Do Technological Innovation Capabilities Contribute to New Product Development Performance? A Conceptual Framework

Action on innovation is now a trend in the business world. It happens because the business world requires companies to be innovative in order to have competitiveness. Thus, the action of innovation is the result of organizational policy. Organizational policy governs the process of innovation action. The organization's internal capabilities in conducting innovation formulations are called technological innovation capabilities. On the other hand the product is downstream from a business process. Company competitiveness can be seen from the scale where the product can be accepted by the market or not. On a smaller scale, the performance of a product can be seen as the scale of the product business design and how the product is compared to existing competitors. In this paper a conceptual process of analyzing the effects and contributions of Technological Innovation Capabilities (TIC) on the Performance of New Product Development (NPD) will be presented. Modeling variable relationships in TIC and Performance of NPD is important as a basis for strengthening business organization strategy when designing new products to face future markets.