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Knowledge Collaboration in Global Value Chains: A Comparison of Supplier Selection between a Forerunner and a Latecomer

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Abstract

Do forerunners in global value chains (GVCs) select supplier in knowledge collaboration in a different way from latecomers? There are many factors in the selection criteria in co-creating GVC value and enhancing a focal firm’s competitiveness. However, little has been revealed on how firms select their GVC suppliers from the knowledge embeddedness perspective. Furthermore, latecomers and forerunners have gaps in knowledge that may result in different weights on the same selection elements. Based on the knowledge embeddedness theory, we compare the selection criteria of a latecomer (Huawei) with a forerunner (Apple). Specifically, we identify 129 Apple or Huawei global suppliers in 2018 and collect 144,496 patents of these suppliers. Using the data of patents and the tracking of backward citations from 2013 to 2017, we find that, as a latecomer, Huawei depends more on criteria of structural hole positions in GVC knowledge network, knowledge base, and scientific knowledge than Apple does. We further conduct scenario analysis to understand Huawei’s decoupling possibility from GVCs under tech cold war.

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Notes

  1. Apple released iPhone5 in 2012 and iPhone 5c/5s in 2013, building a solid market share in mobile phone business. In 2012, Huawei decided to expend its mobile phone business to consumer market. Richard Yu, CEO of Huawei's consumer business group, said in 2016: "When we announced four years ago that we wanted to sell phones, people told us we were crazy. When we said we wanted to sell 100 million phones, they told us we were crazy, we are going to take [Apple] step-by-step, innovation-by-innovation.” Reported by FastCompany Magazine: https://www.fastcompany.com/company/huawei.

  2. Kastrenakes, J. (2019) Apple and Qualcomm drop all lawsuits in surprise settlement, The Verge, Apr 16, 2019, https://www.theverge.com/2019/4/16/18410985/apple-qualcomm-settle-royalty-dispute-patent-licensing-terms-high-fees

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  1. School of Economics and Trade, Guangdong University of Technology, 161 Yinglong Road, Guangzhou, 510520, China

    Lingling Qin

  2. School of Management, University of Science and Technology of China, 96 Jinzhai Road, Hefei, 230026, China

    Lingling Qin

  3. Robert J. Manning School of Business, University of Massachusetts Lowell, 72 University Ave, Lowell, MA, 01854, USA

    Sunny Li Sun

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Qin, L., Sun, S.L. Knowledge Collaboration in Global Value Chains: A Comparison of Supplier Selection between a Forerunner and a Latecomer. Asia Pac J Manag 41, 51–79 (2024). https://doi.org/10.1007/s10490-022-09823-y

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