The Effect of Organizational Capabilities on Product Performance in Electronic Defense Industry

Superior technology-based defense organizations, due to distinctive features such as dependence on innovation, strategic objectives, reliance on applied knowledge and dynamic nature, entail more attention to capabilities that are suitable to their own conditions, including innovation. For this reason, in this research, we investigate the effect of product and process innovation, technological capability and dual-functionality on the performance of defense products. Regarding the aim of study, the research is exploratory and descriptive, and in terms of achievement, it is an applied research. In line with localizing the variables of subject literature with defense organizations based on superior technology in Iran, the focal group method was used and the required data was collected in the form of a questionnaire from 58 defense organizations of the electronic industry (as a technology-based superior industry). Analysis of the obtained data by the help of the modeling partial structural least squares equations showed that the capabilities of product innovation, process, dual-functionality and technological innovation influence product performance. The research findings lead the managers of defense industry electronics towards empowering the organization in the field of product innovation, process and enhancing the technological capabilities and dual-functionality.