Product Development Strategy in Indonesia: a Dynamic View on Global Strategy

The purpose of this chapter is to explore dynamic aspects of strategy formation in global product development. By describing and analysing the design and organisational choices of some Japanese vehicle makers for products targeting the South East Asian markets, particularly in Indonesia, we aim to better understand how international manufacturing firms try to balance goals that often contradict: to adapt their products and activities to local requirements, and to enjoy scale or scope economies through standardised global operations and resources. We pay special attention to the dynamic nature of a firm’s capability building or organisational learning, through which its product design strategies, organisational capabilities, and its environments co-evolve over time.