**8. Commercialising automotive component manufactures quadrant**

The upper left quadrant of the model is the "Commercialising" ACMs quadrant. These organisations are characterised by intense commercialisation, "exploitation capabilities" matched with not as robust knowledge creation, "exploration capabilities." The conversion of external ideas into new products achieved through Commercialisation and ACMs in this quadrant focus on this activity. There are fewer ACMs in this grouping than in Inventive or Collaborative quadrants because many organisations lack commercialisation capabilities [8]. This grouping includes manufacturers and niche organisations with specialised distribution channels. Other organisations are bound to gain an advantage by obtaining IP since their positioning makes them better positioned to consider IP as a feasible option. "Inward open innovation" gives ACMs a competitive advantage when bringing products to the market.

## **9. Versatile automotive component manufactures quadrant**

The Versatile ACMs quadrant is on the upper right side of the model and depicts the most robust organisations. More established mid-sized and small organisations in this cluster have reached maturity and are deeply rooted in niche markets. They possess robust knowledge creation and exploitation capabilities. They are self-reliant in exploration or exploitation assistance and can opt for a more closed innovation approach. They can benefit by implementing more than one innovation strategy: inward, outward, or collaboration. These ACMs can use different strategies, sub, or coupled strategies to enhance their organisational performance and competitive standing. When negligible benefits derived from the formation of these actions are equal to the marginal costs, these organisations start seeking an approach to change the excellent symmetry of depth (intensity) and breadth (scope) of these activities; hence we reach the final proposition.

## **10. Innovation and new product development in the automotive industry**

Frequently innovation definition is about the adoption of an idea or behaviour [9], the development of new products [10] and the initiation of changes to an established phenomenon [11] utilising the right technology [12]. Innovation is critical to different companies and countries, and Schumpeter was the first economist to pronounce the importance of innovation and development for any entity. Additionally, a recent overview of the economic importance of innovation has found an adjacent relationship between these two variables for any country [13]. Innovation is a strategy used by automotive component manufacturers that adhere to long-term plans based on OEM operational strategy [14], especially in a capitalist environment, where production and consumerism are vibrant [15].

Innovative practices assist automotive component manufacturers and the supply chain that have saturated traditional markets with outdated products. Automotive component manufacturers usually understand their customer requirements and lead times based on long-term forecasting. Minor product modifications can be implemented using the available organisational structures and production processes. Despite this, automotive component manufacturers can expedite proposed products with suitable characteristics thanks to their technical capabilities, which is a great advantage since the time required for the new product development (NPD) process is lengthy in a small company. However, currently, these ACMs have much expertise in product changes and production processes they can swiftly respond to their parent companies' production requirements.

Fortunately, some South African automotive component manufacturers improve product characteristics through innovative practices designed by their product department or a product development department. In contrast, some OEMs have introduced technical development centres that provide technical support to other departments in NPD and component suppliers in their value chains. These companies possess a competitive advantage based on their geographical location, which is strategically a critical success factor in competing with other global players in the automotive industry. Nevertheless, one of the most critical issues concerning innovation in these automotive component manufacturers is the relationship between the different critical factors associated with the success of NPD and competitive advantage [16]. Therefore, this relationship makes it an area of exceptional and consistent attention if competitiveness is achieved.

*Open Innovation Strategies on New Product and Process Development Prospects: A Case… DOI: http://dx.doi.org/10.5772/intechopen.105035*
