALUE CHAINS (1)

Abstract

Design management (DM) is a strategic business capability to gain competitive advantage in the global market. To guide companies to integrate DM into their organizations, a multitude of diagnostic frameworks and tools were put forward. These studies also provide pathways for better use of design and its integration into organizational strategy and functions, hence for better DM. Operating in emerging economies, latecomer firms (LCFs) develop their DM capability along with their technological and manufacturing capabilities, and therefore its level and usage are dependent on the business strategies (OEM-ODM-OBM) that they follow in Global Value Chains (GVCs). Based on a focused literature review, a new framework has been put forward to establish a linkage between DM capability and specific business strategies followed by LCFs to take a position in GVCs, thus fulfilling a gap in the DM literature. Three case studies selected from the Turkish electrical and electronics industry were undertaken with the aim of investigating the nature of DM capability in relation to OEM, ODM, and OBM strategies by using the Design Management Capability Framework in GVCs. Thus the conceptual framework was put to test through the case studies. Case study findings indicated how DM capability, other firm capabilities, and business strategies are dependent on each other and featured the basics of a potential self-assessment tool to be used to identify deficiencies in DM capabilities and opportunities for business strategy improvement.