Measuring the organizational capabilities of knowledge-intensive enterprises through the model of NPD: a field study of Chinese electric power automation industry

This paper conducts an empirical study of comparison of the innovation processes of several enterprises in the electric power automation equipment industry in China. The authors try to point out that the model of new product development (NPD) is a key indicator of the organizational capabilities of knowledge-intensive, innovation-driven firms. Findings show that three critical and indispensable factors of organizational capabilities are, in the case of Chinese firms, senior management long-term commitment, firm´s managerial control and its incentive system, which can be measured through the model of NPD. So the model of NPD is a key variable linking organizational capabilities and innovation performance. Through comparing the innovation performance of the key enterprises in recent 20 years, the results suggest that the integrated NPD model is the most effective model for the enterprises in the electric power automation equipment system industry in China.