firm technological catch-up

In this article, we put forward a conceptual framework for understanding latecomer's successful technological catch-up strategy in an industry segmented by technological generations. To do this, we observe and compare the technological trajectory, network centrality, technology quality, and technology growth of latecomers seeking technological catch-up in the telecommunication equipment industry. This research aims to empirically verify how accumulation and reconfiguration affect the evolution of a firm's technology competencies toward achieving technological dominance. In conclusion, we confirm that technological dominance can only be achieved if technology competencies go through accumulation and reconfiguration simultaneously. From the accumulation perspective, technological catch-up failed when only quantitative improvement was successful. Regarding reconfiguration, path creation was related to the existing core technology and brought positive results when coordinated and aligned.

Artificial intelligence (AI) is seen as a key technology for future economic growth. It is labelled as a general-purpose technology, as well as an invention of a method for inventing. Thus, AI is perceived to generate technological opportunities and through these, innovations, and productivity growth. The leapfrogging hypothesis suggests that latecomer firms can use these opportunities to catch up. The aim of this paper is to provide insight into this catch-up process of latecomer firms through integrating AI into their knowledge portfolio and thereby creating new technological trajectories. The moderating effect of firm size is also analysed. Combining firm-level data with patent data, a regression at the firm level is conducted. Evidence is found that smaller firms experience productivity growth from AI when operating at the productivity frontier, indicating the opposite of the leapfrogging hypothesis. However, there is evidence for the positive impact of AI on firm innovation, which is higher for latecomer firms that are larger in size. In general, we find a diverging pattern of the influence of AI on productivity and innovation growth, indicating the need for a finer grained analysis that takes indirect effects - that also could explain the observed productivity paradox - into account. Small frontier firms experience a higher labour productivity growth through AI integration. In contrast, large latecomer firms experience a higher innovative productivity growth. These effects are dependent on the type of AI. Artificial intelligence (AI) is seen as a key technology for future economic growth. It is labelled as a general-purpose technology, as well as an invention of a method for inventing. Thus, AI is perceived to generate innovations and productivity growth. This paper investigates the influence of different types of AI on smaller and larger firms that are either frontier or latecomer firms. We find that smaller frontier firms experience a higher labour productivity growth while larger latecomer firms experience a higher innovative productivity growth. This diverging impact has implications for scholars, as it could partially explain the productivity paradox and shows the need for research on specific types of AI. This impact also has implications for policy makers and practitioners alike that aim to strengthen frontier firms or to develop latecomer firms.

Firms engage in innovative activities, either to maintain the status quo or to catch up with the front-runners. Innovation is difficult to comprehend as it may include efforts to introduce something ‘new to the world’ or it may include simply the efforts to introduce something ‘new to the firm’. It is equally difficult to comprehend how the clustered firms located in latecomer countries are coping with the fast technological changes happening within the industry at the global level. Therefore, taking the case of five manufacturing clusters belonging to the Indian state of Punjab, an attempt is made to comprehend the impact of innovative activities on firm performances. We have done a survey for collecting the primary data for different variables reflecting four types of innovations and four types of performance indicators from the firms belonging to bicycles, hand tools & machine tools, pharmaceuticals, sports goods and textile clusters located in the north Indian state of Punjab. The focus on different clusters belonging to a particular region was done with intent to control the broad social, economic, cultural, political and historical aspects of the different clusters. Estimating the structural equation model with partial least-squares method, we found that the impact of process innovation, organizational innovation and marketing innovation is significant for firm innovative performances, production performance, market performance and financial performance. Specifically, we found that the introduction of new machines with advanced production systems, improvements in the manner of doing routine activities, improving product quality and modernization of human management systems within the firms have a positive impact on firm performance.

ABSTRACT Digital technologies provide latecomer manufacturers with technological catch-up opportunities in emerging field of intelligent manufacturing (IM). Prior studies on IM mainly focused on firms from developed countries or digitally-savvy firms. However, latecomer firms that have inadequate resources should identify and leverage diverse digital-related resources to achieve digital catch-up in IM, and the research on their digital catch-up remains limited. Resource orchestration is a sound guiding theory that we adopt to examine this phenomenon. This study conducts an in-depth case study of the successful catch-up of a role-model firm in China and reveals a three-phase process model for the digital catch-up of latecomers in IM. Our findings contribute to existing literature on IM fields, latecomers’ catch-up phenomena, resource orchestration theory, as well as knowledge of technology analysis and strategic management. The model also can be practical guidance for latecomers to achieve digital catch-up step by step.

The firm-level determinants of outward foreign direct investment (OFDI) intensity of Indian manufacturing firms are analyzed using a random-effects Tobit model for a panel dataset covering over 17,550 firms from 1992–1993 to 2018–2019. The explanatory variables are based on a theoretical synthesis of Dunning’s (1980) [Towards an eclectic theory of international production: Some empirical tests. Journal of International Business Studies, 11(1), 9–31] ownership–location–internationalization (OLI) model and Mathew’s (2002) [Competitive advantage of the latecomer firm: A resource-based account of industrial catch-up strategies. Asia Pacific Journal of Management, 19(4), 467–488] linkage–leverage–learning (LLL) model. The empirical evidence reveals that policy liberalization, size (up to a threshold level), age, business group ownership structure, and the extent of foreign earnings strongly impact the OFDI intensity of Indian manufacturing enterprises. In contrast, outsourcing intensity, technological efforts, product differentiation, export intensity, and use of imported intermediate inputs were found to have a moderate positive impact. A moderate negative impact was found for factors like the global financial crisis, debt-equity ratio, and technology imports, and a strong negative effect for foreign ownership and public-sector ownership structure variables.

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Research has identified two principal mechanisms for emerging economy (EE) firms to technologically catch up with advanced economy (AE) firms: absorbing knowledge spillovers from AE subsidiaries and internationalizing R&D into AEs. Prior technological catch‐up research has assumed EE firms are merely trailing their AE counterparts on the technological frontier when in fact the research on the bottom of the pyramid, as well as other research streams, have recognized that the different consumer demands in EEs and AEs drive different R&D activities in EEs and AEs. We submit that technological catch‐up requires both the upgrading of technological capabilities and the shifting of R&D activity from solving EE demand problems to solving AE demand problems. Utilizing patent data, we investigate the relative efficacy of AE knowledge spillovers and internationalizing R&D in AEs on technological catch‐up within a dual innovation ecosystem framework. We find that knowledge spillovers affect technological catch‐up through a process that initially decreases the technological capabilities of EE firms before increasing such capabilities as EE firms shift R&D activity towards the AE innovation ecosystem. However, we find that internationalizing R&D in AEs yields a significant positive effect on EE firms' technological capabilities and shifts their innovative activities towards solving AE demand problems.

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In the digital era, technological catch-up is inevitable for firms confronted with intensified competition, rapid technological advancements, and customers’ upgrade requirements. By strengthening their cooperation with external parties and integrating internal knowledge, firms can better absorb internal and external resources, accelerating their technological catch-up performance (TCP). This study mainly explores the influence of collaboration and knowledge networks on the TCP of firms based on machine learning algorithms. First, patent data from the Chinese AI industry from 2013 to 2022 were used to construct collaboration and knowledge networks. Then, the hierarchical clustering algorithm was applied to categorize firms based on six network characteristics. Finally, the classification and regression trees (CART) algorithm was employed to analyze the nonlinear relationship between dual networks and firm TCP. The findings show that firms exhibit distinct network configurations and that the drivers of TCP vary across firm groups. For firms lagging behind, prioritizing knowledge network integration proves more effective than expanding collaborations. Leading firms perform best when maintaining balanced collaboration strategies. This study contributes to both theory and practice by identifying the optimal mix of network characteristics and providing empirically grounded strategies for different firm types.

This study analyzes the mechanism through which ambidextrous innovation influences technological catch-up in latecomer enterprises. It first proposes a conceptual model of the influence of ambidextrous innovation on technological catch-up in latecomer enterprises and introduces the two regulating variables of alliance governance model and absorptive capacity. It then empirically studies the main effect and adjustment effect using hierarchical regression analysis based on a large-sample questionnaire survey, and finally, determines the effect and conditions of ambidextrous innovation on technological catch-up in latecomer enterprises.

This paper focuses on latecomers in technology standards alliances, a topic that has received limited attention in academia. Although latecomers have disadvantages in terms of technology and market access, they possess a strong desire to catch up technologically. As a fundamental characteristic of an alliance, alliance routines serve as a source of innovation for members and a basic unit of analysis, providing a new perspective for understanding and researching the technological catch-up of latecomers. In this paper, a questionnaire survey is conducted among 83 latecomer enterprises in a technology standards alliance. The survey covers strategic emerging industries, such as new energy, new-generation information technology, new materials, and high-end manufacturing. Then, hierarchical regression is performed for hypothesis testing. The research shows that the three dimensions of alliance routines significantly promote the utilization of technological catch-up by latecomer enterprises. However, the impact on the exploration technological catch-up varies, where the action logic promotes exploration technological catch-up while implicit norms hinder exploratory innovation with an inverted U-shaped impact. The absorptive capacity strengthens the positive impact of the three alliance routines on the exploitative innovation of latecomer enterprises and strengthens the inverted U-shaped relationship between mutual consensus and their exploratory innovation. Nonetheless, it fails to play a significant regulatory role in action logic or in the relationship between implicit norms and exploratory innovation of latecomers.

ABSTRACT Digital technology has a significant influence on future economic growth. Achieving catch-up in the context of digital development is crucial for firms. However, the mechanisms between firms’ digital technology adoption (DTA) and catch-up are underexplored. Based on panel data of A-share listed manufacturing firms in China from 2012 to 2021, this study investigates the impact of DTA on firms’ technological catch-up (TC) and market catch-up (MC) from theoretical and empirical perspectives. The following findings are drawn. (1) DTA positively and significantly affects firms’ TC and MC, and the results remain valid after using the instrumental variables method, propensity score matching, and other robustness tests. After removing the order-of-magnitude discrepancies and dimensions, DTA had a more significant effect on MC than TC. (2) Dynamic capacity mediates the relationship between DTA and firms’ catch-up. (3) The heterogeneity analysis finds that DTA influences TC and MC in state-owned enterprises and high-tech firms more significantly. This study provides a new perspective on firms’ catch-up and guides for firms to develop effective DTA and catch-up strategies.

Joining a technical standards alliance is becoming increasingly crucial for latecomer enterprises ’ innovation catch-up in today ’ s fast-paced technological environment. This study investigates the in fl uence of latecomers ’ ambidextrous innovation on technical standards alliances while highlighting the importance of alliance routines. A structural equation model is used to analyse a sample of 118 latecomer members and 45 technical standards alliances in China ’ s strategic emerging industries. Several novel fi ndings are reported. First, late-comers ’ two types of innovation catch-up and the three dimensions of alliance routines promote alliance performance, all of which positively impact alliance performance. Second, alliance routines have different effects on latecomers ’ Ambidextrous innovation catch-up. All three dimensions of the alliance routine promote utilisation innovation catch-up, whereas behavioural logic and interactive consensus hinder exploration innovation catch-up. Third, utilisation innovation completely mediates between alliance practice and performance, whereas exploration innovation only plays a partial mediating role. This study presents speci fi c recommendations for latecomer enterprises and technical standards alliances. ©

ABSTRACT Drawing on the technological learning model of latecomer firms (LCFs) and the literature on catch-up, this paper examines how accumulated internal R&D investment, foreign technology in-licensing experience, and creative imitation experience independently and interactively affect innovation by LCFs. We showed that LCFs’ accumulated internal R&D investment and creative imitation experience have a positive impact on their innovation, respectively. However, LCFs’ creative imitation experience weakens the positive relationship between accumulated internal R&D investment and innovation, implying the paradoxical effect of LCFs’ creative imitation strategy on their innovation. Using the unique panel dataset on drugs developed by Korean pharmaceutical firms between 1999 and 2019, we find evidence that generally supports our hypotheses.

While the effects of proximity on the technological catch-up of emerging economy firms are well documented, little is known about how the sub-dimensions of cross-national distance impact such firms ’ acquisition of foreign IP. Cross-national distance is a complex, multi-dimensional construct that has the potential to influence catch-up in different ways, especially for Chinese firms. We use the established Wharton indicators of cross-national distance (Berry et al., 2010) to understand foreign IP acquisition by Chinese firms over a 10-year period. Re-sults show: (1) different sub-dimensions of distance have different direct effects on foreign IP acquisition, (2) a positive effect of knowledge distance on IP acquisition interacts with three other forms of distance, (3) the most aggressive foreign IP acquisition strategies are linked to only three forms of distance, and (4) the impact of disaggregated distance depends on IP asset type and whether the acquirer is in manufacturing or services. Results provide new insight into China ’ s technological catch-up and the complex, multi-dimensional nature of international proximity influencing technological catch-up through acquisitions.

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Purpose An alliance portfolio can help latecomer firms to acquire the necessary knowledge and resources to catch up with market leaders. However, how latecomer firms construct an alliance portfolio in terms of the nature of windows of opportunity has not been fully analyzed. This paper aims to explore how latecomer firms can build appropriate coalitions according to the nature of the window of opportunity to achieve technological catch-up in different catch-up phases. Design/methodology/approach Based on a longitudinal case study from 1984 to 2018 of Sunny Group, now a leading manufacturer of integrated optical components and products, this paper explores the process of technological catch-up of latecomer firms building different types of alliance portfolio in different windows of opportunity. Findings This paper finds that there is a sequence when latecomers build an alliance portfolio in the process of catch-up. When the uncertainty of opportunity increases, the governance mechanism of the alliance portfolio will change from contractual to equity-based. Also, latecomer firms build market-dominated and technology-dominated alliance portfolios to overcome their market and technology disadvantages, respectively. Originality/value These conclusions not only enrich the theory of latecomer catch-up from the perspective of windows of opportunity but also expand research on alliance portfolio processes from a temporal perspective.

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This paper investigates why some latecomer firms with substantial absorptive capacity fail during catch-up phases. It aims to clarify the performance effects of their incremental versus radical innovation trajectories propelled by potential and realized absorptive capacities and the interplay with opportunity capture. The empirical investigation was conducted with a sample of 166 manufacturing firms in Guangdong Province, China. The results indicate that both potential and realized absorptive capacities and opportunity capture are more effective in enhancing the performance of incremental innovations than those of radical innovations. However, a high level of opportunity capture can diminish the beneficial impacts of absorptive capacity on radical innovation performance to a greater extent. These findings enrich extant literature on latecomer firms’ catch-up strategies by combining the theoretical lens of absorptive capacity and opportunity capture. It offers implications for managers and policymakers, guiding strategy and policy formulation for firm catch-up endeavors.

 Under the background of the evolution of the new energy vehicle industry and the lithium battery industry, this research takes Contemporary Amperex Technology Co. Limited as the case study object and utilizes the three-step coding method of grounded theory to analyze how it, achieving the leap from being a latecomer to a leader through policy support and its own management catch-up strategies. And this research explores the driving roles of some factors such as government policy guidance, enterprise technological innovation management, supply chain integration management, and talent strategy management in the process of Contemporary Amperex Technology Co. Limited' catch-up, providing a reference for other latecomers to achieve catch-up in the dynamic industrial environment.

There is a considerable amount of research on technological upgrading and innovation. However, the majority of studies tend to focus on R&D and patents aspects in high-tech industries. Seeking to contribute to rebalancing the analysis, we examine how occurs technological upgrading path in a low-tech industry, the clothing industry from emerging market. The low-tech industries represent around 90% of the economy of emerging countries, such as Brazil. The research design is operationalized from depth individual case study. The findings show that the clothing industry, even though characterized as low-tech, has not remained technologically stagnant, developing innovative activities and a path-follower. However, although it can be considered innovative, the industry shows little association with 4.0 technologies. The research questions biases in extant research and policy debate towards certain types of innovative capabilities, industries, and taxonomies that limit the understanding of innovation and technological catch-up in different industrial settings.

This research examines FDI-mediated domestic firms’ technological catch-up by considering institutional differences between home and host countries, the role of marketing capabilities, and the joint effects of institutional differences and the degree of foreign ownership. Using firm-level panel data for Indian manufacturing industries, we find that FDI-mediated technological catch-up in domestic firms is conditional on institutional differences between the home and host country of multinational enterprises and the level of marketing capabilities of foreign-owned affiliates. In addition, we find that technological catch-up in domestic firms is likely to be positively influenced by the presence of wholly foreign-owned firms from institutionally close countries, whereas we find some evidence that the presence of minority foreign-owned firms may have a negative effect on domestic technological catch-up, regardless of institutional differences. We also provide theoretical and policy implications of our findings.

Purpose The purpose of this study is to define and develop a new technological development path for latecomer firms in developing countries. Design/methodology/approach An analytical framework for development based on the technological capability (TC) dimensions is developed and examined in the drilling sector. Since the process of TC accumulation is dynamic, the case study approach is the best method for an exploratory theory-building study. Through a comparative case study of two Iranian drilling contractors, a new path for the technological development of latecomer oil service companies is proposed. Findings The study of two cases indicates that despite having similar scope and levels of TC, one of them demonstrated superior technical performance. To address this difference, the concept of operational efficiency is introduced which is considered the outcome of increasing the depth of TC. Practical implications Although upgrading the level of technological and innovation capability is an important path for technological development, latecomers that suffer from various disadvantages can perform their routine activities with superior performance and develop through their basic operational/production capabilities. Also, specialized indicators designed for assessing the level and depth of TC in the drilling industry have important insights for evaluating the technological and competitive position of oil service companies. Originality/value To the best of the author’s knowledge, this study takes the first step in defining and elaborating on the concept of depth of TC as a development path for latecomers. It also introduced a novel approach to the global operational/production efficiency frontier as a target for their catch-up.

ABSTRACT Prior research on catch-up strategies often provides insights from the technology-related perspective and ignores some non-technological factors. Through the multi-case study of China’s smartphone industry, we develop a theoretical framework explaining how latecomer firms catch up through diverse strategic choices. We identify two strategic paths that latecomer firms follow to catch up and surpass the incumbents. One path is to explore new business opportunities via deep market insights and then combine them with building up product technologies. Another path is from product technology build-up to market insights exploration. Firms following this path usually start with building up essential technologies and act as fast followers for new market insights. Then, as they continue developing their technological strengths, these firms devote efforts to improving their ability to capture new market insights. This study challenges the ‘first imitation, then innovation model’ discussed in the literature and shows that latecomer firms can pursue cutting-edge innovations in their early activities. The research also shows that, unlike previous studies, the technology build-up is not the only path to help latecomers catch up and challenge incumbent leaders.

The catch-up of latecomer firms has been a topic of interest because it is closely related to the changes in industry leadership. The reason why some countries are more successful in catch-up is because of their increasing mastery of technology management (TM). Therefore, to ensure successful catch-up, it is imperative for latecomer firms to understand the TM practices and TM modes across national boundaries. This paper aims to reveal the differences in TM practices and TM modes between latecomer firms and forerunner firms. This paper collected data from Chinese firms and Korean firms as latecomers and forerunners, respectively, to examine the differences in TM practices and TM modes. The results show that latecomer firms place more emphasis on grasping the condition of firms’ equipment, understanding technology talents required by business, and completing files on technology information. While forerunner firms stress learning from other competitors, effective training, and constructing detailed technology information management system most. Furthermore, the relationship between TM and product innovation performance is more integrated for forerunner firms compared to latecomer firms. A key contribution of this paper is to reveal the differences in TM practices and TM modes between latecomer firms and forerunner firms, which enriches the catch-up literature from an international comparative perspective. As such, this paper is of great importance in broadening the understanding of how latecomer firms transform into global leaders.

Existing literature highlights the relevance of technology uncertainty and processes in latecomers’ catch-up but largely ignores the potential interplay between the two as well as the catch-up cycle. Thus, the purpose of this study is to answer the research question of how process patterns throughout the various stages of the catch-up cycle hinge on technological uncertainty. Based on observations of the manufacturing industries of general equipment, pharmaceuticals, home appliances, and electronic device manufacturing in China, our findings reveal that the patterns differ in the early and late stages of the catch-up cycle, due to different technological uncertainties. We demonstrate the features of patterns in conjunction with the catch-up cycle: predictive or explanatory patterns as fundamental ones in the early stage; and convergent and divergent hybrid modes comprised of the aforementioned fundamental patterns in the late stage. Our results provide fresh insights into the catch-up process literature and offer valuable practical implications for latecomers.

Taking the technical standards alliance (TSA) of strategic emerging industries as the sample, including China’s new energy vehicles, new-generation information technology, new materials, and high-end equipment manufacturing, the article empirically verified the impact of the external cooperation network and internal knowledge network of late-developing enterprises on their dual catch-up. The results showed that the appropriate centrality of the cooperative network promotes the exploitative catch-up and exploratory catch-up of late-developing enterprises. However, the excessive centrality blocked its exploratory catch-up. The structural hole of the cooperation network was conducive to the exploratory catch-up of late-developing enterprises, but not to their exploitative catch-up. The comprehensive cohesiveness of the knowledge network strengthened the positive impact of the centrality of the cooperation network on exploitative catch-up of late-developing enterprises, damaging the negative impact of the structural hole of the cooperation network on exploitative catch-up. The partial cohesiveness of the knowledge network positively adjusted the centrality of the cooperative network, the relationship between the structural hole and exploratory catch-up, and negatively adjusted the relationship between the centrality of the network and exploitative catch-up. By analyzing the differential impact of the dual network on two types of technology catch-up strategies of late-developing enterprises, the article deepened the theory of organizational duality. Meanwhile, the article contained innovation activities of late-developing enterprises in the TSA, which provided a new theoretical perspective and empirical basis for the combination of standardization of cooperation and innovation management theory.

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PurposeComplementary resources and dual learning play crucial roles in enhancing the innovation capabilities of latecomer firms. However, the precise processes through which they contribute to this enhancement remain unclear. The aim of this study was to elucidate the underlying mechanisms involved.Design/methodology/approachA longitudinal case study spanning the period from 1986 to 2022 was conducted to examine Haier water heaters from the perspective of the catch-up process of latecomer firms in emerging economies.FindingsThe development of digital infrastructure has not shown a notable ability to advance the transformation and modernization of the small home appliance industry. Additionally, digital industrialization has had a minimal constraining effect on this process. Nonetheless, digital governance has persistently exhibited substantial influence in facilitating the transformation and modernization of the small home appliance industry. Although both industrial digitization and digital innovation possess significant potential for promoting the transformation and modernization of the small home appliance industry, their sustainability remains limited.Practical implicationsIt is crucial for late-developed enterprises to concentrate on building complementary assets while simultaneously alternating between exploratory learning and utilization learning. Additionally, it is essential to consider the dynamic relationship between complementary assets and dual learning during the catch-up process.Originality/valueThis study addresses the inadequacy in the literature concerning the operational process of complementary assets and dual learning in fostering the innovation capacity of late-developing companies, thereby augmenting the theoretical frameworks pertaining to complementary assets and technological catch-up, as well as extending the scope of dual learning to some extent.

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The digital transformation can serve as a window of opportunity for those late-comers who are equipped with the capability to create complementary assets for grabbing new opportunities of technological leapfrogging as a way of catch-up while penalising the forerunner. In this context, we want to answer the following research question. Is there any difference in open innovation effect on the firm according to the changing of belonging sectorial innovation system from catch-up to post-catch-up? We statistically analysed the moderating effects of open innovation between catching-up, and the performance with the patents which were registered in United States Patent and Trademark Office, which were applied from China in telecommunication, from South Korea in Semiconductors, and from Japan in biotechnology on 1995–1999, and 2005–2009. We found three results from this study: first, from this research, as the signal of post catching-up, open innovation effects on the performance of firm, and the moderating effects of open innovation between catching-up, and the performance of the firm were found; second, the appearance of new dominant design after post catching-up was explained through the powerful open innovation and third, open innovation could be a useful new strategy for firms in the post catching-up to use.

Growth in some parts of Asia stayed promising even in the challenging circumstances. Despite difficulties posed, Vietnam as well as other ASEAN neighbours were able to maintain a positive growth rates. In fact, some of the top export areas of the country have not shown signs of being majorly impacted by the challenging circumstances. It was rather the strategic movement as well as (technological) capability accumulation of firm that matter the most. This paper looks at the intersection between OEM-ODM-OBM trajectory and the current window of opportunities to see if a possibility of securing a leading export position exists.   

In the era of digital–real integration, open-source collaboration has become a strategic pathway for accelerating the innovation catch-up of China’s industrial software. This study employs an exploratory multi-case design, focusing on the China Automotive Operating System open-source project and the FastCAE open-source domestic CAE software integrated development platform to examine how open-source strategies shape collaborative mechanisms and innovation outcomes. The analysis reveals that firms adopt both formal (behavioral and outcome coordination) and informal (relationship and empowerment coordination) strategies, fostering high-level complementary collaboration in data, technology, institution, and human resources. These mechanisms significantly enhance R&D efficiency and quality, drive technological innovation, and create new market innovation, thereby improving collaborative performance. The study contributes to theory by linking open-source-driven digital–real integration with industrial software innovation catch-up and offers practical governance recommendations for strengthening China’s industrial software autonomy and ecosystem sustainability.

The emerging economy has the characteristics of formal system defects, technology shortage and market instability. The political connection of enterprises in the emerging economy can make up for these defects to a certain extent. Based on the situation that latecomers in emerging economy beyond catching-up, this paper selects 490 Chinese listed companies to explore the relationship among political connection, technological innovation capability and business performance. It is found that political connection has a positive impact on business performance on the basis of improving the technological innovation capability of firms, and technological innovation capability is the intermediary variable between political connection and business performance. It is basically consistent with the innovation practice of latecomer firms in emerging economy. Combined with the international background of unilateralism and protectionism rising, this paper proposes strategies for how latecomer firms in emerging economy can skillfully use political connection to improve their technological innovation capabilities, including: using political connections to arouse entrepreneurship and stimulate leading innovation; using political connections to promote the new development pattern of "double cycle"; strengthening political connection audit.

Purpose Hidden champions are key actors in leading emerging economy firms to break free from the low-end lock-in problem within global value chains (GVCs). This study aims to analyse how hidden champions leverage artificial intelligence (AI) to achieve leapfrog upgrading in GVCs. Design/methodology/approach This study designs a two-way fixed effects model to examine how AI technology adoption affects the GVC upgrading of hidden champions by using a data set of 8,689 firm–year observations from 1,204 Chinese A-share listed hidden champions between 2013 and 2023. The sample data are derived from the annual financial data of firms and the text mining analysis of annual reports. Findings Results indicate that AI adoption enhances the positions of hidden champions in GVCs. In particular, this enhancement is mediated through the increasing specialisation and production efficiency of hidden champions and their domestic industry peers. Moreover, the effect of AI adoption on GVC upgrading is more pronounced for hidden champions with higher levels of automation. Hidden champions in labour-intensive and technology-intensive industries gain greater benefits from AI adoption in terms of GVC upgrading. The positive effect is particularly salient for hidden champions located in cities with high computing power capacity. Originality/value This study proposes a novel concept of domestic GVC leadership capability and extends discussions on the breakthroughs of emerging economy firms from low value-added activities by examining how Chinese hidden champions leverage AI to integrate accessible domestic supply chain resources for leapfrog GVC upgrading. The findings guide emerging economy firms in approaching the GVC upgrading ceiling to successfully climb the global GVC upgrading ladder. The discoveries also provide insights into how AI can enhance GVC resilience.

PurposeThe Industry 4.0 (I4.0) revolution originated in developed countries and has now been promoted worldwide as a powerful tool for improving productivity. However, adopting I4.0 technologies poses significant challenges, especially for emerging economies that are far from the I4.0 frontier. In the context of emerging economies, this paper aims to explore the impact of adopting I4.0 technologies on firms’ total factor productivity (TFP) and its mediation channels.Design/methodology/approachUsing panel data for 2,928 firms in China’s manufacturing industry during the period 2010–2022, this study adopts fixed effects regression model to test the theoretical hypotheses. Endogeneity issues are addressed by the instrumental variable approach and propensity score matching.FindingsThe results show that adopting I4.0 technologies can significantly improve emerging economy firms’ TFP, and this effect is achieved by promoting technological innovation and alleviating financial constraints. Furthermore, the findings indicate a heterogeneity in the effects of I4.0 technology adoption. When top managers are long-term oriented, firms are state-owned, industry competition pressure is low or regional manufacturing innovation capability is strong, the positive impact of I4.0 on TFP is weakened.Originality/valueThis paper is one of the first attempts to offer empirical evidence about whether and how the adoption of I4.0 technologies boosts TFP growth among firms in emerging economies. The study expands on the organizational performance consequences of I4.0 adoption and provides implications for decision-makers in developing countries in implementing I4.0.

The concepts of technology and innovation represent a paradox in today’s highly turbulent business environment and are characterized by increasingly short lifespans. In this situation, it is of great importance to study how senior leaders make strategic technological choices (STC) to guide their firm’s success. STC creates products and services critical to firms’ future revenue and market share (Chiesa, 2001). This study aims to identify the factors and processes that are critical to strategic technological decision-making in an emerging economy such as India. In-depth interviews were conducted using a semi-structured interview protocol to understand how firms prepare for strategic technological decisions (STD). We used a qualitative research approach to analyze the transcribed interviews of Indian chief technology officers (CTOs) (Miles & Huberman, 1994). The study found factors grouped into business environment, organizational, strategic, and expected outcomes. Based on these findings, an integrated framework is provided that could help in the development of decision-making systems for practitioners. While rooted in the Indian context, the study offers a foundation for comparative research in other emerging markets. This proposed framework contributes to both theory and practice by enhancing the understanding of how firms can navigate technological complexity in resource-constrained settings.

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The dynamic capabilities perspective explains how firms reconfigure resources to sustain competitive advantage under conditions of environmental change. Despite extensive theoretical development, empirical findings on the relative influence of dynamic capabilities and environmental dynamism on firm performance remain context-dependent and fragmented, particularly in emerging manufacturing economies. This study examines the joint and comparative effects of dynamic capabilities and environmental dynamism on organizational performance using a convergent mixed-methods design. Quantitative data were collected from 317 managers of manufacturing firms, complemented by qualitative interviews and focus group discussions with 17 senior managers. Results show that both constructs significantly influence performance, jointly explaining 77.5% of its variance. However, dynamic capabilities demonstrate substantially stronger predictive power than environmental dynamism. Qualitative findings reveal that strategic flexibility, innovation orientation, and technology integration function as embedded managerial routines that sustain performance outcomes. The study contributes to dynamic capability theory by clarifying boundary conditions in moderately dynamic environments and extending empirical evidence to resource-constrained manufacturing contexts. Implications for theory and practice are discussed.

Purpose Extending the springboard perspective with the resource dependence theory, the authors posit that cross-border mergers and acquisitions (M&As) are a new channel for emerging economy firms (EEFs) to enhance their technology capabilities. This study aims to examine the impact of cross-border M&As initiated by EEFs on their technology augmentation vis-à-vis matched domestic M&A cases and investigate the factors influencing the difference in post-merger innovation capability. Design/methodology/approach This paper estimates the post-acquisition innovation capability of acquirers from emerging economies (EEs) that engage in cross-border M&As. To remove possible selection bias, the authors leverage a difference-in-difference-style approach in combination with a matched sample constructed by pairing each cross-border M&A case with a similar domestic deal. The data set contains 266 cross-border M&As and 266 matched domestic M&A deals between 2003 and 2011, whereby acquirers are based in 6 EEs and targets are in 36 countries consisting of both EEs and advanced economies (AEs). Findings The present empirical results show that cross-border M&As engaged by EEFs are an important engine for improving EEFs’ innovation capability through technology augmentation. The main empirical results are as follows. First, compared with matched domestic acquirers with similar characteristics, EE cross-border M&As have a positive effect on innovation capability. Second, the positive effect of the EEFs’ cross-border M&As relative to the matched domestic M&As on innovation capability is driven largely by cross-border M&As with targets in AEs. Third, the increase in post-M&A innovation capability of the EE cross-border acquirers comes mainly from deals where targets are based in countries with relatively superior human capital and innovation capability than those of the acquirers. Originality/value To the best of the authors’ knowledge, this study is the first systematic study of whether cross-border M&As serve as an effective channel of technology augmentation for EE acquirers compared to matched domestic acquirers with similar characteristics.

The Ready-Made Garments (RMG) has immensely fueled Bangladesh’s economic transition in the past four decades, transforming itself from a small export-oriented industry to one of the most competitive garment-producing countries of the world. Today, the RMG industry contributes over 84% of the total export earnings and provides employment to more than four million workers, most of whom are women. In spite of the outsize cachet of its role empirical analysis frequently reduces to export performance, while broader structural contributions–outcomes in terms of industrial diversification labour market transformation technology upgrading and female economic participation– remain somewhat neglected. The objective of the research is to analyse the impact of RMG sector on the economic growth and structural change in Bangladesh from 1990 to 2024. Export earnings, GDP, employment, industrialization indicators and labor productivity secondary data were obtained from the World Bank (WB), Bangladesh Bank (BB), EPB and national statistical databases. The paper quantitatively analyses the contributions of the RMG sector to GDP growth, employment creation and structural changes through descriptive analysis, correlation tests and regression model. The results reveal that RMG export earnings have a strong and significance impact on GDP growth indicating the importance of the sector in terms of Bangladesh’s external trade and economic progress. The findings also point to the conclusion that employment in RMGs contributes heavily to labor market participation, particularly by women, and consequently household income, consumption and poverty alleviation. The sector has also promoted structural transformation by means of backward linkage industries, industrial clustering, human capital formation and some degree of technological upgrading. Nevertheless, the analysis also highlights ongoing issues, such as weak product diversification, labour fragility and sustainability problems. The contribution of this study to the literature is that it provides rich empirical insights into the various dimensions of RMG in shaping Bangladesh’s economy. The policy implications highlight upgrading to higher- value added products, better labour standards, stronger backward linkages and superior technological capabilities.

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Organizations in both developed and developing economies are paying great attention to the Industry 4.0 revolution and associated uses of technologies due to its potential benefits to the manufacturing industry. However, there are a limited number of empirical studies due to its early stage of adoption around the world, especially regarding the key technological factors that are necessary. This article addresses this research gap by identifying the factors that enable successful Industry 4.0 technologies adoption in an emerging economy country, grouping them, and ranking the groups based on priorities for adoption. The study adopts a mixed-method research methodology. Q-sort technique and analytic hierarchy process, respectively, were used to group enabling factors and prioritize the groups for Industry 4.0 technologies adoption. Thereafter, semistructured interviews of key stakeholders in the manufacturing sector in Thailand were carried out to validate and support findings from the quantitative analysis. Five industry experts from automotive and electronic parts/components manufacturers were interviewed. The results show that human capital is the most important readiness dimension for Industry 4.0 technologies implementation. Interoperability and data handling were found to be the next in importance. On the contrary, hardware and technology systems, such as data security and technological infrastructure, were identified as the least important of the technology readiness dimensions. These findings provide a different perspective to extant studies that posited that technology-based factors as the most important for Industry 4.0 success.

With the development of information technology, Chinas digital economy has played an increasingly important role in the overall economic structure. However, previous understandings of digital economy advancement have been limited to the national or regional level, with little exploration of how digital economy progress reflects firm-level innovation performance. Therefore, this study aims to address the following questions: Does the development of the digital economy promote corporate innovation? In non-state-owned enterprises, is the positive relationship between digital economy development and corporate innovation performance significant? Addressing these questions can contribute to a better understanding of the relationship between information technology integration and corporate innovation performance. To this end, this study utilizes data from the China Urban Statistical Yearbook (20112022), including the total per capita use of telecommunications services in Chinese cities, the proportion of employees engaged in computer services and software, the number of internet users per 100 people, the number of mobile phone users per 100 people, and the China Digital Inclusive Finance Index (jointly compiled by the Peking University Digital Finance Research Center and Ant Group). Using principal component analysis, a digital economy index was constructed for different cities and years. This study systematically examines the impact and mechanisms of digital economy development on corporate innovation, as well as the variations in this impact across different types of listed companies. The findings indicate that the level of digital economy development influences changes in corporate innovation. Specifically, the higher the level of digital economy development, the higher the level of corporate innovation. This research aims to help firms recognize the advantages of digital transformation and the emerging trends in corporate innovation.

PurposeTo answer the questions: what roles windows of opportunity act in the catchup process of latecomers, what strategies latecomer enterprises should adopt to size windows of opportunity to catch-up with incumbents even going beyond?Design/methodology/approachThis paper studies the catch-up history of the Chinese mobile phone industry and proposes a sectoral innovation system under scenario of technology paradigm shifts. Then a history-friendly simulation model and counterfactual analysis are conducted to learn how different windows of opportunity and catch-up strategies influence the catch-up performance of latecomers.FindingsResults show latecomers can catch up with technology ability by utilizing technology window and path-creating strategy. However, catching up with the market is not guaranteed. Demand window can help latecomers to catch up with market as it increases their survival rates, different sized windows benefit different strategies. However, it also enlarges incumbents' scale effect. Without technology window technology catch up is not guaranteed. Two windows have combination effects. Demand window affects the “degree” of change in survival rates, while the technology window affects the “speed” of change. Demand window provides security; technology window provides the possibility of a breakthrough for technology ability.Practical implicationsThe findings of this paper provide theoretical guidance for latecomer enterprises to choose appropriate catch-up strategies to seize different opportunity windows.Originality/valueThis paper emphasizes the abrupt change of industrial innovation system caused by technology paradigm shifts, which makes up for the shortcomings of previous researches on industrial innovation system which either studied the influence of static factors or based on the influence of continuous changes.

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The purpose of this paper is to analyze how the strategy of latecomer firms leads innovation and promotes the accumulation and improvement of capability in its development with an analytical framework of “strategy-innovation paradigm-capability” and tries to sum up the internal evolution logic of strategy. Based on this, it makes a longitudinal case study of Haier Group from 1984 to 2018. Through the research, it constructs the L.S.I.C model, which reveals the key role of the strategy in the innovation and capability in the catch-up process of latecomer firms: strategy leads innovation. Innovation is the basis of forming capability. Different innovation paradigm forms different enterprise capability. At the same time, the mechanism of strategic leading innovation is supported by leadership mechanism, learning mechanism and coordination mechanism. The contributions of this paper are as follows: it enriches the theoretical basis of strategic evolution, makes a pioneering analysis of the relationship between strategy, innovation and capability, and probes into the national technology policy.

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The existing theoretical framework fails to explain the behavioral mechanisms employed by latecomer enterprises in their pursuit of standardization catch-up. In order to address this gap, we conducted a comprehensive and structured case study on Huawei’s standardization strategy. Using both deductive and inductive approaches, the findings from our research reveal Huawei’s ‘pyramid standardization strategy’ consisting of four distinct stages: following (1987–2002), defense (2003–2008), breakthrough (2009–2015), and sharing (2016–present). Drawing from the theoretical framework of academic literature on ‘catch-up in standardization’, we propose a ‘standardization catch-up model’ that incorporates three crucial elements: a top-down behavioral foundation, middle-up essential supporting components, and bottom-up culture and values. Furthermore, we identified five key propositions from the Huawei case, which emphasize the importance of R&D investment, low-cost engineers, professional teams, relations with international standards organizations, and open innovation as driving factors. By shedding light on the role of internal capabilities, patent-based innovation, and organizational culture, our research significantly contributes to the understanding of catch-up through standardization strategy.

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Mainstream technology catching-up studies only focus on how latecomer assimilate the acquired technology from the developed countries in its home country, paying little attention to their technology innovation activities directly in the developed countries and interactions with home country to overcome first-mover advantages and catching-up with incumbents. This study examines the practices of the rapidly rising Chinese new entrants of electric vehicle (EV) OEMs, discovered the mechanism and path of Cross-Market Innovation (CMI), established its structural model based on multiple case analysis, proposed three-stage progressing path and three integration mechanisms, and provides new ideas for latecomer to leverage advantages from innovation systems of both developed and developing countries to achieve the change of technological leadership. These new EV players directly go to the USA to innovate on top of acquiring new technologies in the developed country, and leverage both first-mover and follower advantages, quickly becoming leading technologically in the areas of emerging technology innovation. The study suggests that latecomer could utilize CMI as their technology catching-up strategy and achieve technological leadership change in both home and developed countries. The CMI model has been tested through the structural equation model (SEM) through structured questionnaire.

ABSTRACT Mainstream technology catching-up studies only focus on how latecomers assimilate the acquired technology from the developed countries in its home countries, paying little attention to their technology innovation activities directly in the developed countries and the interactions between developed and developing countries to overcome first-mover advantages and catching-up with incumbents. This study examines the practices of the rapidly rising Chinese new entrants of electric vehicle (EV) manufacturers, discovers the mechanism and path of cross-market innovation (CMI), established its structural model based on multiple case analysis, proposed three-stage progressing path and three integration mechanisms, and provides new ideas for latecomers to leverage advantages from innovation systems of both developed and developing countries to achieve the change of technological leadership. These new Chinese EV players in study directly go to the USA to innovate on top of acquiring new technologies in the USA, and leverage both first-mover and follower advantages, quickly becoming leading technologically in the areas of emerging technology innovation. The study suggests that latecomers could utilize CMI as their technology catching-up strategy and achieve technological leadership change in both home and developed countries. The CMI model has been tested through the structural equation model (SEM) through structured questionnaire.

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Abstract Based on previous research related to disruptive innovation and ecosystem governance, this paper aims to explore the process by which latecomer firms achieve disruptive innovation through building ecosystems. We adopted a single-case study approach to achieve a deeper theoretical construction of this emerging phenomenon. An emerging Chinese firm was selected through theoretical sampling. We used the Gioia methodology to code and analyze the extensively collected primary and secondary data. On this basis, we reveal the process by which it achieves disruptive innovation and examined the role of business ecosystem governance in this process. Our findings illuminate the dynamic process by which latecomers achieve disruptive innovation, showing that the latecomers can achieve both disruptive technology design and disruptive market reconfiguration with the help of the business ecosystem. The study also reveals two main approaches to ecosystem governance, namely relationship governance and value governance, which play different roles in different periods of ecosystem development. Consequently, our study enriches theories related to business ecosystem governance and disruptive innovation in the latecomers. Important management implications suggest that the latecomers must not only have the ability to create new advantages in differentiation technologies, but more importantly, to open up corresponding markets for maintaining technological advantages.

: The reverse innovation strategies for latecomer firms are situation dependent. Based on the multiple-case study, how the latecomer firms adopt the reverse innovation strategy in different situations has been investigated. The market demand difference and technology gap between the developing country and developed country are proposed as the situational determinant of reverse innovation. Four reverse innovation strategies of the latecomer firms are illustrated coupling four different situations, including rapid-penetration strategy, differentiation-driven strategy, development-centred strategy and full-range strategy. A strategy selection framework of reverse innovation for latecomer firms is build up supported by the contingency theory. Two strategy evolution paths about how the latecomers achieve the overall reverse innovation have been identified. This paper contributes to theory on how latecomer firms accomplish the reverse innovation in resource constraints and enrich the understanding of reverse innovation strategy based on contingency approach.

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This study aims to investigate the mechanisms through which artificial intelligence (AI) contributes to the reduction of productivity disparities among enterprises, specifically through regional technology spillover effects. We constructed a regression model based on the relationship between AI integration and productivity convergence of the listed firms in China from 2001 to 2021. The empirical results, derived from a β-convergence model, reveal a pronounced trend of both absolute and conditional convergence in productivity, signifying that lower-efficiency firms are progressively aligning with their higher-efficiency counterparts. The findings underscore that AI serves as a pivotal driver of productivity enhancement, facilitating not only the catch-up potential of lower-efficiency enterprises but also the speed of productivity convergence across the sector. Our analysis indicates that the deployment of AI significantly elevates production efficiency and fosters overall regional R&D output, thereby creating conducive conditions for mitigating the productivity gap between enterprises. Additionally, the elevation of regional R&D levels further amplifies the growth trajectory of lower productivity firms. The research conclusions of this paper demonstrate the positive significance of applying artificial intelligence in promoting the development of small and medium-sized enterprises.

ABSTRACT This study investigates the effect of R&D subsidy associated with R&D projects on the productivity and internal capacities of Korean manufacturing small- and medium-sized enterprises (SMEs). It also addresses the difference in effectiveness attributed to the characteristics of such projects. We constructed distinctive firm-level panel data combining the National Science and Technology Knowledge Information Service and Korea Enterprise Data databases and used stochastic frontier analysis with multivariate matching techniques. The results reveal that subsidised R&D projects did not help Korean SMEs in improving productivity and efficiency. Compared with the control group, which had similar external features, beneficiaries showed worse productivity growth as well as efficiency changes. Moreover, the effects of R&D subsidies differ depending on project characteristics. Specifically, the amount and period of R&D subsidy had a positive effect on catch-up but a negative effect on SMEs’ innovation capacity. These results demonstrate the need for renovating the current support system for SMEs’ R&D activities in Korea.

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This paper explores the patterns of knowledge production of science and engineering from catching-up via overtaking to the achievement of leadership in global industries. In particular, it examines the depth and direction of knowledge production with proxy variables of patents and bibliometric data of a latecomer firm. Moreover, it explores the changing patterns of knowledge sourcing in the firm during the transition from catch-up to forging ahead and with specific references to the experience of Samsung Electronics Company. This study shows that the patterns of scientific and engineering activities increased as the firm proceeds to the forging ahead period, the patterns of knowledge sourcing evolved in the direction of increasing importance of the domestic knowledge base, and the collaborative partners for generating knowledge changed as the firm's capabilities were enhanced to approach cutting-edge technologies. This paper illuminates the importance of intraorganizational capabilities and domestic knowledge bases to advance a latecomer firm's knowledge generating capabilities into a stage of forging ahead.

Emerging multinational enterprises (EMNEs) often engage in strategic-asset-seeking foreign direct investment (FDI) for competitive catch-up. This study explores the linkages between an EMNE’s competitive scenario consisting of a configuration of its awareness-motivation-capability (AMC) conditions and the comparative institutional advantages of its strategic-asset-seeking destination. Our configurational analyses of Chinese FDIs in the technology-intensive industries of OECD countries reveal a taxonomy of four distinct asset-seeking strategies of EMNEs. Our findings shed novel insights into the strategic variations within EMNEs based on a theoretically and methodologically extended AMC framework. This study also extends the varieties of capitalism literature by addressing the implications of comparative institutional advantages for foreign entrants, rather than domestic incumbent firms.

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Today, innovation is seen as the engine of economic growth. As a result, governments foster innovation activities in both the public and private sectors by using policy tools such as measures, regulations, and incentives. There are two main approaches in government innovation policy: supply-side policy and demand-side policy. Supply-side policy instruments primarily stimulate technological development and diffuse innovation capabilities. On the other hand, demand-side policy supports specific demand and minimizes technological and trade uncertainty at all stages of production. Moreover, a demand-driven procurement policy is one of the main drivers of high-tech industries. At the same time, in line with the growing importance of the knowledge economy and societal concepts, knowledge or technology has become the major determinant of innovation. In this way, companies are encouraged to undertake research and development activities in order to create innovation and advance their technologies. Moreover, the government’s support for investing in research and development (R&D) activities has become an effective solution for the firm’s innovation outputs. These R&D activities are of particular importance in transition and catch-up economies such as the Czech Republic. Therefore, this article aims to analyze the impact of demand-driven policy on business innovation through R&D activities in the Czech Republic. Data from the Community Innovation Survey and partial least squares structural equation modelling are used to achieve the purpose of this article. Our findings show that demand-driven policy (procurement for innovation) significantly and positively affects firm product and process innovation through R&D activities. The findings of our research also have practical implications for firms and policymakers in the Czech Republic. These results could also apply to Central and Eastern Europe, where we can observe similar characteristics of firms, for instance, because of their innovation performance.

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Abstract Purpose The purpose of the study is to better understand the relationship between dynamic capabilities and firm competitive performance, and how innovation capabilities, specifically (a) product capability and (b) process capability, may play a mediating role in this relationship. Design/Methodology/Approach Simple Random Sampling technique was adopted to choose SMEs to collect data based on information obtained from Hungarian SMEs associations. A total of 565 completed questionnaires were obtained, with response rate of 65.50%. Confirmatory factor analysis (CFA) was used with AMOS 24 to assess the reliability and validity; and Cronbach’s alpha coefficient was additionally used to assess the dependability of the scales. The proposed model was put to the test using structured equation modelling (SEM). Results The study results show that dynamic capacities have a significant direct effect on innovation capabilities: product capability and process capability. The study also proves that both product capability and process capability have a significant impact on a firm’s competitive performance. Conclusion The study concludes that the relationship between dynamic capabilities and competitive firm performance is partially mediated by innovation capabilities. The study suggests that before enhancing product innovation capability, entrepreneurs should consider reorganizing and reallocating resources into process innovation capability. This study contributes to our understanding of the mediating mechanism of innovation capabilities through which dynamic capabilities enhance firm competitiveness performance.

Purpose Drawing from the resource-based view (RBV), this study aims to develop a parsimonious model in the context of digital platforms that links strategic network resources (SNR) and firm performance through considering dynamic capabilities (DC) as important mediating mechanisms. In addition, we also investigate how platform monitoring shapes the relationship between SNR and DC. Design/methodology/approach This study uses the survey data from 162 firms in eastern China. Findings The findings indicate that both two DC dimensions (i.e., sensing and reconfiguring) significantly mediate the relationship of SNR-performance. Moreover, platform monitoring positively moderates the relationship of SNR and sensing as well as SNR and reconfiguring. Originality/value With these findings, this study advances SNR and digital platform research and provides insights into how to transform SNR into superior performance through DC.

PurposeThis study aims to extend the dynamic capabilities (DCs) perspective to the project management context. The authors present supporting evidence for analyzing the creation process of DCs during the redesign of the software development process, and they examine the impact of those capabilities on organizational performance and transformation.Design/methodology/approachAn action design research approach, combined with simulation and qualitative analysis, is adopted to examine the emergence of technology-enabled DCs supported by their microfoundations and the modernization of the software development process in the target firm.FindingsAnalyzing the successful internal transformation of a software development company that was facing a slow and inconsistent product development process reveals the effectiveness of extending the DC perspective to a project-based setting. The implementation of a new project methodology and the introduction of an innovative document-handling system facilitated the renewal of the company's software development process. This led to improvements in lead time and total costs, resulting in enhanced project performance as well as customer and employee satisfaction.Practical implicationsThis study draws managerial attention to the microlevel activities of technology-enabled DC formation, such as precise calculations, external expert consultations and tool deployment.Originality/valueBy applying the sensing–seizing–transforming framework with concomitant microfoundations in a longitudinal way, this article explains the role that technology plays as the basis for DCs and analyzes the cost–benefit balance of DC development in project-based organizations.

ABSTRACT The accelerating pace of consumer and market demand poses a substantial challenge for firms aiming to develop knowledge-intensive strategies to address demand gaps. These strategies are designed to establish and maintain competitive advantage by innovatively leveraging their competencies and capabilities. This study employs the dynamic capabilities and knowledge capabilities views to investigate the impact of strategic innovation systems (SIS) on firm innovation performance (FIP). To achieve this objective, the study analyzes the integration of knowledge into the innovation process to assess the influence of strategic systems on innovation performance. The research hypotheses were evaluated using a quantitative research design involving 111 SMEs in China. The findings reveal a negative impact of both SIS and distinct competencies (DC) on firm innovation performance. Furthermore, SIS demonstrated a positive influence on product innovation. Additionally, the mediation analysis showed an indirect effect of SIS on firm innovation performance through product innovation. Moreover, DC and externalities displayed mediating effects. These findings contribute to the literature on strategic systems and innovation performance by providing practical recommendations for managers seeking to enhance innovation performance.

PurposeThis study aims to explain the relationships between dynamic capabilities, product innovation, firm performance and technology uncertainty.Design/methodology/approachThe quantitative research method was the preferred approach. Data were collected through a questionnaire from managers working in different sectors. The study’s sample consists of 619 managers from 226 different firms.FindingsThe findings show that there is a positive relationship between dynamic capabilities and product innovation and that dynamic capabilities have a positive relationship with firm performance. In addition, the findings indicate a significant positive mediating effect of product innovation on the relationship between dynamic capabilities and firm performance. Another key finding is the positive moderation effect of technology uncertainty on the relationship between product innovation and firm performance.Research limitations/implicationsUsing a single sample (country) limits generalizability due to differences in economic structure and market dynamics. Furthermore, by focusing only on product innovation, the role of other types of innovation is not considered.Practical implicationsThis study emphasizes that, especially in environments with high technology uncertainty, it is important to develop dynamic capabilities for better firm performance as well as turn these capabilities into tangible outputs such as product innovation.Originality/valueThis study examines the relationship between dynamic capabilities and firm performance, which is frequently discussed and extremely important for the literature, from different perspectives within the context of an emerging economy. In addition to the direct relationship between dynamic capabilities and firm performance, the contribution of dynamic capabilities to performance through product innovation, which is an ordinary capability, (together with the moderating effect of technological uncertainty) was investigated.

The evolution of the theories of Dynamic Capabilities and its importance in paving the path of success for organizations has been studied and researched for decades. Evolving from the resource-based view, theories of Dynamic Capabilities state that organizations should have the ability to adapt to changing environments by integrating, building and reconfiguring internal and external resources. This study focuses on the above-mentioned external environmental conditions and its effect on the Dynamic Capabilities and its relationship to firm performance within the premise of Sri Lankan Multinational Corporations. The dynamic capabilities a firm possesses has paramount importance in sustaining competitiveness. Nonetheless, there are other influential factors in the external environment that dictate the effectiveness of these dynamic capabilities. For instance, the Business Ecosystem Volatility surrounding Organizations can influence the extent to which these dynamic capabilities effect firm performances. Sri Lanka is a unique environment to study this phenomenon due to the emerging market dynamics and multinational activities. This research employs a quantitative approach using surveys sent to Sri Lankan Multinational corporations to collect data. It also contributes to the existing literature in hopes that it will fill certain research gaps prevalent in this area of study. The findings will benefit the management of the Sri Lankan MNCs by providing guidance on how to manoeuvre Dynamic Capabilities under changing environmental conditions and how they can capitalize on their dynamic capabilities properly. Keywords: Business Ecosystem Volatility, Dynamic Capabilities, Integration, Multinational Corporations, Processes

This research thoroughly investigates the connections among dynamic capabilities, technology competence, and company performance, focusing on RISDA's Groom Big initiatives. To stay competitive in the market, a company needs to have dynamic capabilities, characterized as the capacity to integrate, develop, and reconfigure internal and external competencies in response to quickly changing environments. Technology competence is also a critical factor in determining a company's performance. It includes a firm's capacity to recognize and adapt to market trends, customer demands, and competitive dynamics. According to the study, businesses that participate in RISDA's Groom Big programs can considerably improve their performance by a considerable margin by developing dynamic capabilities and improved technology competence. The results highlight the intricate and varied aspects of firm performance, demonstrating the interactive effects and technology competence-mediated relationship between dynamic capabilities and firm performance. The research offers significant perspectives for administrators, policymakers, and institutions like RISDA and Groom Big initiatives. They can assist businesses in adapting to market changes, grabbing hold of new business opportunities, and achieving better performance by cultivating dynamic capabilities and technology competence. The programs' and entrepreneurs' success

PurposeAlthough information technology (IT) governance and IT capability have been extensively examined, the impact of IT governance mechanisms on IT-enabled dynamic capability (ITDC) with moderators has received less attention. This study investigates how the impact of IT governance mechanisms on firm performance is achieved through an ITDC through the moderating role of IT governance decentralization and a turbulent environment.Design/methodology/approachThis study extends from the traditional view of IT capabilities and integrates dynamic capability theory to propose that IT governance is vital for the ITDC. Path analysis, hierarchical regression analysis and moderation analysis were performed using partial least squares (Smart PLS 3.0) as the data analysis methods. This study empirically tests the proposed mediated moderation model by using data collected from 254 firms in China to test the hypotheses.FindingsSignificant and impactful relationships are found in the model that includes turbulent environment moderating effects. Contrary to expectations, IT governance decentralization is also significant but not very strong.Research limitations/implicationsThis study’s findings have implications for investigating IT governance, IT-enabled capabilities and moderators. Accordingly, this study has implications for board and executive management to capitalize on dynamic IT capability, to keep pace with the challenges and turbulent conditions associated with business needs and for the productivity paradox in the context of Chinese firms.Originality/valueThis country-specific research study theoretically contributes to the IT governance, dynamic capabilities and turbulent environment in the information systems literature and proposes many practical guides to the board and executive management of companies in the Chinese context.

The resilience literature has gained significant traction, particularly amidst the COVID‐19 pandemic, emphasizing firm resilience as vital for effectively navigating crises and external pressures. Concurrently, green product innovation has emerged as a key strategy to bolster environmental sustainability and mitigate pollution, yet its precise contribution to resilience remains ambiguous, especially in developing economies. This research advances existing knowledge by investigating the relationship between green product innovation and firm resilience in Vietnamese enterprises, with particular attention to the enabling roles of dynamic managerial capabilities and digitalization. Employing structural equation modeling on a sample of 319 Vietnamese enterprises, our research makes several distinct contributions to the literature. The findings demonstrate that green product innovation serves as a specific mechanism for building resilience in developing economy contexts. It also reveals the previously unexplored triple helix of dynamic managerial capabilities, digitalization, and green innovation in fostering resilience. Additionally, it identifies digitalization as a crucial moderator that amplifies the impact of green innovations on firm resilience. These findings advance the theoretical understanding of resilience‐building mechanisms in emerging economies while offering practical insights for managers leveraging simultaneous environmental and digital transformations.

PurposeThis research examines the effect of dynamic service innovation capabilities on dual innovation (exploit or explore) and estimates its impact on firm performance.Design/methodology/approachWe adopted a cross-sectional research design and collected n = 535 responses from budget hotels. The pre-validated scale was adopted. Also, we employed SEM, path and predictive analysis on the SmartPLS 3.3.2 package.FindingsThe research findings indicated that information communication technology (ICT) usage significantly impacts dynamic service innovation capabilities (DSICs). The mediating path of ICT usage via DSICs on firm performance (FP) is fully mediated. Whereas the innovation duality (exploitative and explorative) path partially mediates the relationship between DSICs and PF relationships in the hospitality firm context.Research limitations/implicationsThe study was focused only on a particular geographic area and budget-friendly hospitality firms. The cross-sectional design of this study prevents establishing a causal relationship among the tested variables.Practical implicationsThe current research emphasises that hospitality firms boost performance through the lenses of ICT usage, DSICs and dual innovations. Also, highlighted how ICT usage, DSICs and explorative and exploitative innovation are interrelated to calculate FP.Originality/valueThis study is one of its kind that examined the lower-order and higher-order latent variables of ICT usage and DSICs and found them reliable and valid. The mediation of innovation duality (explorative and exploitative) between DSICs and firm performance found a significant effect on the relation, according to the empirical result.

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To examine how knowledge-based dynamic capabilities relate to firm performance through the mediating role of entrepreneurial orientation, we analyzed data of a sample of 1047 Portuguese and Spanish small and medium-sized enterprises (SMEs) of all industry sectors. The results reveal that knowledge-based dynamic capabilities are associated with firm performance and that the relationship is partially mediated by a firm’s entrepreneurial orientation. This mediation could be explained by the fact that an entrepreneurial orientation to identify and utilize new opportunities is integral to knowledge value creation and extraction, and to avoid pervasive rigidities. Our study sheds light on the mechanisms through which knowledge-based dynamic capabilities are associated with firm performance and helps to explain performance differences among firms. In addition, we provide management insight on how firms can deploy their knowledge-based dynamic capabilities and extract value from them to face change and promote their entrepreneurial orientation and performance.

PurposeDrawing from dynamic capability (DC) theory, this study aims to investigate how big data analytics (BDA)-enabled dynamic capabilities (DCs) prompt firm performance. This study proposes that BDA-enabled DCs lead firms toward simultaneous exploration and exploitation of new knowledge about markets and products (i.e. marketing ambidexterity) which in turn improves firms' market and financial performance. This study also examines if environmental dynamism strengthens the aforementioned relationship.Design/methodology/approachThis study uses survey questionnaire and data were collected in the form of two heterogeneous samples from Turkey and Pakistan. Partial least square-structural equation modeling (PLS-SEM) was used to test the hypotheses.FindingsResults reveal that BDA-enabled DCs positively affect both dimensions of marketing ambidexterity (exploration and exploitation). Marketing exploration and exploitation have positive effects on firms' market and financial performance. Results also demonstrate that environmental dynamism moderates the link between BDA-enabled DCs and firms' marketing exploitation. The moderating effect for BDA-enabled DCs and firms' marketing exploration was not consistent across both samples.Research limitations/implicationsThis study contributes to the literature of BDA and marketing ambidexterity in the light of DC theory in a way that when and how the marketing ambidexterity, derived from BDA-enabled DCs, has a positive impact on firm performance. Moreover, findings imply that the development and enhancement of BDA-enabled DCs facilitate firms to calibrate marketing exploitation and exploration to seek new knowledge about markets and products and using such knowledge to achieve superior performance.Originality/valueThe novelty of present study is development of dynamic capabilities-based framework which sheds light on the role of big data for sensing, seizing and (re)configuring firms' resources to develop marketing ambidextrous capabilities in order to stay successful. From methodological perspective, this study uses two heterogeneous samples to assess robustness of results for ensuring greater generalizability and theoretical resonance.

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PurposeWith the focus on the context of small and medium-sized enterprises (SMEs), this study aims to investigate the joint effects of entrepreneurial leadership, entrepreneurial orientation and dynamic capabilities and the mechanisms of how these factors influence firm performance.Design/methodology/approachA survey from 319 managers in information and communications technology SMEs in Vietnam was conducted, and structural equation modeling was adopted to analyze the collected data.FindingsThe results confirm that dynamic capabilities directly influence firm performance and serve as a mediator that connects entrepreneurial leadership and entrepreneurial orientation with firm performance. Additionally, entrepreneurial leadership was found to have a significant positive impact on entrepreneurial orientation.Originality/valueThis research augments the understanding of entrepreneurship and dynamic capabilities literature by examining the joint effects and mechanisms of how entrepreneurial leadership, entrepreneurial orientation and dynamic capabilities interact to enhance SMEs' performance. Furthermore, this study provides empirical evidence of the strategies that SMEs should pursue to attain favorable performance outcomes.

PurposeThis study examines how intellectual capital (IC) drives firm performance via the lens of dynamic capabilities (DCs). Drawing on resource-based view (RBV) and dynamic capability view (DCV), the authors elaborate the mediating role of learning, integration and reconfiguration DC in the Indian banking context.Design/methodology/approachA sample of 358 top- and middle-level managers from the Indian banking sector was administered with structured questionnaires for data collection. Structural equation modeling (SEM) and Sobel test were used to analyze the data and test the hypothesized mediating effect.FindingsThe findings reveal that learning and integration DCs are key mediators in IC and banks' performance relationships in an emerging economy context. In contrast, the analysis revealed partial mediating role of reconfiguration DC. Furthermore, the learning DC has been identified as the primary mediating mechanism for transforming bank's IC into performance benefits.Practical implicationsThis study provides an important implication for the IC and DC link by empirically developing and validating a model in the Indian banking sector and making a several contributions to the related literature. This sector needs to incorporate and strengthen their IC and DCs to attain enhanced performance in today's dynamic environment. Bank managers can use these findings to bring their knowledge-related activities to channelize specific DCs to transform banks' IC when seeking to improve overall performance. Theoretically, this study extends previous research by outlining a set of organizational elements that tend to influence firm performances with the help of IC, learning, integration and reconfigurations DCs.Originality/valueAlthough several studies have investigated the links between IC, DC and firm performance, studies on emerging economies are scarce. This study is one of the most in-depth investigations of the relationship between IC, learning, integration and reconfiguration DCs and firm performance in an integrated framework, with a particular focus on the banking sector of an emerging economy.

This paper, therefore, conducts much detail with regard to the moderating role of environmental dynamism between dynamic capabilities and firm performance, with special reference to Small and Medium Enterprises (SMEs) of Pakistan. The conceptual framework leans on the proposition by Teece, Pisano, and Shuen (1997) that dynamic capabilities allow reconfiguration of resources for the changing market demand and hence the source of competitive advantage to the firm. It is theoretically possible that empirical studies on the moderating effect of environmental dynamism are possible, and still scarce within this domain—an even more rare context in the case of Pakistani SMEs. Thereby, this research intends to fill that gap by empirically examining how the influence of environmental dynamism plays out at the dynamic capabilities-performance nexus in Pakistani SMEs—a sector pivotal for the economic growth of the nation but also challenged by a unique blend of local business conditions. Understanding how firms can benefit from their dynamic capabilities in relation to their performance in volatile markets has become important within this fast-changing business environment. This paper, therefore, through an intensive review of the literature, traces the development of the dynamic capability theory in highlighting its relevance for firm performance and the critical roles environmental dynamism has played as one of the most emphasized contextual factors in firm performance. Quantitative research design will be used for data collection from a broad base of industries under the SME sector of Pakistan, and it will be collected through cross-sectional surveys to explore the proposed relationships. Findings have revealed an environmental dynamism-relevant moderating effect on the relationship between dynamic capabilities and performance. That is to say, in the most volatile environments, SME performance will be more dependent on dynamic capabilities, and that dependence will imply that the strategic value of the capabilities would become contingent on the level of environmental dynamism. This is congruent with the resource-based view (RBV) theory of strategy: the strategic value of resources and capabilities depends on the fit that such resources will have with the external environment. Implications for managers and policymakers, therefore, could be said to be very pragmatic, since SMEs operating within such dynamic markets would have a crying need to develop and deploy dynamic capabilities in a strategic way to effectively steer through the environment. First, these findings contribute to theoretical development in that they draw and support from the dynamic capability view (DCV) and RBV literature in verifying the contingent value of the dynamic capability with respect to environmental dynamism. It not only adds some fertile insights into the dynamic capabilities framework within an emerging market context like Pakistan but also substantiates some interesting facets for SMEs to gain an edge on their competitive advantage within the fast-changing global business environment.

Firms often face significant challenges to stay competitive in the present economic environment, thus, dynamic capabilities are vital as it is a substantial factor in accomplishing better business performance. This study involved yearly data of 62 firms in the ACE market that engaged with dynamic capabilities, the data was collected from the year 2012-2021. The data was gathered from the firm's annual report and has been analyzed using two-step GMM. Generally, the ACE market is consistently associated with inferior performance and capital compared to the main market. Hence, the market has the possibility of being delisted and affecting capital market performance. Therefore, this study includes dynamic capabilities in the ACE market to study the market’s performance. The results obtained are consistent with the theory, whereby changes in dynamic capabilities contributed to a positive return on the firm’s performance. However, the small capital nature of the ACE Market limits the investment in the dynamic capabilities. This study concluded that more priority to be given to the awareness of dynamic capabilities in the current competitive era. The result proved that the investment in the dynamic capabilities improved the performance of the Ace market even though some of the firms in the ACE market ignored dynamic capabilities due to capital constraints. Thus, policymakers should play their role in providing grants for the firms in the ACE Market to improve the investment in dynamic capabilities.

Several businesses have established successful strategies in order to move their operations toward the desired future position. However, problems with performance have made it difficult to achieve the suggested future position. The possibility to grow and expand has been found in some supermarkets that embrace organizational ambidexterity. Existing research suggests that supermarkets poor performance can be attributed to informal retail competition, a lack of resource exploitation and exploration, ongoing employee training and development, and consumer preference for convenience because most informal retail locations are more easily accessible. Dynamic capabilities are a firm's ability to adapt and respond to changing environments effectively. They involve processes, routines, and skills that enable an organization to identify, assess, and seize opportunities or respond to threats. Examples of dynamic capabilities in the supermarket industry might include the ability to quickly adjust product offerings in response to changing customer preferences or rapidly reconfigure supply chain operations in response to disruptions. Dynamic capabilities can mediate the relationship between organizational ambidexterity and supermarket performance by enhancing exploration and exploitation. Organizational ambidexterity involves both exploration and exploitation activities. Dynamic capabilities play a crucial role in facilitating these activities. Supermarkets operate in a dynamic and competitive environment. Dynamic capabilities help them adapt to changing market conditions. For example, if a supermarket identifies a shift in customer preferences towards organic products, dynamic capabilities can help in quickly sourcing and stocking these products, thereby improving performance.

Purpose: This paper examines how individual-level characteristics shape inventors’ ability to absorb knowledge spillovers. While prior research has focused on firm- or regional-level determinants, this study investigates the micro-foundations of spillover absorption by analyzing how education, experience breadth, and mobility jointly influence knowledge diffusion. Methodology: Using inventor-level data from the PatVal-EU survey covering 6,327 inventors in six European countries, a series of binary probit models estimates the probability of absorbing near and distant knowledge spillovers. Three hypotheses are tested on the influence of labor mobility, knowledge breadth, and depth on knowledge spillover absorption. Six model specifications separately and jointly assess these effects. Findings: Results show that inter-regional mobility significantly increases the probability of absorbing knowledge spillovers, while intra-regional or residential mobility has a limited influence. Education depth positively affects spillover absorption up to the Master’s level, but PhD education yields no additional benefit, suggesting diminishing returns to knowledge depth. The Herfindahl Index of experience concentration is negative and significant, indicating that broader technological experience enhances absorptive ability. Contrary to the hypothesized inverted-U pattern, knowledge breadth positively linearly affects spillover absorption. The results confirm that mobility and absorptive capacity complement each other, helping individuals internalize knowledge from geographically Unique Contribution to Theory, Practice and Policy: The study extends absorptive capacity theory to the individual level, demonstrating that education, cognitive diversity, and mobility jointly determine spillover absorption. It contributes to innovation policy and practice by emphasizing the benefits of promoting inter-regional mobility and the importance of both depth and breadth of knowledge.

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We empirically examine the effects of basic research on the technological capabilities of Chinese A‐share listed manufacturing firms. Using manually collected corporate publication data to measure basic research activities, our findings reveal that firms with higher quantities and quality of basic research tend to engage in innovation activities within their existing knowledge base. These firms explore a broader range of technological fields and demonstrate enhanced capabilities in utilizing and creating knowledge. They also exhibit higher levels of both quantity and quality in their innovation output, which remains stable over time. Moreover, firms with basic research maintain their technological advancement even after facing external sanctions from the U.S. Heterogeneous analysis reveals that the impacts of basic research are more pronounced in mature and larger firms. This study highlights the significance of basic research for corporate technological catch‐up efforts in transitioning middle‐income countries during the later stages of catch‐up.

Korea’s technological achievement in the thin film transistor liquid crystal display (TFT-LCD) industry became possible primarily through a catch-up strategy in technological development. Through qualitative and quantitative analyses of the Korean TFT-LCD industry’s knowledge management, the researchers highlight the strategies that key Korean firms utilized to enable a successful technological catch-up. On a national level, patent citation information is analyzed to evaluate the Korean industry’s technological knowledge position compared to other Asian countries. Results from this analysis indicate that Korea plays a central role within the knowledge network, as evidenced by the highest centrality value. On a firm level, Samsung and LG Display are investigated in the areas of technological development and manufacturing strategies. Samsung and LG Display show strength in the technological specialization of devices’ arrangements/optical operation and arrangement/circuits of control indicating devices. In addition, these two firms show more diversification to allow for new business opportunities. By integrating quantitative and qualitative methods to analyze the TFT-LCD industry on national and firm levels, this research demonstrates the industry’s trajectory with depth and precision. In addition, this study contributes a meaningful strengthening of analysis methods in technological knowledge management and provides successful management factors for new latecomers in the industry.

ABSTRACT The prerequisite of developing countries’ economic growth is to move along the technological development trajectory through technological learning, and large firms as hubs of technological knowledge, play an important role in this transition. In this paper, we tried to bridge two main taxonomies in the field of technological development, one of them referring to taxonomies of firms, and the other one referring to technological learning processes. We have identified technological learning processes in several post catch-up large firms through content analysis and then by employing a survey approach, we explore technological learning processes of Iranian large firms. The results indicate that as per scale-intensive firms in Iran, learning by doing, learning by using, learning by interacting and learning from spillovers are respectively the most important technological learning processes. Regarding large science-based firms, learning by searching, learning by interacting and learning from spillovers are the key learning processes. Finally, these results have been compared with those of post catch-up large firms.

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: In the context of anti-globalization and the escalation of strategic game between China and the United States, the study of global value chain potential and enterprise innovation has important theoretical and practical value. This paper explores how the changes in position and participation in the global value chain network affect enterprise innovation. Taking data from 1995 -2023 empirical research finds that: position in the global value chain network has a positive effect on knowledge dissemination and innovation; positive centrality is often positively correlated with enterprise innovation activities, which is particularly important for export enterprises; global value chain hub enterprises, especially key suppliers, benefit from knowledge spillover in the downstream market. The study confirms the importance of being the center of the global value chain network, and the decline of the manufacturing center reflects the deindustrialization and transition to the service industry. Based on the above conclusions, this paper puts forward policy suggestions to improve trade openness, expand the network of free trade agreements, improve export support services, and accelerate the pace of international opening up for scientific and technological innovation.

The rise of AI has been rapid, becoming a leading sector for investment and promising disruptive impacts across the economy. Within the critical analysis of the economic impacts, AI has been aligned to the critical literature on data power and platform capitalism - further concentrating power and value capture amongst a small number of"big tech"leaders. The equally rapid rise of openness in AI (here taken to be claims made by AI firms about openness,"open source"and free provision) signals an interesting development. It highlights an emerging ecosystem of open AI models, datasets and toolchains, involving massive capital investment. It poses questions as to whether open resources can support technological transfer and the ability for catch-up, even in the face of AI industry power. This work seeks to add conceptual clarity to these debates by conceptualising openness in AI as a unique type of interfirm relation and therefore amenable to value chain analysis. This approach then allows consideration of the capitalist dynamics of"outsourcing"of foundational firms in value chains, and consequently the types of governance and control that might emerge downstream as AI is adopted. This work, therefore, extends previous mapping of AI value chains to build a framework which links foundational AI with downstream value chains. Overall, this work extends our understanding of AI as a productive sector. While the work remains critical of the power of leading AI firms, openness in AI may lead to potential spillovers stemming from the intense competition for global technological leadership in AI.

The knowledge spillover theory of entrepreneurship (KSTE) explores the effects that new knowledge and proximity have on the exploitation of entrepreneurial opportunities and the resultant creation of start-ups. This paper aims to identify the types of knowledge spillovers that affect entrepreneurs in the early stages of start-up development. A conceptual model is proposed, using a multi-case study approach involving high-tech start-ups that have attended accelerator and incubator programs in Greater London, United Kingdom. The research involved 32 semistructured interviews with chief executive officers and cofounders of start-up companies. Our findings suggest that entrepreneurs are influenced by various forms of knowledge spillover which assist in determining the strategic decision of the company, in terms of formation, including partnerships or alliances, allocation of Research and Development budgets, and engagement in product innovation. Further observations confirm that high-tech start-ups focus on a fast pace of constant product innovation to cover identified gaps in the market. One significant finding is that start-ups use various technological platforms to access knowledge spillovers which challenge the ideas of geographical proximity present in existing KSTE understanding.

As an entertainment medium, movies are closely related to everyone's daily life. Using film industry data can help understanding how a country's industry develops and progresses. It is widely seen in many contexts that companies can learn from competitors to improve quality and adopt technology. This project uses detailed film production data to understand the upgrading process of China's film industry over the past decade. The study finds that foreign filmmakers produce significantly more feature films. Feature films are a special type of film that are more technical and require large visual teams. It finds that foreign films have more visual team members than domestic ones. It shows that domestic film productions catch up by hiring foreign visual team members. It is illustrated that how strategically hiring foreign experts promotes domestic industry upgrading and technological knowledge transfer. Film industry data provide unique insights into these human resource channels to narrow the capability gap between domestic and foreign producers. These results provide insights into the channels behind industry upgrading.

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Faced with the challenges of increasing demand and expanding emissions, China’s mining industry is at a crucial stage of sustainable development. In the context of the new technological revolution and industrial transformation, researching how the digital economy can promote the growth of green total factor productivity (GTFP) in China’s mining industry, particularly against the backdrop of technological diversity, is vital for achieving sustainable development and carbon neutrality goals. This study utilizes the meta-frontier Malmquist–Luenberger (MML) index to analyze the dynamics of GTFP in China’s mining industry under technological heterogeneity. It thoroughly examines the direct and indirect impacts of the digital economy (DE) on GTFP and delves into the underlying mechanisms of these effects using the spatial Durbin model. The empirical results reveal a significant positive relationship between DE and GTFP, particularly pronounced in the areas of technical efficiency and technological catch-up. Notably, this study identifies the mediating role of industrial structural upgrading in linking DE and GTFP. Additionally, the observed spatial spillover effect of DE on local mining GTFP suggests that the influence of DE extends beyond the immediate regions within the mining sector. Based on these findings, the study presents policy recommendations, emphasizing the need to integrate cutting-edge digital technologies in mining to enhance environmental sustainability.

Power battery recycling (PBR) has triggered profound changes in the industrial chain of electric vehicles (EVs). The PBR innovation network provides information channels and resource conditions for enterprises, but the mechanism of its impact on the synergistic innovation benefits and sustainable development ability of EV and PBR enterprises still needs further exploration. In this paper, we collect patent data for PBR from 2012 to 2020, identify the structural characteristics of innovation networks, and construct a synergy game model for PBR technology, aiming to analyze the synergistic effect of network embedding and knowledge spillover in PBR enterprises on technological innovation. First, we find that the PBR innovation network exhibits the small-world effect, which has a double-edged sword effect on technological cooperation innovation. Second, structural holes benefits of the main body of PBR technological innovation have a significant impact on cooperation innovation behavior. Third, the enhancement of the relevance and deep complementarity of knowledge cooperation is sufficient to make up for the input cost of PBR technological cooperation innovation, with additional benefits created by the increase in the output of structural holes. However, companies tend to be more inclined toward non-cooperative innovation as the knowledge spillover effect of the innovation network increases.

Abstract This study examines productivity convergence among Chinese manufacturing firms over the period 2000–2020. The research found evidence of club convergence, where firms converge toward different productivity levels rather than a single steady state within specific sectors. The number of convergence clubs varied by industry and over time, indicating heterogeneity in productivity development across firms. The speed of productivity convergence among firms within an industry generally decreased over the four Five-Year Plans, suggesting that over time it became more difficult for less productive firms to catch up. The presence of state-owned enterprises (SOEs) in an industry was found to be positively associated with faster productivity convergence, indicating SOEs may help in knowledge dissemination and facilitate catch-up of lagging firms. Strengthening intellectual property protection over time was also linked to slower productivity convergence, as it increased the costs of knowledge spillovers. The results highlight how the industrial presence of SOEs and the trend of strengthening intellectual property protection could impact productivity convergence among manufacturing firms.

new external knowledge, the low level and not wide range of these absorptive capacities. The lack of absorptive capacities can be considered a catch-up trap, along with a lack of resource capabilities, ineffective institutions, and unpreparedness of production chains for technological change.

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Patent strategy is increasingly recognized as a vital contributor in promoting core competitiveness of an enterprise. A top management team (TMT) has been indicated as one of the key factors driving changes in patent strategy. Based on upper echelons theory, this study examines how TMT characteristics, including, team diversity, emotional intelligence, and safety climate, influence enterprise patent strategic change and, hence, the business outcome. The data from 930 top managers in 228 enterprises showed that the changes in patent strategies are significantly influenced by the characteristics of top managers. These aforementioned internal TMT factors have diverse effects on the speed and scope of the enterprise patent strategic change, which in turn affects firm performance in a positive and negative way, respectively.

Despite the recent complex intertwining of firms in fierce intellectual property disputes, the formation mechanisms of patent infringement litigation relationships between firms have been little studied from a network science perspective. We construct an inter-firm patent litigation network using longitudinal data on patent infringement litigation and the firms involved in the US, and examine its structural characteristics and the mechanisms of tie formation through network motif analysis, linking it to existing knowledge on negative ties. The results reveal the significant influence of mechanisms such as homophily, popularity, and activity on network formation, with reciprocity emerging as a pivotal factor. The absence of triadic closure is also observed. This distinct structural pattern is consistent across different technological fields and throughout the 20-year period. Furthermore, our analysis delves into the rapid countersuit strategies common within this network and provides valuable insights into patent litigation strategies between firms.

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ABSTRACT This study investigates the dynamics of patent alliances, underscoring their strategic relevance for firms pursuing technological innovation and market leadership. We address the issue of opportunistic behaviour stemming from the contractual gaps in these alliances, proposing strategic measures to curtail such conduct and bolster alliance robustness. Utilising Evolutionary Game Theory (EGT), we conduct numerical simulations to analyze the motives for alliance formation, the efficacy of anti-opportunism strategies, and their influence on alliance durability. The study highlights how regulatory policies increase repercussions, fostering cooperative alliances. Our simulations, predicated on defined parameters such as the likelihood of detecting and sanctioning opportunistic actions, showcase how these factors shape the strategic decisions of alliance members. This study enriches the theoretical discourse on patent alliance management by integrating the EGT approach, shedding light on effective deterrents against opportunistic behaviour and mechanisms fostering alliance solidarity. We advocate for a synchronised approach that aligns stringent regulatory practices with corporate strategies to ensure the resilience and success of patent alliances, crucial for navigating the complexities of competitive technology markets and maintaining long-term alliance efficacy. This comprehensive strategy is essential for managing the intricacies of patent alliances and securing their long-term viability and productivity.

Using comprehensive microdata from the Chinese Patent Survey, we examine the appropriation strategies that firms use to capture value from their innovations and assess the motivations underpinning these strategies. Although Chinese firms exhibit a robust overall preference for patents, we find that firms often use patents for reasons other than directly protecting intellectual assets from competitors. In particular, our results suggest that firms utilize patents to secure external financing and negotiate third‐party production contracts, while relying on secrecy and/or first mover advantage to protect against competitor imitation. Furthermore, we find that firms pursuing the most expensive R&D projects exhibit a relative preference for secrecy over patents, consistent with theories that predict the use of secrecy to protect a firm's most valuable intellectual assets. Our results provide novel insights into China's recent patenting surge and help inform policy efforts to encourage domestic innovation in developing economies.

ABSTRACT Patent quality (PQ) is a critical and complex factor of a firm’s patent strategy. We posit that the existing PQ models and their methodological approaches are limited in their ability to address the multiple priorities of PQ – a firm’s strategic intentions, its stakeholders and balancing technology superiority and legal validity. We advance PQ literature by identifying the fourth generation of strategic PQ indicators and propose a hybrid multi-criteria model, based on AHP–TOPSIS, for patent portfolio measurement. The proposed PQ model provides a simple template that can guide the decisions of patent managers pursuing high quality patent portfolios. We test the PQ model by applying it in two sectors: 3G WCDMA telecommunications and biotechnology.

Industry associations play a pivotal role in national innovation systems (NIS) in emerging economies. As institutional intermediaries, they provide firms with resources and information while also imposing administrative interventions that can reduce efficiency and undermine the interests of smaller firms. Consequently, the impact of these associations on firm innovation remains ambiguous. Drawing on the strategic tripod perspective, this study investigates how industry associations influence firm innovation contingent upon firm resource endowments and industry conditions. Using a nationally representative sample of Chinese SMEs from the China Micro and Small Enterprise Survey, we estimate logistic regression models to examine how association membership shapes firms’ patenting outcomes. Our results provide rigorous empirical evidence that industry associations are not neutral but embody an “elite-capture” bias by prioritizing firms with strong technological resources and close political ties. Moreover, although industry associations generally promote firm innovation, this positive effect reverses in highly competitive environments, whereas high-tech industry affiliation amplifies the innovation benefits of membership. These findings remain robust after six robustness checks, including propensity-score matching, the Heckman selection model, and control function methods. Our study provides a nuanced understanding of the dual role of industry associations in firm innovation from the strategic tripod perspective and highlights their conditional influence within NIS in emerging markets.

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Japan’s postwar first movers have ceded advantage to latecomer rivals, most notably Korea, despite enduring strengths in quality, precision, and long-term capability development. This paper offers a conceptual, comparative explanation of that reversal by arguing that national corporate governance architectures condition firm-level competitive dynamics through two core mechanisms: absorptive capacity and organizational inertia. The analysis deploys Moon’s ABCD framework as a process-based lens to explain how advantage is built, renewed, or eroded. Synthesizing work on Japan’s coordinated, bank-centered governance and Korea’s owner-centered, centralized governance suggests a clear contrast: mature coordination tends to depress realized absorptive capacity, build structural and routine inertia, and bias learning toward domestic reference points, constraining timely adaptation, whereas under intense external pressure, concentrated ownership and centralized authority can enable rapid strategic commitment, outward benchmarking, and cross-affiliate recombination that convert potential into realized absorptive capacity and selectively overcome inertia while sustaining goal-oriented effort. The paper examines the dynamics of governance, absorptive capacity, organizational inertia, and ABCD processes in relation to competitiveness. It outlines an empirically tractable comparative design for Japan and Korea using firm-level indicators of governance and performance. Contributions include reframing first-mover decline and latecomer ascent as governance-conditioned learning and resistance-to-change dynamics, integrating absorptive capacity and organizational inertia as mediators between governance and ABCD, and deriving implications for strategy, governance reform, and policy in the Asia–Pacific.

ABSTRACT This study has two separate analyses that examine (i) how a firm's patterns of technological and product diversification are determined through the coevolution of technological knowledge and products, and (ii) the combined role of technological and product diversification in shaping sales growth. We build a dataset of listed manufacturing firms in Korea over the period 1988–2014 by merging financial, patent, and product information. In the first analysis, we find that specialised knowledge in the firm plays an important role not only in improving products in existing market segments but also in developing products in new segments. The second analysis observes that firms with diversified product portfolios based on specialised knowledge show higher sales growth compared to other firms. Our findings suggest that firms need to accumulate specialised knowledge and apply it to products in diverse market segments.

This paper will focus on how firms formulate the patent portfolio considering the technology acquisition strategy- internal technology development and external technology acquisition by using patent self-citation network analysis. The research sample is patent pool of the Monsanto Company including 5263 internal patents, 498 external acquiring ones and 860 license-out ones. In the Network Centrality analysis, the result showed that the in-degree centrality of the external acquiring patents have higher value than the internal patent development. That is mean that external technology source provided the complement knowledge for internal technology development in the knowledge creation process. Besides, internal patent have higher out degree centrality than the other two types of patent. Therefore, this study suggested that patent analysis in the firm-level should include external-acquisition technology and the results could show the real patent portfolio of the competitors.

In technology-intensive industries, firms form alliances with each other to promote knowledge transfer and pool resources. The benefit that a firm is able to obtain through its alliance activities depends on a variety of factors. The patent portfolio of the focal firm is one of such factors that influences the role of alliance in enhancing firms' performance. As different facets of a firms' decision making process, alliance strategy and patent strategy need to be coordinated in a way that optimizes its innovative performance. Using a dataset comprised of 182 biotechnology start-ups, we show that a firm's alliance strategy and its patent strategy interact in subtle ways to impact innovative performance. The results indicate that firms engaging in more exploitation alliances should maintain a patent portfolio that is comprehensive in both depth and breadth. In contrast, for firms with more exploration alliances, a deep and broad patent portfolio would decrease the positive role of alliance in improving performance.

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Emerging market firms often make the acquisition of technology the focus of their main internationalisation strategy, creating a kind of "reverse internationalisation" pattern which both adds to and poses challenges to the standard multinational firm theories based on monopoly rents. Cross-border M&A, strategic partnerships and the establishment of overseas R&D facilities are identified as the main channels for emerging market firms to source the critical external technologies. However, the success of technology transfer is largely dependent on the firms' following innovation policy. Emerging market firms must go through a process of capability building to absorb and incorporate the technologies, market-driven incremental innovation and finally, independent innovation so that they can improve their status in the global value chain. The systematic study of this process provides a coherent framework for understanding the international expansion of firms from emerging economies, and provides useful practical guidance for corporate strategic planning. It also has important implications for the policymakers, investors and managers who are in charge of or helping to oversee such cross-border technological upgrading processes globally.

Among enterprises in emerging economies represented by China, R&D internationalization is an important strategic choice, aiming to obtain advanced technological resources and achieve competitive advantages. Taking listed companies in the information transmission, software and information technology services, and scientific research and technology services industries in China from 2018 to 2022 as research objects, this paper explores the impact of R&D internationalization on innovation performance, and examines the moderating role of financial slack in this relationship from the perspective of slack resources in organizational theory. The results show that there is a positive relationship between R&D internationalization and innovation performance. Further research shows that from the perspective of organizational theory, financial slack will positively strengthen the role of R&D internationalization in promoting corporate innovation performance. This paper discusses the moderating role of financial slack in this relationship for the first time. The research results have important practical implications for enterprises in emerging economies to formulate R&D internationalization strategy and improve innovation performance.

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Although R&D internationalization plays an important role in enterprises’ globalization, few studies explore the mechanism of R&D internationalization and emerging market companies’ innovation, or the relationship between R&D internationalization, domestic technology alliances and absorptive capacity. How does the R&D internationalization of emerging market enterprises affect the innovation of those enterprises? Under fierce market competition, do absorption capacity and domestic technology alliances have a significant impact on enterprise innovation? From the perspective of the knowledge-based view, this paper studies 185 enterprises undergoing R&D internationalization in China from 2012 to 2017, using high-dimensional Poisson fixed effects model, we use instrumental (HDFE IV) estimation to explain the impact of R&D internationalization on the innovation of the parent company and the mechanism behind it. The study finds that R&D internationalization positively promotes the parent company’s innovation, and domestic technology alliances and absorptive capacity play a partial mediator role in R&D internationalization. In the face of fierce market competition, domestic technical alliances play a significant role in promoting enterprise innovation, while absorptive capacity plays a negative role in promoting enterprise innovation with the moderating effect of market competition.

Drawing on organizational learning and dynamic capability perspectives, this study aims to examine the distinct and sequential roles of potential and realized absorptive capacity in influencing firms’ innovation performance. Specifically, the authors investigate how firms develop potential absorptive capacity through the acquisition and assimilation of knowledge from international technology partnerships, international suppliers and international customers and how this capacity is subsequently converted into realized absorptive capacity – the transformation and exploitation of knowledge – to generate innovation. By unpacking these absorptive-capacity processes, the authors explain how access to internationally embedded knowledge sources enhances firms’ ability to internalize and recombine external knowledge, thereby improving innovation outcomes. The authors use qualitative interviews and survey data from Canadian small- and medium-sized firms. The authors employ bootstrapped partial least squares structural equation modeling to test the hypotheses. To ensure robustness, the authors ensure the model’s validity, reliability and address common method bias. In addition, the authors address endogeneity concerns by applying the Gaussian copula approach. The results support the hypotheses that firms engaged in international technology partnerships and sourcing from international suppliers have greater opportunities to develop potential absorptive capacity than domestically focused firms. This enhanced potential absorptive capacity, in turn, facilitates the development of realized absorptive capacity, which positively affects innovation performance. The study advances existing research by shifting the focus from internationalization–innovation associations to the process-based mechanisms through which firms convert international knowledge exposure into innovation outcomes. Rather than treating absorptive capacity as a unitary construct, the authors distinguish between potential and realized absorptive capacity and theorize their sequential roles in acquiring, assimilating, transforming and exploiting knowledge obtained from international technology partnerships, international suppliers and international customers. By integrating insights from literature on learning through exporting, importing and R&D alliances into a unified process framework, the study provides a more fine-grained explanation of organizational learning by internationalizing. In doing so, it contributes to international business and innovation research by demonstrating how the subprocesses of potential and realized absorptive capacity operate as distinct but interdependent mechanisms linking international engagement to innovation performance.

The rapid advancement of Chinese complex products and systems (CoPSs) enterprises marks their transition into a post-catch-up phase, challenging the conventional theories of catch-up. In this article, we employ a configurational approach to explore the intricate relationships between catch-up environments and strategies, specifically focusing on the distinct paths of state-owned enterprises (SOEs) and non-state-owned enterprises (non-SOEs) within the CoPS sector. Utilizing fuzzy-set qualitative comparative analysis with data sourced from the EU industrial research and development (R&D) investment scoreboard (2017–2020) and corresponding Chinese-listed companies, our research identifies diverse catch-up configurations for SOEs, characterized by “complexity adoption” and “complexity decipher” models. In contrast, non-SOEs encounter challenges in strategically adapting to environmental shifts, which affects their catch-up strategies. Our findings emphasize the critical role of strategic alignment with external conditions, technological learning, and resource utilization in achieving successful catch-up in CoPS. These configurations enable SOEs to effectively align internal resources with external opportunities, resulting in superior catch-up performance. In contrast, non-SOEs encounter significant obstacles in adapting to environmental changes and optimizing resource utilization, which hinders their ability to attain similar successes. Moreover, our study sheds light on specific challenges faced by non-SOEs in responding to environmental shifts. This enriched understanding provides valuable theoretical insights into the catch-up of latecomer CoPS enterprises and has practical implications for both policymakers and business practitioners.

In the context of digital transformation and economic globalization, R&D (research and development) internationalization is essential for enterprises to utilize global resources and achieve technological innovation. This study examines Chinese A-share-listed industrial companies with active overseas R&D from 2010 to 2022 using a Poisson panel fixed-effects model to assess how digital transformation influences R&D internationalization. The findings confirm that digital transformation significantly enhances the depth and breadth of R&D internationalization, even when controlling for endogeneity. The analysis identifies financing constraints and information communication efficiency as key mediators in this process. Additionally, the impact varies by the type of digital technology and the geographical location of the enterprises. This research not only deepens understanding of the link between digital transformation and R&D internationalization but also aids policy formulation for governments and businesses.

The purpose of this study is to identify and characterize the structure and dynamics of global R&D collaboration networks in ICT by analyzing cross-country co-patents, with a special focus on the role of China. We employ a Social Network Analysis (SNA) perspective, using information on more than 77 thousand co-patents from 2001–2015. These co-patents are disaggregated by three time periods and four ICT subsectors. Global measures for the network as a whole, as well as local measures on the positioning of countries in the networks are interpreted. The empirical results are highly interesting. First, international R&D collaboration networks in ICT show a dynamic transformation in becoming larger in magnitude (more countries but also more inter-linkages), less centralized and more densely connected, though with varying degrees across ICT subsectors. Second, the powerful position of the US weakens relatively compared to other, increasingly connected countries, in particular China. While China has already surpassed the US in total patenting in ICT in 2015, China is now also catching up from a network perspective shown by its growing central position over the observed time period.

ABSTRACT This study examines why less developed economies’ (LDEs) or less lucrative industrialization fail to catch up. This study establishes a mathematical model to analyse how a potential entrant into the high-tech industry with a technology barrier that requires intellectual property usage right (IPUR) comprehensively utilizes binary internal-external technology capability and quaternarily trade-offs. The trade-offs involve exclusively independent R&D and three forms of technology capability transfer (TCT): pure TCT, IPUR licencing and intellectual property ownership right acquisition. The model reveals a substitutive-complementary relationship between internal-external technology sourcing, analyses entrant-incumbent bargaining influence in the entrant’s trade-off and clarifies why entry fails. Two technology thresholds indicate the importance of aggregate technology stock; only a high-tech candidate entrant enters profitably. Additionally, costly external TCT impacts entry. In particular, an entrant with an extremely poor endowment suffers from Matthew’s effect, amplifying entry difficulty and highlighting the significance of LDEs’ technology capability independence. Furthermore, we conduct numerical simulations to confirm our solutions of technology thresholds and Matthew’s effect, shedding light on the factors making LDEs’ entry less successful. High aggregate stock and high independence of the entrant’s technology capability are significant in ensuring successful entry or high profitability. Graphical Abstract

PurposeHow to support the rapid internationalization of multinational enterprises (MNEs) is a hot topic in academia and industry. The main purpose of this work is to study the role of relational assets (R-assets) in promoting the speed of internationalization of MNEs, and to explore the moderating effect of environmental uncertainty (institutional environment and industry environment) on the relationship between R-assets and internationalization speed of MNEs.Design/methodology/approachThis study uses the outward foreign investment data of China’s A-share listed enterprises from 2009 to 2021, and employs the Cox proportional hazards model to empirically test the research hypothesis.FindingsThe empirical results revealed that R-assets can promote enterprise internationalization speed. In addition, the study also finds that the institutional uncertainty of host countries weakens the promotion effect of R-assets on internationalization speed of MNEs, while the industry uncertainty strengthens the promotion effect of those. Heterogeneity analysis illustrates that, compared with state-owned enterprises, non-state-owned enterprises have a more significant effect on the above conclusions.Originality/valueThis study enriches the literature on internationalization speed of MNEs by focusing on the determinants of internationalization speed through R-assets. From the perspective of knowledge, the work also provides a theoretical reference whereby MNEs can use host country R-assets to accelerate knowledge acquisition and then internationalization practice. In conclusion, this study provides valuable insights for managers aiming to develop effective strategies through R-assets to achieve rapid internationalization, contributing to an emerging literature stream on catch-up for emerging-market MNEs.

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With the accumulation of Chinese enterprises’ international experience and the continuous improvement of technological capabilities, strategic-asset-seeking foreign direct investment (OFDI) has become a means for enterprises’ technological catch-up. Based on the Awareness-Motivation-Capability (AMC) framework of dynamic competition theory, the paper explores the dynamic mechanism of Chinese enterprises’ strategic asset seeking OFDI by using the fuzzy-set Qualitative Comparative Analysis (fsQCA) method. Empirical research based on 87 Yangtze River Delta manufacturing enterprises draws four dynamic configurations of strategic asset-seeking OFDI, i.e. awareness-driven, motivation-driven, capacity-driven, and awareness-capacity-collaborate-driven. Therefore, the enterprises should increase the R&D investment and broaden the strategic vision while paying more attention to the cultivation of absorption capability.

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Internationalization of research and development (R&D) is a double-edged sword: on the one hand, it is understood as a driving force of global innovation performance; on the other hand, from a national perspective it is often perceived as a threat to domestic efforts. Against this background, we compare the contribution of domestic and international knowledge sourcing to the productivity of Swiss firms. We find a positive productivity effect of knowledge-sourcing activities in geographically close countries (in the European Union [EU]). Domestic knowledge alone or from other world regions does not yield positive productivity effects. We provide evidence that companies that source international knowledge to generate innovative products benefit disproportionately from knowledge sourcing in the EU and that both knowledge- and market-seeking motives may be relevant to this result.