TY - GEN

T1 - Upgrading Technological Capabilities by Developing Country Multinational Companies

AU - Rui, Huaichuan

AU - Cuervo-Cazurra, Alvaro

PY - 2013

Y1 - 2013

N2 - 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.

AB - 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.

M3 - Conference contribution

BT - The 73rd Annual Meeting of the Academy of Management

PB - Academy of Management

T2 - The 73rd Annual Meeting of the Academy of Management

Y2 - 10 August 2013 through 14 August 2013

ER -