African Journal of Business Management Vol. 5(2), pp. 294-305, 18 January, 2011 Available online at http://www.academicjournals.org/AJBM ISSN 1993-8233 ©2011 Academic Journals
Full Length Research Paper
Dynamic capabilities, collaborative network and business model: An empirical analysis of Taiwan HTC Corporation Chi-Ho Chiou
Ching Yun University, Department of Business Administration and Institute of Business and Management, No.229, Jiansing Rd., Taoyuan County 320,Taiwan. E-mail: email@example.com. Accepted 21 July, 2010
In the era of hypercompetition in knowledge and technology, the unique capability of high technology industry that is built upon conventional resource-based theory no longer suffices for its operation. Therefore, how companies make use of dynamic capabilities and collaborative network is the primary focus of this study. The study discovers that: 1. In terms of competitive advantages in the high technology industry, besides developing unique skills using corporate resources, companies should also combine dynamic capabilities and collaborative network to ensure the sustainability of such advantages; 2. The determining factors of success of companies lie in the continuous innovation in functional strategies and capabilities regarding research and development, marketing and production; 3. It is crucial to the successful operation of businesses that strategic collaborative relationships are developed among both upstream and downstream companies of the industry in a highly competitive and dynamic business environment; and 4. Companies must continue to revamp their business model in response to industry competitions and product life cycle. The case study of the business model of HTC Corporation and the implications of its management can be used as reference for future studies and actual operation. Key words: Mobile phones, dynamic capabilities, collaborative network, business model, financial performance. INTRODUCTION 21st century is an era of hypercompetition in knowledge and economy, Bogner and Barr (2000) reckon that both the barriers to enter and exit contemporary high technology industry are lowered and technological paradigm shifts will introduce revolutionary change to industry structure. The life cycle product are becoming shorter and the competitive advantages of companies can disappear overnight, thus resulting in competitions that become increasingly dynamic and unpredictable (Wheeler, 2002). It is therefore worth exploring the subject of debate on how high technology companies adopt dynamic capabilities at different stages, collaborative network and business model in the fast-changing environment of the industry. Carlsson (2004) considers, from a resource-based view (RBV), that organisational strategy theory acquires competitive advantages through internally controlling resources or skills that are rare, valuable and hard to imitate, which no longer suffices in the hypercompetitive era of knowledge and economy in the 21st century. The Dynamic Capabilities Theory (DCT) must therefore be incorporated, and emphasis placed on the capability in new knowledge reconfiguration, acquisition and adoption, while competitive advantages are obtained through early market entry. Otherwise strategic partnerships should be formed with other companies to create a network organisation, thus expanding and accelerating the acquisition of useful resources and capabilities, in order to sustain competitive advantages on the market. The mobile phone industry is often regarded as the classical high technology industry, particularly the smartphones, which combine features of conventional mobile phones with personal computers and fully exploit the vast benefit of high-end technology. The value chain of mobile
phone industry consists of operating system, brand firms and telecommunications providers. In addition to their dynamic resources and capabilities, brand firms should build strategic...
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