How Do Latecomers Catch Up Fast in CoPS? A Study of CIMC in Marine Equipment Manufacturing Industry

Abstract

Catching up in Complex Product Systems (CoPS) requires systematic integration from several advanced technological fields and usually demands a strong reputation based on an existing record of success in project delivery. It thus makes entry and capability development extremely challenging for latecomers. Through a longitudinal, exploratory case study spanning 13 years, this study investigates how firms that lack prior experience in developing CoPS can survive and catch up fast. It finds that latecomer firms can adopt the synergy strategy to address multiple problems collectively over time and thus achieve rapid catch-up. In the entry stage, latecomers implement the resource-synergy strategy to overcome great market risk and latecomer disadvantages, realizing capability legitimizing for survival. In the gradual catch-up stage, driven by the needs of strategic transformation, latecomers utilize the routine-synergy strategy for capability structuring and thus enhance their market position and technological know-how. In the leapfrogging stage, to seize innovative opportunities in the sectoral system, latecomers carry out the value-synergy strategy and thus improve capability dynamics required for sustaining industrial leadership. The occurrence of the rapid catch-up process is mainly attributed to firms’ acute awareness, strong motivation, and asymmetric capability. Our study offers a process framework that shows how latecomer firms realize fast catch-up in CoPS sectors, providing managerial implications for other emerging economies to overcome high barriers to entry and then to build the capabilities that are required for developing CoPS.