Innovation-orientation, dynamic capabilities and evolution of the informal Shanzhai firms in China: a case study

Ren, Rongwei, Yu, Lei and Zhu, Yunxia (2016) Innovation-orientation, dynamic capabilities and evolution of the informal Shanzhai firms in China: a case study. Journal of Entrepreneurship in Emerging Economies, 8 1: 45-59. doi:10.1108/JEEE-01-2015-0003


Author Ren, Rongwei
Yu, Lei
Zhu, Yunxia
Title Innovation-orientation, dynamic capabilities and evolution of the informal Shanzhai firms in China: a case study
Journal name Journal of Entrepreneurship in Emerging Economies   Check publisher's open access policy
ISSN 2053-4612
2053-4604
Publication date 2016-03-07
Year available 2016
Sub-type Article (original research)
DOI 10.1108/JEEE-01-2015-0003
Open Access Status Not yet assessed
Volume 8
Issue 1
Start page 45
End page 59
Total pages 15
Place of publication Bingley, United Kingdom
Publisher Emerald Group Publishing
Collection year 2017
Language eng
Formatted abstract
Purpose: This paper aims to study the evolution of innovation-based dynamic capabilities in informal copycat-style firms. As a kind of informal economical organizations, copycat-style firms in many emerging economies play an important role in their development of the economics. The development of Shanzhai firms, Chinese-style copycat firms, from imitation to innovation has become an important micro-foundation of China’s economic growth and the manufacturing development. With the cluster development of the Chinese mobile phone industry as the macro and industrial environment background, this paper chose Beijing Tianyu Communication Equipment Co. Ltd as the typical example of innovation in Shanzhai firms and studied the evolution of innovation-based dynamic capabilities in this company.

Design/methodology/approach: This paper chose Beijing Tianyu Communication Equipment Co. Ltd as the typical example of innovation in Shanzhai firms and studied the evolution of innovation-based dynamic capabilities in this company by adopting the leading-edge dynamic capability theory, innovation theory and industrial cluster theory. The authors further discussed how to improve the dynamic capabilities in Shanzhai firms in China.

Findings: It is finally suggested that Shanzhai firms should reduce innovation failures and lower damage degree of dynamic capabilities through consistent innovation and paying attention to their innovation improvement.

Originality/value: It will be very significant to research the survival or diminishing of Shanzhai firms from a theoretical perspective, which will eventually enhance property right protection and innovation development in China.
Keyword Dynamic capabilities
Innovation
Shanzhai firms
Tianyu
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: HERDC Pre-Audit
UQ Business School Publications
 
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Created: Tue, 15 Mar 2016, 10:26:15 EST by System User on behalf of Learning and Research Services (UQ Library)