EMNE catch-up strategies in the wind turbine industry: Is there a trade-off between output and innovation capabilities?
Article first published online: 13 AUG 2012
Copyright © 2012 Strategic Management Society
Global Strategy Journal
Special Issue: Developing Country Multinational Companies. Guest Editor: Alvaro Cuervo-Cazurra
Volume 2, Issue 3, pages 205–223, August 2012
How to Cite
Awate, S., Larsen, M. M. and Mudambi, R. (2012), EMNE catch-up strategies in the wind turbine industry: Is there a trade-off between output and innovation capabilities?. Global Strategy Journal, 2: 205–223. doi: 10.1111/j.2042-5805.2012.01034.x
- Issue published online: 13 AUG 2012
- Article first published online: 13 AUG 2012
- emerging economy multinational enterprises;
- catch-up strategies;
- wind turbine industry;
- production capabilities;
- innovation capabilities
Emerging economy multinationals (EMNEs) are catching up with advanced economy MNEs (AMNEs) even in emerging, high technology industries, where their knowledge-based disadvantages are most severe. We explain this phenomenon by distinguishing between output and innovation capabilities. Successful EMNEs' focus on output capabilities need not facilitate innovation catch-up. We compare the knowledge bases of an industry-leading AMNE and a fast-follower EMNE using patent data, buttressed by qualitative information. The AMNE's knowledge base is deeper and composed of more distinct technology groups than that of the EMNE. The EMNE has caught up in terms of output capabilities, but still lags in terms of innovation capabilities. Our in-depth comparative case analysis contributes to the literature on knowledge strategies and their impact on firm capabilities.