Case Questions

1. Why are the top auto exporters in the Chinese automobile industry private companies instead of state companies?

2. What strategies are more appropriate for Chinese private firms (and those from other emerging markets)? Pay special attention to those companies that have no protection umbrella from state capital (no soft budget), like Chinese state-owned companies have. How should they develop their absorptive capacity and technological capability?

3. How do you understand corporate catch-up? Define catching up based on your understanding of the Chery case. What factors do you think play important roles in a firm's catch-up process? 4. Why is open innovation important for firms trying to catch up? Has Chery applied open innovation in its catch-up process?

5. How do you define internationalization? Why is internationalization important for firms trying to catch up? What stages does internationalization entail? Do these stages follow a fixed sequence? What sequence of these stages did Chery follow? How many modes can be applied for emerging multinational corporations' internationalization to catch up? How would you interpret the Chery case under these modes?

6. How do you interpret the impact of an entrepreneur on a firm trying to catch up? In Chery's case, how did the CEO, Tongyao Yin, accelerate Chery's catch-up development? To what extent do you think his experience (before joining Chery) had an influence on his judgement and decision making in choosing and applying catch-up strategies?

7. Should firms trying to catch up be entrepreneurial? Based on Chery's case, what are the characteristics of an entrepreneurial firm trying to catch up?

8. What is your prediction for the future of the Chinese automobile market and Chinese local automobile companies (including joint ventures and domestic companies)?

9. Based on your understanding of national catch-up theory and the firm catch-up illustrated by Chery, summarize the similarities between the two.

10. Referring to decreased domestic sales and increased competition in exports among Chinese automobile companies, if you were the CEO, what would be your strategy?