Windows of opportunity, learning strategies and the rise of China's handset makers

Abstract

This paper examines the linkage among the industry and policy environment, firm-level resources and capabilities, and the success of learning strategies by China's handset makers. Within a particular context-characterized by a large domestic market, disintegrated technological regime, established foreign firms, and supportive government policies-these firms were able to exploit their own specific advantages and also acquire new resources and capabilities, quite rapidly emerging as serious competitors in the domestic market vis-à-vis global incumbents. These latecomers have tightly linked their product innovation efforts to the local market characteristics and created competitive advantages through their distribution channels. Our findings have strategic implications for new entrants in other industry and national contexts, and also for research on the critical conditions and processes supporting successful technological learning.

What will make China an innovation‐oriented country?

“…In order to successfully compete with multinationals firm presence in China, Chinese practicing managers look for technologies available from anywhere in the world and then mix them together at competitive pricing to create value to customers (Xie and Wu, 2003; Xie and White, 2006). Additionally, more and more multinational companies have established their R&D facilities in China.…”

China, India and Brazil: Tiger technologies, dragon multinationals and the building of national systems of economic learning

“…There are profound lessons here for the multilateral institutions, including the World Bank, for the mass of developing countries and particularly those in Asia, and for development theory itself. Xie and White (2006) for telecoms handset makers; and Xie and Wu (2003) for the above CTV makers. Hu (2002) provides a comprehensive account of Chinese catch-up strategies in the context of latecomer strategies pursued by other developing countries in the past.…”

Technology Catch-Up in China Compared with Japan: A New Development Model

“…In the integrated stage, the manufacturing company did everything, from chip design, manufacturing, distribution to the maintenance for the users. They had to maintain long-term supplier relationship so that they had reliable supplies of critical components [33]. In that time, the market was monopolized by Motorola and Nokia.…”

“…Wavecom, a NASDAQ-listed French firm began to supply WISMO modules in 1997. A modular contains all of the digital, base-band and radio frequency hardware and software that assemblers need for a complete wireless solution [33]. Now, if an assemble producer has the capacity to forecast the market need and provide best solution to the potential market needs, outsourcing its technology to different suppliers, integrated those technologies into the final product, then, the company may win the competition.…”