Innovation-orientation, dynamic capabilities and evolution of the informal Shanzhai firms in China: A case study
Journal of Entrepreneurship in Emerging Economies
ISSN: 2053-4604
Article publication date: 7 March 2016
Abstract
Purpose
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.
Design/methodology/approach
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.
Findings
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.
Originality/value
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.
Keywords
Acknowledgements
The authors acknowledge with much appreciation the many constructive comments of Professor Xiaolan FU, Oxford University. A grant from the National Foundation of China Government supported this research (No. 71272192, 10YJA630128, 14BGL052).
Citation
Ren, R., Yu, L. and Zhu, Y. (2016), "Innovation-orientation, dynamic capabilities and evolution of the informal Shanzhai firms in China: A case study", Journal of Entrepreneurship in Emerging Economies, Vol. 8 No. 1, pp. 45-59. https://doi.org/10.1108/JEEE-01-2015-0003
Publisher
:Emerald Group Publishing Limited
Copyright © 2016, Emerald Group Publishing Limited