We have examined the way in which local Chinese firms confronted with atechnology gap have achieved growth, using the Chinese handset industry as acase study. Chinese local firms have lacked technology, and have therefore turnedto outside firms for development, design, and manufacturing, while theythemselves have focused on sales and marketing, using their advantage offamiliarity with the Chinese market. Consequently, by establishing a growthcondition in which their selection of boundaries counterbalances the technologygap they have been able to expand their market share in comparison with foreignfirms.
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