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

Author: Xie, Wei ; White, StevenINSEAD Area: Entrepreneurship and Family EnterpriseIn: International Journal of Technology Management, vol. 36, no. 1-3, 2006 Language: EnglishDescription: p. 230-248.Type of document: INSEAD ArticleNote: Please ask us for this itemAbstract: 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 have been able to exploit their own specific advantages, acquire new resources and capabilities, and emerge quite rapidly 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.
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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 have been able to exploit their own specific advantages, acquire new resources and capabilities, and emerge quite rapidly 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.

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