Research On The Mechanism Of Latecomer Firms’Technological Catch-up: The Perspective Of Fitting Between Business Model Design And Technology Innovation Strategy

The rapid development of information technology not only brings new opportunities for latecomer firms to catch-up, but also makes it possible for them to experience the process from closed environment to globalization value network which is supported by information technology. Unlike the late entrants firms from early western developed countries and latecomer firms from emerging industrialized countries, these latecomer firms use business model design to exploit the advantages and overcome the disadvantages of latecomer. With the synergy of business model design and technological innovation strategy, they are changing the existing competition structure constantly and achieve the aim of technological catching-up of the international leading firms. The research of technological catch-up from the perspective of the fit between business model design and technological innovation strategy, is becoming a needed issue in practical and theoretical study of management. Although the existing theoretical research had already done pilot study on business model and technology innovation, and reached an concensus on what business model can bring in terms of competitive advantages. Little has been done as to how business model design influences technological catch-up performance especially from the perspective of fitting with technological innovation strategy. It also lacks in case study and empirical study.China is one of the main representatives of latecomer economies in the new peroid. A large number of latecomer firms from China, such as Alibaba, Tencent, NetEase and other modern service firms, are entering the fast catching—up phase. In the dissertation, the author takes Chinese modern service firms as the research sample, focusing on "How business model design influences latecomer firms’ technological catch-up", referring to lots of relative research results, exploring the following four closely related sub-questions step by step. First, how business model design specificly influences latecomer firms’ technological catch-up performance? Second, what is the mechanism of the fit between business model design and technology innovation strategy on latecomer firms’ technology catch-up performance? Third, what impacts will be brought about on this mechanism in various technological regime? Fourth, during the process of latecomer firms’ technological catch-up, how does business model design and technology innovation strategy co-evaluate?By applying both theoretical and empirical study, literature review and interview, as well as qualitative and quantitative research, this dissertation explores, in four sub-researches, the above-mentioned questions.Based on previous literature review, the first sub-research brings forward a primary theoretical supposition that the fit between business model design and technology innovation strategy influences technological catch-up performance. This study analyzes explorative cases of six modern Zhejiang service firms, with an aim to explore the influence mechanism of the fit between business model design and technology innovation strategy upon technological catch-up performance, so as to provide a theoretical conception based on practice for future study.On the basis of the first sub-research, the second sub-research goes on for further literature review and puts forward a concept model of relational embeddedness influence mechanism.326Chinese modern service firms are investigated via questionnaires, and Explorative Factor Analysis (EFA), Confirmatory Factor Analysis (CFA) and multiple regression analysis are conducted to do the empirical analysis and applied to testify and modify the concept model.Grounded on the results of the former two sub-researches, the third sub-research introduces two types of moderate variables as the appropriability of technological innovation and the cumulativeness of technological innovation to examine the influential mechanism of the fit between business model design and technology innovation strategy on technological catch-up performance.326Chinese modern service firms are investigated via questionnaires, and Explorative Factor Analysis (EFA), Confirmatory Factor Analysis (CFA) and multiple regression analysis are conducted to do the empirical analysis and identified the influence mechanisms of these two moderate variables.Considering that technological catch-up is a dynamic changing process, the fourth sub-research explores the co-evolution relationship among business model design, technology innovation strategy and environment in the process of technogical catch-up with a longitudinal case study.Drawing on the above researches, this dissertation draws the following conclusions:(1) Both efficiency-centered business model design and novelty-centered business model design have positive effects on latecomer firm’s technological catch-up performance. Empirical studies not only show that these two themes are effective, but also confirms the positive impact of both themes of business model design on latecomer firm’s technological catch-up performance.(2) The fit between business model design and technology innovation strategy has contingent effects on latecomer firm’s technological catch-up performance. Depending on the source of innovation, this dissertation classifies technology innovation strategy into independent R&D strategy and technology transfer strategy. There are four different types of fit relationship and their impacts on technological catch-up performance are various. Coupling an efficiency-centered business model design with a technology transfer strategy represents good fit and has a positive joint effect on technological catch-up performance, and the fit between a novelty-centered business model design and either a technology innovation strategy both represents good and has a positive joint effect on technological catch-up performance.(3) The appropriability of technological innovation and the cumulativeness of technological innovation play important moderating roles in the mechanism that the fit between business model design and technology innovation strategy influences technological catch-up performance. In different technological regimes, the mechanism is different. In detail, the appropriability of technological innovation plays a positive role in the mechanism that couples an efficiency-centered business model design with a technology transfer strategy, and couples a novelty-centered business design model with a technology transfer strategy. The cumulativeness of technological innovation plays a negative role in the mechanism that couples an efficiency-centered business model design with a technology transfer strategy, whereas it plays a positive role in the mechanism that couples an novelty-centered business model design with a independent R&D strategy.(4) The process of latecomer firm’s technological catch-up is the co-evolution of business model design, technology innovation strategy and environment. Through the study of the single case of Alibaba, this disseration provides a discription of the relationship among business model design, technology innovation strategy and technological catch-up. Firms will choose different business model design and technology innovation strategy according to environmental factors which will influence technologyical catch-up. Business model design and the improvement of technological capability will affect external technological environment. While the business model design and technological innovation strategy affects technological catch-up, the technological capability is a timely reflection of the business model design, which will in turn keep business model design effective, thus improve its efficiency and novelty. At the same time, the accumulation of technology capability or breakthrough of technological catch-up will also help the business model design and technology innovation strategy to make appropriate adjustments.To conclude, this dissertation managed to expend and deepen the research in the following aspects:(1) This dissertation theoretically puts forward and empirically examines the effect of business model design on latecomer firms’ technological catch-up performance.(2) This dissertation theoretically explores and empirically examines the effect of the fit between business model design and technological innovation strategy on latecomer firms’technological catch-up performance.(3) This dissertation systematically and empirically examines the moderating effect of technology regime on the relationship between the fit of business model design and technological innovation strategy and latecomer firms’technological catch-up performance.