Keywords: industrial competition, standards based competition, network industry, Chinese traditional culture, China, indigenous R&, amp, D investment, research and development, technological compatibility choice, patents, technological standards formulation, institutional environment, competitive advantage, technology catching-up, government policy, mobile communications, high-definition, HD videodisc players
Industrial standard based competition and Chinese firm strategic choices
With globalisation and technology development, industrial standards are becoming an important strategic weapon. Multinational enterprises derive significant benefits from their active role in standard formation, while domestic firms may be placed in a less advantageous position. We examine strategic choices Chinese firms would make in utilising industrial standard based competition by analysing the standard formation process in mobile communications and high-definition videodisc players in China at, respectively, firm and industry levels. We focus on indigenous R&D investment, technological compatibility choices, patents, and alliances; and integrate governmental policies and Chinese culture as major forces shaping holistic domestic firm competitive advantage.