Competitive dynamics between multinational enterprises and local internet platform companies in the virtual market in China

Zeng, Jing and Glaister, Keith (2016) 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. ISSN 1045-3172

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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 MNE IPCs to develop sustainable competitive advantage. Drawing on the findings we present a number of propositions and implications for theory and practice.

Item Type: Article
Article Type: Article
Additional Information: This is the peer reviewed version of the following article: Zeng, Jing and Glaister, Keith (2016) Competitive dynamics between multinational enterprises and local internet platform companies in the virtual market in China. British Journal of Management, 27. pp. 479-496, which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/1467-8551.12136/full. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
Uncontrolled Keywords: Internet Platform Companies, Strategy, Dynamic Capability, China
Subjects: H Social Sciences > HF Commerce
Divisions: Schools and Research Institutes > Business School > Marketing and Retail
Research Priority Areas: Applied Business Research
Depositing User: Maggie Zeng
Date Deposited: 19 Aug 2015 14:36
Last Modified: 21 Aug 2017 07:44
URI: http://eprints.glos.ac.uk/id/eprint/2509

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