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Mechanism to Build Organizational Capabilities and Leadership: The Case of Maruti-Suzuki Project

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Abstract This study examines the mechanism to build organizational capabilities in the firm. The purpose is to rethink the RBV (Resource Based View of the firm) and to provide a framework for analyzing cases. ...After reviewing the previous RBV studies, I suggest an original analytical framework which is based on three-step process: exploration, accumulation, and exploitation. Furthermore, I classify into four types to clarify the concept of organizational capabilities: corresponding capability, adapting capability, deepening capability, and creating capability. To put a concrete image of the previous discussion, I analyze a case in accordance with reality. This paper examines a Maruti-Suzuki project: a joint venture between Suzuki and the Indian government. I explain Maruti's organizational capabilities by using an analytical framework. In the phase of exploring the organizational capabilities, I examine how it gains Indian market. In the phase of accumulating the organizational capabilities, I focus on the job training for the local human resources. In the phase of exploiting the organizational capabilities, I consider that Suzuki's manufacturing small-car ability and sale network. Also, I discuss the problems caused under this environment. As a result, it is confirmed that a good combination between the manufacturing small-car ability and local employees making corporate reliability affects the Maruti's competitive advantage. By examining Maruti, it is indicated the linkage among the aggressive corporate behavior, the strategic entrepreneur and mechanism to build organizational capabilities is important. In the future, we need to research more about personal dimension of human behavior.show more

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Created Date 2011.07.12
Modified Date 2020.11.02

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