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Latecomers’ path-creating catch-up strategy in ICT industry

Latecomers’ path-creating catch-up strategy in ICT industry This study aims to empirically examine the conditions for latecomers to successfully pursue path-creating catch-up strategies. In particular, the company is divided into two conditions: the external environment, which refers to the gap in the market share between the leaders and latecomers, and the internal capacities of the company, such as the company’s absorptive capacity, re-combinative capabilities and technological innovation leadership.Design/methodology/approachBecause firms supported by the government tend to be conservative in their decision-making and technology development strategies, governmental assistance is likely to negatively affect path-creating catch-up strategies. This study surveyed small to medium enterprises in the Korea IT industry and analyzed the latecomers’ catch-up strategies from internal and external environment perspectives.FindingsAfter ensuring its innovation capacity by developing of internal capacity, it turned out to lead to path-creative catch-up strategy and market disparity and government dependence moderates this relation. While market disparity has a positive moderation effect, government dependence showed a negative moderation effect.Originality/valueThe authors proposed and tested hypotheses of how a firm’s path-creative catch-up strategy is adopted and succeeds. Regarding the internal conditions, the authors statistically proved that absorptive capabilities, re-combinative capabilities and technology innovation leadership are important factors for a firm’s technology innovation capacity. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Entrepreneurship in Emerging Economies Emerald Publishing

Latecomers’ path-creating catch-up strategy in ICT industry

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References (124)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
2053-4604
DOI
10.1108/jeee-06-2018-0056
Publisher site
See Article on Publisher Site

Abstract

This study aims to empirically examine the conditions for latecomers to successfully pursue path-creating catch-up strategies. In particular, the company is divided into two conditions: the external environment, which refers to the gap in the market share between the leaders and latecomers, and the internal capacities of the company, such as the company’s absorptive capacity, re-combinative capabilities and technological innovation leadership.Design/methodology/approachBecause firms supported by the government tend to be conservative in their decision-making and technology development strategies, governmental assistance is likely to negatively affect path-creating catch-up strategies. This study surveyed small to medium enterprises in the Korea IT industry and analyzed the latecomers’ catch-up strategies from internal and external environment perspectives.FindingsAfter ensuring its innovation capacity by developing of internal capacity, it turned out to lead to path-creative catch-up strategy and market disparity and government dependence moderates this relation. While market disparity has a positive moderation effect, government dependence showed a negative moderation effect.Originality/valueThe authors proposed and tested hypotheses of how a firm’s path-creative catch-up strategy is adopted and succeeds. Regarding the internal conditions, the authors statistically proved that absorptive capabilities, re-combinative capabilities and technology innovation leadership are important factors for a firm’s technology innovation capacity.

Journal

Journal of Entrepreneurship in Emerging EconomiesEmerald Publishing

Published: May 22, 2019

Keywords: Government dependence; Internal capacity; Market disparity; Path-creating catch-up

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