Research On Reverse Innovation Model,Capability And Diffusion Of The Latecomer Enterprise

The innovation strategy of glocalization has been taken as the key to success in foreign market by leading multinational enterprises in the process of globalization. As a result, the diffusion of innovation all around the world always takes the form of flowing from the developed countries to the developing countries. In the process of diffusion, the developing countries only act as imitators or receivers of the product during the later period of the product life cycle, rather than the origin of the innovation and the initiator. In recent years, emerging markets have gradually transformed into the innovation center of the world, more than just the production base and sales market. Several successful innovative products and services originating from the emerging markets have achieved success in the developed countries after further improvement and upgrading. The innovation forms and diffusion path which is counterintuitive and the anti-tradition are called reverse innovation. As the of innovation opportunity discovery, commercialization and industrialization of reverse innovation all take place in the emerging market, local enterprises in the developing countries are offered innovation opportunities. In this context, researching into the method and mechanism of reverse innovation has a good practical and theoretical significance.In this paper, taking domestic enterprises as the research object, theoretical research and empirical research method are used to carry out studies on reverse innovation path of latecomer enterprise, and explore innovation model, capability system and innovation strategy for reverse innovation. Besides, the key factors that influence the overseas development of reverse innovation are also intensively studied in a dynamic perspective. This article mainly contents three parts:First, key links of reverse innovation of latecomer enterprises are explored by case study, based on which, four innovation models for reverse innovation are summarized from the perspective of the chain of product innovation, which include "low in Idea/Concept Generation and low in R&D", "high in Idea/Concept Generation and low in R&D", "low in Idea/Concept Generation and high in R&D", and "high in Idea/Concept Generation and high in R&D". Further, we test the research framework based on multi-case study method. On that basis, based on the characteristics of different modes, we make a comparative analysis on three aspects, which are synergistic effect of innovation factors, innovation opportunities and the role of product design.Second, we get the capabilities system of different innovation patterns based on empirical research, and analysis the key capabilities and innovation strategy based on the specific cases. The findings are as follows, the critical supporting capabilities for "low in Idea/Concept Generation and low in R&D" strategy include absorptive capacity, technical search ability and marketing ability, and adopts the strategy of giving priority to rapid penetration and integrating niche market as well; the critical supporting capabilities for "high in Idea/Concept Generation and low in R&D" include cooperative learning ability, cognitive ability of the marketing character and ability of technical adaptive improvement are the critical abilities, and adopts the strategy of giving priority to niche market and integrating rapid penetration as well; the critical supporting capabilities for "low in Idea/Concept Generation and high in R&D" strategy include the ability of technological cognitive, independent research and development and marketing ability are the critical abilities, and adopts the strategy of giving priority to development-oriented and integrating rapid penetration as well; the critical supporting capabilities for "high in Idea/Concept Generation and high in R&D" strategy include the key supporting ability includes the ability of technological cognitive, independent innovation ability, the ability of use external resources through multiple channels and market forecast cognitive ability, and adopts the strategy of giving priority to overall-oriented and development-oriented as well.Third, we identify the key factors that influence the overseas development of reverse innovation based on classic cases that belong to manufacturing enterprises and engineering and technical services enterprises, among which the localized technological capacities, the capacities of international connection and organizational learning are the general characters. As for different industry, industry chains management is an important factor for the manufacturing industry, and services links is an important factor for engineering and technical services. At the same time, evolution and regulations of key factors are concluded, such as evolution from "indigenous technology localization" to "international technology localization", "partial and passive international connections" to "comprehensive international connections", "adaptive learning" to "leading edge learning" and bootstrapping of capacities of governing "services links". This paper extends the concept of localized technological capacities. And on this basis, relevant conclusions of the study are the following:local innovation resources provide comparative advantage for the overseas development of reverse innovation, the diversified international coupling mechanism is the important support for the overseas development of reverse innovation; the latecomer enterprise needs to pay attention to open innovation strategy and the coordination between technical and nontechnical, in order to get the required technical resources, market resources and management resources and take effective use of this resources.