From imitation to innovation: the disruptive phenomenon of the copying culture and the 'shanzhai' economy in the business ecosystem of 'Made in China 2025'

Abstract

This research is an exploratory study of the complementary significance of imitation and innovation as the survival and sustaining strategies of Chinese entrepreneurs. The investigation addresses the research questions of 'What is the imitation-innovation link?' and 'How and why is that imitation - and the practice of 'shanzhai' - would remain the business model and strategy of Chinese entrepreneurs and innovators in the business ecosystem of Made in China 2025?'. A theoretical framework is developed for an understanding of how Chinese entrepreneurs can survive and thrive in the business cycle through their imitative-innovative capabilities of organisational learning and knowledge integration. Drawing on three case studies involving the Chinese technology companies of Huawei Technologies, BYD, and Xiaomi Inc, this research seeks to understand how the businesses have evolved from start-ups through balancing acts of imitation and innovation. The multiple-case study entails qualitative interpretations of company reports and records, narratives and discourses, to generate thematic coding that leads to an understanding of the complementary relationship of imitation-innovation, how it is processed and what it delivers. The comparative analysis examines the transformative capabilities from exploitation to exploration, and contrasts why some companies have been ranked self-reliant but more innovative than others. This research establishes a logical view that Chinese technology companies are on a trajectory of the imitation-innovation continuum in moving towards indigenous innovation. Imitation through learning and knowledge integration is not only an effective means of survival for start-ups and followers but also an avenue of staying ahead for front-runners. As China continues to promote technological advancement through initiatives like 'Made in China 2025', imitative-innovative companies may need to continually adapt their strategies to resonate with China's aspirations and the ever-evolving global environment.

Date of Award	20 Dec 2024
Original language	English
Awarding Institution	The University of Manchester
Supervisor	Jonatan Pinkse (Main Supervisor) & Silvia Massini (Co Supervisor)