Mechanism,Pattern And Performance Of A New Catch-Up Framework Based On Cross-Boundary Synergy:An Open Innovation View

Technological catch-up is a critical topic that has received much attention from both researchers and industrial experts in recent years.With a large number of Chinese firms have shifted from simply following others to a "mixture state"--following,keeping pace and leading the pack at the same time,the traditional technological catch-up theory faces enormous challenges.These firms have overcome latecomer disadvantage and are moving from simple imitation to innovation with an open mindset,shouldering vital roles in the globalization and digital era.Meanwhile,as China’s open economy has been gradually improved,firms need to update their catch-up strategies in order to take the initiative of innovation for systemic catch-up.This dissertation focuses on the question of "from the view of open innovation,how can firms construct a new catch-up strategy based on cross-boundary synergy to become fully competitive internationally." It integrates theoretical insights from technological catch-up,open innovation and dynamic capability literature,applies case study methods and statistical analysis to explore the characteristic,nature,process,mechanism,pattern,path and performance of the new catch-up framework.The purpose is to provide guidance on the design of an effective catch-up strategy.The dissertation is structured into four studies.Firstly,with regards to the question"What is the characteristic of the new catch-up framework from an open innovation view,and why should firms carry out it based on cross-boundary synergy",Study One uses the normative analysis to examine the characteristics of the new catch-up framework as well as the "innovation paradox" faced by firms.This leads to the nature of cross-boundary synergy and its importance to resolving paradox.Secondly,to further refine the characteristics of the catch-up framework at different phases,Study Two comes to the question of "What is the process of the new catch-up framework,and what is the evolutionary mechanism behind." It launches a single and longitudinal case study(from 1999 to 2017)using CIMC Group as the study object and analyses the new catch-up process and the mechanism of cross-boundary synergy.Thirdly,in order to reveal the diverse paths during the transition from component catch-up to systemic catch-up,Study Three investigates "What are the paths of the new catch-up framework,and why firms adopt different patterns of cross-boundary synergy." It uses a multiple-case study on three companies in the home appliance industry,namely Haier,Gree and Midea,to compare their paths and pattern when conducting open innovation.Lastly,to provide a comprehensive view of "how firms construct a new catch-up strategy based on cross-boundary synergy to become fully competitive internationally",Study Four focuses on the question of "Will the technological recombination featured with cross-boundary synergy improve firms’ innovation performance." Specifically,it analyses the relationship between technological recombination,R&D openness and innovation performance,using large-scale samples and statistic analysis in the computer communication and electronic equipment manufacturing industry between 2009 and 2015.The main findings are as follows.Firstly,combining the practice of representative Chinese firms and technological catch-up theory,this study finds that(a)the new catch-up framework is characterized by higher catch-up position,broader catch-up scope,and greater catch-up depth.Open innovation has become an effective way for firms to enhance their innovation capability during this process.(b)Three "innovation paradoxes" face firms when they are pursuing systemic catch-up as innovation leaders:standard versus variety with regards to innovative output;autonomy versus control in terms of innovation actor;recombinant reuse versus recombinant creation in terms of innovation knowledge.(c)It reveals that cross-boundary synergy is the key to resolve these paradoxes and opens the black box between environmental change and firm behavior.It is about the connection and interaction mechanisms that firms source and acquire knowledge from different organizations,technologies and markets.In this way,the organizational,technological and market elements are synergized to clarify the process,mechanism,pattern,path and performance of the new catch-up framework.Secondly,according to the longitudinal analysis of CIMC Group,(a)the catch-up cycle can be divided into three phases:start-up phase,acceleration phase and beyond catch-up phase.The latter two phases reflect the typical characteristics of new catch-up framework.(b)Based on the dynamic capability theory,the innovation capability that evolves from opportunity recognition,opportunity capture,integration and recombination is the key mechanism behind the new catch-up phases.Specifically,the evolution is along "component innovation capability--composite innovation capability--systemic innovation capability."(c)Adopting a view of open innovation,recognizing emerging opportunities across boundary is the driving force for innovation capability evolution;acquiring key resources for market and technology development across boundary is the input for innovation capability;integrating and recombining across boundary is the support for innovation capability.Thirdly,through the multi-case study of Haier,Gree and Midea,(a)this study finds three new catch-up paths:the first path shows "broad scope—broader scope 一synergetic between scope and depth";the second path shows "great depth—greater depth—synergetic between depth and scope";the third path shows "broad scope—great depth—synergetic between scope and depth" Although three paths differ in the start-up phase and acceleration phase,they all show synergetic between scope and depth in the beyond catch-up phase.(b)Firms need to choose synergy patterns when interact with partners,which is associated with the path as well as specific asset position developed during the path.For the first path,the firm accumulates commercial resources across industries to support autonomous complementors for innovative responses to client requirements.For the second path,the firm equipped with specialized knowledge integrates with complementors to control undesirable variance.Under the third path,the firm leverages complementary asset for maximum value with simultaneously controlled and autonomous actions.Fourthly,based on a large sample of 781 companies/year panel data,the study illustrates how synergy between organizational and technological elements can be achieved.It shows that(a)both two technological recombination—recombinant creation and recombinant reuse 一 can facilitate firm’s innovation performance.This indicates that innovation performance can be promoted by integrating the newly acquired components with existing stocks,reflecting its capability-broadening nature;or by rebuilding existing technological components into a new combination for market use,as a capability-deepening exercise.(b)Firms with greater R&D openness will benefit more from delving deeper into a firm’s existing repertoire of combinations.Last but not least,this study concludes to what extent the new catch-up framework is "new" from several aspects.Open innovation is an effective way to accelerate capability upgrading and promote systemic catch-up.The new catch-up framework is characterized by higher position,broader scope,and greater depth,compared with the early stagte of catch-up;synergy among organizational,technological and market boundaries is the nature of the framework from the view of open innovation.The process of the new catch-up can be divided into three phases:start-up phase,acceleration phase and beyond catch-up phase;and key mechanism behind the dynamic process is the innovation capability upgrading along component innovation capability,composite innovation capability,and systemic innovation capability.There are three paths of the new catch-up,all requiring synergy between catch-up scope and depth for systemic catch-up,while showing differences in the synergy mode.The innovation performance depends on appropriate synergy between technological recombination and R&D openness.The innovation of this dissertation is illustrated from three aspects.Firstly,it systematically constructs a new catch-up framework to enrich previous research,by integrating literature from the technological catch-up,organizational boundary,and dynamic capability view with firm practice in China’s transition economy.Secondly,it probes the process,mechanism,path and mode of the catch-up framework based on the cross-boundary synergy,providing theoretical foundation using dynamic capability view.Thirdly,it analyses the relationships between the cross-boundary technological recombination and innovation performance,which adds empirical evidence to the new catch-up framework.These findings contribute to the technological catch-up theory and provide strategic guidance for firms transforming toward systemic catch-up.