Catch-Up in Complex Products and Systems: A Fuzzy-Set Qualitative Comparative Analysis of China's Equipment Manufacturing Industry

The rapid advancement of Chinese complex products and systems (CoPSs) enterprises marks their transition into a post-catch-up phase, challenging the conventional theories of catch-up. In this article, we employ a configurational approach to explore the intricate relationships between catch-up environments and strategies, specifically focusing on the distinct paths of state-owned enterprises (SOEs) and non-state-owned enterprises (non-SOEs) within the CoPS sector. Utilizing fuzzy-set qualitative comparative analysis with data sourced from the EU industrial research and development (R&D) investment scoreboard (2017–2020) and corresponding Chinese-listed companies, our research identifies diverse catch-up configurations for SOEs, characterized by “complexity adoption” and “complexity decipher” models. In contrast, non-SOEs encounter challenges in strategically adapting to environmental shifts, which affects their catch-up strategies. Our findings emphasize the critical role of strategic alignment with external conditions, technological learning, and resource utilization in achieving successful catch-up in CoPS. These configurations enable SOEs to effectively align internal resources with external opportunities, resulting in superior catch-up performance. In contrast, non-SOEs encounter significant obstacles in adapting to environmental changes and optimizing resource utilization, which hinders their ability to attain similar successes. Moreover, our study sheds light on specific challenges faced by non-SOEs in responding to environmental shifts. This enriched understanding provides valuable theoretical insights into the catch-up of latecomer CoPS enterprises and has practical implications for both policymakers and business practitioners.