Sequential Learning in a Chinese Spin-Off: The Case of Lenovo Group Limited

Abstract

This paper analyzes the learning process and sequential capabilities development in Lenovo, China's most successful PC manufacturer, which originated as a spin-off from a government-supported research institute. The case study reveals this firm's evolutionary, path-dependent and stage-wise progress from initial sales, distribution and service activities to manufacturing, product and process design and, finally developmental R&D. The study shows the interaction among the firm's changing environment, its competitive strategy, and its set of resources and capabilities. The case has implications for research on such organizations, as well as implications for management.