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When can Chinese competitors catch up? Market and capability ladders and their implications for multinationals

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  • Williamson, Peter J.
  • Guo, Bin
  • Yin, Eden

Abstract

Chinese companies have been more successful in catching up with and sometimes surpassing, their global competitors in some industries but not all of them. This holds true for markets in China and international markets. In this article, we show how both the demand and the supply sides of an industry explain these differences, in terms of the existence of market and capability ladders that can help a new competitor climb from the low end, though the middle, and to the top. We then propose several alternative strategies that multinational companies can follow to respond to growing Chinese competition and recommend strategies with the most potential for a particular market and industry.

Suggested Citation

  • Williamson, Peter J. & Guo, Bin & Yin, Eden, 2021. "When can Chinese competitors catch up? Market and capability ladders and their implications for multinationals," Business Horizons, Elsevier, vol. 64(2), pages 223-237.
    • Handle: RePEc:eee:bushor:v:64:y:2021:i:2:p:223-237
    DOI: 10.1016/j.bushor.2020.11.007
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    References listed on IDEAS

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    Cited by:

    1. Kwak, Kiho & Kim, Namil, 2022. "Industrial Leadership Changes without Technological Discontinuity: Modularization, Institution-Led Market Discontinuity, and Market Development Strategy," Technological Forecasting and Social Change, Elsevier, vol. 180(C).

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