How firms' dynamic capabilities lead to their competitive advantage and improved firm performance has been a core issue and full of debates. In this research, we theorize that dynamic capabilities, which could be defined by three distinct dimensions (sensing capability, integration capability, and reconfiguration capability), facilitate different types of innovation that in turn improve firm performance. Based on a sample of 204 Chinese firms, results from partial least squares structural equation modeling analyses generally support our arguments despite some nuanced differences existing among different dimensions of dynamic capabilities. This study contributes to dynamic capabilities literature by reducing the scarcity of empirical research and by uncovering the mechanisms through which dynamic capabilities influence firm performance.
Guanxiis one of the most popular topics in Chinese and Western scholarship concerning social ties in China. However, several problems in research onguanxipersist, and multiple debates are still ongoing without much consensus in sight. This study has two goals. First, we offer a systematic review of the current literature onguanxi, especially by differentiatingguandyads fromxinetworks. This reconceptualization ofguanxienables us to clarify the concept ofguanxiby differentiating its two dimensions. Second, based on this literature review, we propose a redirection of future research onguanxisuch thatguandyads andxinetworks are not examined in isolation; rather, their holistic and dynamic interaction is the most fruitful avenue for future research, especially the four mechanisms of their interaction. The proposed reconceptualization and redirection are our two contributions to the literature.
Using survey data from China and India, we explore the impact of network strategy of new ventures in emerging markets. We focus on two critical dimensions of network strategy, namely, broadening and deepening the network and two types of knowledge: market knowledge and technological knowledge. We find that proactive network deepening is associated with market knowledge and network broadening with technological knowledge. From a network perspective, our work highlights the counterintuitive outcomes of breadth versus depth orientation in network strategy, highlighting differences between advanced and emerging economies. We use a post-hoc multi-group analysis to show the differences even within the two emerging markets: India and China. The direct effect of partnering proactiveness on market knowledge in India is significantly higher than that in China but there is no significant difference as to the effect of technological knowledge. We use this exploratory study to highlight the opportunities for network and entrepreneurship scholars to study emerging markets and, in particular, undertake comparative studies between new ventures in China and India.
Traditionally, few companies were worried about Chinese, Indian, or Russian companies becoming important global players. Now companies from emerging market economies are starting to do just this and are emerging as significant global competitors. It is clearly time to pay attention to emerging market multinational corporations as serious competitors. This article seeks to help with this task by investigating the internationalization of firms from China, India, and Russia, and developing an understanding of what firms from transforming economies should do to increase their chances of success. The article also shows that they internationalize for different reasons using different entry mode ordering and by initially entering different countries than would their Western counterparts. This article develops a new framework called the Five M framework to guide managers and academics in their understanding of the internationalization of firms from transforming economies. With the help of illustrative examples from 18 mini case studies, this article investigates the motivations, markets, entry modes, methods, and management practices that have allowed these firms to be successful.
A large number of Chinese firms lack the resources for having competitive advantages. Under this severe constraint, such firms are forced to find new paths toward developing certain competitive advantages, including the ability to combine ordinary resources into novel competitive advantages, which is referred to as compositional capability. Such a special capability underlying novel competitive advantages is related to certain cultural factors, such as the Chinese cultural tradition in the case of China. However, the potential links between compositional capability and the Chinese cultural tradition remain poorly understood and largely unspecified. This paper responds to the call for more research on identifying relevant cultural factors by explicating the inherent connections between compositional capability and the Chinese cultural value of balanced moderation.
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