Innovation-orientation, dynamic capabilities and evolution of the informal Shanzhai firms in China

2016 ◽  
Vol 8 (1) ◽  
pp. 45-59 ◽  
Author(s):  
Rongwei Ren ◽  
Lei Yu ◽  
Yunxia Zhu
Keyword(s):  
Emerging Economies ◽  
Dynamic Capabilities ◽  
Theoretical Perspective ◽  
Leading Edge ◽  
Industrial Cluster ◽  
Innovation Development ◽  
Content Type ◽  
Damage Degree ◽  
Enhance Property ◽  
Communication Equipment

Purpose – This paper aims to study the evolution of innovation-based dynamic capabilities in informal copycat-style firms. As a kind of informal economical organizations, copycat-style firms in many emerging economies play an important role in their development of the economics. The development of Shanzhai firms, Chinese-style copycat firms, from imitation to innovation has become an important micro-foundation of China’s economic growth and the manufacturing development. With the cluster development of the Chinese mobile phone industry as the macro and industrial environment background, this paper chose Beijing Tianyu Communication Equipment Co. Ltd as the typical example of innovation in Shanzhai firms and studied the evolution of innovation-based dynamic capabilities in this company. Design/methodology/approach – This paper chose Beijing Tianyu Communication Equipment Co. Ltd as the typical example of innovation in Shanzhai firms and studied the evolution of innovation-based dynamic capabilities in this company by adopting the leading-edge dynamic capability theory, innovation theory and industrial cluster theory. The authors further discussed how to improve the dynamic capabilities in Shanzhai firms in China. Findings – It is finally suggested that Shanzhai firms should reduce innovation failures and lower damage degree of dynamic capabilities through consistent innovation and paying attention to their innovation improvement. Originality/value – It will be very significant to research the survival or diminishing of Shanzhai firms from a theoretical perspective, which will eventually enhance property right protection and innovation development in China.

scholarly journals Re-orienting the paradigm: path dependence in FDI theory and the emerging multinationals

2019 ◽  
Vol 14 (1) ◽  
pp. 51-69 ◽  
Author(s):  
Jan Knoerich
Keyword(s):  
Emerging Economies ◽  
Direct Investment ◽  
Design Methodology ◽  
Path Dependence ◽  
Theoretical Perspective ◽  
Multinational Enterprise ◽  
Content Type ◽  
The Core ◽  
Emerging Multinationals ◽  
Path Dependent

Purpose The purpose of this paper is to analyze how path dependence in the evolution of major theories of foreign direct investment (FDI) locked in a theoretical perspective of the multinational enterprise that focused on asset-exploitation. This perspective is challenged by recent contradicting observations of multinationals from China and other emerging economies. A decisive re-orientation of FDI theory is proposed as a way forward to resolve this tension. Design/methodology/approach Placing FDI theories into the context of FDI patterns prevailing at the time they were developed, Thomas Kuhn’s framework on the evolution of scientific knowledge is employed to track how the mainstream FDI theory emerged, went through a period of normal science and then approached a crisis of science in this field. Findings The evolution of FDI theory is strongly path-dependent, which made it difficult for theory to effectively incorporate new conceptual discoveries and empirical findings about the nature of FDI activity. Originality/value FDI theory would benefit from a full re-orientation to a demand-oriented perspective which places the pursuit of advantages, assets, resources, etc., at the core of the theory. Such a change is implicit in many recent theoretical advances and would assure theory is generalizable to all types of FDI.

scholarly journals Dynamic capability of the firm: analysis of the impact of internationalisation on SME performance in an emerging economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahfuzur Rahman ◽  
Dieu Hack-Polay ◽  
Sujana Shafique ◽  
Paul Agu Igwe
Keyword(s):  
Firm Performance ◽  
Emerging Economies ◽  
Dynamic Capabilities ◽  
Emerging Economy ◽  
Two Dimensions ◽  
Dynamic Capability ◽  
Content Type ◽  
Market Expansion ◽  
The Impact ◽  
The Relationship

PurposeInternationalisation is considered as a key strategy for the growth of Small and Medium Enterprises (SMEs). The purpose of this paper is to examine the relationship between dynamic capability, SMEs internationalisation and firm performance in the context of emerging economies and to evaluate the impact of financial, asset and market expansion on internationalisation of SMEs.Design/methodology/approachUsing primary data from 212 SMEs from Bangladesh, structural equation modelling and mathematical (hierarchical reflective) model, the analysis enabled the measurement of the casual relationship on the impacts of internationalisation.FindingsThe results revealed that internationalisation of SMEs has significant impact on both financial and non-financial performance of SMEs in an emerging economy- Bangladesh. The paper found internationalisation impacts on two dimensions (financial and non-financial) with eight defined indicators – higher sales, higher profit, assets maximisation, market expansion, competitive advantage, better reputation, better customer service and added knowledge.Originality/valueDespite several studies that examine the relationship between SME internationalisation and firm performance, limited research exists on emerging economies. This is contrary to the fact that SMEs are one of the main vehicles for growth in those economies such as Bangladesh. In this research, the authors use the theories of dynamic capabilities to conceptualise how internationalisation becomes a core SME capability for SMEs in an emerging economy.

Orchestrating frugal eco-innovation: the plethora of challenges and diagnostics in lean startups of emerging economies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Syed Mudasser Abbas ◽  
Zhiqiang Liu
Keyword(s):  
Empirical Evidence ◽  
Emerging Economies ◽  
Dynamic Capabilities ◽  
Business Models ◽  
Government Support ◽  
Structured Interviews ◽  
Competitive Position ◽  
Content Type ◽  
Competitive Edge ◽  
Business Ecosystem

Purpose Sustainable development research assumes that startups, under extreme financial constraints, cannot sacrifice resources now for benefits later without risking their survival. Furthermore, their non-compliance with environmental regulations adds fuel to the fire. This paper aims to explore the challenges faced by startups in resource-scarce economies and the innovative ways of coping with these challenges. Design/methodology/approach The data for the study was collected through 17 semi-structured interviews taken from startup owners and industry experts based in Pakistan and Bangladesh. The transcribed data were coded through NVivo 12 and themes were generated by merging 47 open and 14 axial codes. Findings The findings show that a lack of government support and lack of organisational readiness and motivation significantly affect startups’ frugal eco-innovation. Empirical evidence reveals problems related to the business ecosystem, and internal organisational issues also contribute to challenges faced by startups in attaining a competitive position in the industry. Research limitations/implications The study’s findings suggested leveraging dynamic capabilities can help lean startups in frugal eco-innovation. Furthermore, organisational cohesion, business ecosystem, government regulations and assistantship, organisational mismanagement and market realisation are decisive in startups’ competitive position in emerging economies. Practical implications The findings of the study will result in a higher adoption rate of more competitive business models, and hence, startups’ sustainability. The results would be an effective and efficient deployment of sustainable technological solutions, creating more customer and shareholder value leading to economic growth. Originality/value This research offers a comprehensive analysis of frugal eco-innovative startups by exploring the interplay between different challenges and organisational capabilities. Furthermore, the study contributes to the existing body of knowledge by providing empirical evidence that eco-innovation can be conducted in a resource-constrained environment. This study challenged the scholarly and managerial assumption of the availability of finances as a significant player in eco-innovation. The study also links the Darwin theory of startups to a competitive edge over rivals for startups’ survival.

Relational embeddedness in home-based network and dynamic capabilities: evidence from Chinese MNCs

2021 ◽  
Vol 15 (1) ◽  
pp. 222-242
Author(s):  
Jian Du ◽  
Keying Lu ◽  
Chao Zhou
Keyword(s):  
Emerging Economies ◽  
Dynamic Capabilities ◽  
Home Country ◽  
Foreign Firms ◽  
Content Type ◽  
Domestic Firms ◽  
Close Relationship ◽  
Relational Embeddedness ◽  
Chinese Mncs ◽  
The Impact

Purpose Prior studies have argued that multinational firms with dynamic capabilities can reconfigure and upgrade their internal and external resources and adapt to an ever-changing competitive global environment. The impact of home country networks exerting on multinational corporations’ (MNCs) dynamic capabilities has been rarely discussed in extant research. This paper aims to explore how two types of home country networks’ relational embeddedness (from domestic firms and foreign firms) affect Chinese MNCs’ dynamic capabilities. Design/methodology/approach Several hypotheses were tested by analyzing the survey data from 204 multinational companies in china. Findings The results reveal the impact mechanism of the home country network on dynamic capabilities. Embeddedness in domestic networks positively affects embeddedness in the foreign network; embeddedness in foreign firms exerts positive effects on the three dimensions of MNC’s dynamic capabilities. Additionally, the effect of domestic firms’ relational embeddedness on resource reconfiguring capability is mediated by foreign firms’ embeddedness. Consequently, this study provides a theoretical introduction for MNCs from emerging economies. Practical implications This study has several managerial implications for emerging MNCs’ international operations. For MNCs from emerging economies, close cooperation with domestic firms helps firms to develop a close relationship with foreign firms; meanwhile, developing a close relationship with foreign firms can obtain spillover about technology and management experience better, improving dynamic capability. Specifically, domestic embeddedness, through foreign embeddedness, can extend the impact to focal firms in developing resource reconfiguring capability. Originality/value This study provides an alternate view of how home country networks influence the dynamic capabilities of Chinese MNCs and outlines its impact mechanism. Therefore, the study contributes both to the international business literature and social network literature.

Business value of cognitive analytics technology: a dynamic capabilities perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Siddharth Gaurav Majhi ◽  
Arindam Mukherjee ◽  
Ambuj Anand
Keyword(s):  
Dynamic Capabilities ◽  
Theoretical Perspective ◽  
Academic Research ◽  
Business Value ◽  
Organizational Capabilities ◽  
Critical Research ◽  
Content Type ◽  
Academic Literature ◽  
Dynamic Capabilities Perspective

Purpose Novel and emerging technologies such as cognitive analytics attract a lot of hype among academic researchers and practitioners. However, returns on investments in these technologies are often poor. So, identifying mechanisms through which cognitive analytics can add value to firms is a critical research gap. The purpose of this paper is to theorize how cognitive analytics technologies can enable the dynamic capabilities of sensing, seizing and reconfiguring for an organization. Design/methodology/approach This conceptual paper draws on the extant academic literature on cognitive analytics and related technologies, the business value of analytics and artificial intelligence and the dynamic capabilities perspective, to establish the role of cognitive analytics technologies in enabling the sensing, seizing and reconfiguring capabilities of an organization. Findings Through arguments grounded in existing conceptual and empirical academic literature, this paper develops propositions and a theoretical framework linking cognitive analytics technologies with organizations’ dynamic capabilities (sensing, seizing and reconfiguring). Research limitations/implications This paper has critical implications for both academic research and managerial practice. First, the authors develop a framework using the dynamic capabilities theoretical perspective to establish a novel pathway for the business value of cognitive analytics technology. Second, cognitive analytics is proposed as a novel antecedent of the dynamic organizational capabilities of sensing, seizing and reconfiguring. Originality/value To the best of the authors’ knowledge, this is the first paper to theorize how cognitive analytics technologies can enable dynamic organizational capabilities, and thus add business value to an organization.

The interplay between brand and business model architectures:a conceptual grid

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marc Logman
Keyword(s):  
Business Model ◽  
Design Methodology ◽  
Dynamic Capabilities ◽  
Theoretical Perspective ◽  
Content Type ◽  
Cyclical Process ◽  
Conceptual Paper ◽  
Management School ◽  
Theory Generation ◽  
Research Domains

PurposeThis conceptual paper studies how brand and business model architectures interact.Design/methodology/approachConfronting the literature on brand and business model architectures, a “problematizing review” perspective is taken in this article. To develop the conceptual framework, a cyclical process of theory generation based on a literature review and empirical evidence is used. Various interaction options between a brand and business model architecture are discussed in detail and illustrated with practical examples.FindingsThe conceptual grid allows positioning each brand and business model architectural move in a coherent way, emphasizing the alignment challenges of each positioning option. This study also sheds another light on “dynamic capabilities,” as companies not only need to mix, remix and orchestrate business model architecture decisions, but at the same time align these decisions with brand architecture decisions.Originality/valueBy confronting and integrating two research domains, a novel higher-order theoretical perspective is obtained. In this sense it contributes to a management school of thought that is more integrative and deals better with today's more complex and dynamic reality, in which business model and brand decisions cannot be taken independently.

Dynamic capabilities for CSR management: towards identifying common processes

2014 ◽  
Vol 9 (3) ◽  
pp. 276-297 ◽  
Author(s):  
Qiang Wu ◽  
Qile He ◽  
Yanqing Duan
Keyword(s):  
Large Scale ◽  
Dynamic Capabilities ◽  
Theoretical Perspective ◽  
Organizational Capabilities ◽  
Organizational Processes ◽  
Content Type ◽  
Standard Management ◽  
Management Processes ◽  
Operational Activities ◽  
Dynamic Capabilities Perspective

Purpose – The objective of this paper is to address the question whether and how firms can follow a standard management process to cope with emerging corporate social responsibility (CSR) challenges? Both researchers and practitioners have paid increasing attention to the question because of the rapidly evolving CSR expectations of stakeholders and the limited diffusion of CSR standardization. The question was addressed by developing a theoretical framework to explain how dynamic capabilities can contribute to effective CSR management. Design/methodology/approach – Based on 64 world-leading companies’ contemporary CSR reports, we carried out a large-scale content analysis to identify and examine the common organizational processes involved in CSR management and the dynamic capabilities underpinning those management processes. Findings – Drawing on the dynamic capabilities perspective, we demonstrate how the deployment of three dynamic capabilities for CSR management, namely, scanning, sensing and reconfiguration capabilities can help firms to meet emerging CSR requirements by following a set of common management processes. The findings demonstrate that what is more important in CSR standardization is the identification and development of the underlying dynamic capabilities and the related organizational processes and routines, rather than the detailed operational activities. Originality/value – Our study is an early attempt to examine the fundamental organizational capabilities and processes involved in CSR management from the dynamic capabilities perspective. Our research findings contribute to CSR standardization literature by providing a new theoretical perspective to better understand the capabilities enabling common CSR management processes.

Strategic flexibility and SME performance in an emerging economy

2014 ◽  
Vol 27 (2) ◽  
pp. 273-298 ◽  
Author(s):  
Hai Guo ◽  
Zhi Cao
Keyword(s):  
Firm Performance ◽  
Emerging Economies ◽  
Dynamic Capabilities ◽  
Small And Medium Enterprises ◽  
Strategic Flexibility ◽  
Content Type ◽  
Managerial Ties ◽  
Contingency View ◽  
Medium Enterprises ◽  
Dynamic Capabilities Perspective

Purpose – This study aims to address the following question: when strategic flexibility can be most beneficial to small and medium enterprises (SMEs) in the context of emerging economies. Design/methodology/approach – Drawing on dynamic capabilities perspective, this study builds a contingency model and examines it with survey data collected from 166 SMEs in China. Findings – This study finds that the relationship between strategic flexibility and firm performance is extensively moderated by external (competitive intensity and environmental munificence), internal (resource combination activities), as well as bridging factors (managerial ties). Originality/value – The findings contribute to the contingency view of strategic flexibility and firm performance research by incorporating insights from the dynamic capabilities perspective and by expanding the scope of existing research to emerging economies.

Small businesses during a global crisis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Case Studies ◽  
Emerging Economies ◽  
Small Businesses ◽  
Design Methodology ◽  
Reading Time ◽  
Dynamic Capabilities ◽  
Business Models ◽  
Content Type ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Small businesses in emerging economies have been hit hard during the global COVID-19 pandemic. Utilizing key dynamic capabilities enables business models and strategies to be modified accordingly to provide these entrepreneurs with new opportunities that can help them achieve stability and survival. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

scholarly journals Emerging market multinationals and the concept of ownership advantages

2018 ◽  
Vol 13 (3) ◽  
pp. 557-567 ◽  
Author(s):  
Peter Williamson ◽  
Feng Wan
Keyword(s):  
Brand Equity ◽  
Emerging Economies ◽  
Design Methodology ◽  
Dynamic Capabilities ◽  
Emerging Market ◽  
Small Sample ◽  
International Expansion ◽  
Content Type ◽  
Emerging Market Multinationals ◽  
The Past

Purpose The purpose of this paper is to re-assess the concept of ownership advantages in the light of successful international expansion of multinationals from emerging economies (EMNEs) and explore how these advantages are built. Design/methodology/approach The paper presents a viewpoint based on analysis of the successful international expansion of a sample of Chinese EMNEs where success is measured their ability win share in overseas markets. This allows us to identify their ownership advantages, the antecedents of these advantages and how they were built using dynamic capabilities. Findings EMNEs have “non-traditional” ownership advantages that have been built by finding innovative ways to leverage the locational advantages of their home countries. The conversion of locational advantages into ownership advantages requires that firms build dynamic capabilities that enable them to innovate in the use of the locational advantages they enjoy. Research limitations/implications The study is limited to a small sample of EMNEs from China who have succeeded in winning market share in the initial phases of their international expansion. In the light of these limitations, the authors discuss the question the sustainability of their competitive advantage as well as the likely applicability of our findings to EMNEs from other EMNEs. Originality/value The authors revisit the paradox that despite the growth and success of multinationals from EMNEs in the past decade they are assumed to lack ownership advantages. The authors show that EMNEs’ ownership advantages differ from the traditional advantages such proprietary technologies and brand equity that are enjoyed by incumbent multinationals.

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