contributor as well as learner gave benefits to Huawei that many competitors

Contributor as well as learner gave benefits to

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(contributor as well as learner) gave benefits to Huawei that many competitors are more likely to invite it attending technology-based networks for research and patent sharing. Figure 5 presents Huawei’s strategy in alliance-based network. Except Huawei that located in the centre of figure 5, five groups of actors play in this network, which include western multinational companies (WMNC), western countries’ universities (WU), Chinese universities (CU), Chinese domestic companies (CC), and companies with low performance but high technology base either in China or overseas (LC). From the case study above, we can see Huawei attracted knowledge/technology inflow through a large number of stable direct connections with western multinational companies and Chinese universities. Moreover, in case of collaboration that happened between other Chinese firms and Chinese universities, Huawei absorbed knowledge diffusion indirectly through knowledge spillovers. This was similar in the cases between western multinational companies and western universities. Through direct collaborations with Chinese universities and western firms, the technology produced by western universities could be reached indirectly . On the one hand, Huawei extends knowledge acquisition via Chinese universities; on the other hand, Huawei keeps effort on speeding up indirect knowledge diffusion. The data from Huawei’s global website indicates that so far more than 30 R&D subsidiaries have been set up in Western Europe and North America and more than 75% of researchers are hired from local places. Moreover, knowledge inflow could also be derived from acquisitions in developed and developing nations, or domestic market. Even though there were not too many acquisition cases related to Huawei, Huawei’s motivation on acquisitions is very clear. We say that to promote its network position and enhance absorptive capabilities, Huawei’s action in acquiring target firms that contained high volume of technology but performed inefficiently due to dead management or blocked financial supply can be motivated.
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15 Source: SDC database and collected by author Table 3 Huawei M&As (1989-2008) Announc ed Date (mm/dd/ yy) Target Name Target Industry Sector Target Nation Acquirer Name Acquirer Industry Sector Acquirer Nation 10/28/05 Huawei- 3com Co Ltd Prepackaged Software China 3Com Corp Computer and Office Equipment United States 11/03/05 Huawei Technologie s-South Business Services South Africa Nulane Investments Business Services South Africa 11/07/05 Huawei Electronics Co Ltd Chemicals and Allied Products China Henkel AG & Co KGaA Soaps, Cosmetics, and Personal- Care Products Germany 11/15/06 Huawei- 3com Co Ltd Prepackaged Software China 3Com Corp Computer and Office Equipment United States 03/19/03 3Com Corp- Assets Prepackaged Software China Huawei Tech-Entrp Bus Asts Communic ations Equipment China 02/08/04 SUNDAY Communicat ions Ltd Telecommunic ations Hong Kong Huawei Technologies Co Ltd Communic ations Equipment China 08/08/05 Marconi Corp PLC Communicatio ns Equipment
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