Abstract
Asian countries are becoming more and more active in participating technology standard development. In this paper we study the impact of this change on multinational enterprises (MNEs) using the case of TD-SCDMA, an international technology standard of 3G mobile communications. During the development of this technology standard, MNEs׳ market share dropped dramatically. A major contribution of this study is analyzing the underlying mechanism governing MNEs׳ interpreting TD-SCDMA as a threat rather than an opportunity by integrating two streams of literature. We also discuss the possible strategies for MNEs to maintain their market leadership position when local firms are able to lead international technology standard development.
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