R&D Dynamic Capabilities in a Changing Regulatory Context

We tested and supported five hypotheses probing the current version of the dynamic capabilities model (Teece, 2009) in the context of a highly dynamic and complex context: the global automotive industry undergoing significant change to improve sustainable performance. Using a comparative validated sample of 104 R&D projects in the U.S. and China supported all five hypotheses. The most important general finding of the study is that the core empirical causal model of R&D Dynamic Capabilities in the U.S. and China are similar: The causal sequence of dynamic capabilities impact on project success is mediated by dominant design and relative importance of the project; Dynamic Capability (reliable) measures are very similar in both contexts; in particular there were three core competences common across both countries: combining existing capabilities, leveraging partner capabilities, and developing new capabilities.