Assessing the dynamic evolution of competitiveness of telecom equipment producers: A malmquist index approach

The "dynamic capability view of the firm" has become an important conceptual framework in strategic management but has been widely criticized for lack of an empirical analysis. This paper employs a new approach for identifying firms' dynamic competitiveness level with Malmquist index. Using data on Chinese and world major telecom equipment manufacturers during period 1999-2004, the paper tests for linkage of firms' resources and capabilities with competitiveness, and analyzes the dynamic evolution of competitiveness. The results not only give a clear picture of firms' competitive status, but can also identify the weaknesses and strengths of a firm compared with its rivals.