The impact of technological capability on manufacturing companies: A review

Abstract

Building technological capability (TC) is a long‐term process that must be planned carefully to achieve the desired results. Therefore, companies should increase their effort to maintain technological interactions with other companies and gain competitive advantages. This study aims to review the literature in the field of TC and provide a conceptual framework that highlights the relationship among TC, competitive advantage and manufacturing performance. After reviewing the literature, the researcher found that TC plays an important role in achieving competitive advantage for any company and improving the performance of companies. In addition, most previous studies have focused on TC in manufacturing companies probably due to the fact that manufacturing is currently an extremely important industry in the economy of most countries. TC strongly participates in the production and operation sectors, which are the cornerstones of every manufacturing company. Focusing on TC will play a role in developing the performance of manufacturing companies while gaining competitive advantages and maintaining commercial success in domestic and international markets.

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