Abstract
The success of latecomer firms from the emerging economies challenges the conventional wisdom on entry timing and resource-based competence. Building on research on institutions in emerging economies and the resource-based perspective in strategic management, we propose a model to explain how resource poor latecomer firms in emerging economies catch up with the multinational incumbents. We classify latecomers based on their strategic learning intent as either emulators or blind imitators. The strategic learning intent depends on a firm's complementary assets and its absorptive capacity. Firms that choose emulation develop flexible routines, while firms that choose blind imitation end up with rigid routines. Over time, when there is a need for resource renewal, firms that have flexible routines are better positioned to respond. We take the Chinese mobile phone industry as an exemplar to illustrate the core issues in latecomer catching up of emerging economy firms.
Original language | English |
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Pages (from-to) | 429-450 |
Number of pages | 22 |
Journal | Asia Pacific Journal of Management |
Volume | 25 |
Issue number | 3 |
DOIs | |
Publication status | Published - Sept 2008 |
Externally published | Yes |
Keywords
- Absorptive capacity
- Complementary assets
- Emulation
- Latecomer catching-up
- Strategic intent
- Strategic renewal
ASJC Scopus subject areas
- Business and International Management
- Economics, Econometrics and Finance (miscellaneous)
- Strategy and Management