Emerging markets firms' catch-up strategy in new product development: cases from Chinese companies

Crystal X. Jiang, Qin Yang, Sangcheol Song and Madan Annavarjula

International Journal of Business and Emerging Markets, 2016, vol. 8, issue 3, 324-339

Abstract: To catch up with their counterparts in global competition, emerging market firms (EMFs) need to build their innovative capabilities for new product development (NPD). Drawing on internationalisation and knowledge management perspectives, we extend Mathews' (2006) 'linkage-leverage-learning' (LLL) framework and present an exploratory analysis of how Chinese firms as an example of EMFs overcome their resource disadvantages and exploit internationalisation opportunities in facilitating their NPD. We suggest that to enhance their NPD, Chinese firms first need to exploit external resources through linking with domestic governments and industrial clusters. Second, Chinese firms should learn from their foreign subsidiaries and hire heterogeneous R%D personnel to facilitate their NPD. Third, top management team members acting as product champions can help Chinese firms leverage their valuable resources in support of their NPD activities. This article contributes to the extant literature by identifying key drivers that facilitate the NPD of Chinese firms.

Keywords: emerging markets; new product development; NPD; linkage; leverage; learning; China; catch-up strategy; innovative capabilities; innovation; internationalisation; knowledge management; external resources; domestic governments; industrial clusters; foreign subsidiaries; R%D personnel; research development; top management teams; product champions. (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (1)

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