How do technology strategies affect the catch-up progress of high-tech latecomers? Evidence from two Chinese research-institute-transformed telecommunications firms

Abstract

This paper explores the effects of technology strategies (TSs) on latecomer firms’ catch-up progress. Based on the proposed typology, this work investigates catch-up theories by (1) comparing performance among different TS types and analyzing the causes of these differences and (2) exploring the impact of TS implementation during earlier phases on the firms’ later development. Findings reveal the following trends: (1) a progressive TS is more likely to achieve market success compared to a more radical TS when a firm’s internal capabilities are inadequate and external ecosystem are immature; (2) the implementation of TS in earlier phases substantially influences later TS formation; (3) a self-developing TS is more likely to enhance catch-up performance in the long run compared to a co-developing TS; and (4) organizational transformation plays an essential supporting role in strategy implementation.