Management Review ›› 2024, Vol. 36 ›› Issue (4): 273-288.

• Case Studies • Previous Articles    

The Measurement and Countermeasures of Supply Chain Security of Chinese High-tech Companies under American Long Arm Jurisdiction—A Double-case Study on Huawei and Hikvision

Sun Xiaoming1, Ma Shaohua1, Su Yi2, Wang Yalan1   

  1. 1. School of Management, Xi’an University of Architecture & Technology, Xi’an 710055;
    2. School of Economics & Management, Harbin Engineering University, Harbin 150001
  • Received:2022-11-14 Online:2024-04-28 Published:2024-05-21

Abstract: For a long time, US bans on high-tech exports to China and US sanctions (through long-arm jurisdiction) on Chinese high-tech companies have, made them facing increasingly serious global supply chain security problems. Based on social network theory and knowledge-based theory, this paper adopts the double case study method of replication logic to study two typical companies: Huawei and Hikvision, and explores how to ensure supply chain security in the context of long-arm jurisdiction. The conclusions are as follows. (1) Focal companies should avoid relying on a single regional supplier source, expand the regional breadth of technology sources, and build a regional diversified global supply chain network. (2) Focal companies should take the trade rules of each country and region into consideration, and flexibly select supplier partners according to regional dynamics. They should increase the number of suppliers in strong-tie regions, promote the localization layout, and reduce the number of suppliers in weak-tie and intermediate state regions. They also should depend primarily on domestic technology and increase the proportion of domestic technology sources. (3) Focal companies should strengthen their R&D investment and enhance their talent reserve to realize the accumulation of internal and external knowledge through the introduction of technology from non-long-arm jurisdictions and independent development of alternative technologies. (4) Focal companies should implement alliance strategies in non-long-arm jurisdictions, such as establishing joint innovation lab to enhance the sharing awareness of supply chain members and the knowledge sharing degree of supply chain.

Key words: long-arm jurisdiction, supply chain security, network, relationship, knowledge