Effective dynamic capabilities in complex product systems: experiences of local Chinese firm

Purpose – The purpose of this paper is to explore effective dynamic capabilities for new product development project in complex product systems (CoPS) industries. This paper focuses on developing an exploratory framework for understanding dimensions of dynamic capabilities in CoPS distinguished from mass‐produced goods. Design/methodology/approach – Based on a review of the literature and in‐depth case studies, this paper used data coding method with ROST CM6.0 to explore dimensions of dynamic capabilities in CoPS. Findings – The results of the authors' case study of CNR Dalian Locomotive & Rolling Stock Company Ltd suggest that there are three dimensions and six sub‐dimensions of dynamic capabilities in CoPS, which include customer‐oriented perception capability, capability to control multi‐organization network, and absorptive capability on organizational learning. Originality/value – This study highlights the different dimensions and effects on product innovation in CoPS and the implications of the proposed model for dynamic capabilities in a CoPS environment are discussed.