The Viability of Industry in Industrial Cluster: Still Hopes for Growth

2014 ◽  
Author(s):  
Sri Indah Nikensari ◽  
Saparuddin Mukhtar
Keyword(s):  
Industrial Cluster

Innovation-orientation, dynamic capabilities and evolution of the informal Shanzhai firms in China

2016 ◽  
Vol 8 (1) ◽  
pp. 45-59 ◽  
Author(s):  
Rongwei Ren ◽  
Lei Yu ◽  
Yunxia Zhu
Keyword(s):  
Emerging Economies ◽  
Dynamic Capabilities ◽  
Theoretical Perspective ◽  
Leading Edge ◽  
Industrial Cluster ◽  
Innovation Development ◽  
Content Type ◽  
Damage Degree ◽  
Enhance Property ◽  
Communication Equipment

Purpose – This paper aims to study the evolution of innovation-based dynamic capabilities in informal copycat-style firms. As a kind of informal economical organizations, copycat-style firms in many emerging economies play an important role in their development of the economics. The development of Shanzhai firms, Chinese-style copycat firms, from imitation to innovation has become an important micro-foundation of China’s economic growth and the manufacturing development. With the cluster development of the Chinese mobile phone industry as the macro and industrial environment background, this paper chose Beijing Tianyu Communication Equipment Co. Ltd as the typical example of innovation in Shanzhai firms and studied the evolution of innovation-based dynamic capabilities in this company. Design/methodology/approach – This paper chose Beijing Tianyu Communication Equipment Co. Ltd as the typical example of innovation in Shanzhai firms and studied the evolution of innovation-based dynamic capabilities in this company by adopting the leading-edge dynamic capability theory, innovation theory and industrial cluster theory. The authors further discussed how to improve the dynamic capabilities in Shanzhai firms in China. Findings – It is finally suggested that Shanzhai firms should reduce innovation failures and lower damage degree of dynamic capabilities through consistent innovation and paying attention to their innovation improvement. Originality/value – It will be very significant to research the survival or diminishing of Shanzhai firms from a theoretical perspective, which will eventually enhance property right protection and innovation development in China.

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