Design Management Capability Assessment From the Perspective of Companies Pursuing Different Business Strategies in Global Value Chains

Bilgen TUNCER MANZAKOĞLU, Özlem ER

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, multitude 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 is 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 strategies followed in GVCs, thus to fulfil a gap in the DM literature. Three case studies selected from the Turkish electrical and electronics industry were undertaken by using the “Design Management Capability Framework in GVCs” with the aim of investigating the nature of DM capability. Findings provided detailed data on DM capabilities required by OEM-ODM-OBM strategies which can also be used as a guide by manufacturing companies targeting to achieve functional upgrading in GVCs and finally to become a global brand.

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DOI: http://dx.doi.org/10.4305/metu.jfa.2021.2.10

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