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Alliance-based Network View on Chinese Firms' Catching-up: Case Study of Huawei Technologies Co.Ltd

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  • Zhang, Ying

    (UNU-MERIT)

Abstract

With China's rapid economic growth in recent years, many Chinese firms especially in high-tech industries have started to technically lead in the international market. In this study, we aim to uncover the root causes that lead to Chinese firms' catching up from network perspective. By taking Huawei Technologies Co. Ltd. as a case, we integrate absorptive capacity development and firm-level catching up into an alliances-based network framework. We found that network alliances with firms and universities complement each other at different catching up stages; and alliances-based network provides a springboard for Chinese firms to shorten catching up path. We argue that in Chinese context, impact of FDI on firms' performance comes into effect only if partnership is carried out; alliances with universities facilitate development of absorptive capacity at an early stage; Partnering with leading players stimulate R&D investment at a late stage and simultaneously enhance firm's innovation performance as well.

Suggested Citation

  • Zhang, Ying, 2009. "Alliance-based Network View on Chinese Firms' Catching-up: Case Study of Huawei Technologies Co.Ltd," MERIT Working Papers 2009-039, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2009039
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    File URL: https://unu-merit.nl/publications/wppdf/2009/wp2009-039.pdf
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    Cited by:

    1. Kang, Inwon & Han, Shin & Shin, Geon-Cheol, 2014. "A process leading to strategic alliance outcome: The case of IT companies in China, Japan and Korea," International Business Review, Elsevier, vol. 23(6), pages 1127-1138.
    2. Belderbos, Rene & Gilsing, Victor & Jacob, Jojo, 2011. "Technology alliances in emerging economies: Persistence and interrelation in European firms' alliance formation," MERIT Working Papers 2011-026, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Fang Huang & John Rice, 2012. "Firm Networking and Bribery in China: Assessing Some Potential Negative Consequences of Firm Openness," Journal of Business Ethics, Springer, vol. 107(4), pages 533-545, June.
    4. Joo, SH & Oh, C & Lee, Keun, 2016. "Catch-up Strategy of an Emerging Firm in an Emerging Country: Analyzing the Case of Huawei vs. Ericsson with Patent Data," MPRA Paper 109958, University Library of Munich, Germany.
    5. Philip Cooke & Mario Davide Parrilli & José Luis Curbelo (ed.), 2012. "Innovation, Global Change and Territorial Resilience," Books, Edward Elgar Publishing, number 14530.

    More about this item

    Keywords

    Strategic alliances; Network; Chinese firms; absorptive capacity; catching up;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures

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