Beyond Adaptation: Strategic Capability Reconfiguration and Government Support in the Pursuit of Breakthrough Innovation
- Authors
- Yang, Xuecheng; Lu, Jiangyong; Choi, Seong-Jin
- Issue Date
- Feb-2026
- Publisher
- Association for Computing Machinery
- Keywords
- Breakthrough innovation; Capability reconfiguration; Case study; Government support
- Citation
- ICBIM '25: Proceedings of the 9th International Conference on Business and Information Management, pp 336 - 342
- Pages
- 7
- Indexed
- SCOPUS
- Journal Title
- ICBIM '25: Proceedings of the 9th International Conference on Business and Information Management
- Start Page
- 336
- End Page
- 342
- URI
- https://scholarworks.bwise.kr/hanyang/handle/2021.sw.hanyang/211304
- DOI
- 10.1145/3785171.3785207
- Abstract
- This study explores how external government support and internal capability reconfiguration shape firms’ pursuit of breakthrough innovation, drawing on a comparative analysis of BOE and TCL CSOT in China’s semiconductor display industry. BOE, entering early, relied on signaling-based government support and acquired foreign firms to compensate for capability gaps. It gradually transformed and evolved its capabilities, eventually achieving breakthrough innovation. In contrast, TCL CSOT entered later amid mature policies and received both signaling and substantive support. It independently built production lines and pursued internal innovation, leading to market breakthroughs, though not yet technological ones. By linking industry evolution with firm strategy, this study offers new insights into latecomer innovation, capability development, and policy resource utilization in emerging economies.
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