This document provides an overview of emerging economy copycats (EECs), which are enterprises based in emerging economies that significantly imitate market leaders' products. It discusses how EECs have grown from duplicative imitators to creative imitators and innovators by developing capabilities and evolving their strategies. The document presents the CHAIN framework for understanding EEC capabilities and the STORM conditions that spur their growth. It analyzes the strategies of Samsung, Ranbaxy, Embraer, and other firms as examples and calls for further research on these understudied companies.
An empirical analysis of the effect of entrepreneurial orientation on firm pe...Alexander Decker
This study examined the influence of entrepreneurial orientation on business performance among auto artisans in Cape Coast, Ghana. A survey was conducted of 118 auto artisans using a questionnaire to measure the dimensions of entrepreneurial orientation (innovativeness, proactiveness, risk-taking, autonomy, competitive aggressiveness) and business performance. Regression analysis revealed that the dimensions of entrepreneurial orientation positively influenced business performance both individually and collectively. The study recommends that auto artisans take advantage of government technical training programs to improve their skills and allow employees more creative freedom in their work.
Financial and Institutional Reforms for an Entrepreneurial SocietyDr Lendy Spires
This document introduces a special issue on financial and institutional reforms needed to transition Europe to a more entrepreneurial society. It summarizes the key findings and contributions of the 12 papers in the issue, which address different facets of Europe's entrepreneurial ecosystem including access to knowledge, financial resources, labor markets, and how institutions and entrepreneurship drive economic growth. The papers find that Europe needs more fundamental reforms to improve its entrepreneurial ecosystem compared to past approaches. Access to knowledge, financial resources, and labor are particularly important for supporting more startups and challengers that drive innovation and economic growth through creative destruction.
This document summarizes the current state of research on corporate entrepreneurship (CE) among emerging market firms. It reviews literature from 2000-2019 that examines CE related to innovation, strategic renewal, and new venturing in emerging economies. The review finds that while research exists on these topics separately, there is a lack of holistic examination of CE incorporating all three aspects. It concludes that more research is needed to understand how country-level differences in emerging markets impact firms' CE activities and competitive strategies. The document provides directions for future research to address these gaps.
Entrepreneurial orientation, entrepreneurial education and performanceYing wei (Joe) Chou
1. The study examines the relationship between entrepreneurial orientation (including proactiveness, innovativeness, and risk-taking) and business performance, as well as the role of entrepreneurship education.
2. The findings show that innovative proactiveness positively influences non-financial business performance, while risk-taking propensity does not influence financial or non-financial performance.
3. Entrepreneurship education was also found to have no connection with entrepreneurial orientation or business performance.
1. The document presents a model exploring the relationship between entrepreneurship and economic growth. It argues that existing growth models focus too heavily on R&D expenditure and do not account for growth in countries with little R&D like China, or lack of growth in countries with high R&D like Japan.
2. The model distinguishes between two types of entrepreneurs - research-based entrepreneurs who incur R&D costs and imitative entrepreneurs who replicate existing technologies without R&D costs. It shows that a high number of imitative entrepreneurs can generate growth even with low R&D expenditure.
3. The model helps explain growth in emerging economies focusing on imitation rather than original innovation. It suggests entrepreneurship,
K1108346 Working as an Economist EC6001 EssayRadoslav Velyov
This document provides an overview of innovation and theories of innovation. It discusses types of innovation including radical and incremental innovation. It describes Joseph Schumpeter's theory that innovation is driven by entrepreneurs and economic selection. Nelson and Winter's evolutionary theory that firms develop routines is also examined. The document analyzes how innovation occurs through a process of mutation and selection. It provides the example of Apple to illustrate how firms innovate.
C.K. Prahalad was born in 1941 in Tamil Nadu, India. He received his bachelor's degree in physics from Loyola College in Chennai. After graduating, he worked for Union Carbide for four years. He then received his master's degree from the Indian Institute of Management Ahmedabad and his doctorate from Harvard Business School. Prahalad is known for introducing the concept of core competencies. He argued that companies should build capabilities in areas where they have unique skills and are difficult for competitors to replicate. Prahalad's work focused on strategies for business success and developing products and services for low-income consumers. He received many honors and awards for his influential work in business management and strategy.
An empirical analysis of the effect of entrepreneurial orientation on firm pe...Alexander Decker
This study examined the influence of entrepreneurial orientation on business performance among auto artisans in Cape Coast, Ghana. A survey was conducted of 118 auto artisans using a questionnaire to measure the dimensions of entrepreneurial orientation (innovativeness, proactiveness, risk-taking, autonomy, competitive aggressiveness) and business performance. Regression analysis revealed that the dimensions of entrepreneurial orientation positively influenced business performance both individually and collectively. The study recommends that auto artisans take advantage of government technical training programs to improve their skills and allow employees more creative freedom in their work.
Financial and Institutional Reforms for an Entrepreneurial SocietyDr Lendy Spires
This document introduces a special issue on financial and institutional reforms needed to transition Europe to a more entrepreneurial society. It summarizes the key findings and contributions of the 12 papers in the issue, which address different facets of Europe's entrepreneurial ecosystem including access to knowledge, financial resources, labor markets, and how institutions and entrepreneurship drive economic growth. The papers find that Europe needs more fundamental reforms to improve its entrepreneurial ecosystem compared to past approaches. Access to knowledge, financial resources, and labor are particularly important for supporting more startups and challengers that drive innovation and economic growth through creative destruction.
This document summarizes the current state of research on corporate entrepreneurship (CE) among emerging market firms. It reviews literature from 2000-2019 that examines CE related to innovation, strategic renewal, and new venturing in emerging economies. The review finds that while research exists on these topics separately, there is a lack of holistic examination of CE incorporating all three aspects. It concludes that more research is needed to understand how country-level differences in emerging markets impact firms' CE activities and competitive strategies. The document provides directions for future research to address these gaps.
Entrepreneurial orientation, entrepreneurial education and performanceYing wei (Joe) Chou
1. The study examines the relationship between entrepreneurial orientation (including proactiveness, innovativeness, and risk-taking) and business performance, as well as the role of entrepreneurship education.
2. The findings show that innovative proactiveness positively influences non-financial business performance, while risk-taking propensity does not influence financial or non-financial performance.
3. Entrepreneurship education was also found to have no connection with entrepreneurial orientation or business performance.
1. The document presents a model exploring the relationship between entrepreneurship and economic growth. It argues that existing growth models focus too heavily on R&D expenditure and do not account for growth in countries with little R&D like China, or lack of growth in countries with high R&D like Japan.
2. The model distinguishes between two types of entrepreneurs - research-based entrepreneurs who incur R&D costs and imitative entrepreneurs who replicate existing technologies without R&D costs. It shows that a high number of imitative entrepreneurs can generate growth even with low R&D expenditure.
3. The model helps explain growth in emerging economies focusing on imitation rather than original innovation. It suggests entrepreneurship,
K1108346 Working as an Economist EC6001 EssayRadoslav Velyov
This document provides an overview of innovation and theories of innovation. It discusses types of innovation including radical and incremental innovation. It describes Joseph Schumpeter's theory that innovation is driven by entrepreneurs and economic selection. Nelson and Winter's evolutionary theory that firms develop routines is also examined. The document analyzes how innovation occurs through a process of mutation and selection. It provides the example of Apple to illustrate how firms innovate.
C.K. Prahalad was born in 1941 in Tamil Nadu, India. He received his bachelor's degree in physics from Loyola College in Chennai. After graduating, he worked for Union Carbide for four years. He then received his master's degree from the Indian Institute of Management Ahmedabad and his doctorate from Harvard Business School. Prahalad is known for introducing the concept of core competencies. He argued that companies should build capabilities in areas where they have unique skills and are difficult for competitors to replicate. Prahalad's work focused on strategies for business success and developing products and services for low-income consumers. He received many honors and awards for his influential work in business management and strategy.
Entrepreneurship corporate entrepreneurship and venturingPham Duong
This chapter discusses two types of corporate entrepreneurship that can help balance exploitation and exploration in large companies: dispersed and focused. Dispersed entrepreneurship allows entrepreneurial initiatives to emerge throughout the organization to cultivate an entrepreneurial culture. Focused entrepreneurship separates entrepreneurship from core operations by establishing corporate venture capital programs to invest in startups and benefit from their new technologies, products, and competencies. The chapter introduces the concepts and issues around each type, setting the stage for subsequent chapters that provide deeper analysis of key drivers of entrepreneurial behavior within companies and mechanisms for linking startups with parent companies.
Abstract: Fortune telling may not be so difficult for someone who understands current global trends. This paper attempts to predict the future of management by considering the context of leadership, organizational trends, and its effects on the domestic labour market. The paper assumes an increase in government interventions across the globe to protect the domestic markets, emphasizing the circumstances of China and the United States of America. The paper further discusses two futuristic leadership models; the global leadership model and evolutionary-based management models then sets out two possible scenarios of future organizations and concludes by highlighting the necessary characteristics of the future manager.
Standing up to Asian Competition - JHKCBA MontrealJHKCBA Montreal
JHKCBA McGill had the pleasure to invite Mr. Alain-Marie Carron, the Director at Secor Taktik, to share his views on the growing Chinese economy amidst this global economic restructuring. In recession, how do we leverage on opportunities available?
Daniele Archibugi - Seminario 'Nuevos enfoques sobre políticas de innovación'Fundación Ramón Areces
Los días 13 y 14 de marzo de 2014, la Fundación Ramón Areces organizó con el Instituto de Estudios de la Innovación (IREIN) y el Foro de Empresas Innovadoras una jornada sobre 'Nuevos enfoques sobre políticas de innovación'. Contó con la intervención de destacados expertos internacionales como Luc Soete, rector de la Universidad de Maastricht; Julia Lane, del American Institutes for Research (AIR) de Estados Unidos; Giovanni Dosi,
del Institute of Economics de la Scuola Superiore Sant'Anna (Italia); Daniele Archibugi, del CNRS y del Birkbeck College de la University of London; John Cantwell, del Rutgers Business School de Rutgers University (Estados Unidos); Jorge Katz, de la Universidad de Chile; Tom Hockaday, del ISIS Innovation de la Universidad de Oxford (Reino Unido), y Johan Schot, del Science and Technology Policy Research de la University of Sussex (Reino Unido).
Tesla Motors has experienced success as an electric vehicle startup company since 2003, creating high-performance yet environmentally friendly cars like the Roadster and Model S. It aims to compete directly with major automakers by appealing to both niche eco-conscious customers and the mass market. However, questions remain about whether Tesla can sustain profits at scale and overcome obstacles to widespread electric vehicle adoption like charging infrastructure limitations. The company's trajectory offers lessons in disruptive innovation against entrenched incumbents.
Impact of Trade Associations on Entrepreneurial Traits in Nigeria’s Transport...IOSR Journals
The focus of this study is to determine the extent to which the roles of trade associations foster entrepreneurial traits in Nigeria’s road transport industry. This paper offers an analytical assessment of the contribution of trade associations towards development of entrepreneurial traits. To do this, the survey method was adopted for the study and questionnaires were used as data collection method. A random of one hundred and forty four (144) trade associations in Nigeria’s road transport industry were selected for the study out of a population of two hundred and twenty four (224) trade associations with seven hundred and twenty (720) respondents. For completeness, a sample of six hundred and fifty seven (657) related organizations (infinite population) were included in the study. Therefore a total of one thousand, three hundred and seventy seven (1377) questionnaires were used for the study. The data collected were measured in 5-point likert scale with a hypothesized mean of 3.00. data analysis revealed that overall mean scores of trade associations’ pro-competitive and anti-competitive roles on entrepreneurial traits were 1.9346 and 4.4188 respectively. The test of hypothesis using two sample z-test showed that the Z- calculated value for differences in the two mean scores was 216.0147 with significance probability of ˂ 0.0001 which is less than 0.05. Thus the test was significant at 5% level of significance (P˂0.05). We therefore reject the null hypothesis and accept the alternative hypothesis. Consequently we conclude that the effect of anticompetitive role is significantly higher than that of pro-competitive role of trade associations on the development of entrepreneurial traits in Nigeria’s transport industry
Tesla Motors was a $3.2 billion company in 2015 that had created two remarkable electric vehicles. While not yet profitable, sales were growing rapidly. This success was astonishing given there had been no new American auto manufacturer since the 1920s. However, questions remained about whether Tesla could compete against major automakers in the mass market and consistently turn a profit. The document then discusses Tesla's history and development of its Roadster and Model S vehicles to expand beyond a niche market, establishing it as a major American automaker.
Tesla Motors was a $3.2 billion company in 2015 that had created two remarkable electric vehicles. While not yet profitable, sales were growing rapidly. This success was astonishing given there had been no new American auto manufacturer since the 1920s. However, questions remained about whether Tesla could compete against major automakers in the mass market and consistently turn a profit. The document then discusses Tesla's history and development of its Roadster and Model S vehicles to expand beyond a niche market into the mass market of electric vehicles.
This document provides a literature review and analysis of the evolution of strategic management concepts from the 1950s to present day. It examines how Igor Ansoff, Michael Porter, Treacy & Wiersema, and Hagel & Singer developed frameworks for strategic management and how the global economic environment influenced these approaches. It then analyzes whether Hagel & Singer's 1999 concept of the "unbundled corporation" remains applicable today given changes like globalization and digitalization. It concludes that while strategic focus has shifted toward customers, digital aspects were not fully considered in Hagel & Singer's framework. Further research is needed on its validity for IT-intensive businesses today.
This document discusses industrial clusters in China, specifically:
- It defines industrial clusters and traces their history back to Alfred Marshall.
- It explores the implications of clustering for Chinese firms, particularly SMEs, including overcoming financial constraints and improving productivity.
- It notes that thousands of industrial clusters in China mainly comprise SMEs, and the number of SMEs is growing faster in clustered areas.
The New Theory of Economic Growth: Endogenous Growth Modelinventionjournals
The document summarizes the key aspects of the new endogenous growth theory, including models proposed by Arrow, Romer, and Lucas. Arrow's "learning by doing" model endogenizes economic growth by treating knowledge as a side product of investment. Romer's 1990 model identifies a research sector that produces new ideas. Lucas' model assumes investment in education produces human capital, which spills over to increase productivity. While offering improvements over exogenous growth theory, the new endogenous growth theory has also received some criticisms around its assumptions and ability to explain differences in growth between countries.
This document summarizes an article from the International Journal of Management about internationalization strategies for small and medium enterprises (SMEs). It discusses how globalization has increased competition and SMEs now need internationalization strategies for sustainable competitive development. The article reviews literature on internationalization models and challenges SMEs face in internationalizing like inadequate resources and lack of experience with foreign markets. It analyzes data collected through a survey of 50 SMEs in India on their internationalization processes and challenges using a chi-square test. The document aims to emphasize how internationalization strategies can help SMEs tackle impediments in the global business environment.
Impact Of Venture Capital and Research Institute on Entrepreneurialecosystemâ...inventionjournals
This document examines the impact of venture capital and research institutions on entrepreneurial ecosystems by analyzing foreign companies listed on NASDAQ and NYSE. It finds:
1) Venture capital availability is a significant determinant of listings on NASDAQ, suggesting it supports startups, while financial sophistication alone is not sufficient.
2) Innovation variables like the quality of research institutions, university-industry collaboration, and government procurement of technology are significantly associated with NASDAQ listings.
3) Neither financial nor innovation variables show a significant association with NYSE listings, indicating NASDAQ better represents entrepreneurial capitalism requiring venture capital and research support.
This study examines whether small and medium enterprise (SME) owner-managers in Ghana can be considered entrepreneurs. The researchers interviewed 300 SME owner-managers across various industries about their levels of risk-taking, innovativeness, and proactiveness. These three factors form the core of an entrepreneurial orientation based on prior research. The study found that while SME owner-managers were very proactive, they were not innovative and did not take many risks. Therefore, the researchers concluded that SME owner-managers in Ghana cannot be labeled as entrepreneurs and are more accurately described as businesspeople.
Managerial skills and success of Small-scale entrepreneurs in Kampala UgandaMuhammad Kibuuka
Managerial skills are key to success of any business venture whether small or large. Poor management is one of the principle causes of business failure in most African countries.
This document provides a literature review on skills gaps in industry. It discusses the history of the connection between schooling/education and workforce needs due to changes in technology and the economy. As mass production and large firms emerged, they standardized jobs and reduced skills requirements, though schools began focusing on preparing youth for industry. Reports since the 1980s have highlighted ongoing skills gaps. Vocational education played a role in training for changing workplace needs. The literature defines the "new economy" as one driven by knowledge, digital technologies, and networks. Employers seek multi-skilled workers able to adapt quickly to changes. The document aims to understand where skills gaps exist within specific firms and how skills relate to job performance.
HR Quiz
The document contains a 20 question HR quiz with some questions marked with stars. It provides the questions, answers and some context around bossnapping incidents in France. The summary is:
This document contains a 20 question HR quiz with context, questions and answers related to human resources, management, and industrial relations topics. Some key questions are marked with stars and cover topics like burnout, yellow dog contracts, habeas corpus, and the glass ceiling effect.
Dr. Kibuuka Muhammad journal_article: Small Business SuccessMuhammad Kibuuka
This study was conducted in Kampala District, the abode of most SSEs, in welding, metal works, sole shops, schools, restaurants and other professional firms. Although Uganda ranks high on entrepreneurial index in the world (Namatovu et al, 2010), mortality rate of new SSE is very high (Lois & Annette, 2005). Ishengoma & Kappel (2008) noted that most SSE in Uganda die in their first two years, majority employ less than 5 workers and contribute less than 20% to GDP. According to Ssempebwa, 78% of SSEs in Kampala are constrained and so have limited chances of success (MoFPED, 2008).
D
A
N
IE
LA
G
U
G
LI
E
LM
E
T
T
I
or more than a century, the game was domi-
nated by the usual suspects: Europe, North
America, and Japan. But in recent decades the
competitive landscape has changed. Cham-
pions coming from emerging markets have risen to
leadership positions in a wide range of global indus-
tries, and they have done it not by defeating the es-
tablished giants in their own game, but by changing
the rules to create a new game altogether. In cement,
it is not longer Europe that heads the list, but an ag-
gressive multinational –Cemex– with headquarters
in Monterrey, Mexico. The fastest growing appliance
maker in the world –Haier– hails from neither Japan
nor Europe, but Qingdao in China. Another Chinese
F
by Alejandro Ruelas-Gossi and Donald N. Sull
november 2006 2
The Key to Agility on the
Global Stage
The new global champions coming from
emerging markets are not finding better
answers to old strategic questions. They
are changing the question itself –no longer
thinking in how to optimize traditional value
chains, but in how to create and coordinate
networks to seize opportunities that others
don’t see.
Orchestration
Strategy
Published in Harvard Business Review América Latina, November 2006
upstart –Galanz– leads the world market in micro -
wave ovens. The world’s biggest brewer by volume
–InBev– is a joint-venture between a Belgian and a
Brazilian brewer. The world’s leading steel company
–Mittal Steel– began less than 30 years ago as a small
mini-mill in Indonesia.
At first, the explosive advance of these and other
emerging champions fall somewhere between un-
likely and miraculous. Most emerging market compa-
nies face a high cost of capital and limited availability
of funding; their domestic customers often have low
disposable income but are still discerning consum-
ers; firms must fight a two-front war against domestic
competitors at the low-end and multinationals at the
high-end; and they lack resources such as technology
and brand at the scale afforded by established leaders
in developed economies.
What explains, then, that these upstarts from
emerging markets have managed to carve out global
leadership positions in such a short period of time?
Why have the incumbent players relinquished market
share to competitors coming from developing regions
such as China, India and Latin America? We believe
that the problem for many incumbent firms has been
that their managers have been asking the wrong ques-
tions. In North America, Japan and Europe, manag-
ers are still obsessing over the question of how they
can optimize their established business models. This
question assumes that there is only one best way to
compete –often embodied in the notion of a value
chain. It leads executives to ask what other competi-
tors are doing and then benchmark one another to
mindlessly ape the most successful. It leads them to
ask existing customers if they are satisfied with th ...
The document discusses the rise of business ecosystems and their increasing importance in today's economy. Key points:
- Business ecosystems are complex communities of interacting organizations, similar to natural ecosystems. They are becoming more prevalent as digitization and connectivity break down industry boundaries.
- Large companies like Alibaba, Softbank, and Nokia explicitly see themselves as part of or building business ecosystems rather than just competing as standalone firms.
- Ecosystems allow multiple players across industries to collaborate in creating and scaling markets in new ways. They encourage both competition and cooperation toward shared goals.
- By enabling new forms of value creation through specialized contributions and resources, ecosystems address fundamental needs and societal challenges in innovative ways.
Entrepreneurship corporate entrepreneurship and venturingPham Duong
This chapter discusses two types of corporate entrepreneurship that can help balance exploitation and exploration in large companies: dispersed and focused. Dispersed entrepreneurship allows entrepreneurial initiatives to emerge throughout the organization to cultivate an entrepreneurial culture. Focused entrepreneurship separates entrepreneurship from core operations by establishing corporate venture capital programs to invest in startups and benefit from their new technologies, products, and competencies. The chapter introduces the concepts and issues around each type, setting the stage for subsequent chapters that provide deeper analysis of key drivers of entrepreneurial behavior within companies and mechanisms for linking startups with parent companies.
Abstract: Fortune telling may not be so difficult for someone who understands current global trends. This paper attempts to predict the future of management by considering the context of leadership, organizational trends, and its effects on the domestic labour market. The paper assumes an increase in government interventions across the globe to protect the domestic markets, emphasizing the circumstances of China and the United States of America. The paper further discusses two futuristic leadership models; the global leadership model and evolutionary-based management models then sets out two possible scenarios of future organizations and concludes by highlighting the necessary characteristics of the future manager.
Standing up to Asian Competition - JHKCBA MontrealJHKCBA Montreal
JHKCBA McGill had the pleasure to invite Mr. Alain-Marie Carron, the Director at Secor Taktik, to share his views on the growing Chinese economy amidst this global economic restructuring. In recession, how do we leverage on opportunities available?
Daniele Archibugi - Seminario 'Nuevos enfoques sobre políticas de innovación'Fundación Ramón Areces
Los días 13 y 14 de marzo de 2014, la Fundación Ramón Areces organizó con el Instituto de Estudios de la Innovación (IREIN) y el Foro de Empresas Innovadoras una jornada sobre 'Nuevos enfoques sobre políticas de innovación'. Contó con la intervención de destacados expertos internacionales como Luc Soete, rector de la Universidad de Maastricht; Julia Lane, del American Institutes for Research (AIR) de Estados Unidos; Giovanni Dosi,
del Institute of Economics de la Scuola Superiore Sant'Anna (Italia); Daniele Archibugi, del CNRS y del Birkbeck College de la University of London; John Cantwell, del Rutgers Business School de Rutgers University (Estados Unidos); Jorge Katz, de la Universidad de Chile; Tom Hockaday, del ISIS Innovation de la Universidad de Oxford (Reino Unido), y Johan Schot, del Science and Technology Policy Research de la University of Sussex (Reino Unido).
Tesla Motors has experienced success as an electric vehicle startup company since 2003, creating high-performance yet environmentally friendly cars like the Roadster and Model S. It aims to compete directly with major automakers by appealing to both niche eco-conscious customers and the mass market. However, questions remain about whether Tesla can sustain profits at scale and overcome obstacles to widespread electric vehicle adoption like charging infrastructure limitations. The company's trajectory offers lessons in disruptive innovation against entrenched incumbents.
Impact of Trade Associations on Entrepreneurial Traits in Nigeria’s Transport...IOSR Journals
The focus of this study is to determine the extent to which the roles of trade associations foster entrepreneurial traits in Nigeria’s road transport industry. This paper offers an analytical assessment of the contribution of trade associations towards development of entrepreneurial traits. To do this, the survey method was adopted for the study and questionnaires were used as data collection method. A random of one hundred and forty four (144) trade associations in Nigeria’s road transport industry were selected for the study out of a population of two hundred and twenty four (224) trade associations with seven hundred and twenty (720) respondents. For completeness, a sample of six hundred and fifty seven (657) related organizations (infinite population) were included in the study. Therefore a total of one thousand, three hundred and seventy seven (1377) questionnaires were used for the study. The data collected were measured in 5-point likert scale with a hypothesized mean of 3.00. data analysis revealed that overall mean scores of trade associations’ pro-competitive and anti-competitive roles on entrepreneurial traits were 1.9346 and 4.4188 respectively. The test of hypothesis using two sample z-test showed that the Z- calculated value for differences in the two mean scores was 216.0147 with significance probability of ˂ 0.0001 which is less than 0.05. Thus the test was significant at 5% level of significance (P˂0.05). We therefore reject the null hypothesis and accept the alternative hypothesis. Consequently we conclude that the effect of anticompetitive role is significantly higher than that of pro-competitive role of trade associations on the development of entrepreneurial traits in Nigeria’s transport industry
Tesla Motors was a $3.2 billion company in 2015 that had created two remarkable electric vehicles. While not yet profitable, sales were growing rapidly. This success was astonishing given there had been no new American auto manufacturer since the 1920s. However, questions remained about whether Tesla could compete against major automakers in the mass market and consistently turn a profit. The document then discusses Tesla's history and development of its Roadster and Model S vehicles to expand beyond a niche market, establishing it as a major American automaker.
Tesla Motors was a $3.2 billion company in 2015 that had created two remarkable electric vehicles. While not yet profitable, sales were growing rapidly. This success was astonishing given there had been no new American auto manufacturer since the 1920s. However, questions remained about whether Tesla could compete against major automakers in the mass market and consistently turn a profit. The document then discusses Tesla's history and development of its Roadster and Model S vehicles to expand beyond a niche market into the mass market of electric vehicles.
This document provides a literature review and analysis of the evolution of strategic management concepts from the 1950s to present day. It examines how Igor Ansoff, Michael Porter, Treacy & Wiersema, and Hagel & Singer developed frameworks for strategic management and how the global economic environment influenced these approaches. It then analyzes whether Hagel & Singer's 1999 concept of the "unbundled corporation" remains applicable today given changes like globalization and digitalization. It concludes that while strategic focus has shifted toward customers, digital aspects were not fully considered in Hagel & Singer's framework. Further research is needed on its validity for IT-intensive businesses today.
This document discusses industrial clusters in China, specifically:
- It defines industrial clusters and traces their history back to Alfred Marshall.
- It explores the implications of clustering for Chinese firms, particularly SMEs, including overcoming financial constraints and improving productivity.
- It notes that thousands of industrial clusters in China mainly comprise SMEs, and the number of SMEs is growing faster in clustered areas.
The New Theory of Economic Growth: Endogenous Growth Modelinventionjournals
The document summarizes the key aspects of the new endogenous growth theory, including models proposed by Arrow, Romer, and Lucas. Arrow's "learning by doing" model endogenizes economic growth by treating knowledge as a side product of investment. Romer's 1990 model identifies a research sector that produces new ideas. Lucas' model assumes investment in education produces human capital, which spills over to increase productivity. While offering improvements over exogenous growth theory, the new endogenous growth theory has also received some criticisms around its assumptions and ability to explain differences in growth between countries.
This document summarizes an article from the International Journal of Management about internationalization strategies for small and medium enterprises (SMEs). It discusses how globalization has increased competition and SMEs now need internationalization strategies for sustainable competitive development. The article reviews literature on internationalization models and challenges SMEs face in internationalizing like inadequate resources and lack of experience with foreign markets. It analyzes data collected through a survey of 50 SMEs in India on their internationalization processes and challenges using a chi-square test. The document aims to emphasize how internationalization strategies can help SMEs tackle impediments in the global business environment.
Impact Of Venture Capital and Research Institute on Entrepreneurialecosystemâ...inventionjournals
This document examines the impact of venture capital and research institutions on entrepreneurial ecosystems by analyzing foreign companies listed on NASDAQ and NYSE. It finds:
1) Venture capital availability is a significant determinant of listings on NASDAQ, suggesting it supports startups, while financial sophistication alone is not sufficient.
2) Innovation variables like the quality of research institutions, university-industry collaboration, and government procurement of technology are significantly associated with NASDAQ listings.
3) Neither financial nor innovation variables show a significant association with NYSE listings, indicating NASDAQ better represents entrepreneurial capitalism requiring venture capital and research support.
This study examines whether small and medium enterprise (SME) owner-managers in Ghana can be considered entrepreneurs. The researchers interviewed 300 SME owner-managers across various industries about their levels of risk-taking, innovativeness, and proactiveness. These three factors form the core of an entrepreneurial orientation based on prior research. The study found that while SME owner-managers were very proactive, they were not innovative and did not take many risks. Therefore, the researchers concluded that SME owner-managers in Ghana cannot be labeled as entrepreneurs and are more accurately described as businesspeople.
Managerial skills and success of Small-scale entrepreneurs in Kampala UgandaMuhammad Kibuuka
Managerial skills are key to success of any business venture whether small or large. Poor management is one of the principle causes of business failure in most African countries.
This document provides a literature review on skills gaps in industry. It discusses the history of the connection between schooling/education and workforce needs due to changes in technology and the economy. As mass production and large firms emerged, they standardized jobs and reduced skills requirements, though schools began focusing on preparing youth for industry. Reports since the 1980s have highlighted ongoing skills gaps. Vocational education played a role in training for changing workplace needs. The literature defines the "new economy" as one driven by knowledge, digital technologies, and networks. Employers seek multi-skilled workers able to adapt quickly to changes. The document aims to understand where skills gaps exist within specific firms and how skills relate to job performance.
HR Quiz
The document contains a 20 question HR quiz with some questions marked with stars. It provides the questions, answers and some context around bossnapping incidents in France. The summary is:
This document contains a 20 question HR quiz with context, questions and answers related to human resources, management, and industrial relations topics. Some key questions are marked with stars and cover topics like burnout, yellow dog contracts, habeas corpus, and the glass ceiling effect.
Dr. Kibuuka Muhammad journal_article: Small Business SuccessMuhammad Kibuuka
This study was conducted in Kampala District, the abode of most SSEs, in welding, metal works, sole shops, schools, restaurants and other professional firms. Although Uganda ranks high on entrepreneurial index in the world (Namatovu et al, 2010), mortality rate of new SSE is very high (Lois & Annette, 2005). Ishengoma & Kappel (2008) noted that most SSE in Uganda die in their first two years, majority employ less than 5 workers and contribute less than 20% to GDP. According to Ssempebwa, 78% of SSEs in Kampala are constrained and so have limited chances of success (MoFPED, 2008).
D
A
N
IE
LA
G
U
G
LI
E
LM
E
T
T
I
or more than a century, the game was domi-
nated by the usual suspects: Europe, North
America, and Japan. But in recent decades the
competitive landscape has changed. Cham-
pions coming from emerging markets have risen to
leadership positions in a wide range of global indus-
tries, and they have done it not by defeating the es-
tablished giants in their own game, but by changing
the rules to create a new game altogether. In cement,
it is not longer Europe that heads the list, but an ag-
gressive multinational –Cemex– with headquarters
in Monterrey, Mexico. The fastest growing appliance
maker in the world –Haier– hails from neither Japan
nor Europe, but Qingdao in China. Another Chinese
F
by Alejandro Ruelas-Gossi and Donald N. Sull
november 2006 2
The Key to Agility on the
Global Stage
The new global champions coming from
emerging markets are not finding better
answers to old strategic questions. They
are changing the question itself –no longer
thinking in how to optimize traditional value
chains, but in how to create and coordinate
networks to seize opportunities that others
don’t see.
Orchestration
Strategy
Published in Harvard Business Review América Latina, November 2006
upstart –Galanz– leads the world market in micro -
wave ovens. The world’s biggest brewer by volume
–InBev– is a joint-venture between a Belgian and a
Brazilian brewer. The world’s leading steel company
–Mittal Steel– began less than 30 years ago as a small
mini-mill in Indonesia.
At first, the explosive advance of these and other
emerging champions fall somewhere between un-
likely and miraculous. Most emerging market compa-
nies face a high cost of capital and limited availability
of funding; their domestic customers often have low
disposable income but are still discerning consum-
ers; firms must fight a two-front war against domestic
competitors at the low-end and multinationals at the
high-end; and they lack resources such as technology
and brand at the scale afforded by established leaders
in developed economies.
What explains, then, that these upstarts from
emerging markets have managed to carve out global
leadership positions in such a short period of time?
Why have the incumbent players relinquished market
share to competitors coming from developing regions
such as China, India and Latin America? We believe
that the problem for many incumbent firms has been
that their managers have been asking the wrong ques-
tions. In North America, Japan and Europe, manag-
ers are still obsessing over the question of how they
can optimize their established business models. This
question assumes that there is only one best way to
compete –often embodied in the notion of a value
chain. It leads executives to ask what other competi-
tors are doing and then benchmark one another to
mindlessly ape the most successful. It leads them to
ask existing customers if they are satisfied with th ...
The document discusses the rise of business ecosystems and their increasing importance in today's economy. Key points:
- Business ecosystems are complex communities of interacting organizations, similar to natural ecosystems. They are becoming more prevalent as digitization and connectivity break down industry boundaries.
- Large companies like Alibaba, Softbank, and Nokia explicitly see themselves as part of or building business ecosystems rather than just competing as standalone firms.
- Ecosystems allow multiple players across industries to collaborate in creating and scaling markets in new ways. They encourage both competition and cooperation toward shared goals.
- By enabling new forms of value creation through specialized contributions and resources, ecosystems address fundamental needs and societal challenges in innovative ways.
This document discusses factors that can help companies build and sustain competitive advantages. It analyzes leadership, organizational culture, design, and systems. Leadership is important through setting vision, mission, and governance. A company's values and culture also influence competitive advantage. Resources and capabilities are key, and must be valuable, rare, imperfectly imitable, and non-substitutable to provide sustained advantages. The document examines early strategy models and proposes that integrating multiple internal and external factors is needed to identify and sustain sources of competitive advantage.
This document discusses factors that can help companies build and sustain competitive advantages. It analyzes leadership, organizational culture, design, and systems. Leadership is important through vision, mission, and governance. A company's values and culture also influence competitive advantage. Bringing the right people together and having the right incentives, structure, and systems in place can collectively help companies develop unique resources and capabilities to gain competitive advantages.
Chapter 3 Micro Foundations of Firm’s Advantage – Dynamic Capabil.docxchristinemaritza
Chapter 3: Micro Foundations of Firm’s Advantage – Dynamic Capabilities View
In a previous chapter, we learnt about resource-based view (RBV), knowledge-based view (KBV) and core competence view (CCV) hypotheses. A major limitation of these hypotheses is that they are not designed for the VUCA world – the world that is volatile, uncertain, complex and ambiguous. Therefore, they do not consider the entropy factors – the factors that act as disruptive forces in highly dynamic markets. In this chapter, we will examine three of the most important entry factors:
· mainstreaming of non-consumers, i.e. the rise of new groups of customers served using alternative sets of resources, knowledge and/or core competencies.
· political power play, i.e. the role of non-market – often government-supported - factors in enabling competing firms to develop alternative sets of resources, knowledge and/or core competencies.
· globalization games, i.e. the shifts in the advantages of different national markets, and as a consequence of the firms having investments in those markets.
Micro foundations of firm’s advantage refer to the structures, processes and behaviors that help firms navigate the VUCA world. Development of appropriate structures, processes and behaviors that are in tune with the VUCA world allows firms to be dynamic in their capability. Dynamic capability is the capability for recognizing and responding or adapting to significant market change. Dynamic capability view (DCV) hypothesis of strategic action is intended to help firms stay relevant and is of strategic advantage for larger corporates and their stakeholders.
In this chapter, we will also learn about different types of marketplaces, and how to classify these marketplaces using the niche density (number of firms in a marketplace) and carrying capacity (size of the market) approaches. It is important to recognize the link between the concept of dynamic capability and the type of marketplaces. By operating in different types of marketplaces across different business divisions or regional geographies, the firms may be able to gain experience and develop structures, processes, and behaviors to not only survive but also thrive in a VUCA world.
Exhibit 3.x illustrates the evolution of DCV, based on the refinements of RBV, KBV and CCV. KBV distinguishes capabilities (and knowledge-base of the capabilities) from resources. CCV distinguishes core competencies (creative integration and innovative combination of knowledge) from ordinary capabilities (articulation and replication of knowledge). DCV distinguishes transforming capabilities, from core competencies.
Exhibit 3.x: Refinements in RBV, KBV and CCV Bring DCV in Perspective
Entropy Mechanisms under Dynamic Environments
We need a significant revision in the original elitist assumptions of the RBV, KBV and CCV, to account for the success of firms in face of the environmental crisis and dynamism in the 21st century. R ...
Stratgic imitation-Road to business growthBrowne & Mohan
Strategic imitation is a low cost, low risk strategy many companies adopt to challenge pioneers and often succeed in gaining higher market share and growth than pioneers. In this paper we describe elements that strategic imitators must pursue to succeed in legitimate copy, learn and improve program.
The document discusses the concept of innovation ecosystems and their advantages over traditional innovation systems. It provides examples from several academic papers on how firms can benefit from understanding the ecosystem they operate in and coevolving with other actors in the ecosystem. Specifically, it discusses how ecosystems allow for disruptions no single firm can create alone, and how firms must work with others in the ecosystem to jointly evolve their capabilities. The document advocates that firms embrace the collective properties of their ecosystem rather than solely focusing on internal capabilities.
1) The document discusses the emergence of the "reputation economy" as companies have increasingly recognized the importance of reputation over the past 10 years.
2) It notes that reputation provides competitive advantages like differentiation and acts as a shield against crises. Having a good reputation also attracts consumers, capital, talent and facilitates growth.
3) The document argues that to navigate the new reputation economy, companies need leaders who understand the expectations of stakeholders and recognize their power, and who can transform organizations to serve stakeholders. It suggests companies create a new role of "Chief Reputation Officer" to help manage reputation.
3_Lect_Industrial Dynamics, Clusters and Niches, Green-Entrepreneurship and S...Private
This document provides an overview of a lecture on economic geography and its paradigms. It discusses evolutionary economic geography and how it addresses grand societal challenges. It outlines the topics to be covered in upcoming lectures, including industrial dynamics, clusters, green entrepreneurship, and the socio-economic transformation of lagging regions. Key concepts in evolutionary economic geography are also defined, such as firms, spinoffs, startups, routines, clusters, and agglomeration economies. An example is given of industrial dynamics influencing a region's international competitiveness.
The integration between innovation and business is a key factor in competitiveness between organizations. That is, innovation applied to a business makes no sense if not considered as an integral tool for the processes of the organization. Companies should therefore adopt a policy where innovation plays a strategic role in the design of business models to become lean, effective and competitive entities (Moraleda, 2004). The objective of this paper is to show the importance of innovation within companies, identifying the concept, the various models that different entities might adopt in order to develop better processes of innovation, as well as indicators that represent innovation at global and national levels in order to develop strategies that lead to an increase in competitiveness. For this work the method used was a bibliographical review of relevant articles from a range of authors was conducted.
The document discusses the roles of entrepreneurs and factors that influence entrepreneurship. It defines an entrepreneur as someone who starts a business and takes on the risks of the venture. It explores characteristics commonly associated with entrepreneurs like optimism and self-confidence. The document also examines social and environmental factors that can encourage entrepreneurial spirit, such as having self-employed parents or experiences with family businesses. Finally, it looks at how communities and upbringing can shape an individual's interest in entrepreneurship.
Summary of the Book Exponential organizationsGMR Group
Happy Morning
I have made a small attempt to summarize this book after reading this number of times.
In this book Salim Ismail gives a deep dive – Exponential Organizations where he shows how any company, from Startup to a multi-national , can become exponential.
The author unveils years of research learning how organizations can accelerate growth through use of Technology. The goal of the book is to provide you with the knowledge to leverage assets such as big data, communities, algorithms, and new technology to achieve performance ten times better than your competition.
It is good book for entrepreneurs who need a guide for harnessing and strategizing the hyper growth of a company that feeds off of modern technology in the 21st century and beyond.
Because we focus on accelerating technologies and the future we identified an infection point in how we build businesses that has never noticed before.
Most CEOs see innovation as product or service innovation. But there is also process innovation, social innovation, organizational innovation, management innovation, business model innovation etc.
Those business that do not evolve , will not survive
Happy Reading
Study to understand the management strategies of new multinationals from the ...Charm Rammandala
The purpose of this study is to understand how the emerging multinational companies from emerging economies such as BRIC countries, Middle East and developing countries like Thailand and Malaysia challenging the traditional multinational companies who have strong roots to developed countries. Using various strategies and business models such as alliances, joint ventures and in some cases wholly owned subsidiaries, newly emerging multinationals have made their presence felt in the world market. This study will take an in-depth look in to the management strategies in place to overcome the barriers and accelerate the growth.
Questions write in two postgrad level essays, each around 800 w.docxmakdul
Questions: write in two postgrad level essays, each around 800 words (must read this reading)
In 2013, Rita McGrath published an article in the Harvard Business Review arguing that ‘Sustainable competitive advantage is now the exception, not the rule. Transient advantage is the new normal.’
a) Drawing on relevant academic literature, explain what a sustainable competitive advantage is and how it might be created.
b) Using examples to illustrate your answer, evaluate Rita McGrath’s argument that ‘transient advantage is the new normal’.
The questions are asking for:
a) An explanation of sustainable competitive advantage, drawing on academic sources.
Show that you can explain the major approaches to competitive advantage (and how they are different from each other).
This question assesses your understanding of the literature, though you can provide examples to illustrate the strategy approaches.
b) An understanding of the limits of ‘sustainable competitive advantage’.
An ‘evaluation’ i.e. examine the issue and make an overall argument that is supported by evidence you present.
You need to acknowledge McGrath’s argument but your evaluation can also draw on other arguments and sources about short term vs long term advantages.
You need to use some examples to illustrate your argument. Think about which examples can be used and for what purpose.
Requirements:
Essay answers – introduction (how you are addressing the question; clear structure that develops a coherent argument; conclusion.
Academic i.e. drawing on some reading & using evidence
· An answer to the question (make sure you are clear about what is being asked)
· An argument – something informative, interesting and insightful to say
· Evidence of reading. Use citations; refer to what you have read – academic sources. E.g. FT, Rosenzweig
· Appropriate use of company examples
· Use company examples in a way that supports the argument. Use extended examples e.g. don’t just cite a company but explain how it is relevant to your argument. Be specific: use some empirical evidence e.g. don’t just talk about ‘sales trend’, provide some data
· Use a range of examples where appropriate; relevance of all examples needs to be explained.
· No need to provide a list of references or exact citations with page numbers (eg FT in January 2008 or Rosenzweig 2007 is fine)
Transient
Advantage - HBR.pdf
COMPETITIVE STRATEGY
Transient Advantage
by Rita Gunther McGrath
FROM THE JUNE 2013 ISSUE
S
PHOTOGRAPHY: COURTESY OF PACE GALLERY
ARTWORK: TARA DONOVAN, UNTITLED (STYROFOAM CUPS), 2008, STYROFOAM
CUPS AND GLUE, INSTALLATION DIMENSIONS VARIABLE
trategy is stuck. For too long the
business world has been obsessed with
the notion of building a sustainable
competitive advantage. That idea is at the core of
most strategy textbooks; it forms the basis of
Warren Buffett’s investment strategy; it’s central
to the success of companies on the “most
admired” lists. I’m not argu ...
,
strategic and organizational requirements for competitive advantage
,
the context of strategic hrm
,
strategic and organizational requirements for comp
,
jr.
C.K. Prahalad was an influential Indian management thinker known for works like "Core Competence of the Corporation" and "The Fortune at the Bottom of the Pyramid". He received many honors including being named one of the world's most influential business thinkers. Prahalad's vision for India included building skilled human capital, having 30 Fortune 500 companies based in India, and deriving new business models from the bottom of the economic pyramid.
This document discusses the branding challenges faced by Asian manufacturing firms as they attempt to transition from contract manufacturers to brand owners. It outlines several market-level and firm-level challenges, including competing in a sophisticated global marketplace, higher customer expectations, an emphasis on manufacturing over R&D, a top-down management style, and less willingness to invest in market research and branding consulting. While many Asian firms see branding as a way to capture more value and break out of the commodity trap of manufacturing, very few have succeeded in creating truly global brands, with the notable exceptions being Japanese and Korean automotive and electronics brands. The document examines some potential avenues for Asian firms to transition to branding, but notes that success is not guaranteed and competitive
Directors in-dialogue boards and technology-competitive risk and promise_fina...dwight hutchins
This document summarizes a dialogue session hosted by TMS Academy that brought together 50 Board Chairmen and Directors from leading Asian companies to discuss the implications of emerging exponential technologies. The session explored opportunities and risks of technologies like the Internet of Things, social media, artificial intelligence, digital platforms and wearable devices. Participants discussed challenges for strategic decision making given the unpredictable pace of change. Case studies on SingTel's transformation from a disrupted to disruptive company were shared. The session concluded that boards must develop technology-savvy strategic plans to both mitigate risks and seize opportunities in the new disruptive landscape.
Ocean lotus Threat actors project by John Sitima 2024 (1).pptxSitimaJohn
Ocean Lotus cyber threat actors represent a sophisticated, persistent, and politically motivated group that poses a significant risk to organizations and individuals in the Southeast Asian region. Their continuous evolution and adaptability underscore the need for robust cybersecurity measures and international cooperation to identify and mitigate the threats posed by such advanced persistent threat groups.
Generating privacy-protected synthetic data using Secludy and MilvusZilliz
During this demo, the founders of Secludy will demonstrate how their system utilizes Milvus to store and manipulate embeddings for generating privacy-protected synthetic data. Their approach not only maintains the confidentiality of the original data but also enhances the utility and scalability of LLMs under privacy constraints. Attendees, including machine learning engineers, data scientists, and data managers, will witness first-hand how Secludy's integration with Milvus empowers organizations to harness the power of LLMs securely and efficiently.
Unlock the Future of Search with MongoDB Atlas_ Vector Search Unleashed.pdfMalak Abu Hammad
Discover how MongoDB Atlas and vector search technology can revolutionize your application's search capabilities. This comprehensive presentation covers:
* What is Vector Search?
* Importance and benefits of vector search
* Practical use cases across various industries
* Step-by-step implementation guide
* Live demos with code snippets
* Enhancing LLM capabilities with vector search
* Best practices and optimization strategies
Perfect for developers, AI enthusiasts, and tech leaders. Learn how to leverage MongoDB Atlas to deliver highly relevant, context-aware search results, transforming your data retrieval process. Stay ahead in tech innovation and maximize the potential of your applications.
#MongoDB #VectorSearch #AI #SemanticSearch #TechInnovation #DataScience #LLM #MachineLearning #SearchTechnology
Digital Marketing Trends in 2024 | Guide for Staying AheadWask
https://www.wask.co/ebooks/digital-marketing-trends-in-2024
Feeling lost in the digital marketing whirlwind of 2024? Technology is changing, consumer habits are evolving, and staying ahead of the curve feels like a never-ending pursuit. This e-book is your compass. Dive into actionable insights to handle the complexities of modern marketing. From hyper-personalization to the power of user-generated content, learn how to build long-term relationships with your audience and unlock the secrets to success in the ever-shifting digital landscape.
Introduction of Cybersecurity with OSS at Code Europe 2024Hiroshi SHIBATA
I develop the Ruby programming language, RubyGems, and Bundler, which are package managers for Ruby. Today, I will introduce how to enhance the security of your application using open-source software (OSS) examples from Ruby and RubyGems.
The first topic is CVE (Common Vulnerabilities and Exposures). I have published CVEs many times. But what exactly is a CVE? I'll provide a basic understanding of CVEs and explain how to detect and handle vulnerabilities in OSS.
Next, let's discuss package managers. Package managers play a critical role in the OSS ecosystem. I'll explain how to manage library dependencies in your application.
I'll share insights into how the Ruby and RubyGems core team works to keep our ecosystem safe. By the end of this talk, you'll have a better understanding of how to safeguard your code.
Salesforce Integration for Bonterra Impact Management (fka Social Solutions A...Jeffrey Haguewood
Sidekick Solutions uses Bonterra Impact Management (fka Social Solutions Apricot) and automation solutions to integrate data for business workflows.
We believe integration and automation are essential to user experience and the promise of efficient work through technology. Automation is the critical ingredient to realizing that full vision. We develop integration products and services for Bonterra Case Management software to support the deployment of automations for a variety of use cases.
This video focuses on integration of Salesforce with Bonterra Impact Management.
Interested in deploying an integration with Salesforce for Bonterra Impact Management? Contact us at sales@sidekicksolutionsllc.com to discuss next steps.
Ivanti’s Patch Tuesday breakdown goes beyond patching your applications and brings you the intelligence and guidance needed to prioritize where to focus your attention first. Catch early analysis on our Ivanti blog, then join industry expert Chris Goettl for the Patch Tuesday Webinar Event. There we’ll do a deep dive into each of the bulletins and give guidance on the risks associated with the newly-identified vulnerabilities.
This presentation provides valuable insights into effective cost-saving techniques on AWS. Learn how to optimize your AWS resources by rightsizing, increasing elasticity, picking the right storage class, and choosing the best pricing model. Additionally, discover essential governance mechanisms to ensure continuous cost efficiency. Whether you are new to AWS or an experienced user, this presentation provides clear and practical tips to help you reduce your cloud costs and get the most out of your budget.
Your One-Stop Shop for Python Success: Top 10 US Python Development Providersakankshawande
Simplify your search for a reliable Python development partner! This list presents the top 10 trusted US providers offering comprehensive Python development services, ensuring your project's success from conception to completion.
Nunit vs XUnit vs MSTest Differences Between These Unit Testing Frameworks.pdfflufftailshop
When it comes to unit testing in the .NET ecosystem, developers have a wide range of options available. Among the most popular choices are NUnit, XUnit, and MSTest. These unit testing frameworks provide essential tools and features to help ensure the quality and reliability of code. However, understanding the differences between these frameworks is crucial for selecting the most suitable one for your projects.
Taking AI to the Next Level in Manufacturing.pdfssuserfac0301
Read Taking AI to the Next Level in Manufacturing to gain insights on AI adoption in the manufacturing industry, such as:
1. How quickly AI is being implemented in manufacturing.
2. Which barriers stand in the way of AI adoption.
3. How data quality and governance form the backbone of AI.
4. Organizational processes and structures that may inhibit effective AI adoption.
6. Ideas and approaches to help build your organization's AI strategy.
In the rapidly evolving landscape of technologies, XML continues to play a vital role in structuring, storing, and transporting data across diverse systems. The recent advancements in artificial intelligence (AI) present new methodologies for enhancing XML development workflows, introducing efficiency, automation, and intelligent capabilities. This presentation will outline the scope and perspective of utilizing AI in XML development. The potential benefits and the possible pitfalls will be highlighted, providing a balanced view of the subject.
We will explore the capabilities of AI in understanding XML markup languages and autonomously creating structured XML content. Additionally, we will examine the capacity of AI to enrich plain text with appropriate XML markup. Practical examples and methodological guidelines will be provided to elucidate how AI can be effectively prompted to interpret and generate accurate XML markup.
Further emphasis will be placed on the role of AI in developing XSLT, or schemas such as XSD and Schematron. We will address the techniques and strategies adopted to create prompts for generating code, explaining code, or refactoring the code, and the results achieved.
The discussion will extend to how AI can be used to transform XML content. In particular, the focus will be on the use of AI XPath extension functions in XSLT, Schematron, Schematron Quick Fixes, or for XML content refactoring.
The presentation aims to deliver a comprehensive overview of AI usage in XML development, providing attendees with the necessary knowledge to make informed decisions. Whether you’re at the early stages of adopting AI or considering integrating it in advanced XML development, this presentation will cover all levels of expertise.
By highlighting the potential advantages and challenges of integrating AI with XML development tools and languages, the presentation seeks to inspire thoughtful conversation around the future of XML development. We’ll not only delve into the technical aspects of AI-powered XML development but also discuss practical implications and possible future directions.
leewayhertz.com-AI in predictive maintenance Use cases technologies benefits ...alexjohnson7307
Predictive maintenance is a proactive approach that anticipates equipment failures before they happen. At the forefront of this innovative strategy is Artificial Intelligence (AI), which brings unprecedented precision and efficiency. AI in predictive maintenance is transforming industries by reducing downtime, minimizing costs, and enhancing productivity.
A Comprehensive Guide to DeFi Development Services in 2024Intelisync
DeFi represents a paradigm shift in the financial industry. Instead of relying on traditional, centralized institutions like banks, DeFi leverages blockchain technology to create a decentralized network of financial services. This means that financial transactions can occur directly between parties, without intermediaries, using smart contracts on platforms like Ethereum.
In 2024, we are witnessing an explosion of new DeFi projects and protocols, each pushing the boundaries of what’s possible in finance.
In summary, DeFi in 2024 is not just a trend; it’s a revolution that democratizes finance, enhances security and transparency, and fosters continuous innovation. As we proceed through this presentation, we'll explore the various components and services of DeFi in detail, shedding light on how they are transforming the financial landscape.
At Intelisync, we specialize in providing comprehensive DeFi development services tailored to meet the unique needs of our clients. From smart contract development to dApp creation and security audits, we ensure that your DeFi project is built with innovation, security, and scalability in mind. Trust Intelisync to guide you through the intricate landscape of decentralized finance and unlock the full potential of blockchain technology.
Ready to take your DeFi project to the next level? Partner with Intelisync for expert DeFi development services today!
Energy Efficient Video Encoding for Cloud and Edge Computing Instances
Emerging Economy Copycats
1. 2011 Luo, Sun, and Wang 37
A R T I C L E S
Emerging Economy Copycats:
Capability, Environment, and Strategy
by Yadong Luo, Jinyun Sun, and Stephanie Lu Wang
Executive Overview
Emerging economy enterprises nowadays relentlessly scale the value chain in a quest to compete on the
world stage in part by copying the products of others. They develop new products and services that are
dramatically less expensive than their Western equivalents. In this article we discuss what these copycats
are and how they have grown in their unique trajectory. We emphasize their unique capabilities and
weaknesses, internal and external conditions that foster growth, and strategies and paths that transform
them along a continuum from duplicative imitators to creative imitators and ultimately to novel innova-
tors. To this end, we present the CHAIN Framework (combinative, hardship-surviving, absorptive,
intelligence, and networking) capabilities to showcase the copycats’ capabilities and discuss STORM
conditions (social, technological, organizational, regulatory, and market) that spur their growth. Finally, we
present four case studies of copycats and discuss future research on this issue.
I
n the past two decades, the economic and man- In this paper we examine the strategy of such firms
agement arena has witnessed the emergence, and lay out a research agenda for us to further
growth, and dominance of a growing number of understand such businesses.
firms from emerging economies. However, our un- To illustrate the strategy, consider these well-
derstanding of such emerging market competitors known companies. Samsung leapfrogged from be-
remains limited. As a result, there is growing rec- ing a mere assembler of discrete devices to a major
ognition that we need a better model for business, player in dynamic random-access memory
one that reaches out further temporally, geograph- (DRAM) chips in only a decade. Once India’s
ically, and ideologically (Cappelli, Singh, Singh, largest pharmaceutical company, Ranbaxy (now
& Useem, 2010; Chen & Miller, 2010). A key owned by Daiichi Sankyo), followed a similar
feature defining most emerging economy enter- trajectory from duplicative imitation to creative
prises is that they begin with imitation and later imitation, enabling them to move up the value
progress toward innovation. We refer to these chain of pharmaceutical R&D. Brazil’s Embraer is
companies as emerging economy copycats (EECs).
today the third largest global aircraft company; it
reached this position after a long period of cre-
The authors would like to thank Professor Garry Bruton and several
anonymous reviewers for their valuable comments and suggestions. ative imitation through global partnerships. Rus-
* Yadong Luo (yadong@miami.edu) is Professor of Management and Emery M. Findley Jr. Distinguished Chair, Department of Manage-
ment, School of Business Administration, University of Miami. He is also a distinguished honorary professor of Sun Yat-Sen Business
School, Sun Yat-Sen University, China.
Jinyun Sun (jysun@fudan.edu.cn) is a doctoral student at the School of Management, Fudan University, Shanghai, China, and a visiting
scholar at the School of Business Administration, University of Miami.
Stephanie Lu Wang (slu@exchange.sba.miami.edu) is a doctoral student in the Department of Management, School of Business
Administration, University of Miami.
Copyright by the Academy of Management; all rights reserved. Contents may not be copied, e-mailed, posted to a listserv, or otherwise transmitted without the copyright holder’s express written
permission. Users may print, download, or e-mail articles for individual use only.
2. 38 Academy of Management Perspectives May
sian conglomerates Metal Loinvest, Suek, and intervention to Internet censorship, an increasing
Rusal quickly evolved from imitators to listed pow- gap between the wealthy and poor to rampant
erhouses by challenging major Western multination- corruption, these countries are at the forefront of
als and gaining market share in low-end and mid- rapidly rising emerging markets, and we believe
range markets. All of these companies masterfully they will play a definitive role in leading the way
compete locally, regionally, and globally producing, out of the current global recession as the momen-
selling, and exporting cost-effective products. tum of emerging economies continues to grow.
A recent study and report by the Economist
(2010) suggested that emerging economies are Defining Emerging Economy Copycats
E
becoming hotbeds of business innovation in much merging economy copycats are enterprises
the same way Japan was in the 1950s. Not only are based in emerging economies that significantly
they creating novel products broadly equivalent to mimic a market leader or pioneer’s products.
the products of Western companies, but they are EECs often imitate existing technologies, designs,
doing so at a fraction of the cost. By reinventing and functions. This definition does not necessarily
production and distribution systems and experi- entail a negative connotation, and does not nec-
menting with the way they use available resources essarily refer to the imitators that illicitly and
and networks, EECs are creating entirely new illegitimately infringe a pioneer’s intellectual and
business models. Thus, emerging economy firms industrial property rights, such as brand, trade-
offer a unique mix of copying and innovating that mark, and patent. Korea’s rapid industrialization
offers a major challenge to existing business. stemmed largely from imitation, which does not
So are these entirely new business models? What necessarily imply illegal counterfeits or clones of
are the unique capabilities and strengths of these foreign goods; it can also be legal, involving nei-
copycats that enable them to maintain unique com- ther patent infringement nor pirating proprietary
petitive advantages over Western counterparts? know-how (Kim, 1997). Those companies that
Why are emerging economy copycats that were until cause billions of dollars in losses for innovative
recently discounted as merely sources of cheap labor global businesses by manufacturing and marketing
now becoming such powerful global competitors? counterfeits are referred to as “business pirates”
What are the driving forces behind their revolution- and are not included in our study.
ary strategies and business models? Probing these The distinction between the two groups, how-
understudied questions will help us better under- ever, is not always easy to delineate. It can be
stand firms that are challenging and overturning the difficult to appraise the legality and legitimacy of
prevailing Western paradigms (Bruton, Ahlstrom, EECs’ imitation as imitation itself is not black and
& Obloj, 2008; Cappelli et al., 2010; Chen & white but instead falls within a “zone of accep-
Miller, 2010; Guillen & Garcia-Canal, 2009; Im- tance” (Deephouse & Suchman, 2008). Steven
melt, Govindarajan, & Trimble, 2009; Prahalad Schnaars (1994) categorized several distinct imi-
& Mashelkar, 2010). This is particularly critical tations: counterfeits (or pirate products), knock-
since existing theories on innovation based offs (or clones), design copies, creative adapta-
mainly on Western companies do not fully apply tions, technological leapfrogging, and adaptation
to ever-evolving firms in emerging economies. to another industry. Pirate firms are excluded from
We set out to explore these issues, providing an our definition of copycatting. Smaller and newer
analytical framework for EECs’ environment, ca- copycats often remain in the pure imitation phase
pability, and strategy. To do so we examine four (knockoff or design imitation), while more estab-
companies: two from China, one from Brazil, and lished copycats evolve to become innovative
one from India, each representing a different type imitators (creative adaptation) or even novel inno-
of copycat. Among leading emerging economies, vators leapfrogging technology and adapting tech-
China, India, and Brazil furnish a rich research nology to other industries. Some EECs imitate a
field of EECs. Although plagued with controver- pioneer’s product designs and appearance; others
sial debates ranging from foreign exchange rate mimic product performance and technology, brand
3. 2011 Luo, Sun, and Wang 39
names, images, and even slogans. EECs tend to treat seize new opportunities in blue-ocean or uncon-
imitation as an early-stage stepping-stone to survey tested markets (Kim & Mauborgne, 2005).
a targeted market before expanding toward inno- Fourth, successful EECs are characterized by
vation. In the majority of cases, products are imi- speed of design, production, and marketing and their
tated through reverse engineering, patent purchase ability to quickly adapt to mass markets. China’s
through licensing, the purchase of key components Haier, Mexico’s Mabe, and Turkey’s Arcelik are
in open markets, and joint development through successful copycats, characterized by rapid learning,
partnerships. To further explicate what EECs are, we innovative imitation, and mass production in the
now turn to common characteristics of EECs. early stage of international expansion (Bonaglia,
First, EECs tend to remain in either a pure/ Goldstein, & Mathews, 2007). In less than a decade,
duplicative imitation stage (early phase) or in a Tianyu, China’s third largest cell phone maker, has
creative/innovative imitation stage (later phase). engineered a design process significantly faster than
The products offered imitate a successful incum- those of globally recognized leaders Nokia and
bent’s existing products and services. EECs often Motorola. Tianyu produces mobile phones in less
begin with reverse engineering and imitation, than one third of the time of these mobile tele-
without proprietary core technology, know-how, communications giants. Today, the company
brands, and reputation, but quickly evolve from launches more than 100 new cell phone models
duplicative imitation to creative or innovative each year. EECs like Tianyu develop products
imitation (improvement included) and finally with easy-to-use functions at extremely affordable
produce innovative products of their own (often prices for masses of price-sensitive consumers.
focusing on new designs, functions, and speed). Last, EECs are heterogeneous: They differ in both
Once an EEC surpasses duplicative and innova- their evolutionary stage and in their imitative traits.
tive imitation stages, it is no longer considered a MyTrip.com, India’s leading travel agency Web
copycat. Two former copycats, China’s Huawei, a site—listed on the NASDAQ in 2010 —adopted a
leading global telecommunications solutions pro- business model and management process system very
vider, and India’s Arcelor Mittal, a leader in the similar to that of Expedia.com. Sany, China’s largest
global steel market, have evolved to become novel concrete machine manufacturer, took a different ap-
innovators with enormous investments in R&D. proach. For Sany, reverse engineering was a vital
Second, most EECs are privately owned enter- early step that accelerated its creative imitation. The
prises (POEs). Unlike state-owned enterprises company identified and analyzed every possible area
(SOEs), POEs lack government protection and crit- that could be imitated, learned, and assimilated to
ical access to government-controlled resources. achieve its current status as a market leader. Today,
They, however, maintain high levels of opera- Sany operates both a national research center and a
tional flexibility, market knowledge, and aggres- postdoctorate research station in China, as well as
sive opportunity-seeking ambition. This entrepre- research and manufacturing bases in Germany, the
neurial spirit enables them to adopt prompt, United States, and India. This notable former copy-
novel, and realistic tactics without running afoul cat now owns 536 patents and hundreds more know-
of government policies and legal provisions. how technologies.
Third, EECs are evolutionary. Equipped with Through extensive field studies and interviews,
the learning advantage of newness, many EECs we observed that EECs possess three competitive
participate in fierce competition with domestic advantages: cost, channel, and speed. These advan-
and global firms early in their life cycles and have tages mutually reinforce one another. EECs have an
inherent learning advantages over late entrants edge in “cost innovation” (Zeng & Williamson,
because they possess fewer deeply embedded rou- 2007) by delivering suitable technology at a low cost
tines (Autio, Sapienza, & Almeida, 2000). More- by leveraging inexpensive R&D resources, betting
over, they face fewer structural constraints, such as on low-cost alternative technologies, and using the
organizational inertia, corporate politics, and in- rise of open architecture to dismantle competitors’
ternal bureaucracies, resulting in the ability to high-margin proprietary systems. These companies
4. 40 Academy of Management Perspectives May
Figure 1
Typology of Emerging Economy Copycats
1st Generation 2nd Generation 3rd Generation
Large
II IV
Duplicating Adaptive World-stage
Wildcat: Junglecat: Innovator:
MARKET SHARE
(Li Ning) (Tianyu) (Destination)
I III
Mocking Emulating Novel
Kitten: Housecat: Specialist:
(Video (Dr. Reddy’s) (Destination)
Brinquedo)
Small
Duplicative Innovative Novel
Imitation Imitation Innovation
IMITATIVENESS
offer customers substantial variety at mass-market ness in proprietary innovation and lack of in-house
prices by focusing on process innovation and recom- R&D. Improved inbound and outbound logistics
bination of existing technologies. EECs apply scale- services also fortify their channel advantage. Many
based technology to specialty products and thus EECs in consumer products industries remove de-
transform businesses by dramatically reducing costs sign and component manufacturing to specialized
and prices, hence increasing volume. The sheer size outsiders through inshore outsourcing after build-
of the EECs’ home market makes this possible. ing their own supply channels and necessary net-
Channel advantage is the EECs’ unique strength works. This not only bolsters their cost advantage
in identifying, developing, and utilizing all channel but also increases their ability to get products to
networks needed for both primary and support ac- market quickly.
tivities. These channels include market information EECs possess a speed advantage. Their entrepre-
channels, government channels, supply chain chan- neurial orientation, combined with their learning
nels, distribution and marketing channels, interme- advantage, channel advantage, and improved open
diary production or services channels, and outsourc- markets in specialized services and important re-
ing channels. To leverage their learning advantages sources, increases their ability to quickly identify
of newness while dispelling the liabilities of lateness, market opportunities, respond to market needs, and
many EECs develop a unique ability to identify introduce and deliver products to the market. Hard
where to secure critical resources, raw materials, key work propels speed too. Lax labor laws permit
components, government support, important em- around-the-clock production, and it is not uncom-
ployees, and distribution networks. As a result, they mon to see 24-hour design and manufacturing oper-
quickly create new businesses or introduce new prod- ations in EECs. In fact, this pressure has pushed their
ucts. Although often EECs do not own original or speed advantage to a higher level in recent years. To
core technologies, their ability to license, purchase, market leaders, fast imitation by followers undercuts
or outsource standard technologies, key compo- the durability of their first-mover advantages (Lee,
nents, and specialized service providers in an open Smith, Grimm, & Schomburg, 2000).
market makes it possible to circumvent their weak- Figure 1 offers a typology of EECs in three distinct
5. 2011 Luo, Sun, and Wang 41
Figure 2
Emerging Economy Copycat’s Capabilities: The CHAIN Framework
CombinaƟve Intelligence
Copycat’s CompeƟƟve
Capability Capability
Advantage
• Cost Advantage
• Channel Advantage
Hardship-Surviving • Speed Advantage
Networking
Capability Capability
AbsorpƟve
Capability
phases: duplicative (or pure) imitation, innovative Yet another risk is brand image. Consumers per-
(or creative) imitation, and novel innovation. An- sistently perceive copycats as low-end, low-qual-
other dimension used in this typology is a copycat’s ity, cheap product manufacturers. Thus, changing
market share or its market influence. This 2ϫ3 ma- the image from copycat to innovator after the firm
trix produces six cells or identities, which will be begins developing its own proprietary technology
further illustrated in our case study section. The and independent innovation has proven difficult.
three phases are often linked to the developmental Altering this view can be formidable, time-con-
phases of the respective national economies. In the suming, and expensive.
1970s and 1980s, weak intellectual property rights
(IPR) protection in India facilitated duplicative Copycat Capabilities: CHAIN Framework
H
imitation. Conversely, countries with strong IPR ow have EECs built the above advantages?
legal regimes must take a more novel or indepen- Our answer rests in the capabilities of the
dent approach. Duplicative imitation may be an CHAIN Framework (see Figure 2). EECs’
astute strategy in the early industrialization of a cost advantage, channel advantage, and speed
low-wage country as duplicative imitation of ma- advantage are a function of the manner in
ture technology is relatively easy to undertake which the company possesses, leverages, and
(Kim, 1997). Many EECs’ imitative acts are tech- upgrades the five CHAIN capabilities: combi-
nically and legally ambiguous, eroding a target native, hardship-surviving, absorptive, intelli-
pioneer’s market share and profitability. Lack of a gence, and networking.
well-established and well-enforced legal system to
protect IPR can make counteracting EECs’ imita- Combinative Capability
tive acts difficult and costly. Combinative capability is an EEC’s distinctive
Relatedly, copycatting itself involves many ability to combine outside technologies, key com-
risks, one of the most common of which is legal ponents, and specialized services available from
ambiguity. Because their products reach consum- open markets with its own resources, designs,
ers in many nations, including developed coun- and/or production to offer better performance fea-
tries where legal systems and IPR safeguards are tures, lower cost, and/or other improved attri-
much more established, navigating legal issues can butes. EECs are often inferior in creating a novel
be challenging. More often than not, market lead- set of product offerings (idea, design, function,
ers do not allow EECs to easily enter and compete technology, brand, etc.) but superior in combin-
in these markets, and they tactically position ing and integrating outside technologies with
themselves to outmaneuver copycatting behavior. their own resource base. This capability is the
6. 42 Academy of Management Perspectives May
main source of cost advantage and speed advan- have added to existing institutional hardship in
tage. Savvy EECs, skillful in combinative capa- many emerging economies.
bility, can deliver products even at an early While hardship increases a firm’s transaction
stage of their life cycle. The availability of open costs and even destroys some firms, established
markets in key components, technology, design, copycats often survive under economically
and assembly facilitates the development of fragmented and institutionally harsh conditions
combinative capability. (Cuervo-Cazurra & Genc, 2008; Luo & Rui,
Careful consideration of the target market and 2009). Private ownership, organizational resil-
culture is imperative to success when imitating or ience, learning advantage, and lower innovation
copying a product from a developed country. Fur- investment costs allow copycats to learn and adapt
ther, imitation requires a considerable degree of faster than others in responding to institutional
combinative capability in terms of adaptation austerity. When seeking out new opportunities in
(Yoon, 1998). This explains in part why many new geographic regions (domestic and inter-
EECs competent in combinative capability can national), EECs can leverage their institutional
successfully evolve from duplicative to creative arbitrage advantages (Boisot & Meyer, 2008;
imitation. Emerging modularization for many Cuervo-Cazurra & Genc, 2008). EECs tend to be
products (e.g., household appliances and telecom- more successful in investing and marketing in
munication products) has also simplified the pro- developing countries than in developed ones.
cess of imitation and utilizing combinative capa-
bility (Pil & Cohen, 2006). Since MediaTek, a
Absorptive Capability
leading semiconductor company based in Taiwan
now investing in mainland China, offered a total This capability demonstrates an EEC’s distinctive
solution and technology package combining mo- ability to value, assimilate, and apply new knowl-
bile chips and software, hundreds of Chinese edge. It involves a broad set of skills needed to
copycats have been using this package, delivering deal with the tacit component of transferred
cell phones with more product choices and per- knowledge and the need to modify the knowledge
formance features than even Nokia and Motorola imported (Cohen & Levinthal, 1989, 1990;
provide. Mowery & Oxley, 1995). Speed is made possible
through an EEC’s absorptive capability: Followers
invest in absorptive capacity to facilitate learning
Hardship-Surviving Capability from others and accelerate implementation. Fol-
This capability represents an EEC’s distinctive lowers with strong absorptive capacity delay com-
ability to both operate and survive in an institu- mitment and collect better information without
tionally austere environment and to deal with compromising their ability to respond. Absorp-
demanding business stakeholders (e.g., govern- tive capacity extends the window for effective
mental institutions) that impose significant con- action, reducing the risk that the firm will
straints on business activities. In major emerging imitate too early or too late, and allows for
economies, political, economic, and administra- improved decision-making processes (Lieber-
tive decentralization, originally aimed at unclog- man & Asaba, 2006). Many successful EECs
ging blockages in the central bureaucracy, has led equipped with sharpened skills assimilate and
to a more fragmented economy, redundant pro- use technological skills and process the knowl-
duction capacity, and heightened formal and in- edge of market leaders. In fact, a large propor-
formal barriers to domestic trade (Boisot & Meyer, tion of EECs are led by those with science
2008). Such unintended consequences, together degrees and industrial experience in research
with long-standing challenges in the institu- and development (Hu & Mathews, 2008). In
tional environment, including regulatory hin- addition, their superior background in reverse
drance, policy uncertainty, weak legal protection, engineering enhances a solid foundation for fur-
ubiquitous corruption, and poor public services, ther developing their absorptive capability.
7. 2011 Luo, Sun, and Wang 43
Intelligence Capability ability to do so has been identified as a powerful
Intelligence capability is an EEC’s distinctive abil- tool in helping it maintain a competitive ad-
ity to identify, collect, analyze, and interpret busi- vantage and achieve superior performance. Eco-
ness information pertaining to market, technol- nomic fragmentation and institutional obsta-
ogy, competition, standards, and regulations cles, combined with cumbersome government
needed for its duplicative or innovative imita- control over critical resources and market entry,
tions. Among the three competitive advantages put copycats at a disadvantage compared with
mentioned above, speed and channel advantages established state-owned rivals that are largely
particularly benefit from this ability. Intelligence protected by the central or local governments.
gathering helps an EEC gain the requisite insights This in turn prompts copycats to rely more
to gain a competitive advantage (cost, speed, or heavily on formal and informal networks. Even
channel) associated with duplicative or innova- for mature copycats that have passed the dupli-
tive imitation and increase the quality of its cative imitation stage and progressed to inno-
strategic decisions. Further, it helps the firm vative imitation and even novel innovation
formulate imitative and innovative plans and in- phases, networking capability remains key to
vestment priorities. Intelligence capability makes firm growth, domestically and internationally.
it possible for EECs to know what to do, while
other capabilities in Figure 2 show them how. For Copycat Growth: STORM Conditions
C
example, intelligence capability has advanced the apability endowment, as explained above, is a
ability of many Indian pharmaceutical firms to necessary but not sufficient condition for EEC
better predict global demand for generic drugs, growth. As Figure 3 shows, five conditions,
analyze critical markets, choose target firms to termed here as STORM (social, technological,
acquire, and secure inbound and outbound net- organizational, regulatory, and market) condi-
works vital to success in foreign markets. tions, facilitate EEC development.
Social Conditions
Networking Capability Many emerging economies rely on imitative re-
This is an EEC’s distinctive ability to obtain the search of foreign inventions to maintain indus-
necessary resources from outside institutions (e.g., trial competitiveness (Kim, 1997). Emerging
government, suppliers, buyers, partners, competi- economy societies tend to be apathetic to intel-
tors, or vendors) through both formal and infor- lectual property rights protection, thus allowing
mal networks. Networking is one of the major social acceptance of imitation (and even counter-
strategies pursued by emerging market enterprises feits to some degree). Fragmentation and disparity
to gain access to resources and cope with environ- in economic development, real income, social jus-
mental uncertainty and impediments to their op- tice, public service, and infrastructure conditions
erations (Hoskisson, Eden, Lau, & Wright, 2000). are common characteristics of large emerging
When organizations are linked by stronger net- economy countries. Such fragmentation and dis-
work ties, they are more likely to have detailed parity foster the popularity of wild imitation and
information about each other, which facilitates even counterfeits in underdeveloped regions and
imitation (Gulati, Nohria, & Zaheer, 2000). Im- for low-income populations. Further, nationalism
itation tends to be socially beneficial and poten- encourages indigenous companies to imitate, pro-
tially profitable in situations where imitators com- duce, and deliver products to replace those origi-
plement each other, which often arise in nally developed by well-known foreign multination-
environments with network externalities or ag- als. Import substitution, a government-enacted
glomeration economies (Lieberman & Asaba, policy adopted in many developing countries for
2006). decades, fuels growth for localized imitation in
Social networking helps EECs draw on con- these countries.
nections in business relationships, and a firm’s During economic and social transformation,
8. 44 Academy of Management Perspectives May
Figure 3
Conditions Fostering Copycat Growth: The STORM Framework
Social CondiƟons
• Apathy to intellectual property rights protecƟon
• Tolerance for counterfeiting
• Asymmetric informaƟon fostering fake goods
• Blind naƟonalism encouraging knockoffs
• Herding effect enlarging all condiƟons above
Emerging Economy Copycats
MoƟvaƟon of Copycats
Technological Seeking mass-market opportunity for low-end and
Market CondiƟons
CondiƟons mid-range consumers
Seeking high volume with low margin • Presence of mass market
• StandardizaƟon and Behavior of Copycats for copycat products
modularizaƟon ImitaƟon of product offering • Social acceptance of
• Availability of open market EvoluƟon from complete to creaƟve imitaƟon copycat products in many
for key technology, countries
components, and design • Increasing sensiƟvity to
• Rise of specialized OrganizaƟonal CondiƟons price-value raƟo
intermediaries • Improved logisƟcs,
• Convergence of technical channels, and networks
• Flat organizaƟonal structure
norms • Low entry barriers or low
• Entrepreneurial orientaƟon
startup/exit costs
• Performance-based culture and incenƟves
• Learning advantage of newness
Regulatory and Legal CondiƟons
• Lack of a clear disƟncƟon between legal and illegal
copycat products
• Ambiguous IPR systems
• Weak enforcement of IPR protecƟon and weak
punishment for IPR infringement
• Inadequate puniƟve regulaƟons for counterfeits
these societies also tend to become increasingly modernization encouraged a decline in traditional
demoralized, often allowing copycatting and even social controls based on family and communal
some immoral business practices to prevail. Moral relationships, a resultant weakening of norms,
degradation—the process of a society’s progressive and, in turn, increased deviance. Moral degrada-
loss or weakening of morality and ethics—socially tion provides fertile soil for the growth of the
and culturally upholds imitation. This view is anomic pressures associated with market arrange-
consistent with the premise of institutional ano- ments. In an anomic organizational context, pres-
mie theory (e.g., Messner & Rosenfeld, 1997), sure exists to take any path necessary to achieve
which suggests that cultural and social drivers performance goals.
result in conditions in which pressures for goal
achievement through any means—legitimate or Technological Conditions
not— displace normative control mechanisms. In- International supply chains are increasingly mod-
stitutional and cultural changes associated with ular, many activities are now outsourced, and
9. 2011 Luo, Sun, and Wang 45
global markets for capital, knowledge, and acqui- Organizational Conditions
sitions are more open, reducing the entry barriers Success of EECs is augmented by a series of orga-
faced by EECs (Zeng & Williamson, 2007). Mod- nizational catalysts, such as flat organizational
ularity—the degree to which a supply chain structure, entrepreneurial orientation, task-ori-
system’s components may be separated and recom- ented corporate culture, and learning advantage of
bined—is positively related to the speed of prod- newness. Due to private ownership and entrepre-
uct design imitation, which allows EECs to exploit neurial propensity, copycats respond easily to out-
technological opportunities and to react to evolv- side opportunities. In doing so, they maintain a
ing market opportunities through recombination, flat, nonhierarchical structure. This gives employ-
modular innovation, and outsourcing (Pil & Co- ees incentives to perform a wide range of tasks and
hen, 2006; Thomke & Reinertsen, 1998). Increas- initiatives with greater autonomy and flexibility.
ingly, open global markets for key components Entrepreneurial orientation, often comprising in-
and technologies facilitate an EEC’s ability to novativeness, risk taking, competitive aggressive-
imitate, thus reducing the burden to invest heav- ness, and a proactive approach (Lumpkin & Dess,
ily in R&D. This enables mass manufacturing 1996; Miller, 1983), is a critical trait allowing
with standardized technology and offsets techno- EECs to interact with institutional legacies and
logical weaknesses. Austin, Texas-based Silicon the competitive environment of emerging econo-
Laboratories supplies semiconductor chips for cel- mies. Corporate executives at EECs must skillfully
lular phones and computer modems to several maneuver strategic choices, seeking out ways to
large EECs including China’s TCL and Brazil’s garner the political support that allows the free-
Embratel Participacoes. In the personal computer dom and support to pursue appropriate growth
(PC) market, the latest technologies developed strategies. Successful EECs are often led by exec-
in Silicon Valley can reach China within a utives with sharp vision and a pragmatic approach
month or so. This swift transfer of technology to tap into new markets first through duplicative
allows Dongguan, a small city in the Guangdong imitation and subsequently through innovative
province with the world’s highest concentration imitation. Moreover, EECs are often managed by
of component manufacturers, to provide Chi- a task-oriented corporate culture that uses out-
nese PC markets with a ready supply of world- come- or performance-based incentives to evalu-
class technology. ate and reward employees. This approach directly
Today, well-established open global markets supports EECs’ hardship-surviving capability and
in applied technology, advanced machinery and generates high productivity. Last, the learning ad-
equipment, latest instruments, and sophisticated vantage of newness fuels EEC growth. These firms
materials and components make EECs much more have fewer deeply embedded routines and face
less cognitive complexity and structural rigidity,
path independent. In addition, convergence and
which allows them to easily recognize and respond
standardization of technical norms, pushed in
to new opportunities.
part by international organizations such as the
International Organization for Standardization
(ISO), encourages EECs to distribute products Regulatory Conditions
in multiple markets and countries. The Internet Undoubtedly, lax regulatory and legal conditions,
helps EECs access critical information and especially in protecting IPR, help EECs imitate.
strengthen their ability to identify market op- Legal protection of legitimate business activities
portunities. Finally, the willingness of advanced and IPR is weak in emerging economies. Al-
market multinationals to sell (e.g., via licens- though legislative and governmental bodies in
ing) or share (e.g., via a joint venture) technol- emerging economies have begun to enact more
ogy, brands, or other assets provides EECs with commercial laws and regulations, they are gener-
an additional channel to purchase or acquire ally not strictly enforced for a variety of political,
critical resources they need. socio-cultural, institutional, and historical rea-
10. 46 Academy of Management Perspectives May
sons. This enforcement uncertainty and variabil- key) countries, the Gini index (a measure of the
ity can be partly ascribed to long traditions of inequality of a country’s wealth distribution)
untrustworthy legal and governmental systems, over the past several years ranged from 37 (In-
lack of independent law enforcement, deficiency dia) to 57 (Brazil), with other countries falling
of supervision mechanisms, and frequent unjusti- somewhere in between. From 1992 to 2007, the
fied law changes. These weak systems cause enor- richest 10% held 28.4% of the nation’s total
mous “appropriability hazards” (a term in transac- income in Russia, 43% in Brazil, and over 30%
tion cost economics that indicates possible losses in India and China. These statistics show that
from uncompensated knowledge leakages or prop- most inhabitants in these countries remain at
erty right infringements by others) for original the bottom of the wealth pyramid, earning low
innovators. salaries and facing social injustice. Since copy-
With weak legal protection, a victim of IPR cat products are more affordable for these in-
infringement has very little legal recourse. Un- habitants, who are indifferent to brands but
der ambiguous IPR systems in emerging markets, highly sensitive to prices, EECs’ products and
“legitimacy” of imitation is better viewed not as services are well-suited to their needs. While
a binary concept but rather as a “zone of accept- EECs’ cost advantage gives them leadership in
ability” within which copycats vary in the de- serving this large number of low-end consumers,
gree of imitation (Deephouse & Suchman, their channel advantage facilitates economies
2008; Zuckerman, 1999). Most copycats operate of scale in distributing products to geographi-
somewhere within this zone. Meanwhile, loose cally dispersed consumers.
enforcement of IPR protection and weak pun-
ishment over IPR infringement lessen the fear
Copycats’ Strategies and Transformation
of piracy. EECs’ compliance costs are far greater
in countries where IPR legal protection is EEC Strategies
A
strictly enforced. Shuanghuan, the Chinese au- lthough this article was not designed to con-
tomotive maker, copied three famous car de- cretely discuss EECs’ strategies, it is worth
signs but won a lawsuit in China’s local court, in noting several strategic behaviors unique to
part due to legal ambiguity in IPR and lack of EECs. At the corporate level, most successful
IPR knowledge by local judges. EECs use a single or dominant strategy instead of
a diversified one. A vast local market and enor-
Market Conditions mous export potentials are the premise of their
Despite considerable differences within this single/dominant strategy. China’s Galanz pro-
group, emerging markets are economic territo- duces only microwave ovens and holds approxi-
ries in national economies that grow rapidly; mately 50% of the global market share. Many
their industries structurally change, the markets EECs that diversified into different businesses
are promising but volatile, regulatory regimes have failed (e.g., the failure of China’s Delong is
favor economic liberalization and adoption of a primarily a result of overdiversification). In the
free-market system, and governments reduce early stages of development, EECs use greenfield
bureaucratic and administrative control over investment and networks or alliances rather than
business activities (Luo, 2002). Despite their joint ventures (due to the necessity for control) or
vast size and strong demand, these markets re- M&As (due to their small size and lack of finan-
main extremely fragmented and segmented, cial resources). As they mature and evolve into
marred by disparity of real income and purchas- creative imitation and novel innovation phases,
ing power and marked by diversity of consump- EECs progressively diversify product categories
tion preference and behaviors of consumers. and product offerings. In these stages EECs often
According to World Bank statistics (World proactively engage in mergers and acquisitions to
Bank, 2009), in BRIC (Brazil, Russia, India, and diversify and embark on outward foreign direct
China) and MIT (Mexico, Indonesia, and Tur- investment (FDI).
11. 2011 Luo, Sun, and Wang 47
At the business level, many successful EECs and the ability to launch worldwide operations
establish competitive advantages (cost, speed, and from the manufacturing center. Home country
channel) in several ways. markets remain the primary focus of operations,
First, these companies begin by seeking out but international venturing generates lucrative
promising massive low-cost markets where they opportunities for growth. The long-term success
accumulate experience in operations and market- and viability of EECs lies in their ability to simul-
ing and build market share by focusing on limited taneously leverage core competencies at home and
product lines. explore new opportunities abroad. In particular,
Second, they diligently research the right mar- EECs use international venturing to cash in on
ket to target for imitation. Targets often include their competitive advantage in additional emerg-
mass-produced products, standardized technology ing and developing markets. Mass production ca-
(not advanced), and easy-to-reverse-engineer or pabilities, experience, and low-cost advantages
cash-cow market leaders. To accomplish the mis- drive the manufacture of technologically stan-
sion these companies often hire former employees dardized products in new emerging and develop-
from a market leader, search for low-cost substi- ing markets where great demand exists. This low-
tutes for main components or technology, cut cost position allows them to offer local consumers
costs through economies of scale, and build net- very attractive prices. It then results in market
works with specialized providers offering standard- share gains over companies from advanced and
ized or modular components or services. Next, industrialized countries operating in the same
they begin to build their own small-scale R&D market. To upgrade imitated products, EECs often
capabilities as they progress from duplicative to
employ technology newly acquired through inter-
innovative imitation.
national expansion to both improve domestic
Third, successful EECs maintain an accelerated
manufacturing and develop new products for in-
pace in closing the gap with market leaders. As
ternational markets.
EECs mature, they aggressively leverage and inte-
During international expansion, EECs leverage
grate their established capabilities: using combi-
both inward internationalization and institutional
native capability to sharpen creative imitation
arbitrages. EECs actively conduct inward interna-
and develop new designs, using intelligence capa-
bility to identify new opportunities, using network tionalization in numerous ways, such as interna-
capability to benefit from comparative competi- tional licensing, original equipment manufactur-
tive advantages contributed by a multitude of spe- ing, cooperative alliances, equity joint ventures,
cialized service providers, and using absorptive brand purchasing, and relationship building with
capability to assimilate new technologies and cre- foreign firms. As they develop their knowledge
ate new designs and performance features. base, these firms become competitors of compa-
Finally, EECs excel in managing value chain nies from advanced economies (Mudambi, 2008).
systems, from which they benefit and further re- Inward internationalization provides both oppor-
inforce their cost, speed, and channel advantages. tunities to learn and exposure to foreign business
In conducting support activities such as human practices and markets.
resource management, EECs empower employees Many EECs embark on outward FDI as part of
and offer more incentives than their rivals. their growth strategy after gaining adequate inter-
Through networks, EECs subcontract and out- national experience through inward cooperation
source activities in which they do not have a with their foreign partners. Finally, EECs leverage
competitive edge. Through combinative and in- their institutional arbitrage, the term capturing a
telligence capabilities, copycats quickly deliver fi- firm’s pursuit of efficient institutions outside its
nal products with new designs and performance home country. The disadvantages previously suf-
features appealing to mass consumers. fered at home can be overcome by investing and
On an international level, EECs recognize that operating in other developing countries because
success depends on their domestic performance they are experienced in operating in “difficult”
12. 48 Academy of Management Perspectives May
governance conditions (Boisot & Meyer 2008; frogging are generic forms of innovative imitation.
Cuervo-Cazurra & Genc, 2008). Still, all forms of innovative imitation begin with
reverse engineering, which involves purposive
EEC Transformation searching of relevant information, effective co-
As Figure 1 illustrates, EECs transform along several operation among technical members of project
paths. Along with the shift from duplicative (or teams and with marketing and production depart-
pure) imitation to innovative (or creative) imitation ments, strong and effective relationships with sup-
and ultimately to novel innovation, EECs can opt pliers and customers, and trial and error in devel-
for several road maps to grow and evolve: (1) im- oping a satisfactory result (Kale & Little, 2007).
prove creation and innovation (a horizontal path), Samsung’s catch-up with Sony may be a lesson to
(2) increase market share (a vertical path), and (3) EECs seeking to move forward from creative imita-
strengthen both innovation and market share (a tion to novel innovation: In the mid-1990s Samsung
diagonal path). As a latecomer approaches the tech- caught up with Sony in number of patents, and since
nological frontier, its strategies have to shift from then has gone beyond simply imitating and applying
imitation to innovation (Kim, 1997). This has been Sony’s technology (Chang, 2008). Interestingly,
the case for many Asian Tigers: First were those from Samsung caught up with Sony in terms of corpo-
Japan (e.g., Hitachi, Sharp, and Toshiba), followed rate value and brand value only after the 2000s,
by those from South Korea (e.g., Samsung and LG), suggesting that technological catch-up precedes
then Taiwan and Singapore, and now leading corporate value- and brand value-based catch-up.
emerging economies. Many Korean firms began du- In the process to improve innovative imitation,
plicative imitation during the 1960s and 1970s and EECs leverage low-cost R&D into mass markets
evolved to innovative imitation in the 1980s and and bet on low-cost and disruptive technologies
1990s as the economy became more industrialized (Zeng & Williamson, 2007). Cost-cutting initia-
(Kim, 1997). Numerous Indian pharmaceutical tives, simplified operations, and lower labor costs
companies share a similar trajectory, starting with underpin these enterprises’ survival and success in
duplicative imitation and progressing to innovative massive, fast-growing markets. Built on such low-
imitation and today to novel innovation (Chittoor, cost advantages, EECs continue exploiting high
Sarkar, Ray, & Aulakh, 2009; Kale & Little, 2007). technology in low-cost novel ways established
While most new copycats begin in the pure global competitors have yet to envision or find
imitation stage, more established EECs have re- difficult to conduct. As a result, EECs offer prod-
cently advanced to the innovative imitation ucts with incremental innovations in ever-shorter
phase. A handful, including India’s Ranbaxy and product life cycles—typically at prices global rivals
China’s Huawei, have even propelled themselves find hard to match.
to the novel innovation stage. Today, most EECs Dawning, a high-performing Chinese computer
strive to collect returns from creative and innova- manufacturer, succeeded in selling high-end prod-
tive imitation. Often, they incorporate high tech- ucts to middle and low-end markets with higher
nology in low-cost products, offer more product volume and lower prices than competitors. BYD, a
choices, and even turn high-end specialty prod- Chinese battery manufacturer, holds more than 30%
ucts into low-cost, high-volume items (Zeng & of the global battery market share and produces
Williamson, 2007). Creative or innovative imita- batteries at 20% of the cost of its Japanese rivals.
tion is aimed at generating facsimile products but These EECs are experts in tailoring products to the
with new performance features. It involves not needs and budgets of local consumers. They are also
only activities like benchmarking but also notable good at driving innovations from one market to
learning through substantial investment in R&D another. For example, Shinco gained its market po-
activities to create imitative products, which may sition in China’s video compact disc (VCD) market
have significantly better performance features by creating a superior error correction ability that
than the original (Kim, 1997; Shenkar, 2010). enables consumers to play all kinds of discs— even
Creative adaptations and technological leap- pirated ones. Later, the company successfully ex-
13. 2011 Luo, Sun, and Wang 49
panded into the digital versatile disk (DVD) market cording to a report by the World Intellectual
throughout the world. Property Organization in 2009).
But not all copycats thrive; in fact, many EECs
terminate operations, liquidate assets, and end up
Mocking Kitten: Video Brinquedo
filing for bankruptcy. Failure to evolve and trans-
form in ever-changing markets tops the list of Founded in 1994, Video Brinquedo is an anima-
reasons for failure. Many EECs learn not only from tion video company based in Sao Paulo, Brazil.
˜
market pioneers but from their own failures and Predominantly owned (90%) by a British offshore
successes. Despite the apparent weaknesses and company called RXSG Media Group Ltd., the
handicaps EECs face, few experts doubt that their company is led by Silvana Aparecida da Silva,
growth will accelerate. who holds the remaining 10%. Video Brinquedo’s
absorptive and intelligence capabilities appear to
play a critical role in fostering the firm’s growth.
Case Studies The recent availability of computer-generated
E
ach of the four cases here represents a different imagery (CGI) software and increased computer
type of EEC. Two cases are from China (Li speed has made it possible for individual artists
Ning and Tianyu), one is from India (Dr. Red- and small companies to produce professional-
dy’s), and one is from Brazil (Video Brinquedo). level films and games from their home comput-
We chose these companies after extensive field ers. The company produced low-cost films by
studies and desk research. Since 2005 we have adeptly imitating established international ri-
been conducting nationwide field studies and vals such as Disney-Pixar and DreamWorks. By
interviews in China to collect the needed in- taking advantage of Brazil’s state-of-the-art 3-D
formation for the two Chinese cases. The infor- rendering and booming CGI animation tech-
mation for Dr. Reddy’s and Video Brinquedo nology, Video Brinquedo was able to quickly an-
was obtained through thorough desk research, alyze and reproduce new releases by established
including identifying and cross-checking rele- international rivals and then distribute Video
vant information from dozens of online sources. Brinquedo’s version almost simultaneously with
We finally opted for these four cases because the original movie’s release (judging from the
they met our selection criteria: (1) they vary in dates of the New York Times reviews). For exam-
size and age, (2) they vary in market share and ple, as noted on the Web site of Brazil’s Ministry
scale of operations, (3) they belong to different of Culture, Ratatoing, the cartoon film by Video
types of copycats proposed in this study, (4) Brinquedo, which was distributed in North Amer-
their imitation is not illegal, and (5) they offer ica by Branscome International, was recognized as
sufficient insight into critical practices relative being very similar to the famous 2007 Pixar film
to imitation and its evolution. Table 1 high- Ratatouille. Likewise, The Little Cars series by
lights the profile of these four cases. Video Brinquedo closely resembles the Pixar film
China, India, and Brazil are among the fastest Cars, Heavy Weight Panda resembled Kung Fu
growing emerging economies, with an average real Panda, and Gladiformers resembled Transformers.
gross domestic product (GDP) growth rate of Armed with advantages in both cost and speed,
10%, 8%, and 5% respectively from 2006 to 2008 Video Brinquedo adopted a well-matched niche
(World Bank, 2009). While the number of inter- distribution strategy, namely direct to video, un-
national patents owned by Chinese firms is far der which films were released to the public on
smaller than those owned by firms in G7 countries home video formats before or without being re-
(Canada, France, Germany, Italy, Japan, the leased in movie theaters or on broadcast televi-
United States, and the United Kingdom), many sion. These direct-to-video releases are well-suited
EECs in these three countries exhibit steady to Video Brinquedo’s niche in lower technical or
growth in filing patents and registering trademarks poorer artistic quality and fewer content restric-
(annual growth of over 20% in such filings, ac- tions. In this way, Video Brinquedo managed to
14. 50 Academy of Management Perspectives May
Table 1
Case Summary
Company Video Brinquedo Li Ning Dr. Reddy’s Tianyu
Year founded 1994 1990 1984 2002
Home country Brazil China India China
Ownership Private Publicly listed Publicly listed Private
Size n/a 6,200 retail stores 10,000 employees 1,100 employees
Revenue (USD) n/a 635 million (2008) 854.6 million (2008) 1,150 million (2008)
Sales growth n/a 37.7% 26.05% 45.5%
(05–09)
Major business Animation Sporting goods Pharmaceuticals Mobile phones
Domestic market n/a 11.1% (2008) 2% (2008) 14% (2008)
share
CHAIN Framework
Combinative ● Imitated multiple targets ● Identified and imitated ● Quickly reverse-engineered ● Excelled in utilization outside
capability separately (e.g., Disney- competitors’ brand generic drugs core technologies (e.g., the
Pixar, DreamWorks) management and marketing ● Delivered high-quality drug turnkey model invention)
strategies offerings ● Was skillful in delivering a
● Hunted talents from ● Achieved successful variety of products
sophisticated MNEs integration via sequential
M&As
Hardship-surviving ● Survived in underdeveloped ● Survived as a latecomer in an ● Survived under hyper- ● Survived under hyper-
capability domestic market by industry occupied by well- competition in local generic competition in domestic
competing with known foreign brands drug market mobile market
sophisticated international
competitors
Absorptive ● Developed analogous but ● Adopted new forms of ● Had a distinctive ability to ● Quickly and continuously
capability different key elements marketing and channel (e.g., develop new generic drugs launched newly designed
(e.g., character design, the ambush marketing with public patent models with improved
animation, scenery, and strategy of the 2008 Olympics) information features
voice acting) ● Established research centers
in India, the U.S., and the
U.K.
Intelligence ● Aware of opportunistic ● Prioritized marketing and shoe ● Could foresee and respond ● Catered to rapidly changing
capability potential of new releases by design research to local IPR policy changes consumer preferences
established international ● Used timely celebrity ● Had first-mover ● Had first-mover advantage
rivals marketing advantages resulting from of related license and
● Built online sales channels the Waxman-Hatch Act in channel partnership
the U.S.
Networking ● Focused on direct-to-video ● Undertook collaborative R&D ● Had good connections with ● Had close connection with
capability channel projects with universities and local and global venture distributors and retailers
● Built online sales channel MNEs capitalists and other
● Maintained partnerships or ● Maintained close affiliation investors
sales agents in several with related authorities ● Maintained excellent
countries through sponsorship programs collaborative R&D with
other research-focused
firms
15. 2011 Luo, Sun, and Wang 51
satisfy the needs of price-sensitive customers un- Yelena Isinbayeva, and several high-profile NBA
concerned with brand affiliation. players, including Shaquille O’Neal, Baron Davis,
Not surprisingly, with an excessive focus on Chuck Hayes, and Damon Jones, to compete with
imitation, Video Brinquedo’s films are plagued rivals Nike, Adidas, and Reebok. Like Nike, Li
with a less than stellar reputation. For instance, Ning hosted college basketball games in 2005,
over 70,000 negative comments have been posted building brand familiarity with more than 10,000
for the trailer of Video Brinquedo’s Ratatoing and students from 120 different universities.
over 50,000 for Heavy Weight Panda on YouTube. On the management side, founder Li Ning has
Nevertheless, aside from largely imitated central tapped talent from sophisticated multinational
concepts and characters, Brinquedo managed to companies. The firm’s chief financial officer hails
deliver a certain style of its own (e.g., online from Reuters Group, the chief marketing officer
ordering of the combination of DVDs and char- brings his expertise from Coca-Cola, its public
acter toys) and contributed to Brazil’s CGI indus- relations director came from DuPont, and one of
try by helping bolster the country’s animation and its vice presidents transferred from Procter and
entertainment production. In order to survive and Gamble. The company continues to evolve, striv-
thrive in the movie industry this mocking kitten ing to rise along the imitation-innovation curve.
needs to work hard to shed its gloomy reputation It has also increased its R&D and innovation
for plagiarism and innovate by incorporating more capabilities. In 1998, the company set up its first
original content and creating a signature style. R&D center. In 2004, the company collaborated
with Hong Kong Chinese University to build a
Duplicating Wildcat: Li Ning research database for footwear style and design.
Li Ning is an outstanding Chinese “gym prince” The company purchases core technologies and
who won six gold medals in the sixth World patents for style design and color application and
Gymnastics Championships in 1982. His com- keeps costs down by outsourcing its manufacturing
pany, Li Ning, is now recognized as the largest operations. To capture growth from direct-to-con-
Chinese sporting goods company, rivaling the sumer channels, it expanded online sales by
U.S.’s Nike and Germany’s Adidas in China. Es- launching a Web site in 2009. Meanwhile, the
tablished in 1990 after Li Ning’s retirement, the company opened its first overseas flagship store in
company operates more than 6,200 retail stores in Singapore and is projected to open 70 to 100
China, 1,012 of which opened in 2008. To ensure overseas outlets for badminton and related equip-
successful marketing strategies, the company fol- ment. Li Ning’s main challenges include its per-
lowed an approach similar to that of sophisticated ception as a copycat brand and competition from
competitors such as Nike and Adidas. It closely established international brands. Nevertheless, Li
mimicked the famous Adidas slogan “Impossible is Ning is successfully emerging from its status as
nothing” when crafting its own slogan “Anything duplicative copycat and showing strong signs of
is possible,” and its logo closely resembles Nike’s becoming an adaptive and creative copycat, hold-
famous swoosh. ing a substantial market share in China.
The company has demonstrated a remarkable
ability to actively and creatively follow and ex- Emulation Housecat: Dr. Reddy’s
tend marketing strategies from established coun- Founded in 1984, Dr. Reddy’s has evolved from a
terparts. For example, it sponsored four Chinese small private firm to a leading Indian pharmaceu-
national teams (table tennis, diving, gymnastics, tical company with global impact. Among the first
and shooting), as well as the Spanish, Swedish, Asian pharmaceutical companies listed on the
and Argentinean national basketball teams. In New York Stock Exchange (NYSE), Dr. Reddy’s
doing so the brand expanded into international has enjoyed a soaring growth rate in both sales
markets in Russia, Southeast Asia, and Spain. Li revenue and profit (26% and 78% respectively) in
Ning signed a variety of celebrities such as profes- the last five years, according to Dr. Reddy’s finan-
sional tennis player Ivan Ljubicic, pole-vaulter cial statements reported to the NYSE. After India
16. 52 Academy of Management Perspectives May
abrogated laws respecting international pharma- Southeast Asia, and Latin America. With accu-
ceutical patents through its Patents Act in 1970 mulated rich cash reserves, the company later
(this act removed composition patents from food expanded domestically and internationally
and drugs), the pharmaceutical industry became through a series of mergers and acquisitions to
hypercompetitive, with 20,000 or so local firms strengthen its manufacturing capacity, foreign
competing in the domestic market, which is the sales channels, and most important, patents and
world’s second largest pharmaceutical market to- technology. Dr. Reddy’s acquired Benzex Labora-
day by volume. By 1990, Dr. Reddy’s survived by tories in India, Trigenesis and American Reme-
boasting a wide range of imitative drugs in its dies in the United States, BMS Laboratories and
portfolio and by buttressing its strong reverse- Meridian Healthcare in the United Kingdom, be-
engineering and hardship-surviving capabilities. tapharm Arzneimittel GmbH in Germany, and
With its high intelligence capability, Dr. Red- Roche’s API plant in Mexico. It has nine Food
dy’s carefully scrutinized the U.S. market—the and Drug Administration-approved plants (six in
world’s largest pharmaceutical market, accounting India and one each in the U.K., U.S., and Mex-
for half of global sales. It aggressively copied ico), five research centers (two in India, one in
blockbuster drugs and searched for potential the U.K., and two in the U.S.), and seven strate-
anomalies or loopholes in the patents by hiring a gic business units.
team of experienced and specialized lawyers. Be-
tween 2002 and 2004, Dr. Reddy’s was involved in Adaptive Junglecat: Tianyu
at least seven lawsuits for drug patent violation, Founded in April 2002 as a mobile phone sales
two of which involved patented drugs with ex- agent, Tianyu performed well compared with its
pected sales of more than US$700 million, ac- peers, selling approximately 50% of Samsung’s
cording to various news reports. In 2002 Dr. Red- mobile phones in China. The turnkey model in-
dy’s succeeded in defeating Pfizer in a New Jersey vention by MediaTek, a leading Taiwanese chip
courtroom and was allowed to produce and sell the design company, made low-cost integration of
patented drug Norvasc, with annual sales of multiple chip functions possible in 2006. This
US$3.7 billion. This success helped Dr. Reddy’s activity spurred low-cost mobile phone produc-
reposition itself and get a foothold in the lucrative tion. Since then hundreds of Chinese knockoff
“branded generic” segment of the massive U.S. (shanzhai in Mandarin) phone manufacturers have
pharmaceutical market. emerged. Approximately 50% of Chinese consum-
While Dr. Reddy’s began by copying existing ers favor shanzhai phones because they include
top-selling drugs, technological advances triggered larger screens and more features at a price signif-
its ability to develop new molecules and apply for icantly lower than high-priced brands from Nokia,
its own patents. In 2001, when the Waxman- Motorola, and Sony. By the end of 2003, Chinese
Hatch Act took effect, allowing generics compa- knockoffs accounted for 60% of the market.
nies to undertake preparatory actions to file In 2006 Tianyu became further entrenched in
registration applications before the patents of the mobile phone manufacturing market, quickly
originators expire, Dr. Reddy’s appeared as the transforming its operations from pure imitation to
“first to file” and quickly moved to the U.S. mar- innovative imitation. Given fierce competition in
ket with its well-prepared abbreviated new drug the mobile phone market, the company quickly
applications. One example of these successes is its realized that pure imitation would not be sustain-
US$56 million profit from producing and selling able and that profit margins arising from pure
Eli Lilly’s off-patent drug Prozac. imitation would constantly drop due to increasing
Dr. Reddy’s successfully expanded internation- modularization and standardization. Thus, the
ally by following a strategy that focused on merg- company emphasized its strength in creative imi-
ers and acquisitions as well as R&D (a combina- tation, increasing creative components in its prod-
tive capability). Dr. Reddy’s first expanded to uct design and also taking a creative approach to
other developing countries in Eastern Europe, market distribution and customization. It aban-
17. 2011 Luo, Sun, and Wang 53
doned its colossal hierarchical distribution net- shows, EECs differ from their Japanese and Korean
work model and instead willingly shared almost predecessors in several traits and strategies.
half of its profit margin with its direct sales agents. By presenting conceptual models and four case
Tianyu focused on the design, appearance, and studies, we hope to shed light on why and how
performance of its products rather than original, EECs have experienced rapid growth in recent
basic research. Under a strong, consolidated, and years. We contribute to the growing stream of
rigorous management, Tianyu now introduces research on emerging economy copycats by delin-
more than 100 new products to market each year. eating these firms’ capabilities, competitive ad-
It takes merely 45 days on average from an idea to vantages, internal and external conditions that
production at Tianyu, compared to at least six facilitate growth and progression, and correspond-
months at its global rivals such as Motorola and ing strategies underlying their imitation-innovation
Nokia. Tianyu boasts a strong applied research curve. We suggest that EECs’ unique capabilities
and development workforce (more than 600 (combinative capability, hardship-surviving capabil-
employees in this area), 40% of them holding ity, absorptive capability, intelligence capability, and
graduate degrees. Innovative imitation and its fur- networking capability) and distinctive competitive
ther push into novel innovation have propelled advantages (cost, speed, and channel) are what set
Tianyu into the limelight at record speed, with them apart from their rivals in other countries. This
US$1.15 billion in revenues in 2009 and 75.4% is made possible by a new set of social, technological,
average growth rate. organizational, regulatory and legal, and market con-
ditions they face.
This study may also provide insight and impli-
Future Research and Conclusion cations for practitioners. It may be useful for ex-
T
he developing world is rapidly surpassing the ecutives to rethink conventional innovation.
developed world in terms of economic size, Many firms in developed countries equate inno-
with EECs playing a major role in this trans- vation with technological breakthroughs, embod-
formation. These enterprises are latecomers to the ied in revolutionary new products designed for
world stage, having started rather unceremoni- mid-range to high-end consumers. Lessons from
ously. Yet following a considerable period of de- EECs suggest that innovations also consist of in-
velopment, EECs are now beginning to challenge cremental improvements to products and pro-
global industry leadership positions. The breadth cesses aimed at the middle or bottom of the in-
and impact of EECs is quickly intensifying, and come pyramid. In the economic downturn, such
some rank among the leaders in their respective lessons become particularly critical. It is true that
fields. many EECs have failed, and many more will fail
This study seeks to deliver an overarching due to their inherent weaknesses. But from a
framework to better understand EECs’ patterns, learning perspective, cost advantage, speed advan-
types, behaviors, strategies, and evolution. Al- tage, and channel advantage are important not
though most have not yet reached global status, only to EECs but to Western companies that
many have fashioned unconventional business intend to successfully cope with today’s economic
models and brought an innovative approach to and market conditions.
developing products, marketing, engaging custom- Furthermore, EECs’ innovative imitation in-
ers, and growing market share. Many elements of volves rethinking entire production processes and
modern business, from supply chain management business models. To this end, many successful
to recruitment and retention, are being retooled EECs actively use specialized vendors and subcon-
in one emerging market or another. EECs’ growth tractors for modularized or standardized compo-
along the continuum from pure imitation to cre- nents, design, or services; use existing technology
ative imitation and finally to novel innovation in imaginative new ways; and apply mass-produc-
parallels the growth of many Japanese and Korean tion techniques to serve the masses on the bottom
firms three to four decades ago. Still, as this study of the income pyramid. Emerging economy entre-
18. 54 Academy of Management Perspectives May
preneurs may find a developmental path under the the end but as a process-based means by which to
guidance of the framework presented above and ultimately establish their own competitive edge.
learn important lessons from pioneering copycats. Only when transcending is ultimately achieved
Entrepreneurs must also realize that future success will EECs thrive, but this transformation requires
depends on the continuous improvement of cre- a full set of organizational architecture (e.g., cul-
ative imitation and ongoing transformation from ture, reward system, routines, and ethics) that
imitation to innovation. Without continuous im- incubates and supports continuous learning and
provement, today’s entrepreneurs can lose their improvement. This process is a critical lacuna
position and shares to next-generation copycats warranting future inquiry.
from countries with even less expensive producers Conditioning factors that facilitate creative
(e.g., Vietnam). imitation and further transition to novel innova-
tion must be examined as well. These factors may
Research Agenda
explain and predict why copycatting behaviors
This study has aided in setting the groundwork for vary across countries, industries, and organiza-
further research. It represents an important step tions. Research should look at such factors from a
that analyzes unique strengths, strategies, prac- multilevel (micro, meso, macro, and meta) lens.
tices, and environments for firms in emerging This article renders a parsimonious framework on
economies. A logical extension of our research some of these forces yet does not go as far as
would be to verify this framework empirically. It is articulating specific ways in which they affect the
also important to follow up on EECs’ evolution process and consequence of imitation and its
and transformation as they continue to grow do-
transformation. Two fascinating paths for future
mestically and internationally. Our four cases are
research are (1) to theorize and verify under what
rather limited and thus not representative of di-
circumstances copycatting flourishes in the face of
verse EECs from a large number of emerging econ-
competition and globalization and (2) to investi-
omies. Even among BRIC countries, EECs are
gate how it contributes to the financial return of
quite different in their capabilities, strategies,
the firm and the well-being of the society.
and performance (Ramamurti & Singh, 2009).
When applied to emerging economy enter-
To address this bias, new research examining
and contrasting EECs from different emerging prises, resource-based, knowledge-based, and dy-
economies is warranted. Also, the lines demar- namic-capability theories may be enriched by in-
cating the typology of EECs are constantly shift- corporating the tacit and inimitable knowledge of
ing, and some companies may move from one developing innovative imitation and upgrading
category to another. from imitation to novel innovation. Good imita-
Imitation is an intelligent search for cause and tion is difficult and requires intelligence and imag-
effect, rather than mindless repetition (Shenkar, ination (Shenkar, 2010). Another worthy avenue
2010). Research needs to address imitation from a for future research is to explore what creative
rational, deliberate, and process perspective. It is imitation-related competencies can produce a sus-
particularly interesting to unpack the black box of tained competitive advantage for EECs. We doc-
how creative imitation is initiated, continued, ex- ument that much of copycats’ success has to do
ecuted, and succeeded. For instance, EECs’ intel- with unique processes associated with intelligent
ligence-gathering capability may foster their iden- search, target aiming, cost reduction, product of-
tification of where, what, when, and how to copy, fering, business networking, and marketing strat-
while other unique capabilities we discussed here egies. These processes are difficult to substitute
may stimulate their speedy implementation of in- and mimic and are often achieved by proprietary
novative imitation. Important too, transforma- learning. To unveil such processes, one could in-
tional process from imitation to innovation merits tegrate entrepreneurial, learning, and ambidex-
scholarly attention because successful copycats in trous insights into capability possession, deploy-
every industry and market view imitation not as ment, and upgrading needed to attain sustained
19. 2011 Luo, Sun, and Wang 55
competencies in creative imitation and innova- Chittoor, R., Sarkar, M. B., Ray, S., & Aulakh, P. (2009).
tive transformation over time. Third-world copycats to emerging multinationals: Insti-
tutional changes and organizational transformation in
Another fruitful avenue for future research lies the Indian pharmaceutical industry. Organization Science,
in conceptualization of imitation itself. As noted, 20(1), 187–205.
this concept is a spectrum, varying in magnitude Cohen, W. M., & Levinthal, D. A. (1989). Innovation and
(degree of imitativeness vs. creativeness), scope learning: The two faces of R&D. Economic Journal, 99,
569 –596.
(breadth of copying vs. new features), and domain Cohen, W. M., & Levinthal, D. A. (1990). Absorptive
(area of imitation, such as technology, design, capacity: A new perspective on learning and innovation.
process, brands, or marketing). This feature entails Administrative Science Quarterly, 35, 128 –152.
methodological and empirical repercussions as Cuervo-Cazurra, A., & Genc, M. (2008). Transforming
disadvantages into advantages: Developing country
it determines research design and measurement MNEs in the least developed countries. Journal of Inter-
concerning imitation and innovation. Re- national Business Studies, 39(6), 957–979.
searchers should be inspired to use several prox- Deephouse, D. L., & Suchman, M. (2008). Legitimacy in
ies or variables to define the multiplicity and organizational institutionalism. In R. Greenwood, C.
Oliver, R. Suddaby, & K. Sahlin-Andersson (Eds.), The
multidimensionality of copycatting acts. Like- Sage handbook of organizational institutionalism (pp. 49 –
wise, consequences of such acts are multilevel 77). London: Sage Publications Ltd.
and multifaceted, meriting a well-rounded de- Economist (2010). The world turned upside down: A special
sign that can derive profitability, stability, and report on innovation in emerging markets. April 17, pp.
1–14.
sustainability as well as legitimacy, credibility, Guillen, M. F., & Garcia-Canal, E. (2009). The American
and reputation. model of the multinational firm and the “new” multina-
In sum, our understanding of emerging market tionals from emerging economies. Academy of Manage-
copycats is far from complete, and further assess- ment Perspectives, 23(2), 23–36.
Gulati, R., Nohria, N., & Zaheer, A. (2000). Strategic
ments are warranted. We humbly hope this article networks. Strategic Management Journal, 21(3), 203–215.
will serve as a starting point for additional re- Hoskisson, R. E., Eden, L., Lau, C. M., & Wright, M.
search, for imitation is rich in research possibili- (2000). Strategy in emerging economies. Academy of
ties and implications. Management Journal, 43(3), 249 –267.
Hu, M. C., & Mathews, J. A. (2008). China’s national
innovative capacity. Research Policy, 37(9), 1465–1479.
References Immelt, J. R., Govindarajan, V., & Trimble, C. (2009).
Autio, E., Sapienza, H. J., & Almeida, J. G. (2000). Effects How GE is disrupting itself. Harvard Business Review,
of age at entry, knowledge intensity, and imitability on October, 56 – 65.
international growth. Academy of Management Journal, Kale, D., & Little, S. (2007). From imitation to innovation:
43(5), 909 –924. The evolution of R&D capabilities and learning pro-
Boisot, M., & Meyer, M. W. (2008). Which way through cesses in the Indian pharmaceutical industry. Technology
the open door? Reflections on the internationalization of Analysis & Strategic Management, 19(5), 589 – 609.
Chinese firms. Management and Organization Review, Kim, L. (1997). Imitation to innovation: The dynamics of
4(3), 349 –366. Korea’s technological learning. Boston: Harvard Business
Bonaglia, F., Goldstein, A., & Mathews, J. A. (2007). Ac- School Press.
celerated internationalization by emerging markets’ Kim, W. C., & Mauborgne, R. (2005). Blue ocean strategy.
multinationals: The case of the white goods sector. Jour- Boston: Harvard Business School Press.
nal of World Business, 42(4), 369 –383. Lee, J., Smith, K. G., Grimm, C. M., & Schomburg, A.
Bruton, G. D., Ahlstrom, D., & Obloj, K. (2008). Entrepre- (2000). Timing, order and durability of new product
neurship in emerging economies: Where are we today advantages with imitation. Strategic Management Journal,
and where should the research go in the future. Entre- 21(1), 23–30.
preneurship Theory and Practice, 32(1), 1–15. Lieberman, M. B., & Asaba, S. (2006). Why do firms
Cappelli, P., Singh, H., Singh, J., & Useem, M. (2010). The imitate each other? Academy of Management Review,
India way: Lessons for the U.S. Academy of Management 31(2), 366 –385.
Perspectives, 24(2), 6 –24. Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the
Chang, S. J. (2008). Sony vs. Samsung: The inside story of the entrepreneurial orientation construct and linking it to
electronics giants’ battle for global supremacy. New York: performance. Academy of Management Review, 21(1),
Wiley. 135–172.
Chen, M-J., & Miller, D. (2010). West meets East: Toward Luo, Y. (2002). Multinational enterprises in emerging markets.
an ambicultural approach to management. Academy of Copenhagen: Copenhagen Business School Press.
Management Perspectives, 24(4), 17–24. Luo, Y., & Rui, H. (2009). An ambidexterity perspective