Strategic orientations and mass customisation capability: the moderating effect of product life cycle

Abstract

This study examines the influence of three strategic orientations (customer, competitor and innovation) on mass customisation (MC) capability via the organisational learning process known as customisation knowledge utilisation (CKU). The moderating effect of product life cycle (PLC) is also investigated. Using data collected from 204 manufacturers, we show that all three strategic orientations positively contribute to MC capability, both directly and indirectly through CKU. Further, our empirical findings suggest that the effects of customer, competitor and innovation orientation on MC capability are contingent on PLC. The effects of customer orientation on CKU and the effects of competitor orientation on CKU and MC capability are stronger when a product is in the maturity stage of its life cycle, whereas the effect of innovation orientation on CKU and MC capability are stronger in the growth stage. These findings suggest that to effectively improve MC capability, managers need to leverage external and internal orientations at different stages of the PLC.