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Article
Publication date: 23 November 2010

William Abbott Foster and Russell C. Reinsch

The purpose of this paper is to provide a case study of Huawei's leadership role in the Internet Protocol Multi‐media Subsystem (IMS) international standards effort while it…

1835

Abstract

Purpose

The purpose of this paper is to provide a case study of Huawei's leadership role in the Internet Protocol Multi‐media Subsystem (IMS) international standards effort while it developed its own proprietary Softswitch solution. This strategy of leading the standards bodies, developing proprietary standards, and being the low‐cost provider is helping Huawei to become the number one telecom company in the world.

Design/methodology/approach

For this case study over 20 industry experts, both outside of Huawei and within were interviewed, and web resources utilized. The big challenge was the nebulous name IMS which combined technical standards with a vision for the future of the telecommunications.

Findings

It is a common assumption that China is a copier of technology and not one of the world's leaders in terms of technical innovation. China's Huawei Technologies Company Ltd (Huáwei Jíshu Youxiàn Gongsi) is rapidly becoming one of the world's largest telecom manufacturers and one of the key innovators in the telecom field. For example, Huawei is the world's largest supplier of Softswitch products, the software‐based solution that is the backbone for VoIP switching and is also being used in mixed Public Stitched Telephone Networks (PSTN) and VoIP networks. Huawei also plays a leading role in the standards committees for developing Next Generation Network (NGN) solutions and in 2008 Huawei had 300 engineers working on international standard committee bodies. One of the core technologies of NGN is a group of standards grouped together under the title of IMS that makes possible multimedia solutions across a wide number of platforms: cell phone (both GSM and CDMA), landlines, and television. Ultimately, most carriers have continued to invest in the old Time Division Multiplexing technology and have not stepped up to either IMS or proprietary technology. Huawei's foray into IMS demonstrated that though it is a low‐cost provider, it can be counted on to provide a pathway to the most advanced telecommunication capabilities if the customer decides they need them.

Social implications

China is now a leader in the development of global telecommunications standards.

Originality/value

The originality in this paper is its thesis that Huawei's ability to be at the forefront of standards while being the low‐cost provider is critical to Huawei's ability to become the number one telecommunications manufacturer in the world.

Details

Chinese Management Studies, vol. 4 no. 4
Type: Research Article
ISSN: 1750-614X

Keywords

Abstract

Details

Understanding 5G Mobile Networks
Type: Book
ISBN: 978-1-80071-036-8

Book part
Publication date: 24 November 2016

Xiaoyan Luo and Michał K. Lemański

To understand the rationale for foreign direct investment of Chinese electronic companies, their location decisions and entry mode choices

Abstract

Purpose

To understand the rationale for foreign direct investment of Chinese electronic companies, their location decisions and entry mode choices

Methodology/approach

Secondary data on foreign direct investment of the top 100 companies in China’s electronics industry are analysed. The first part covers an exploratory analysis of the industry and the second part presents a comparative longitudinal analysis of three case studies of representative companies: Haier, Huawei, and Lenovo.

Findings

The three key findings are: (1) market-seeking is the primary motivation for foreign direct investment of Chinese companies in the electronics industry, yet the strategic-asset-seeking gains importance as the internationalization of the company advances; (2) foreign investment path normally starts at adjacent foreign markets, but more distant markets are gradually targeted and become more important for the company; (3) wholly owned investments are the preferred market entry modes in the international expansion.

Research limitations/implications

This research is based on secondary data, and more in-depth, interview-based studies are needed to explore the perceptions of decision-makers, and a plethora of contextual factors, which result in specific market entry decisions. As only the 100 largest companies were studied, future research should put under scrutiny also internationalization of smaller firms.

Practical implications

Implications of such findings are discussed in the light of classic internationalization theories as well as the current research on internationalization of companies from emerging/developing countries.

Originality/value

Provides an account of foreign direct investment in a context of a substantial and growing importance for the practice of international business, and identifies an agenda for promising future scholarly inquiries.

Details

The Challenge of Bric Multinationals
Type: Book
ISBN: 978-1-78635-350-4

Keywords

Case study
Publication date: 15 August 2023

Jarunee Wonglimpiyarat

This case study is focused on strategic management of Huawei in sustaining the competitive position in the smartphone market. The discussions in the case study begins with the big…

Abstract

Learning outcomes

This case study is focused on strategic management of Huawei in sustaining the competitive position in the smartphone market. The discussions in the case study begins with the big picture of “Made in China 2025” policy and China’s 14th Five-Year Plan 2021–2025 attempting to change the country’s image from imitation to innovation. The case study then focuses on Huawei, the major provider of network equipment and smartphones, with the alignment of the national policy. The case demonstrates the difficulties faced by Huawei as a result of US ban. The students are challenged to perform in-depth discussions on various issues guided by the instructor using this Teaching Note. The teaching objectives are as follows: students should be able to analyse Huawei business environment and its strategic capabilities in the smartphone market; students should be able to evaluate the extent to which the effects of US sanction would have on Huawei smartphone operation; and students should be able to evaluate the strategies for Huawei to regain a leading position and achieve competitive advantage in the global smartphone market.

Case overview/synopsis

Huawei is the leading company in the information and communications technology (ICT) sector. Ren Zhengfei, Chief Executive Officer (CEO) of Huawei, has set the vision of building a global company that could rival the best in the world. Huawei’s heavy investments in research and development (R&D) have brought the company to be a leading brand in the international market. Huawei was charged as a security threat by the Donald Trump administration in 2019. The USA and its allies banned Huawei products, causing the smartphone shipments plummeted dramatically. The case presents a protagonist, Ren Zhengfei, CEO of Huawei, who built the business from a small company to a leading global ICT company. The growth of Huawei was struck by the US sanction with the supply chain being disrupted by a shortage of advanced chip technology to run the smartphone business. The dilemma addressed in this case study is concerned with how Ren Zhengfei could steer the company out of the crisis.

Complexity academic level

This case study was written for use in the courses of Innovation Management and Technology Strategy. The case is designed to support learning at various levels including the graduate, postgraduate and executive classes. Apart from the guided questions (assignment questions provided in the next section), the instructors should consider which specific areas of Huawei should be further explored to support the class discussions to benefit the students at different levels.

Supplementary materials

Teaching notes are available for educators only.

Subject code

CCS 11: Strategy.

Article
Publication date: 15 September 2022

Shumei Chen and Jia Xu

This paper aims to theoretically and empirically demonstrate the role played by business continuity management (BCM) to address risks such as trade conflicts and natural…

Abstract

Purpose

This paper aims to theoretically and empirically demonstrate the role played by business continuity management (BCM) to address risks such as trade conflicts and natural disasters. This paper also answers whether compliance with international standards such as the International Organization for Standardization (ISO) 22301 is adequate.

Design/methodology/approach

A case study of Chinese telecommunications giant Huawei is conducted to examine how a robust end-to-end BCM system has been established in two decades and in what way it has helped Huawei to efficiently maintain growth under pressure, such as being added to the “Entity List” and the pandemic.

Findings

Huawei case contributes to BCM theory in its approach to establishing the BCM system and its well-established BCM model. Huawei establishes and continually improves its BCM system by applying the Plan (establish), Do (implement and operate), Check (monitor and review) and Act (maintain and improve) cycle. Characterized as 4Ps: BCM policy, BCM process, incident management plan and business continuity plan, Huawei BCM system is shaped into a loop with end-to-end BCM process, covering all steps along its value chain – from suppliers and partners to Huawei itself and then on to its customers – with key initiatives for all domains such as R&D, procurement, manufacturing, logistics and global technical services. In practice, implementing international standards such as ISO 22301 enables Huawei to develop business continuity but not enough. Optimizing the BCM system is an ongoing effort, and BCM maturity is ever present: continually improving Huawei’s own BCM system and benchmarking against best practices available worldwide.

Research limitations/implications

Apart from the case study, other methods such as counter-factual analysis can be used to further test whether Huawei’s BCM system is cost-effective. Another direction for future study is whether suggested BCM maturity levels should be supplemented into ISO 22301. In the digital age, how to use digitalization to ensure business continuity is a current issue not just for practitioners such as Huawei but also for researchers worldwide.

Practical implications

In practice, implementing international standards such as ISO 22301 enables Huawei to develop business continuity but not enough. Optimizing the BCM system is an ongoing effort, and BCM maturity is ever present: continually improving Huawei’s own BCM system and benchmarking against best practices available worldwide.

Originality/value

To the best of the authors’ knowledge, this is one of the first studies to focus on how an organization continually improves the suitability, adequacy and effectiveness of its BCM system, with special attention to standards compliance.

Details

Chinese Management Studies, vol. 17 no. 5
Type: Research Article
ISSN: 1750-614X

Keywords

Expert briefing
Publication date: 2 March 2020

EU policies towards Chinese telecoms firm Huawei.

Details

DOI: 10.1108/OXAN-DB251019

ISSN: 2633-304X

Keywords

Geographic
Topical
Open Access
Article
Publication date: 28 May 2021

Carlos M. Baldo, Richard Vail and Julie Seidel

The aim of this article is to describe Huawei's internationalization process in Venezuela and show how socio-political and economic conditions helped to expedite the company's…

2246

Abstract

Purpose

The aim of this article is to describe Huawei's internationalization process in Venezuela and show how socio-political and economic conditions helped to expedite the company's development in this Latin American nation between 2006 and 2019. Through this internationalization process, Huawei participated in a large technological transition in Venezuelan telecommunications.

Design/methodology/approach

This research uses an integrative approach, developing a quasi-case study from a review of the academic literature, contemporary news stories and institutional and practitioner documents.

Findings

The review indicates that Huawei was engaged in business with the Venezuelan phone company before its renationalization. Secondly, Huawei's internationalization was a beneficiary of the increased relations between the Venezuelan and Chinese governments, mainly through “oil for loans/goods” agreements. Lastly, this internationalization process includes wholly owned subsidiaries, direct export, greenfield and government joint ventures.

Practical implications

This research provides an understanding to other firms and strategists about the benefits of strong bilateral economic relationships between home and host countries.

Originality/value

This paper is among the first academic articles that describe the internationalization process of Huawei in Venezuela. Considering the host country's changing political and economic conditions during the last 20 years, such research may provide a perspective for considering other Chinese business expansions in Venezuela and Latin America.

Details

Revista de Gestão, vol. 28 no. 4
Type: Research Article
ISSN: 1809-2276

Keywords

Expert briefing
Publication date: 14 December 2018

The impacts of the arrest of Huawei's CFO in Canada.

Details

DOI: 10.1108/OXAN-DB240591

ISSN: 2633-304X

Keywords

Geographic
Topical
Article
Publication date: 20 March 2007

Brian Low

The paper aims to identify the challenges faced by Huawei Technologies, China's biggest telecommunications equipment manufacturer, as it makes the transition from an…

18867

Abstract

Purpose

The paper aims to identify the challenges faced by Huawei Technologies, China's biggest telecommunications equipment manufacturer, as it makes the transition from an indigenously‐owned business to a potentially competitive global giant.

Design/methodology/approach

This is an inductive, interpretative case study complimented by hands‐on experience with the industry.

Findings

The paper finds that Huawei lies at a crossroads in a transitional telecommunication sector that is no longer isolated from global reforms and advancement. Through internationalisation the company has learned to compete by adjusting their mechanisms, learning instruments and focus.

Originality/value

The paper is useful for practitioners in that it shows how indigenous companies in latecomer industrialising countries like China can overcome the late mover position in some of the advanced markets they have entered. For academics it highlights the role of government in helping to construct competitive indigenous firms that could take on global giants.

Details

Journal of Business & Industrial Marketing, vol. 22 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 17 June 2009

Sunny Li Sun

With the current rise of multinational enterprises (MNEs) from emerging economies (EE), more attention is now being directed to EE MNEs and what drives the internationalization of…

10219

Abstract

With the current rise of multinational enterprises (MNEs) from emerging economies (EE), more attention is now being directed to EE MNEs and what drives the internationalization of these companies. In this article we aim to provide more insights into the strategies and development of EE MNEs by conducting an in‐depth study of a Chinese high‐tech company in the communications equipment industry: Huawei. Our case study proposes that EE MNEs (1) tend to nurture their capability in the domestic market as a base before internationalization; (2) prefer to enter markets with fewer barriers in cultural, technological, economic, and institutional distances to accumulate experience and move up the value curve; and (3) use inward and outward linkages to complement their strengths and offset their weaknesses in the global market. Our study on the internationalization patterns of EE MNEs enriches and broadens current MNE theory.

Details

Multinational Business Review, vol. 17 no. 2
Type: Research Article
ISSN: 1525-383X

Keywords

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