In today’s economic development, business transformation is a key characteristic of the process, as a result of the speed of technological change, digitalization, and the increasing globalisation of production systems. The manufacturing sector is under growing pressure to embrace new technological paradigms like advanced automation, data-driven production, and interconnected ecosystems. In this changing context, the term ‘industrial maturity’ has become important as a tool to analyse the development of industries from simple production systems to more complex, resilient and innovative systems. The concept of industrial maturity is still not well developed in the academic literature, especially in the explanation of the relationship between capability development and business transformation, despite its increased significance. This study revisits and conceptualizes industrial maturity by combining the concepts of capability theory, the resource-based view, and the literature on business model innovation to understand how technological resources and organizational capabilities can be the drivers of industrial transformation. The paper suggests a conceptual framework that presents industrial maturity as an evolutionary outcome of a combination of technology-driven resources, capability development, and business transformation. Technology-driven resources resemble the technological components of infrastructures, human resources, knowledge assets, and organization that facilitate industrial development. Capability accumulation is the ability of firms to implement, adapt, and deploy these resources effectively. Business transformation is the strategic reconfiguration of capabilities, assets, and business models in response to technological change. The proposed framework emphasizes that industrial maturity is not just a matter of technological adoption but a gradual evolution process that requires technological resource building, strategic adaptation, and ecosystem integration. More mature industries have more advanced technological capacities, adaptive business systems, and more robust innovation networks. This study brings a conceptual approach to the literature on industrial development and lays the groundwork for future empirical studies on business transformation in the digital economy.
Tag: Technology-driven Resources
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Industrial Maturity Development Index: An Approach from Technology-driven Resources
Authors:
Abdullah A Afifi, Nor Anisa Arifin, G KiswantoAbstract:
The need for measurement to identify the development stage of industries is crucial to compete and leverage on the industrial business environment. Most of the development processes in Indonesia is influenced and supported by regulatory practices by the authority, and many development plans were based on capital investment rather than stage by stage development which based on industrial ground capabilities. On the other side, the sustainability of industries can be tracked from the competitiveness of its processes, technical methods, and machines. This will lead to better efficiency of its processes which will affect the cost of the products or services and also improve the industrial performance. This paper tries to: (1) use a perspective where the industrial historical momentum can be seen as a benchmark of development stages and give alternatives to focus on technology-driven resources, (2) adopt simple measurement calculations that can be used for comparing one of the industries to another, and also can be used as a bench-marking stage of a group of industries, (3) explain how product specification was related to technical capabilities and how it can be used as competitiveness measurement.January 2020
Conference: International Colloquium on Research Innovation & Social Entreprenurship (Ic-RISE) 2019
At: UKM Graduate School of Business