Competitive Dynamics between Multinational Enterprises and Local Internet Platform Companies in the Virtual Market in China
Year: 2015
Type: article
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.
Source: British Journal of Management
Authors: Jing Zeng, Keith W. Glaister
Institutions: University of Gloucestershire, University of Warwick
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2219951855