Upgrading Technological Capabilities by Developing Country Multinational Companies

Huaichuan Rui, Alvaro Cuervo-Cazurra

Research output: Chapter in Book/Report/Conference proceedingConference contribution

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We study the process by which developing country multinationals (DMNCs) upgrade their technological capabilities to international levels. The case study of the Chinese telecommunication equipment manufacturer Huawei supports three conclusions. First, despite some views that DMNCs are technological laggards, we show that DMNCs can reach levels of technological sophistication of advanced economies in a compressed manner. Second, the way DMNCs improve their technological capabilities is by raising the mode of technology upgrading, moving across reengineering, replacing, refining, and recreating capabilities to reach the technological frontier. Third, managers at DMNCs raise the mode of technological upgrading by the continuous stretching of the skills and knowledge of engineers. These ideas extend the study of dynamism in capability life cycles and the creation of dynamic capabilities generated from studying ‘Western’ firms operating in countries with sophisticated innovation systems by explaining the development of technology in countries with weak innovation systems.
Original languageEnglish
Title of host publicationThe 73rd Annual Meeting of the Academy of Management
Subtitle of host publication“Capitalism in Question”
PublisherAcademy of Management
Publication statusPublished - 2013
EventThe 73rd Annual Meeting of the Academy of Management - Orlando, United States
Duration: 10 Aug 201314 Aug 2013


ConferenceThe 73rd Annual Meeting of the Academy of Management
Country/TerritoryUnited States

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