Diagnosing Internal Innovation Capability in Non-Food FMCG Product Development
Pengabdian
DOI:
https://doi.org/10.31004/jerkin.v5i1.7615Keywords:
Innovation Capability, New Product Development, Innovation Audit, Non-Food FMCG, BenchmarkingAbstract
Purpose − This study examines how internal innovation capabilities support new product development (NPD) and identifies the capability gaps that constrain execution in Indonesia's non-food fast-moving consumer goods (FMCG) industry. Design/methodology − The study uses a descriptive quantitative design and cross-company benchmarking. Survey data were collected from 49 practitioners involved in NPD across three anonymized non-food FMCG companies: the focal company, PT GCG, and two benchmark companies, GCA and GCB. Ten capability components were grouped into two layers - organizational foundation and managerial execution. The scores were normalized to a 0-1 scale and averaged to form the Internal Capability Index (ICI). Findings- PT GCG recorded an ICI of 0.506, placing it in the moderate capability band, below GCA (0.812; very good) and GCB (0.709; good). Its weakest absolute scores were concept development (0.412), external networks (0.426), and knowledge management (0.441). Relative to the average benchmark, the largest gaps appear in organizational structure, strategic alignment, and concept development. Concept development emerged in both diagnostic views, making it the clearest priority. The findings show that a single aggregate score is useful for positioning, but not sufficient for action. Combining absolute weaknesses with benchmark gaps produces a more practical basis for capability improvement.
References
Al-Zawati, O. K., & Hunaiti, Z. (2016). Auditing and comparing innovation management capabilities. Journal of Technology Management & Innovation, 11(3), 74–83.
Anila, K., & Aithal, P. S. (2019). Innovation audit capabilities: A conceptual review. International Journal of Applied Engineering and Management Letters, 3(2), 45–58.
Barczak, G., Griffin, A., & Kahn, K. B. (2009). Trends and drivers of success in NPD practices: Results of the 2003 PDMA best practices study. Journal of Product Innovation Management, 26(1), 3–23.
Barczak, G., & Kahn, K. B. (2012). Identifying new product development best practice. Business Horizons, 55(3), 293–305.
Büyüközkan, G., & Güleryüz, S. (2016). An integrated fuzzy approach for the assessment of corporate innovation capability. Technological Forecasting and Social Change, 103, 194–207.
Cooper, R. G. (2019). The drivers of success in new-product development. Industrial Marketing Management, 76, 36–47.
Ernst, H. (2002). Success factors of new product development: A review of the empirical literature. International Journal of Management Reviews, 4(1), 1–40.
Evanschitzky, H., Eisend, M., Calantone, R. J., & Jiang, Y. (2012). Success factors of product innovation: An updated meta-analysis. Journal of Product Innovation Management, 29(S1), 21–37.
Falahat, M., Lee, Y. Y., Soto-Acosta, P., & Ramayah, T. (2024). Navigating new product development: Uncovering factors and overcoming challenges for success. Journal of Innovation & Knowledge, 9(1), 100460.
Kahn, K. B., Barczak, G., & Moss, R. (2006). Perspective: Establishing an NPD best practices framework. Journal of Product Innovation Management, 23(2), 106–116.
Karlsson, H., & Magnusson, M. (2015). Auditing the audit: A framework for the evaluation of innovation capability measurement. International Journal of Innovation Management, 19(4), 1550041.
Knudsen, M. P., Griffin, A., & Michaelis, T. L. (2023). Best practices in new product development and innovation: Results from PDMA's 2021 global survey. Journal of Product Innovation Management, 40(2), 190–232.
Lawson, B., & Samson, D. (2001). Developing innovation capability in organisations: A dynamic capabilities approach. International Journal of Innovation Management, 5(3), 377–400.
Pusuit, R., & Sukavejworakit, K. (2019). The double pillar of innovation capability. Journal of Open Innovation: Technology, Market, and Complexity, 5(3), 52.
Vlăduț, G. (2018). Innovation audit for business excellence. Business Excellence and Management, 8(2), 5–18.
Yam, R. C. M., Guan, J. C., Pun, K. F., & Tang, E. P. Y. (2004). An audit of technological innovation capabilities in Chinese firms. Research Policy, 33(8), 1123–1140.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Stevani Tita Paramita, Isti Raafaldini Mirzanti

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.












