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

Author

Listed:
  • Crystal X. Jiang
  • Qin Yang
  • Sangcheol Song
  • Madan Annavarjula

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.

Suggested Citation

  • Crystal X. Jiang & Qin Yang & Sangcheol Song & Madan Annavarjula, 2016. "Emerging markets firms' catch-up strategy in new product development: cases from Chinese companies," International Journal of Business and Emerging Markets, Inderscience Enterprises Ltd, vol. 8(3), pages 324-339.
    • Handle: RePEc:ids:ijbema:v:8:y:2016:i:3:p:324-339
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