Implementation Path And Selection Mechanism Of Reverse Innovation In Late-stage Enterprises

Traditional forward innovation is initiated by multinational companies in developed countries.Complete original R & D and initial industrialization in developed countries,and then export new products to emerging markets.Reverse innovation refers to the innovative activities of late-stage enterprises that have completed the development of new products locally,but have successfully introduced new products to the markets of developed countries.Completing R & D in developing countries is the foundation of reverse innovation,and successful entry into the markets of developed countries is the ultimate sign of reverse innovation.Up to now,there are two types of enterprises implementing reverse innovation: one is from developed countries and the other is from developing countries.The research object of this article is the reverse innovation activities initiated and dominated by late-stage enterprises in developing countries.The original concept of reverse innovation was a specific innovation process where a product or solution was first adopted in a developing country and then successfully introduced into a developed country market.Although the core idea remains unchanged,the practice path of reverse innovation has seen diversified process reengineering due to differences in corporate situations.In the field of strategic management,reverse innovation has drawn strong attention from business and academia in emerging countries.Although this innovative idea originated from a multinational company in a developed country,with the migration of global innovation centers,emerging countries are gradually replacing developed countries as a gathering place for global innovation,and late-stage enterprises have become the real main force in the practice of reverse innovation strategies.In terms of strategic value,reverse innovation not only provides new strategic ideas for the large number of late-stage enterprises to explore the markets of developed countries,but also creates global additional business value for late-stage enterprises through the transfer of cross-border resources.Furthermore,it provides new opportunities for late-stage enterprises to integrate deeper into the globalization landscape,tap globalization opportunities,and create global value.In this context,it is of great theoretical value and practical significance to study the essence,mode and path selection of the reverse innovation of late-stage enterprises,and how they can successfully implement reverse innovation.This research uses a combination of theoretical research and empirical research to explore the reverse innovation activities of late-stage enterprises.Relying on the idea of the innovation chain,this research reconstructs the reverse innovation elements of the late-stage enterprises,and summarizes the reverse innovation chains of the late-stage enterprises and their corresponding innovation implementation paths.The research of this paper includes three problems: First,based on theoretical thinking and literature research methods,this study analyzes the constituent elements of the reverse innovation of late-stage enterprises,and then puts forward the concept of the reverse innovation chain of late-stage enterprises.As a result,the nature and process of the reverse innovation of late-stage enterprises are theoretically defined.Second,based on the three elements of the reverse innovation chain of late-stage enterprises,this study summarizes the types of reverse innovation chains and their corresponding backward innovation implementation paths.Third,this study conducts an empirical analysis on the mechanism of reverse innovation path selection for latecomers.The main research findings obtained in this paper are as follows:First of all,in terms of the theoretical definition of the reverse innovation of late-stage enterprises,it is concluded that the constituent elements of the reverse innovation chain of late-stage enterprises include creative elements,research and development elements,and market entry order elements.Through a longitudinal case study of reverse innovation,this paper explores the evolution process of the innovation chain composed of three elements in the process of reverse innovation by latecomers.As the internationalization process continues to deepen,the three elements of creative source,technological innovation strategy and market entry path not only present a "staircase" upgrade process,but also have a coupling relationship between the factors,which is reflected as a static matching relationship at the same stage of development,and the dynamic spiral relationship between different development stages.Secondly,in terms of the identification and type induction of the reverse innovation implementation path of late-stage enterprises,This study analyzes six reverse innovation implementation paths of late-stage enterprises and briefly describes the product story line corresponding to the type of path.From the perspective of the key factor of market entry order,this research classifies the reverse innovation paths of late-stage enterprises.According to the country types and expansion trajectories of the primary and secondary markets,the types of reverse innovation of late-stage enterprises can be divided into market progressive and market jump.Finally,in terms of the selection mechanism of the reverse innovation implementation path of the late-stage enterprises,this study takes the reverse innovation path of late-stage enterprises as the dependent variable,and uses entrepreneurial opportunities,the degree of technological innovation of the product,the technical strength of the company,and the experience of internationalization of the company as explanatory variables.It is found that if the product’s entrepreneurial opportunities originate from overseas,the late-stage enterprises tend to choose a jump-type reverse innovation path.if the product has a higher level of technological innovation,the technology strength of the leading reverse-innovation company is stronger,and the late-stage enterprises tend to choose a jump-type reverse innovation path;the company’s international experience has not played a significant role in the selection of reverse innovation paths.