IDEAS home Printed from https://ideas.repec.org/a/pal/jintbs/v51y2020i9d10.1057_s41267-019-00299-5.html
   My bibliography  Save this article

Catching up by hiring: The case of Huawei

Author

Listed:
  • Kerstin J. Schaefer

    (Leibniz University Hanover)

Abstract

Hiring experts in centers of state-of-the-art technology is an important way in which a multinational enterprise (MNE) can gain competitive advantage, and yet use of this mechanism remains under-researched. This study uses the case of a Chinese MNE that recently achieved a leading position in the telecommunications market: Huawei Technologies. Taking the perspective of Huawei’s offshore hires, I find that greenfield investments contributed to overcoming liabilities of origin and outsidership in the global telecommunications industry. Nevertheless, even now that Huawei has caught up with industry incumbents, its output capabilities remain dependent on the innovation capabilities of its offshore experts.

Suggested Citation

  • Kerstin J. Schaefer, 2020. "Catching up by hiring: The case of Huawei," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(9), pages 1500-1515, December.
  • Handle: RePEc:pal:jintbs:v:51:y:2020:i:9:d:10.1057_s41267-019-00299-5
    DOI: 10.1057/s41267-019-00299-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41267-019-00299-5
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1057/s41267-019-00299-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lee, Keun & Lim, Chaisung, 2001. "Technological regimes, catching-up and leapfrogging: findings from the Korean industries," Research Policy, Elsevier, vol. 30(3), pages 459-483, March.
    2. Yuzhe Miao & Jaeyong Song & Keun Lee & Chuyue Jin, 2018. "Technological catch-up by east Asian firms: Trends, issues, and future research agenda," Asia Pacific Journal of Management, Springer, vol. 35(3), pages 639-669, September.
    3. Yves Doz, 2011. "Qualitative research for international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(5), pages 582-590, June.
    4. Jan Johanson & Jan-Erik Vahlne, 2009. "The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(9), pages 1411-1431, December.
    5. Di Minin, Alberto & Zhang, Jieyin & Gammeltoft, Peter, 2012. "Chinese foreign direct investment in R&D in Europe: A new model of R&D internationalization?," European Management Journal, Elsevier, vol. 30(3), pages 189-203.
    6. Jasjit Singh & Ajay Agrawal, 2011. "Recruiting for Ideas: How Firms Exploit the Prior Inventions of New Hires," Management Science, INFORMS, vol. 57(1), pages 129-150, January.
    7. Luo, Yadong & Zhang, Huan, 2016. "Emerging Market MNEs: Qualitative Review and Theoretical Directions," Journal of International Management, Elsevier, vol. 22(4), pages 333-350.
    8. Christian Geisler Asmussen, 2009. "Local, regional, or global? Quantifying MNE geographic scope," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(7), pages 1192-1205, September.
    9. Argote, Linda & Ingram, Paul, 2000. "Knowledge Transfer: A Basis for Competitive Advantage in Firms," Organizational Behavior and Human Decision Processes, Elsevier, vol. 82(1), pages 150-169, May.
    10. Yadong Luo & Rosalie L Tung, 2007. "International expansion of emerging market enterprises: A springboard perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 481-498, July.
    11. Roman Boutellier & Oliver Gassmann & Maximilian Zedtwitz, 2008. "Managing Global Innovation," Springer Books, Springer, edition 0, number 978-3-540-68952-2, December.
    12. Michailova, Snejina & Mustaffa, Zaidah, 2012. "Subsidiary knowledge flows in multinational corporations: Research accomplishments, gaps, and opportunities," Journal of World Business, Elsevier, vol. 47(3), pages 383-396.
    13. Jessie P.H. Poon & Jinn-Yuh Hsu & Suh Jeongwook, 2006. "The geography of learning and knowledge acquisition among Asian latecomers," Journal of Economic Geography, Oxford University Press, vol. 6(4), pages 541-559, August.
    14. Martin Ganco & Rosemarie H. Ziedonis & Rajshree Agarwal, 2015. "More stars stay, but the brightest ones still leave: Job hopping in the shadow of patent enforcement," Strategic Management Journal, Wiley Blackwell, vol. 36(5), pages 659-685, May.
    15. Ram Mudambi, 2008. "Location, control and innovation in knowledge-intensive industries," Journal of Economic Geography, Oxford University Press, vol. 8(5), pages 699-725, September.
    16. Lee, Keun & Malerba, Franco, 2017. "Catch-up cycles and changes in industrial leadership:Windows of opportunity and responses of firms and countries in the evolution of sectoral systems," Research Policy, Elsevier, vol. 46(2), pages 338-351.
    17. John Child & Suzana B. Rodrigues, 2005. "The Internationalization of Chinese Firms: A Case for Theoretical Extension?," Management and Organization Review, International Association of Chinese Management Research, vol. 1(3), pages 381-410, November.
    18. Rui, Huaichuan & Yip, George S., 2008. "Foreign acquisitions by Chinese firms: A strategic intent perspective," Journal of World Business, Elsevier, vol. 43(2), pages 213-226, March.
    19. Yuefang Si & Ingo Liefner, 2014. "Cognitive Distance and Obstacles to Subsidiary Business Success-The Experience of Chinese Companies in Germany," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 105(3), pages 285-300, July.
    20. Peter J Buckley & L Jeremy Clegg & Hinrich Voss & Adam R Cross & Xin Liu & Ping Zheng, 2018. "A retrospective and agenda for future research on Chinese outward foreign direct investment," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(1), pages 4-23, January.
    21. Paul Almeida & Bruce Kogut, 1999. "Localization of Knowledge and the Mobility of Engineers in Regional Networks," Management Science, INFORMS, vol. 45(7), pages 905-917, July.
    22. Benjamin A. Campbell & Martin Ganco & April M. Franco & Rajshree Agarwal, 2012. "Who leaves, where to, and why worry? employee mobility, entrepreneurship and effects on source firm performance," Strategic Management Journal, Wiley Blackwell, vol. 33(1), pages 65-87, January.
    23. Hsu, Chia-Wen & Lien, Yung-Chih & Chen, Homin, 2015. "R&D internationalization and innovation performance," International Business Review, Elsevier, vol. 24(2), pages 187-195.
    24. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    25. Ajai S Gaur & Xufei Ma & Zhujun Ding, 2018. "Home country supportiveness/unfavorableness and outward foreign direct investment from China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(3), pages 324-345, April.
    26. Dan V Caprar, 2011. "Foreign locals: A cautionary tale on the culture of MNC local employees," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(5), pages 608-628, June.
    27. Mu, Qing & Lee, Keun, 2005. "Knowledge diffusion, market segmentation and technological catch-up: The case of the telecommunication industry in China," Research Policy, Elsevier, vol. 34(6), pages 759-783, August.
    28. Klaus E. Meyer & Ram Mudambi & Rajneesh Narula, 2011. "Multinational Enterprises and Local Contexts: The Opportunities and Challenges of Multiple Embeddedness," Journal of Management Studies, Wiley Blackwell, vol. 48(2), pages 235-252, March.
    29. Anderson, John & Sutherland, Dylan, 2015. "Entry mode and emerging market MNEs: An analysis of Chinese greenfield and acquisition FDI in the United States," Research in International Business and Finance, Elsevier, vol. 35(C), pages 88-103.
    30. Ashish Arora & Michelle Gittelman & Sarah Kaplan & John Lynch & Will Mitchell & Nicolaj Siggelkow & Chunmian Ge & Ke-Wei Huang & Ivan P. L. Png, 2016. "Engineer/scientist careers: Patents, online profiles, and misclassification bias," Strategic Management Journal, Wiley Blackwell, vol. 37(1), pages 232-253, January.
    31. Kerstin J. Schaefer & Ingo Liefner, 2017. "Offshore versus domestic: Can EM MNCs reach higher R&D quality abroad?," Scientometrics, Springer;Akadémiai Kiadó, vol. 113(3), pages 1349-1370, December.
    32. Jaeyong Song & Paul Almeida & Geraldine Wu, 2003. "Learning--by--Hiring: When Is Mobility More Likely to Facilitate Interfirm Knowledge Transfer?," Management Science, INFORMS, vol. 49(4), pages 351-365, April.
    33. Child, John & Rodrigues, Suzana B., 2005. "The Internationalization of Chinese Firms: A Case for Theoretical Extension?1," Management and Organization Review, Cambridge University Press, vol. 1(3), pages 381-410, November.
    34. Peter Nolan, 2014. "Globalisation and Industrial Policy: The Case of China," The World Economy, Wiley Blackwell, vol. 37(6), pages 747-764, June.
    35. Yadong Luo & Rosalie L Tung, 2018. "A general theory of springboard MNEs," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(2), pages 129-152, February.
    36. Klaus E Meyer & Yuan Ding & Jing Li & Hua Zhang, 2014. "Overcoming distrust: How state-owned enterprises adapt their foreign entries to institutional pressures abroad," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(8), pages 1005-1028, October.
    37. Dong-Sung Cho & Dong-Jae Kim & Dong Kee Rhee, 1998. "Latecomer Strategies: Evidence from the Semiconductor Industry in Japan and Korea," Organization Science, INFORMS, vol. 9(4), pages 489-505, August.
    38. Nebahat Tokatli, 2015. "Single-firm case studies in economic geography: some methodological reflections on the case of Zara," Journal of Economic Geography, Oxford University Press, vol. 15(3), pages 631-647.
    39. Birgitte Grøgaard & Helene Loe Colman & Inger G Stensaker, 0. "Legitimizing, leveraging, and launching: Developing dynamic capabilities in the MNE," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-21.
    40. Snehal Awate & Marcus M Larsen & Ram Mudambi, 2015. "Accessing vs sourcing knowledge: A comparative study of R&D internationalization between emerging and advanced economy firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 46(1), pages 63-86, January.
    41. Li-Chung Chang & Wei-Ling Ho & Sang-Bing Tsai & Quan Chen & Chi-Cheng Wu, 2017. "Dynamic organizational learning: a narrative inquiry into the story of Huawei in China," Asia Pacific Business Review, Taylor & Francis Journals, vol. 23(4), pages 541-558, August.
    42. Mona Chung & Bruno Mascitelli, 2015. "Strategic Positioning of Huawei on the International Political Stage," International Journal of Asian Business and Information Management (IJABIM), IGI Global, vol. 6(4), pages 1-13, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wu, Sihong & Fan, Di & Su, Yiyi, 2021. "The Co-Evolution of Global Legitimation and Technology Upgrading: The Case of Huawei," American Business Review, Pompea College of Business, University of New Haven, vol. 24(2), pages 147-172, November.
    2. Fleury, Afonso & Fleury, Maria Tereza Leme & Oliveira, Luis & Leao, Pablo, 2024. "Going digital EMNEs: The role of digital maturity capability," International Business Review, Elsevier, vol. 33(4).
    3. Fjellström, Daniella & Bai, Wensong & Oliveira, Luis & Fang, Tony, 2023. "Springboard internationalisation in times of geopolitical tensions," International Business Review, Elsevier, vol. 32(6).
    4. Yexin Liu & Weiwei Wu & Yanggi Kim, 2023. "How do latecomer firms achieve catch-up through technology management: a comparative analysis," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-12, December.
    5. Aistleitner, Matthias & Gräbner, Claudius & Hornykewycz, Anna, 2021. "Theory and empirics of capability accumulation: Implications for macroeconomic modeling," Research Policy, Elsevier, vol. 50(6).
    6. Wu, Aiqi & Song, Di & Liu, Yihui, 2022. "Platform synergy and innovation speed of SMEs: The roles of organizational design and regional environment," Journal of Business Research, Elsevier, vol. 149(C), pages 38-53.
    7. Schott, Lennart & Schaefer, Kerstin, 2023. "Acceptance of Chinese latecomers' technological contributions in international ICT standardization — the role of origin, experience and collaboration," LSE Research Online Documents on Economics 116987, London School of Economics and Political Science, LSE Library.
    8. Yanting Gu & Fiorenza Belussi & Rajneesh Narula, 2023. "Entering European countries: advantages and difficulties for Chinese electric vehicle firms," "Marco Fanno" Working Papers 0302, Dipartimento di Scienze Economiche "Marco Fanno".
    9. Yuefang Si & Yi Zhang & Tangwei Teng, 2021. "R&D internationalization and innovation performance of Chinese enterprises: The mediating role of returnees and foreign professionals," Growth and Change, Wiley Blackwell, vol. 52(4), pages 2194-2212, December.
    10. Lisha He & Ronghao Jiang & Mia M. Bennett, 2020. "The rise of Chinese foreign direct investment in the United States: Disentangling investment strategies of state‐owned and private enterprises," Growth and Change, Wiley Blackwell, vol. 51(4), pages 1562-1587, December.
    11. da Ponte, Aureliano & Leon, Gonzalo & Alvarez, Isabel, 2023. "Technological sovereignty of the EU in advanced 5G mobile communications: An empirical approach," Telecommunications Policy, Elsevier, vol. 47(1).
    12. Sato, Akiko & Panibratov, Andrei, 2023. "Causal mechanisms of COVID-19 disruptive effects on liability of foreignness and the emergence of new firm-specific advantages," International Business Review, Elsevier, vol. 32(4).
    13. Ludan Wu & Dylan Sutherland & John R. Anderson, . "Are emerging market MNEs more attracted towards better patent enforcement regimes when undertaking greenfield R&D-focused FDI?," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    14. Schott, Lennart & Schaefer, Kerstin J., 2023. "Acceptance of Chinese latecomers' technological contributions in international ICT standardization — The role of origin, experience and collaboration," Research Policy, Elsevier, vol. 52(1).
    15. Buckley, Peter J & Cui, Lin & Chen, Liang & Li, Yi & Choi, Yoona, 2023. "Following their predecessors’ journey? A review of EMNE studies and avenues for interdisciplinary inquiry," Journal of World Business, Elsevier, vol. 58(2).
    16. Dylan Sutherland & John Anderson & Ludan Wu & Sean Severe, 2024. "Exploring the impact of establishment mode on intangible strategic asset creation in Chinese MNEs: springboard cross-border strategic asset-seeking M&As versus greenfield R&D-related FDI projects," Asian Business & Management, Palgrave Macmillan, vol. 23(4), pages 519-543, September.
    17. Victor Cui & Rajneesh Narula & Dana Minbaeva & Ilan Vertinsky, 2022. "Towards integrating country- and firm-level perspectives on intellectual property rights," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(9), pages 1880-1894, December.
    18. Godinho, Manuel Mira & Simões, Vítor Corado, 2023. "The Tech Cold War: What can we learn from the most dynamic patent classes?," International Business Review, Elsevier, vol. 32(6).
    19. Cui, Lin & Gao, Qiuling & Guo, Jinyu & Ma, Pengcheng, 2022. "OFDI performance of EMNEs: A review and recommendations for future research," Journal of International Management, Elsevier, vol. 28(3).
    20. Enderwick, Peter & Buckley, Peter J., 2021. "The role of springboarding in economic catch-up: A theoretical perspective," Journal of International Management, Elsevier, vol. 27(3).
    21. Lingling Qin & Sunny Li Sun, 2024. "Knowledge Collaboration in Global Value Chains: A Comparison of Supplier Selection between a Forerunner and a Latecomer," Asia Pacific Journal of Management, Springer, vol. 41(1), pages 51-79, March.
    22. Robles-Carrillo, Margarita, 2021. "European Union policy on 5G: Context, scope and limits," Telecommunications Policy, Elsevier, vol. 45(8).
    23. Wang, Chengqi & Piperopoulos, Panagiotis & Chen, Shihua & Ming, Alan Au Kai & Herbert, Kendall, 2022. "Outward FDI and Innovation Performance of Chinese Firms: Why Can Home-Grown Political Ties Be A Liability?," Journal of World Business, Elsevier, vol. 57(3).
    24. Juergensen, Jill Josefina & Narula, Rajneesh & Surdu, Irina, 2022. "A systematic review of the relationship between international diversification and innovation: A firm-level perspective," International Business Review, Elsevier, vol. 31(2).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liefner, Ingo & Si, Yue-fang & Schäfer, Kerstin, 2019. "A latecomer firm's R&D collaboration with advanced country universities and research institutes: The case of Huawei in Germany," Technovation, Elsevier, vol. 86, pages 3-14.
    2. Lei Guo & Marina Yue Zhang & Mark Dodgson & David Gann & Hong Cai, 2019. "Seizing windows of opportunity by using technology-building and market-seeking strategies in tandem: Huawei’s sustained catch-up in the global market," Asia Pacific Journal of Management, Springer, vol. 36(3), pages 849-879, September.
    3. Kerstin J. Schaefer & Ingo Liefner, 2017. "Offshore versus domestic: Can EM MNCs reach higher R&D quality abroad?," Scientometrics, Springer;Akadémiai Kiadó, vol. 113(3), pages 1349-1370, December.
    4. Su, Cong & Kong, Lingshuang & Ciabuschi, Francesco & Yan, Haifeng, 2021. "Reverse innovation transfer in Chinese MNCs: The role of political ties and headquarters," Journal of International Management, Elsevier, vol. 27(1).
    5. Chabowski, Brian R. & Samiee, Saeed, 2023. "A bibliometric examination of the literature on emerging market MNEs as the basis for future research," Journal of Business Research, Elsevier, vol. 155(PB).
    6. Choi, Yoona & Cui, Lin & Li, Yi & Tian, Xizhou, 2020. "Focused and ambidextrous catch-up strategies of emerging economy multinationals," International Business Review, Elsevier, vol. 29(6).
    7. Ayden, Yuksel & Tatoglu, Ekrem & Glaister, Keith W. & Demirbag, Mehmet, 2021. "Exploring the internationalization strategies of Turkish multinationals: A multi-perspective analysis," Journal of International Management, Elsevier, vol. 27(3).
    8. Liu, Ting & Li, Xizhuo, 2022. "How Do MNCs Conduct Local Technological Innovation in a Host Country? An Examination From Subsidiaries' Perspective," Journal of International Management, Elsevier, vol. 28(3).
    9. Schott, Lennart & Schaefer, Kerstin, 2023. "Acceptance of Chinese latecomers' technological contributions in international ICT standardization — the role of origin, experience and collaboration," LSE Research Online Documents on Economics 116987, London School of Economics and Political Science, LSE Library.
    10. Ping Deng & Andrew Delios & Mike W. Peng, 2020. "A geographic relational perspective on the internationalization of emerging market firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(1), pages 50-71, February.
    11. Dylan Sutherland & John Anderson & Ludan Wu & Sean Severe, 2024. "Exploring the impact of establishment mode on intangible strategic asset creation in Chinese MNEs: springboard cross-border strategic asset-seeking M&As versus greenfield R&D-related FDI projects," Asian Business & Management, Palgrave Macmillan, vol. 23(4), pages 519-543, September.
    12. Enderwick, Peter & Buckley, Peter J., 2021. "The role of springboarding in economic catch-up: A theoretical perspective," Journal of International Management, Elsevier, vol. 27(3).
    13. Si Zhang & Shirong Gu & Yuxuan Tang, . "How does policy create an opportunity window for China’s digital economy?," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    14. Wu, Juan & Wang, Daojuan & Morschett, Dirk, 2023. "Light Touch Goes Where? A Longitudinal Study of the Post-Acquisition Integration Paths Adopted by Chinese Multinational Enterprises," Journal of International Management, Elsevier, vol. 29(5).
    15. Chen, Yuhuilin & Gunessee, Saileshsingh & Hua, Xiuping, 2022. "Emerging market multinationals’ pursuit of strategic assets through cross-border acquisitions," Research in International Business and Finance, Elsevier, vol. 63(C).
    16. Mazé, Dominique & Chailan, Claude, 2021. "A South-South perspective on emerging economy companies and institutional coevolution: An empirical study of Chinese multinationals in Africa," International Business Review, Elsevier, vol. 30(4).
    17. Thakur-Wernz, Pooja & Cantwell, John & Samant, Shantala, 2019. "Impact of international entry choices on the nature and type of innovation: Evidence from emerging economy firms from the Indian bio-pharmaceutical industry," International Business Review, Elsevier, vol. 28(6), pages 1-1.
    18. Ronaldo Parente & Ke Rong & José-Mauricio G. Geleilate & Everlyne Misati, 2019. "Adapting and sustaining operations in weak institutional environments: A business ecosystem assessment of a Chinese MNE in Central Africa," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(2), pages 275-291, March.
    19. Gammeltoft, Peter & Cuervo-Cazurra, Alvaro, 2021. "Enriching internationalization process theory: insights from the study of emerging market multinationals," Journal of International Management, Elsevier, vol. 27(3).
    20. Schott, Lennart & Schaefer, Kerstin J., 2023. "Acceptance of Chinese latecomers' technological contributions in international ICT standardization — The role of origin, experience and collaboration," Research Policy, Elsevier, vol. 52(1).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jintbs:v:51:y:2020:i:9:d:10.1057_s41267-019-00299-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.