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Competitive dynamics between multinational enterprises and local internet platform companies in the virtual market in China
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Zeng, Jing and Glaister, Keith W. (2015) Competitive dynamics between multinational enterprises and local internet platform companies in the virtual market in China. British Journal of Management, 27 (3). pp. 479-496. doi:10.1111/1467-8551.12136 ISSN 1045-3172.
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Official URL: http://dx.doi.org/10.1111/1467-8551.12136
Abstract
We adopt the dynamic capability perspective and the institutional view as the guiding theoretical lenses to explain the relative performance of foreign internet platform companies (IPCs) operating in China. Based on data obtained from 51 interviews a multiple-case-study approach is adopted, with representative matched cases between foreign IPCs, including Google, eBay, Amazon and Groupon, and local IPCs. The findings highlight the unique characteristics of the IPCs and the Chinese context that challenge assumptions prevailing in the literature of the applicability of firm-specific advantages in determining a sustainable competitive advantage. We highlight the dynamic capabilities of the firm, such as flexibility and experimentation, in contributing to sustainable competitive advantage. Further, rather than focusing on firm-specific resources, we find that the active agency of the firm can approach institutions as resources through external links with diversified institutional players, which is crucial for multinational enterprise IPCs to develop sustainable competitive advantage. Drawing on the findings we present a number of propositions and implications for theory and practice.
Item Type: | Journal Article | ||||||||
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Divisions: | Faculty of Social Sciences > Warwick Business School > Strategy & International Business Faculty of Social Sciences > Warwick Business School |
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Journal or Publication Title: | British Journal of Management | ||||||||
Publisher: | Wiley-Blackwell Publishing Ltd. | ||||||||
ISSN: | 1045-3172 | ||||||||
Official Date: | 17 December 2015 | ||||||||
Dates: |
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Volume: | 27 | ||||||||
Number: | 3 | ||||||||
Page Range: | pp. 479-496 | ||||||||
DOI: | 10.1111/1467-8551.12136 | ||||||||
Status: | Peer Reviewed | ||||||||
Publication Status: | Published | ||||||||
Access rights to Published version: | Restricted or Subscription Access |
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