firms that embrace higher volume of network resource have higher probability to

Firms that embrace higher volume of network resource

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: firms that embrace higher volume of network resource have higher probability to access a variety of knowledge and markets. Proposition 2 : firms that locate in network center have higher probability to catch up successfully. We give the proof of these two propositions in section 4 by studying a case of Huawei Technologies Co. Ltd. 3 This happened in the late 1980s till mid of 1990. Some state-owned-enterprise that did not endow capability to shoulder the competitive stress went into bankrupt.
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9 4. Case study of Huawei Technologies Co. Ltd. In principle, success in catching up is labeled by the increased marketing performance and raised innovative capability. In this section, an integrative strategy package will be illustrated to see why some Chinese firms could be successful in the international market and how could they ladder quickly to the upper stages. We will take the experience of Huawei Technologies Co. Ltd. as an example and specifically analyze the strategies for developing absorptive capacity and innovation performance. Huawei is a Chinese company in ICT industry. It is the largest and most prestigious networking and telecommunications equipment supplier in China. Huawei has now had eight overseas regional departments and 85 branch offices around the world. Its industrial status in ICT industry is equal to many multinational companies from western countries. Huawei’s business includes manufacturing and supplying CDMA, 3G terminals, intelligent optical network ASON, core routers, and switching in the world. To help readers have more familiarity with Huawei, we list part of Huawei’s recent marketing performance as below 4 . Huawei’s WCDMA products have won business application in 26 countries and regions, including Netherlands, United Arab Emirates, HKSAR, Mauritius, and Malaysia (Ditterner, 2005). Huawei’s 75% of sales were from overseas market and by 2005 Huawei ranks No.2 in the global market in respect of optical network and DWDM products (Ovum-RHK, 2005). Sales amount of Huawei’s softswitch products rank No. 1 in the world (Ditterner, 2005). Intelligent NetworkHuawei has the most subscribers around the world in this field (Ovum-RHK, 2005) Huawei’s IP DSLAM products rank No.1 in the global market (Infonetics, 2005 Q2). Sales amount of Huawei’s MSAN products also ranks No. 1 in the global market (Source: Infonetics, 1H05) Huawei’s routers rank No.3 in the global router market (Gartner, 2005 Q2) Huawei is the global WCDMA network priority suppliers of Vodafone Huawei is the global cooperative partner in WCDMA and broadband equipment Huawei undertakes the largest NGN network of Germany To estimate Huawei’s innovation performance, we collected patent data from SIPO, USPTO, and EPO, as the performance in USPTO and EPO can represent Huawei’s innovative power in developed regions; and patents in SIPO either in English or Chinese can reflect Huawei’s competitive capability of innovation performance within China’s domestic market. The data from other countries patent databases was not collected, even though Huawei has
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