Adoption, Research Model & Hypothesis ay Freighters 23 Endogenous Innovation Perhaps Hussein’s most significant sustainable advantage stems from the fact that it consciously chose to develop its technology in house rather than by the more popular and government encouraged way of Joint ventures with foreign partners. Hawaii learnt basic products through reverse engineering, using that foundation to attempt more complex products that did not exist from Chinese domestic companies.
While Hawaii could easily have acquired more advanced technological knowledge by partnering, Rene was convinced that this would have been an obvious paradox: to compete in the international market, Chinese companies often partnered with them in the hope of acquiring advanced technologies and capabilities. As this is not in the long-term interests of foreign companies, they tended to bring older generation technology or insignificant components into the Joint ventures.
Thus, Chinese impasses would not only miss the technology they were after, but they would also lose market shares to their stronger competitors. Hawaii was able to leverage Its advantage of an easy access to a great number of highly educated and cheap engineers, so that even during the company early years it had a high ratio of R;D staff to other employees: 500:200. On the other hand Hussein’s technology development has also been controversial, and there have been accusations that
Hawaii used Improper technology acquisition to accelerate product development. Cisco as well as Motorola sued the Chinese company over the theft of Intellectual property. Even though reverse engineering and stealing of technology are not unique in this industry, these concerns have followed Hawaii as It has sought to raise market penetration In the US. (http://cols. Org/files/publication/ 130215_competitiveness_Wheel_cassettes_Web. PDF)