Successful Technological Catch-Up Strategy: Empirical Evidence from Telecommunication Equipment Industry

Abstract

In this article, we put forward a conceptual framework for understanding latecomer's successful technological catch-up strategy in an industry segmented by technological generations. To do this, we observe and compare the technological trajectory, network centrality, technology quality, and technology growth of latecomers seeking technological catch-up in the telecommunication equipment industry. This research aims to empirically verify how accumulation and reconfiguration affect the evolution of a firm's technology competencies toward achieving technological dominance. In conclusion, we confirm that technological dominance can only be achieved if technology competencies go through accumulation and reconfiguration simultaneously. From the accumulation perspective, technological catch-up failed when only quantitative improvement was successful. Regarding reconfiguration, path creation was related to the existing core technology and brought positive results when coordinated and aligned.