The International Innovation Capabilities of Foreign Enterprises in China Research Project

An executive briefing based on the results of this study is available, http://www.aimresearch.org/publications/adaptingtochina.pdf

Invitation to participate in the research study

Warwick Business School are looking for companies willing and able to help with a piece of research (see below) into an issue that affects us all and is increasing in influence: Foreign-Chinese trade, particularly the transfer of know-how and technology.
There's a lot of public debate about collaborative innovation between Foreign and Chinese companies. The main concerns about these corporate alliances are: who is learning what - and what are the implications for future strategy and competitive advantage.

Warwick Business School is conducting research in this area, and would be grateful for help from the managers of foreign companies who would be willing to share their experience (confidentiality will be preserved).

The Business School is particularly comparing the benefits of foreign companies being in China against the potential risk that foreign firms are breeding their future competitors here.
In particular, they would like to discuss:
• A general overview of the firm's operations in China
• A description of current relationships with Chinese firms:
supplier/buyer contract, joint venture, alliance etc
• Details of the two-way capability transfer and joint-learning within specific innovative products (e.g. develop/launch new products)
• What the foriegn firm is learning in return for sharing particular assets or capabilities with local Chinese partners

All replies and requests for additional information should go to Dr Bridgette Sullivan-
Taylor: e-mail msmbst@wbs.ac.uk <mailto:msmbst@wbs.ac.uk> or tel 024 7657 4163.

Project Overview

Who is learning what in corporate alliances between foreign firms in China and their local partners – and what are the implications for future strategy and competitive advantage?

This research examines the evolving relationships between foreign organisations and their Chinese counterparts. It focuses on collaborative innovation to understand the current scope and future
implications of joint product or process development projects, technology-sharing, training and joint-learning activities within alliances, joint-ventures or contracted buyer-supplier relationships.

We are particularly comparing the benefits of being in China against the potential that foreign firms are breeding their future competitors here.
This study is part of a larger research programme which involves one of the largest cross-sector surveys of foreign firms in China ever conducted on this topic. This is complemented by a series
of in-depth case-studies to understand more about the challenges such firms face in the Chinese market and how they are responding to these challenges.

We are specifically interested in:
• An overview of the firm’s operations in China
• A description of current relationships with Chinese firms: joint venture, alliance, supplier/buyer contract etc.
• Details of the two-way capability transfer and joint-learning within specific innovative projects. E.g. to develop and launch new products; establish new production or servicerelated
processes; or simply revise and improve current services, products or processes for
China or export markets.
• An understanding of the strategic trade-offs being made by the firm. What is it learning in return for sharing particular assets or capabilities with local Chinese partners? Also, how
much have the realised trade-offs differed from the anticipated trade-offs and how are senior managers responding to this?

China-based alliances and JVs involving high-technology foreign organisations are increasing in line with the above trends. This research will provide insights which contribute to a better
understanding of the organisational learning processes that relate to the co-development of innovative capabilities between foreign organizations and Chinese alliance partners would contribute to the above research agenda.

The research activities involve international comparisons and user engagement. providing a twoway international comparison. First, comparing the alliances and JVs, innovation capabilities and
learning processes of foreign firms in China; second, comparing the local foreign-based networks and alliances of this sample of organizations, with their evolving networks and alliances in China.

Reciprocity, (un)anticipated and (un)intended learning and changes in the ‘division of innovationrelated capabilities’ are central themes of the research. The overall programme will conduct international and cross-industry comparisons of foreign firms with investments in China. In return for providing access to interview key managers we can provide a report on the findings of the research and will invite representatives to participate in seminars and events to understand the implications of the study findings.

The above issues are of obvious concern to managers and policymakers. The user group for my current project will be comprised of foreign managers involved in China-based activities for their firms. This has the potential to increase the inter-firm learning and perhaps the transfer of promising practices, within and between firms and industry sectors.

Dr Simon Collinson and Dr Bridgette Sullivan-Taylor,
MSM Group, Warwick Business School, University of Warwick, Coventry, CV4 7AL, UK
Tel: (0)2476 524508; Fax: (0)2476 524628;
Email: s.collinson@warwick.ac.uk; msmbst@wbs.ac.uk; http://www.aimresearch.org/scollinson.html