The Dynamic Capabilities of Chinese Companies: Leadership in an Age of Disruptive Innovation, Emerging AI, and Global Competition
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David Teece and Annika Steiber examine how dynamic capabilities anchor competitive advantage in environments marked by deep uncertainty, driven by rapid technological change and geopolitical disturbances. They conducted a comparative analysis of leading Chinese and US firms including:
- Alibaba versus Amazon
- ByteDance versus Meta
- Baidu versus Alphabet
- DeepSeek versus OpenAI
- BYD versus Tesla
- Huawei versus Qualcomm
Professor Teece and Dr. Steiber argue that Chinese firms are not just good imitators but increasingly powerful innovators. These firms’ rapid decision-making, sustained commitment to innovation, intense focus on winning, and strong government support has reinforced an ecosystem‑building mentality that is propelling leading Chinese companies to the frontier of global competition. The authors explore these innovation practices and government‑enabled ecosystems and the strategic implications of these developments.
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