The impact of technological capability on manufacturing companies: A review

Abstract

Building technological capability (TC) is a long-term process that must be planned carefully to achieve the desired results. Therefore, companies should increase their effort to maintain technological interactions with other companies and gain competitive advantages. This study aims to review the literature in the field of TC and provide a conceptual framework that highlights the relationship among TC, competitive advantage and manufacturing performance. After reviewing the literature, the researcher found that TC plays an important role in achieving competitive advantage for any company and improving the performance of companies. In addition, most previous studies have focused on TC in manufacturing companies probably due to the fact that manufacturing is currently an extremely important industry in the economy of most countries. TC strongly participates in the production and operation sectors, which are the cornerstones of every manufacturing company. Focusing on TC will play a role in developing the performance of manufacturing companies while gaining competitive advantages and maintaining commercial success in domestic and international markets.

The key enablers of competitive advantage formation in small and medium enterprises: The case of the Ha’il region

“…There are two sources of an organization’s competitiveness: differentiation in terms of niche markets or superior quality offerings, as well as lower cost, which stems from economies of scale. For a competitive advantage to be sustainable over the long term, its sources must be unique and difficult to replicate ( Al-Mamary et al, 2022 ).…”

How do the technological capability and strategic flexibility of an organization impact its successful implementation of Industry 4.0? A qualitative viewpoint

“…It is concerned with developing or adopting modern technology. In addition to it, it also calls for developing local skills and knowledge to effectively absorb technology, improve, adapt and ultimately create new technology (Al-Mamary et al, 2020). It is defined as "combination of skills; knowledge, experiences, machines; equipment, systems and procedures that generate special advantage for an organization to perform technical functions, develop new products and processes and effectively operate company facilities" (Al-Mamary et al, 2020).…”

“…In addition to it, it also calls for developing local skills and knowledge to effectively absorb technology, improve, adapt and ultimately create new technology (Al-Mamary et al, 2020). It is defined as "combination of skills; knowledge, experiences, machines; equipment, systems and procedures that generate special advantage for an organization to perform technical functions, develop new products and processes and effectively operate company facilities" (Al-Mamary et al, 2020). The four dimensions of technology capability include technology-acquiring capability, technology operating capability, technology shifting capability and technology upgrading capability (Al-Mamary et al, 2020).…”

“…It is defined as "combination of skills; knowledge, experiences, machines; equipment, systems and procedures that generate special advantage for an organization to perform technical functions, develop new products and processes and effectively operate company facilities" (Al-Mamary et al, 2020). The four dimensions of technology capability include technology-acquiring capability, technology operating capability, technology shifting capability and technology upgrading capability (Al-Mamary et al, 2020). Technology-acquiring capability is the firm's ability to acquire new technology through formal or informal channels.…”

“…It is concerned with developing or adopting modern technology. In addition to it, it also calls for developing local skills and knowledge to effectively absorb technology, improve, adapt and ultimately create new technology (Al-Mamary et al. , 2020).…”