4.2 Linkage, Linkage And Learning (LLL) Framework
4.2 Linkage, Leverage and Learning (LLL) Framework
There are various reasons why a firm decides to invest overseas, one such is reason is to exploit firms’ resources in a global manner (Peng, 2001). According to Matthews (2006), the Linkage, Leverage and Learning (LLL) model suggests that a firms’ global expansion can be driven by three resources attributes: resources linkage, learning and leverage (p.18). “Outward FDI carries many uncertainties… meaning firms have to overcome more hurdles to acquire resources and supporting assets in foreign markets (Matthews, 2006, p.18). An alternative is for firms to do joint ventures and partnerships, which act as a mean of gaining entry to the foreign market. Globalization improves the opportunities …show more content…
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Huawei Technologies Co. Ltd, established in 1988 is now a dominent leader in the Chinese market for telecommunication and wireless technology equipment, they expanded their business over more than 100 countries competing with big players MNCs like Alcatel-Lucent and Cisco (Hawes and Chew, 2011, p9). Huawei’s 75% of its 129 billion yuan sales revenues came from overseas during 2008 (Hawes and Chew, 2011, p9).
Huawei CEO Ren Zhengfei ever mentioned that the importance of China cultural transformation to encourage FDI and OFDI which gave them the success from the increasing competitive market and internationalized business circumtances (Hawes and Chew, 2011, p9). Ren Zhengfei declared “Resources are limited; only culture renews itself unceasingly. ... Huawei does not have natural resources that it can rely on, so it can only depend on the enormous ‘oil fields,’ ‘forests’ and ‘mines’ that are found inside peoples’ minds (Huawei Technologies 1998, art.6).” (Hawes and Chew, 2011, …show more content…
And Motorola, Siemens and NEC for digital communications portion (Li Sun, 2009, p144). Huawei also collaborate with Vodafone in 2006 to supply mobiles phones to them and in 2009 expands Huawei’s service orders to various European countries (Li Sun, 2009, p144).
Since 1997, Huawei had management challenges. Auditing firms like PricewaterhouseCoopers, IBM and Towers Perrin have been serving as Huawei Technologies’ advisors, respectively, on process alteration, employee’s stock option, financial, human resource, and quality control. Huawei learns management skills from these principal multinational consultancy firms to keep updated with the best practices(Li Sun, 2009, p144).
The benchmark learning has produce terrific results in employee productivity with US$266,280(per capita sales) in 2008 despite having minimal amount of overtime work. Huawei builds up its capability into a world-class management representations, not by individual talent and diligence but on organizational model in “speed, quality and low cost” (Li Sun, 2009,
There are various reasons why a firm decides to invest overseas, one such is reason is to exploit firms’ resources in a global manner (Peng, 2001). According to Matthews (2006), the Linkage, Leverage and Learning (LLL) model suggests that a firms’ global expansion can be driven by three resources attributes: resources linkage, learning and leverage (p.18). “Outward FDI carries many uncertainties… meaning firms have to overcome more hurdles to acquire resources and supporting assets in foreign markets (Matthews, 2006, p.18). An alternative is for firms to do joint ventures and partnerships, which act as a mean of gaining entry to the foreign market. Globalization improves the opportunities …show more content…
Ltd
Huawei Technologies Co. Ltd, established in 1988 is now a dominent leader in the Chinese market for telecommunication and wireless technology equipment, they expanded their business over more than 100 countries competing with big players MNCs like Alcatel-Lucent and Cisco (Hawes and Chew, 2011, p9). Huawei’s 75% of its 129 billion yuan sales revenues came from overseas during 2008 (Hawes and Chew, 2011, p9).
Huawei CEO Ren Zhengfei ever mentioned that the importance of China cultural transformation to encourage FDI and OFDI which gave them the success from the increasing competitive market and internationalized business circumtances (Hawes and Chew, 2011, p9). Ren Zhengfei declared “Resources are limited; only culture renews itself unceasingly. ... Huawei does not have natural resources that it can rely on, so it can only depend on the enormous ‘oil fields,’ ‘forests’ and ‘mines’ that are found inside peoples’ minds (Huawei Technologies 1998, art.6).” (Hawes and Chew, 2011, …show more content…
And Motorola, Siemens and NEC for digital communications portion (Li Sun, 2009, p144). Huawei also collaborate with Vodafone in 2006 to supply mobiles phones to them and in 2009 expands Huawei’s service orders to various European countries (Li Sun, 2009, p144).
Since 1997, Huawei had management challenges. Auditing firms like PricewaterhouseCoopers, IBM and Towers Perrin have been serving as Huawei Technologies’ advisors, respectively, on process alteration, employee’s stock option, financial, human resource, and quality control. Huawei learns management skills from these principal multinational consultancy firms to keep updated with the best practices(Li Sun, 2009, p144).
The benchmark learning has produce terrific results in employee productivity with US$266,280(per capita sales) in 2008 despite having minimal amount of overtime work. Huawei builds up its capability into a world-class management representations, not by individual talent and diligence but on organizational model in “speed, quality and low cost” (Li Sun, 2009,