Open AccessThe Co-Evolution of Global Legitimation and Technology Upgrading: The Case of Huawei
Author(s) -
Sihong Wu,
Di Fan,
Yiyi Su
Publication year - 2021
Publication title -
american business review
Language(s) - English
Resource type - Journals
eISSN - 2689-8810
pISSN - 0743-2348
DOI - 10.37625/abr.24.2.147-172
Subject(s) - legitimation , legitimacy , multinational corporation , business , corporate social responsibility , foreign direct investment , process (computing) , economic system , investment (military) , economic geography , industrial organization , political science , public relations , economics , finance , politics , computer science , law , operating system
This study explores the underlying relationship between acquisition of global legitimacy and the search for technology upgrading by Chinese multinational enterprises (MNEs). Using Huawei’s investment in Russia, Kenya, the United Kingdom and Canada as an in-depth case study, we observe that through corporate social responsibility (CSR) activities in foreign markets and engaging with local community, Chinese MNEs can acquire global legitimacy and gradually catch up with industry leaders. However, the process of global legitimation and innovation continues to evolve. We find that, together with engaging in CSR activities, acquisition of sophisticated knowledge and creation of innovation bring more legitimacy challenges to these firms. Thus, we suggest that Chinese MNEs’ global legitimation and innovation processes are closely coupled and mutually influential, resulting in co-evolution.