How Resource-poor Firms Survive and Thrive: The Story of Successful Chinese Multinationals

Research output: Chapter in Book/Report/Conference proceedingBook chapterResearchpeer-review

Abstract

This chapter outlines a dynamic model of compositional strategic advantage for resource-poor firms where the attractiveness of the product offering in terms of scope and perceived value-to-price ratio identifies a number of elementary compositional strategies. A resource-poor firm can establish a compositional strategy composed of one or more of these elementary compositional strategies. It is argued that how the compositional strategic advantage is formed by three indispensable factors of aspiration (asymmetry between ambition and position), attitude (be “ALERT” to change), and action (use the asymmetry to create advantage). It is explained how the underlying theoretical rationales are particularly useful to understand the successful expansion of multinational Chinese firms and coinciding with basic cultural values.
Original languageEnglish
Title of host publicationAdapting to Environmental Challenges : New Research in Strategy and International Business
EditorsTorben Juul Andersen, Simon Sunn Torp
Number of pages14
Place of PublicationBingley
PublisherEmerald Group Publishing
Publication date2020
Pages215-228
Chapter10
ISBN (Print)9781839824777
ISBN (Electronic)9781839824760, 9781839824784
DOIs
Publication statusPublished - 2020
Series Emerald Studies in Global Strategic Responsiveness

Keywords

  • Ambition-position asymmetry
  • Compositional strategic advantage
  • Strategic success factors
  • Value-to-price ratio
  • Resource-poor firm
  • China

Cite this