Research On Huawei International Strategy On Knowledge Accumulation

In the era of knowledge economy, the challenge of internationalization thatChinese enterprises encountered are unprecedented due to the national conditions ofpost-modernization. The new classical economics used to regard firm as the subjectof production optimization under the coordination of the price mechanism, howeverit cannot explain the enormous discrepancy between enterprises in the real worldand the reason for the growth of firms. Since the last90thcentury, a large number ofempirical studies suggested that the intra-industry profit gap is larger thaninter-industry which allows the opinion of endogenous growth of firm graduallyreplace the exogenous point of view. The analysis framework of this paper is builton the endogenous growth theory that highlight the importance of knowledge,resources and ability of enterprises. The paper scrutinized the process of Huawei’sinternational strategy of the accumulation of knowledge, and the maintainingmeasures of its competency. Hoping to provide reference for the development of oursmall and medium-sized private enterprises.The paper first summarized and commented the mainstream enterprise growththeory, the theory of multinational companies and the enterprise internationalizationtheory. It regards the growth of MNE as a process of accumulation of knowledge,resources, and ability. It proposed the analysis framework of the sustainablecompetitive advantage by cultivating ownership advantages throughinternationalized knowledge accumulation.Then, the paper reviews the basic condition of the communications industryand the Huawei’s growth document. Based on the analysis framework of258theory,the paper summarized the Huawei’s knowledge accumulations strategy and itspractices. Strategically, Huawei take a five stages gradual path to beinternationalized and accumulate knowledge; in the practice, Huawei’s coretechnologies and market strategies ensure the advancement of its globaldevelopment system. Eventually, the accumulation core knowledge is strengthenedby its corporate governance and corporate culture, which has ensured the sustainablecompetitive advantage of Huawei.Due to the rapid development of Huawei, there are many problems arise fromhuman resources, core technology and equity incentive and corporate culture, the article put forward the related recommendations to maintain the advantages of itsinternationalization on these issues. And summed up the internal and externalsuccess experience of Huawei according to the article’s theoretical framework,which can benefit China’s private enterprises development for adoptinginternationalized strategy and achieve sustainable competitive advantage.