How latecomers realize “going global” through technological catch-up: a longitudinal case study

The intricate relationship between technological catch-up and outward foreign direct investment (OFDI) in developing nations, exemplified by China, stands as a cutting-edge area within the domain of enterprise innovation and internationalization. While an extensive body of literature focuses on elucidating how latecomers can effectively achieve technological catch-up through overseas investment and mergers and acquisitions, enabling them to acquire advanced technology and valuable experience, comparatively less attention has been given to examining the mechanisms by which technological catch-up propels the OFDI process of enterprises. To address this gap, this study conducts a longitudinal case analysis of the “going global” trajectory of CRRC Zhuzhou Locomotive Co., Ltd. (CRRC-ZL), transitioning from a follower to a leading industry player. By synthesizing the concepts of technological catch-up with the Ownership, Location, and Internalization (OLI) paradigm, we construct a comprehensive model elucidating the internal processes propelling enterprises towards technological catch-up and subsequent “going global.” This research builds a bridge from technology catch-up to OFDI for latecomer companies, offering valuable managerial insights for latecomers navigating the strategic challenges of advancing beyond catch-up and entering international markets.