Research on Motivations of Transnational Enterprises Carrying out Disruptive Innovation in Chinese BOP Market
In recent years, some transnational enterprises began expanding their business to Chinese low-income consumer market, and get good return. From the view of disruptive innovation, it indicates that these transnational enterprises have carried out disruptive innovation strategy in the Chinese market. Based on disruptive innovation and BOP market theory, this paper shows that the main factors which motivate transnational enterprises to carry out disruptive innovation strategy in Chinese market are: the nature and scale of the Chinese market, and how to avoid local enterprises to become “destroyer”. On the other hand, it is necessary to develop the disruptive innovation capability for transnational enterprises to tap the above market.
Key words: Transnational enterprises; Chinese market; Base of pyramid; Disruptive innovation
The Economist Intelligence Unit. (2011). Multinational Companies and China: What Future? Retrieved from http://www.managementthinking.eiu.com/multinational-companies-and-china.html
ZHENG, Di, & HUI, Pu (2009). Country Rock. 21 Century Business Herald, (12).
Prahalad, C. K., & Hart, S. L. (2002). The Fortune at the Bottom of the Pyramid. Strategy and Business, 26, 2-14.
Prahalad, C. K. (2012). Bottom of the Pyramid as a Source of Breakthrough Innovations. Journal of Product Innovation Management, 29(1), 6-12.
Jamie, Anderson (2007). Strategic Innovation at the Base of the Economic Pyramid. Mit Sloan Management Review, 4944(1), 83-88.
London, T., & Hart, S. L. (2004). Reinenting Strategies for Emerging Markets: Beyond the Transnational Model. Journal of Product Innovation Management, 35(4), 49-63.
Christensen, C. M., & Raynor, M. (2003). The Innovator’s Solution. Boston: Harvard Business School Press.
Hart, S. L., & Christensen, C. M. (2002). The Great Leap: Driving Innovation from the Base of the Pyramid. Mit Sloan Management Review, 44(1), 51-56.
TONG, Yunhuan, ZHOU, Jianghua, & XING, Xiaoqiang (2010). Innovative Theory Aiming at BOP – Review and Prospect. Scientific Research, 28(2).
ZENG, M., & Williamson, P. (2007). Dragons at Your Door: How Chinese Cost Innovation Is Disrupting Global Competition. Boston: Harvard Business School Press.
Danneels, E. (2004). Disruptive Technology Reconsidered: A Critique and Research Agenda. Journal of Product Innovation Management, 21(4), 246-258.
WU, Xiaobo, MA, R. F., & SHI, Y. (2010). How Do Latecomer Firms Capture Value from Disruptive Technologies? A Secondary Business-Model Innovation Perspective. IEEE Transactions on Engineering Management, 57(1), 51-62.
Dinna Farrell et al. (2006). From Made in China to Sold in China. The McKinsey Quarterly. Retrieved from http://www.mckinsey.com/Insights/MGI/Research/Urbanization/From made in China to sold in China
Diana, F., Ulrich, A. G., & Elizabeth, S. (2006). The Value of China’s Emerging Middle Class. The McKinsey Quarterly, 4. Retrieved from https://china.mckinseyquarterly.com/The value of Chinas emerging middle class 1798
George, S., & David, M. (2011). What the West Does Not Get About China. Harvard Business Review, 25-27. Retrieved from http://hbr.org/2011/06/what-the-west-doesnt-get-about-china/ar/1
LIN, Jingcong, SHENG, Yian, & WU, Ying (2006). Marching up to Inland Market of China. The McKinsey Quarterly, 4. Retrieved from https://china.mckinseyquarterly.com/Marketing to Chinas hinterland 1796
XU, Quanjun (2004). “Seige” Appliance Market – Transnational Enterprises Adjust Strategies in China. Chinese Foreign Capitals, 01, 16-17.
Immelt, Govindarajan, Trimble (2009). How GE Is Disrupting Itself. Harvard Business Review, 56-65.
HUANG, Kai (2010). Snatch Chinese Market, 07(22).Retrieved from http://www.21cbh.com/html/2010-7-23/ znmdawmde4odqznw.html
- There are currently no refbacks.
If you have already registered in Journal A and plan to submit article(s) to Journal B, please click the CATEGORIES, or JOURNALS A-Z on the right side of the "HOME".
We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases:
firstname.lastname@example.org; email@example.com; firstname.lastname@example.org
Copyright © 2010 Canadian Research & Development Centre of Sciences and Cultures
Address: 758, 77e AV, Laval, Quebec, H7V 4A8, Canada
Telephone: 1-514-558 6138