Purpose - The purpose of this paper is to shed light on understanding
how value creation can be improved by developing dynamic capabilities in
product development, in the case of a software engineering process.
Design/methodology/approach - The methodology involves a single-case,
longitudinal empirical study by progression of cycles of action research
and data collection during a seven-year period (1 January 2004-31
November 2010), comprising 55 corporate projects. Findings - This study
will provide significant new information about value creation in
multi-disciplined product development. The study integrates value
considerations into the principles and practices of software
engineering, implements the aspect of dynamic capabilities in a software
engineering process in order to create and sustain competitive
advantage. As a result of the study, a model of value creation for
software engineering process is created and guidelines are established.
Research limitations/implications - The contextual features were
strongly present during the research process, which means that the model
created needs to be tested in other settings by other researchers.
Practical implications - The results of the study provide management
with guidelines for developing and maintaining the importance of value
creation in the software engineering process. Originality/value - The
paper presents a new model of value creation for the software
engineering process in product development, through which competitive
advantage is created and sustained.