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Asset Restrictions on Springboarding amid China–US Geoeconomic Competition

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Abstract

The catch-up strategy of springboarding has been widely adopted by emerging market firms seeking to internationalize. Successful springboarding requires access to sophisticated assets, often only available in more developed economies. The recent growth of geoeconomic measures, particularly between the United States and China, is impeding this process. As the two economies have moved from economic complementarity to hegemonic competition, restrictions on access to resources have increased in both number and scope. We examine the impact of growing restrictions and alternative means to access desired technologies. Market restrictions on scarce assets encourage strategies of domestically-focused and supported path-creation when building capabilities for successful internationalization.

JEL Classification: F23, F51, F52, O33, O34

Keywords

Springboarding, emerging market firms, geoeconomic restrictions, asset-seeking, path creation, geoeconomics, technology competition, China, United States

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Author Biography

Peter Enderwick

Peter Enderwick is Emeritus Professor of International Business at Auckland University of Technology, New Zealand.


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