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The purpose of this paper is to focus on “how to create value from collaborative innovation,” which is a core question when companies plan open-innovation initiatives…
The purpose of this paper is to focus on “how to create value from collaborative innovation,” which is a core question when companies plan open-innovation initiatives. China’s Huawei Technologies is taken as the main case study, with other companies’ practices as further examples to elaborate and validate a new yet practical model.
This paper is based on the direct experience over many years of two Huawei technology executives – the very recent head of the technology cooperation department and the current manager of the same unit.
This study provides a spiral four-stage model, named SWIM, with each stage being a decision guided by a 2 × 2 matrix. These stages, named scope, weave, identify and modularize, try to balance resource allocation toward a foreseeable value, though it might be long term.
The research is primarily based on one company. The validity of its recommended model can be tested only after other companies have applied it.
The research offers a practical framework for how companies can improve their open innovation.
Large companies are important players in innovation networks. Improving the ability of large companies to operate open innovation will help many other companies and the society as a whole.
The proposed model is original and provides insights from China and is not a traditional source of management innovation. The paper will also help Western readers get a better understanding of management in what will soon be the world’s largest economy.
The relationship between multinational enterprises (MNEs) and host governments has seen different waves of trust and mistrust. Over the years, it has changed from a period…
The relationship between multinational enterprises (MNEs) and host governments has seen different waves of trust and mistrust. Over the years, it has changed from a period of conflict after World War II, where MNEs were investing for purposes felt to be contradictory to government policies, to a more cooperative one, where countries are providing incentives and competing with each other to attract foreign direct investment (FDI). The 1990s saw the cooperative relationship leading to the danger of race to the bottom through excessive locational competition. In this chapter, we look at the past, present, and future state of this relationship as reported by different scholars from these periods. We look at the most influential literature from the 1970s onward and the current state of this relationship. Our analysis reveals that the increased tensions are caused by anxiety owing to unanticipated developments in the political economy, company strategies, and government policies. Thanks to globalization MNEs are increasingly becoming more powerful and often this process is accelerated owing to lack of any collaboration between MNEs and the governments. Thus, governments, particularly in emerging markets, are becoming more and more frustrated by the fact that on the one hand they want the MNEs to come and invest in their countries and, on the other hand, they feel that they cannot direct these MNEs to contribute toward economic development and poverty alleviation in their countries. In this chapter, we intend to evaluate the past and the present literature and look ahead to the future. Finally, on the basis of our own studies performed in this project and reported in different chapters of this book, we provide some policy guidelines for host country governments as to how they can encourage MNEs to contribute toward sustainable development and poverty reduction.
This study investigates the impact of multinational enterprises (MNEs) on economic and human development in Africa. Specific focus is placed on the local managerial capability building. Capability building is an important part of the Millennium Development Goals (MDGs) framework and is considered a necessary prerequisite for achieving poverty alleviation targets. The low level of local capabilities is a well-recognized issue in Africa. The study also addresses the emerging stream of research devoted to MNEs from developing countries. Such MNEs have a different level of managerial capabilities, a different corporate culture, and different operation models compared to MNEs from developed countries. This study analyzes the industrial development of Ghana and compares cases of Chinese and European MNEs operating in this country. On the basis of multimethod analysis, we provide extensive policy implications.
Access to affordable and sustainable energy is crucial for the improvement of the well-being of modern societies. Most energy technologies require comparatively high…
Access to affordable and sustainable energy is crucial for the improvement of the well-being of modern societies. Most energy technologies require comparatively high up-front investment, which adds to the challenge of electrification, despite the recognized multiple benefits. Partnership with multinational enterprises (MNEs) can provide necessary investment in infrastructure, finance, and technology for renewable energy and contribute to improving development indicators. However, remote areas with poor infrastructure do not have access to MNEs that are profit seekers. The Brazil experience with MNEs and “Light for All” (LfA) program shows that people gaining access to electricity invest more in businesses, education, health, and women reduce their drudgery at household chores. However, areas having a poor infrastructure in the north remain out of electricity, and attempts to create universal access were failed until a regulatory incentive framework and particular attention from the government was established. This is a great learning for the developing countries aiming to achieve sustainable development goals. A host country can gain development cooperation from MNEs with rightly formulated and implemented policies and regulatory conditions.
The purpose of this paper is to review the evolution of policies and practices of open innovation (OI) in China under globalization.
This is a review paper. It combines historical archives and case study approaches, covering policies and practices at both the macro‐ and micro‐levels.
It is found that Chinese firms have in practice employed a variety of OI models since the reforms of science and technology systems in the mid‐1980s. Policies introduced by the Chinese Government with respect to inbound and outbound OI, as well as policies encouraging OI networks, have encouraged Chinese firms to adopt various OI modes and practices. Some critical institutional challenges still need urgent attention and effective efforts to reinforce them.
This paper aims to fill the gap in the literature by providing the first systematic review of the evolution of the policies and practices of OI in China, and exploring the implications for latecomer firms in building indigenous innovation capability. As far as the authors are aware, this is one of the first systematic review studies on OI policies and practices with a focus on emerging economies.
This paper aims to study the evolution of innovation-based dynamic capabilities in informal copycat-style firms. As a kind of informal economical organizations…
This paper aims to study the evolution of innovation-based dynamic capabilities in informal copycat-style firms. As a kind of informal economical organizations, copycat-style firms in many emerging economies play an important role in their development of the economics. The development of Shanzhai firms, Chinese-style copycat firms, from imitation to innovation has become an important micro-foundation of China’s economic growth and the manufacturing development. With the cluster development of the Chinese mobile phone industry as the macro and industrial environment background, this paper chose Beijing Tianyu Communication Equipment Co. Ltd as the typical example of innovation in Shanzhai firms and studied the evolution of innovation-based dynamic capabilities in this company.
This paper chose Beijing Tianyu Communication Equipment Co. Ltd as the typical example of innovation in Shanzhai firms and studied the evolution of innovation-based dynamic capabilities in this company by adopting the leading-edge dynamic capability theory, innovation theory and industrial cluster theory. The authors further discussed how to improve the dynamic capabilities in Shanzhai firms in China.
It is finally suggested that Shanzhai firms should reduce innovation failures and lower damage degree of dynamic capabilities through consistent innovation and paying attention to their innovation improvement.
It will be very significant to research the survival or diminishing of Shanzhai firms from a theoretical perspective, which will eventually enhance property right protection and innovation development in China.