Hostname: page-component-8448b6f56d-wq2xx Total loading time: 0 Render date: 2024-04-24T21:55:26.170Z Has data issue: false hasContentIssue false

Managing Complementary Assets to Build Cross-Functional Ambidexterity: The Transformation of Huawei Mobile

Published online by Cambridge University Press:  23 August 2021

Mengling Yan
Affiliation:
Beijing University of Posts and Telecommunications, China
Yanni Hu*
Affiliation:
China Academy of Information and Communications Technology, China
Xiaoying Dong
Affiliation:
Peking University, China
*
Corresponding author: Yanni Hu (yannih@pku.edu.cn)

Abstract

During technology transitions, incumbents are frequently faced with the ambidextrous challenge of exploiting existing capabilities and exploring new ones. While extant studies focus on radical changes in the product domain, we notice radical changes can happen in both product and market domains. Pioneering studies indicate that cross-functional ambidexterity addresses this challenge at the business-unit level by juxtaposing exploration and exploitation across different functional domains (particularly in product and market domains) and that complementary assets address this challenge at the organizational level. However, how efforts at two levels can be combined to build cross-functional ambidexterity and what roles complementary assets play remain unclear. Therefore, this study conducts an in-depth case study of Huawei Mobile, which managed to achieve superior performance during a technology transition that triggers radical changes in both product and market domains. We find that multi-level synergies contribute to the transition process. Specifically, cross-functional ambidexterity is constructed by prioritizing exploration in the product domain ahead of that in the market domain, and that it generates learning, brand and channel extension, matching, and brand alliance benefits at the business-unit level. Complementary assets help to reduce the uncertainty of exploration and resolve functional conflicts at the organizational level.

摘要

在技术转型过程中,在任企业往往面临利用已有能力和探索新能力的双元困境。已有研究所讨论的激进式技术转型主要发生在产品领域,而我们的研究则关注在产品和市场领域同时发生激进式变革的技术转型。早期研究提出,在业务单元层构建的跨职能双元能力和在组织层构建的互补性资产,能够共同推进不同职能领域的探索和利用活动。但这两个层面的组织努力如何结合起来构建组织层的跨边界双元能力以及互补性资产在其中发挥何种作用尚不清楚。为此,本文针对华为手机业务进行深度案例研究,因为该业务历经产品和技术领域的激进式变革却仍然取得卓越绩效。我们发现多层次的协同促成了其转型过程。具体而言,跨职能双元能力得益于在产品领域优先进行探索活动,在业务单元层形成学习效应、品牌渠道扩展、匹配效应和品牌联盟效应。互补性资产则在组织层面发挥降低探索活动不确定性和缓解部门冲突的作用。

Аннотация

В процессе технологических преобразований должностные лица часто сталкиваются с неоднозначной задачей, а именно использовать имеющийся потенциал и одновременно искать новые возможности. В то время как существующие исследования сосредоточены на радикальных изменениях в области производства, мы отмечаем, что радикальные изменения могут произойти как в области производства, так и в сфере рыночных отношений. Новейшие исследования показывают, что межфункциональная амбидекстрия решает эту проблему на уровне организационных подразделений, сопоставляя изучение и освоение в различных функциональных областях (особенно в сфере производства и рыночных отношений), и что дополнительные активы решают эту проблему на уровне организации. Однако остается неясным, как можно объединить усилия на двух уровнях для создания межфункциональной амбидекстрии и какую роль играют дополнительные активы. Таким образом, в данном исследовании проводится углубленное изучение ситуации в компании Huawei Mobile, которой удалось достичь превосходной производительности во время технологического перехода, который вызывает радикальные изменения как в области производства, так и в сфере рыночных отношений. Мы считаем, что многоуровневый синергизм способствует процессу технологического перехода. В частности, межфункциональная амбидекстрия строится на том, что процессу изучения в области производства придается большее значение, чем в рыночной сфере, и это способствует приобретению знаний, укреплению бренда и расширению рыночных каналов, обеспечению соответствия, а также развитию преимуществ альянса брендов на уровне организационного подразделения. Дополнительные активы помогают снизить неопределенность в процессе изучения и разрешить функциональные конфликты на уровне организации.

Resumen

Durante las transiciones tecnológicas, los titulares se enfrentan con frecuencia al reto ambidiestro de explotar las capacidades existentes y explorar otras nuevas. Mientras que los estudios existentes se centran en los cambios radicales en la esfera del producto, observamos que los cambios radicales pueden producirse tanto en la esfera del producto como en la del mercado. Los estudios pioneros indican que la ambidestreza interfuncional aborda este reto a nivel de la unidad de negocio yuxtaponiendo la exploración y la explotación a través de diferentes esferas funcionales (especialmente en las esferas de producto y de mercado) y que los activos complementarios abordan este reto a nivel organizacional. Sin embargo, si no siendo claro cómo pueden combinarse los esfuerzos en ambos niveles para crear ambidestreza interfuncional o qué papel desempeñan los activos complementarios. Por consiguiente, este estudio lleva a cabo un estudio de caso en profundidad sobre Huawei Mobile, que logró alcanzar un desempeño superior durante una transición tecnológica que desencadena cambios radicales tanto en la espera del producto como en el mercado. Encontramos que las sinergias a varios niveles contribuyen al proceso de transición. En concreto, la ambidestreza interfuncional se construye dando prioridad a la exploración en la esfera del producto antes que en la del mercado, y que genera beneficios de aprendizaje, extensión de la marca y del canal, alineamiento y alianza de marcas a nivel de unidad de negocio. Los activos complementarios ayudan a reducir la incertidumbre de la exploración y a resolver los conflictos funcionales a nivel organizacional.

Type
Article
Copyright
Copyright © The Author(s), 2021. Published by Cambridge University Press on behalf of The International Association for Chinese Management Research

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

ACCEPTED BY Deputy Editor Eric Tsang

References

REFERENCES

Alvarez-Garrido, E., & Dushnitsky, G. 2016. Are entrepreneurial venture's innovation rates sensitive to investor complementary assets? Comparing biotech ventures backed by corporate and independent VCs. Strategic Management Journal, 37(5): 819834.CrossRefGoogle Scholar
Atuahene-Gima, K., & Evangelista, F. 2000. Cross-functional influence in new product development: An exploratory study of marketing and R&D perspectives. Management Science, 46(10): 12691284.CrossRefGoogle Scholar
Atuahene-Gima, K., & Ko, A. 2001. An empirical investigation of the effect of market orientation and entrepreneurship orientation alignment on product innovation. Organization Science, 12(1): 5474.CrossRefGoogle Scholar
Birkinshaw, J., Zimmermann, A., & Raisch, S. 2016. How do firms adapt to discontinuous change? Bridging the dynamic capabilities and ambidexterity perspectives. California Management Review, 58(4): 3658.CrossRefGoogle Scholar
Cohen, M. D., Burkhart, R., Dosi, G., Egidi, M., Marengo, L., Warglien, M., & Winter, S. 1996. Contemporary issues in research on routines and other recurring action patterns of organization. Industrial and Corporate Change, 5: 663–98.CrossRefGoogle Scholar
Colombo, L., Dawid, H., Piva, M., & Vivarelli, M. 2017. Does easy start-up formation hamper incumbents’ R&D investment? Small Business Economics, 49(4): 513531.CrossRefGoogle Scholar
Danneels, E. 2011. Trying to become a different type of company: Dynamic capability at Smith Corona. Strategic Management Journal, 32(1):1–31.CrossRefGoogle Scholar
Danneels, E., Verona, G., & Provera, B. 2017. Overcoming the inertia of organizational competence: Olivetti's transition from mechanical to electronic technology. Industrial and Corporate Change, 27(3): 595618.CrossRefGoogle Scholar
Gioia, D. A., Corley, K. G., & Hamilton, A. L. 2013. Seeking qualitative rigor in inductive research: Notes on the Gioia methodology. Organizational Research Methods, 16(1): 1531.CrossRefGoogle Scholar
Gulati, R., & Wang, L. O. 2002. Size of the pie and share of the pie: Implications of network embeddedness and business relatedness for value creation and value appropriation in joint ventures. Research in the Sociology of Organizations, 20: 209242.CrossRefGoogle Scholar
Gupta, A. K., Smith, K. G., & Shalley, C. E. 2006. The interplay between exploration and exploitation. Academy of Management Journal, 49(4): 693706.CrossRefGoogle Scholar
Hansen, E. G., Wicki, S., & Schaltegger, S. 2018. Structural ambidexterity, transition processes, and integration trade-offs: A longitudinal study of failed exploration. R&D Management, 49(4): 484508.Google Scholar
Henderson, R., & Clark, K. 1990. Architectural innovation: The reconfiguration of existing product technologies and the failure of existing firms. Administrative Science Quarterly, 35(1): 930.CrossRefGoogle Scholar
Hopkins, M. M., & Nightingale, P. 2006. Strategic risk management using complementary assets: Organizational capabilities and the commercialization of human genetic testing in the UK. Research Policy, 35(3): 355374.CrossRefGoogle Scholar
Huawei. 2009. Huawei corporation 2009 annual report. Available from URL: https://www.huawei.com/ucmf/groups/public/documents/webasset/hw_076948.pdfGoogle Scholar
Huawei. 2019. Huawei corporation 2019 annual report. Available from URL: https://www-file.huawei.com/-/media/corporate/pdf/annual-report/annual_report_2019_cn.pdf?la=zhGoogle Scholar
Jansen, J. J. P., Tempelaar, M. P., Van Den Bosch, F. A. J., & Volberda, H. W. 2009. Structural differentiation and ambidexterity. Organization Science, 20(4): 797811.CrossRefGoogle Scholar
Keller, K. L., & Aaker, D. A. 1992. The effects of sequential introduction of brand extensions. Journal of Marketing Research, 29(1): 3550.CrossRefGoogle Scholar
Lavie, D., & Rosenkopf, L. 2006. Balancing exploration and exploitation in alliance formation. Academy of Management Journal, 49(4): 797818.CrossRefGoogle Scholar
March, J. G. 1991. Exploration and exploitation in organizational learning. Organization Science, 2(1): 7187.CrossRefGoogle Scholar
O'Cass, A., Heirati, N., & Ngo, L. V. 2014. Achieving new product success via the synchronization of exploration and exploitationacross multiple levels and functional areas. Industrial Marketing Management, 43(5): 862–72.CrossRefGoogle Scholar
O'Reilly, C. A. III, & Tushman, M. L. 2008. Ambidexterity as a dynamic capability: Resolving the innovator's dilemma. Research in Organizational Behavior, 28: 185206.CrossRefGoogle Scholar
O'Reilly, C. A. III, & Tushman, M. L. 2013. Organizational ambidexterity: Past, present, and future. Academy of Management Perspectives, 27(4): 324338.CrossRefGoogle Scholar
Plakoyiannaki, E., Wei, T., & Prashantham, S. 2019. Rethinking qualitative scholarship in emerging markets: Researching, theorizing, and reporting. Management and Organization Review, 15(2): 217234.CrossRefGoogle Scholar
Priem, R. L., Butler, J. E., Li, S. 2013. Toward reimagining strategy research: Retrospection and prospection on the 2011 AMR decade award article. Academy of Management Review, 38(4): 471489.CrossRefGoogle Scholar
Priem, R. L., Li, S., & Carr, J. C. 2012. Insights and new directions from demand-side approaches to technology innovation, entrepreneurship, and strategic management research. Journal of Management, 38(1): 346374.CrossRefGoogle Scholar
Qaiyum, S., & Wang, C. L. 2016. Examining strategic ambidexterity as an antecedent of functional and cross-functional ambidexterity. Paper presented at the British Academy of Management 2016 Annual Conference, Newcastle University, 6-8 September. London, UK.Google Scholar
Ren, Z. F. 1995. Failure does not belong to Huawei people (Mr Ren's speech at Huawei's annual wrap-up meeting). Available from URL: https://weibo.com/ttarticle/p/show?id=2309404349655201808060&comment=1Google Scholar
Ren, Z. F. 1996, December 13. Adhere to customer orientation, synchronize with the world trend (Mr Ren's speech at the signing ceremony of C&C08 switch equipment with Beijing Telecom Administration). Huawei People, 38. Available from URL: http://app.huawei.com/paper/newspaper/newsPaperPage.do?method=showSelNewsInfo&cateId=9403&pageId=12184&infoId=27148&sortId=1&commentLanguage=1&search_result=1Google Scholar
Ren, Z. F. 1998, July 27. How long can Huawei sustain? (Presentation to China Telecom's research delegation and speech at a seminar with cadres above the division level at Unicom headquarters). Huawei People, 71. Available from URL: http://app.huawei.com/paper/newspaper/newsPaperPage.do?method=showSelNewsInfo&cateId=3682&pageId=4245&infoId=7524&sortId=1&commentLanguage=1&search_result=1Google Scholar
Ren, Z. F. 2000, July 20. Innovation is the inexhaustible power of Huawei's development. Huawei People, 107. Available from URL: http://app.huawei.com/paper/newspaper/newsPaperPage.do?method=showSelNewsInfo&cateId=3563&pageId=4108&infoId=7248&sortId=1&commentLanguage=1&search_result=1Google Scholar
Ren, Z. F. 2008. Let the youthful life shine. Zhihu. Available from URL: https://zhuanlan.zhihu.com/p/264488553Google Scholar
Ren, Z. F. 2009, October 14. Who will call for artillery fire how to provide timely artillery support. Management Optimization, 324. Available from URL: https://zhuanlan.zhihu.com/p/264488553Google Scholar
Ren, Z. F. 2010a. Huawei wants to improve relations with the media. Huanqiu. Available from URL: https://tech.huanqiu.com/article/9CaKrnJq4j4Google Scholar
Ren, Z. F. 2010b. Focus on customers, increase platform investment, open cooperation, and achieve a win-win situation. Zhihu. Available from URL: https://zhuanlan.zhihu.com/p/183121524Google Scholar
Ren, Z. F. 2011. Success is not a reliable guide to the future. Zhaoyunyang. Available from URL: http://www.zhaoyunyang.com/post-530.htmlGoogle Scholar
Ren, Z. F. 2012. Summary of the 2012 lab symposium between Ren Zhengfei and Huawei. Sohu. Available from URL: https://www.sohu.com/a/356572331_166680Google Scholar
Ren, Z. F. 2014. In the era of big opportunities, we must not be opportunistic, we must have strategic patience. Sina. Available from URL: http://finance.sina.com.cn/chanjing/gsnews/20140418/133818845461.shtmlGoogle Scholar
Ren, Z. F. 2015, September 24. Mr. Ren's speech at the EMT office meeting on September 24, 2015. President's Office Email, 122. Available from URL: http://xinsheng.huawei.com/cn/index.php?app=forum&mod=Detail&act=index&id=2720565&search_result=6Google Scholar
Ren, Z. F. 2016. Minutes of the discussion between Ren Zhengfei and the employees of the Japan Representative Office and the Japan Research Institute. Sohu. Available from URL: https://m.sohu.com/a/114080989_386694Google Scholar
Ren, Z. F. 2017. Speech by Ren Zhengfei at the mid-2017 consumer BG market conference. Sohu. Available from URL: https://www.sohu.com/a/168138153_464025Google Scholar
Ren, Z. F. 2018, January 1. Mr. Ren's speech at the consumer BG business briefing and keynote seminar. President's Office Email, 1. Available from URL: http://xinsheng.huawei.com/cn/index.php?app=forum&mod=Detail&act=index&id=3733515&search_result=7Google Scholar
Ren, Z. F. 2020. Mr. Ren's speech at the farewell party of Honor. President's Office Email, 141. Available from URL: http://xinsheng.huawei.com/cn/index.php?app=forum&mod=Detail&act=index&id=5147473&search_result=2Google Scholar
Ren, Z. F., & Xu, Z. J. 2017. Ren and Xu Zhijun at the consumer BG 2017 mid-year marketing conference. President's Office Email, 79. Available from URL: http://xinsheng.huawei.com/cn/index.php?app=forum&mod=Detail&act=index&id=3599401Google Scholar
Riley, S. M., Michael, S. C., & Mahoney, J. T. 2017. Human capital matters: Market valuation of firm investments in training and the role of complementary assets. Strategic Management Journal, 38(9): 18951914.CrossRefGoogle Scholar
Rosenbloom, R. S. 2000, Leadership, capabilities, and technological change: The transformation of NCR in the electronic era. Strategic Management Journal, 21(10/11): 10831103.3.0.CO;2-4>CrossRefGoogle Scholar
Roy, R., & Cohen, S. K. 2017. Stock of downstream complementary assets as a catalyst for product innovation during technological change in the US machine tool industry. Strategic Management Journal, 38(6): 12531267.CrossRefGoogle Scholar
Simsek, Z., Heavey, C., Veiga, J. F., & Souder, D. 2009. A typology for aligning organizational ambidexterity's conceptualizations, antecedents, and outcomes. Journal of Management Studies, 46(5): 864894.CrossRefGoogle Scholar
Soh, P. H., & Yu, J. 2010. Institutional environment and complementary assets: Business strategy in China's 3 G development. Asia Pacific Journal of Management, 27(4): 647675.CrossRefGoogle Scholar
Su, Z., Peng, J., Shen, H., & Xiao, T. 2013. Technological capability, marketing capability, and firm performance in turbulent conditions. Management & Organization Review, 9(1), 115137.CrossRefGoogle Scholar
Taylor, A., & Helfat, C. E. 2009. Organizational linkages for surviving technological change: Complementary assets, middle management, and ambidexterity. Organization Science, 20(4): 718739.CrossRefGoogle Scholar
Teece, D. J. 1986. Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy. Research Policy, 15(6): 285305.CrossRefGoogle Scholar
Tripsas, M. 1997. Unraveling the process of creative destruction: Complementary assets and incumbent survival in the typesetter industry. Strategic Management Journal, 18(1): 119142.3.0.CO;2-0>CrossRefGoogle Scholar
Tripsas, M., & Gavetti, G. 2000. Capabilities, cognition, and inertia: Evidence from digital imaging. Strategic Management Journal, 21(10/11): 11471161.3.0.CO;2-R>CrossRefGoogle Scholar
Troy, L. C., Hirunyawipada, T., & Paswan, A. K. 2008. Cross-functional integration and new product success: An empirical investigation of the findings. Journal of Management, 72: 132146.Google Scholar
Tsang, E. W. K. 2014. Generalizing from research findings: The merits of case studies. International Journal of Management Reviews, 16(4): 369383.CrossRefGoogle Scholar
Voss, G. B., & Voss, Z. G. 2013. Strategic ambidexterity in small and medium-sized enterprises: Implementing exploration and exploitation in product and market domains. Organization Science, 24(5): 14591477.CrossRefGoogle Scholar
Wu, B., Wan, Z. X., & Levinthal, D. A. 2014. Complementary assets as pips and prisms: Innovation incentives and trajectory choices. Strategic Management Journal, 35(9): 12571278.CrossRefGoogle Scholar
Wu, X., Murmann, J. P., Huang, C., & Guo, B. 2020. The management transformation of Huawei, from humble beginning to global leadership. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
Xu, W. 2019. From catching up to leading – Huawei's path to innovation. Proceedings of the Chinese Academy of Sciences, 34(10): 11081111.Google Scholar
Xu, Z. J. 2017. Do a good job with the consumer experience with heart and soul, and build a high-end brand for the world. Summary of key points from Xu Zhijun's talks with teams at all levels of the consumer business in the first half of 2017. President's Office Email, 98. Available from URL: https://www.sohu.com/a/195841668_99998674Google Scholar
Yin, R. K. 2002. Applications of case study research. Los Angeles: SAGE Publications Ltd.Google Scholar
Yu, C. D. 2012. We must be people with dreams and pursuits. Huawei Interactive Cloud. Available from URL: https://forum.huawei.com/carrier/en/portal.php?mod=view&aid=65Google Scholar
Yu, C. D. 2017. Consumer-centric, defending the brand with quality and experience (Speech at the 2017 Huawei consumer service quality conference). Huawei People. Available from URL: http://app.huawei.com/paper/newspaper/newsPaperPage.do?method=showSelNewsInfo&cateId=12128&pageId=15366&infoId=38440&sortId=1&commentLanguage=1&search_result=96Google Scholar
Zhang, F., Wang, Y., Li, D., & Cui, V. 2017. Configurations of innovations across domains: An organizational ambidexterity view. Journal of Product Innovation Management, 34(6): 821841.CrossRefGoogle Scholar
Zimmermann, A., Raisch, S., & Cardinal, L. B. 2018. Managing persistent tensions on the frontline: A configurational perspective on ambidexterity. Journal of Management Studies, 55(5): 739769.CrossRefGoogle Scholar
Supplementary material: File

Yan et al. supplementary material

Yan et al. supplementary material

Download Yan et al. supplementary material(File)
File 58.7 KB