Product Development in the Financial Crisis
In the automotive industry product development has been a key for competitive advantage. Such projects are done in a value chain setting with many suppliers. The point of departure is a strategic supply model where key indicators for knowledge development and culture of competiveness, before and after the current financial crisis, are analyzed through case studies, in-depth interviews, internal documents, and survey. Researchers have spent two years inside the companies in a pragmatic research project. During this time the financial crisis hit the industry hard. Hence, degree of market turbulence is discussed according to the key indicators together with market and business implications to the product development process. During the initial shock phase the research shows significant changes in learning orientation, innovativeness orientation, entrepreneurial orientation, and knowledge acquisition.