Alliance-based Network View on Chinese Firms’ Catching-up: Case Study of Huawei Technologies Co.Ltd
Ying Zhang
#2009-039
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.
Key words: Strategic alliances, Network, Chinese firms, absorptive
capacity, catching up
JEL Code: M13, O32, O19, L24
UNU-MERIT Working Papers
ISSN 1871-9872