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PALGRAVE STUDIES OF
INTERNATIONALIZATION
IN EMERGING MARKETS

Huawei
Goes Global
Volume II:
Regional, Geopolitical Perspectives
and Crisis Management
Edited by Wenxian Zhang
Ilan Alon · Christoph Lattemann
Palgrave Studies of Internationalization
in Emerging Markets

Series Editors
Marin A. Marinov
Aalborg University
Aalborg, Denmark

Svetla T. Marinova
Aalborg University
Aalborg, Denmark
Emerging market nations such as Russia, Brazil, China, South Africa and
India as well as Eastern European territories, are in the process of changes
and growth that require specific study and attention. The international
business strategies employed in these territories target new opportunities,
the study of which provides scholars the opportunity to evolve interna-
tional business theory.
Covering three main themes - international business, management
and marketing – Palgrave Studies of Internationalization in Emerging
Markets will encompass a multiplicity of topics. Examining the new
ways in which firms from emerging economies develop and implement
their internationalization strategy, as well as their management and
marketing strategies, the series will encompass specific issues such as
social entrepreneurship, operations and regional specifics of internation-
alization. Looking closer at the specifics underlying the development of
emerging market nations and their firms, this series aims to shed light on
the current and future issues associated with the challenges and opportunities
offered by the varying contexts of emerging markets.
The book proposals for this series undergo a single blind peer review by
three specialized highly respected established academics out of a pool of
28. The book proposal is sent to the reviewers that are selected based on
its specific topic and content taking into consideration the geographic
contextual specificity. The reviews with specific comments and recom-
mendations are sent to the authors/editors of the perspectives publication
who address them. Afterwards, the revised book proposal is evaluated by
the Commissioning Editor of Palgrave Macmillan and Book Series Editor.
The final manuscript is single blind peer reviewed. For more information on
our peer review policy please see our website: https://www.palgrave.com/gp/
book-authors/your-career/early-career-researcher-­h ub/peer-review-
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For information on how to submit a book proposal for inclusion in
this series please contact Liz Barlow: [email protected]. For details
on the book proposal process please visit our website: https://www.pal-
grave.com/gp/book-authors/publishing-guidelines/submit-a-proposal

More information about this series at

http://www.palgrave.com/gp/series/15456
 Wenxian Zhang • Ilan Alon
Christoph Lattemann
Editors

Huawei Goes Global

Volume II: Regional, Geopolitical
Perspectives and Crisis Management
Editors
Wenxian Zhang Ilan Alon
Rollins College University of Adger
Winter Park, FL, USA Kristiansand, Norway

Christoph Lattemann
Jacobs University
Bremen, Germany

ISSN 2662-1185     ISSN 2662-1193 (electronic)

Palgrave Studies of Internationalization in Emerging Markets
ISBN 978-3-030-47578-9    ISBN 978-3-030-47579-6 (eBook)
https://doi.org/10.1007/978-3-030-47579-6

© The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature
Switzerland AG 2020
This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether
the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of
illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and
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does not imply, even in the absence of a specific statement, that such names are exempt from the relevant
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This Palgrave Macmillan imprint is published by the registered company Springer Nature Switzerland AG.
The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland
 From Wenxian Zhang: To Karen, Michelle and Nathan
From Ilan: To Anna, Kareen, Maya and Noa
From Christoph Lattemann: To my parents Sieglind and Hermann
 Acknowledgments

The publication of Huawei Goes Global: Regional, Geopolitical Perspectives

and Crisis Management is the result of the collaborative efforts across the
globe. Over fifty scholars with roots in five continents—Asia, America,
Africa, Europe and Oceania—contributed to this collective undertaking,
to whom we are most grateful for their intellectual contributions. Every
research project like this requires enormous support and encouragement.
We deeply appreciate the patience and good humor of our families,
friends and colleagues. In addition, Ms. Liz Barlow and Mr. Sam Stocker
of Palgrave Macmillan, and Dr. Marin Marinov of Aalborg University,
who have provided professional guidance and helped us move toward the
final publication, also have our sincere gratitude. Finally, we would like
to acknowledge the strong administrative support provided to this project
by Dean Jennifer Cavenaugh of Rollins College.

vii
 Praise for Huawei Goes Global

“It is amazing from a librarian’s perspective to learn about the Chinese global enter-
prise Huawei from this well researched two volumes as written by knowledgeable
scholars. In view of the current trade conflicts between the U.S. and China, as well
as espionage and cybersecurity concerns pointed at Huawei, this scholarly publication
about every aspects of Huawei will be a timely addition to all library collections and
be eagerly awaited by their readers.”
—Dr. Hwa-Wei Lee, Retired former Chief of Asian Division, Library
of Congress; Dean of Libraries Emeritus, Ohio University

“The mystery surrounding Huawei is thick: Is it a private company, or is it an exten-

sion of the state? Is it a typical or atypical firm in the Chinese political and economic
systems? Answering these questions is important for the international business com-
munity to understand not only Huawei, but also the Chinese business environment.
However, due precisely to the lack of publicly available and verifiable information,
studying Huawei remains a dunning task. The effort by Wenxian Zhang, Ilan Alon
and Christoph Lattemann to edit the 2-volume book, Huawei Goes Global: Made
in China for the World greatly contributes to fill the glaring gap and therefore is
timely and much welcomed. The book critically examines Huawei’s rise and global-
ization, providing a valuable source for understanding this important and unique
organization and its role in the global trade conflict and restructuring.”
—Shaomin Li, Eminent Scholar and Professor, Old Dominion University Author
of Bribery and Corruption in Weak Institutional Environments

“Perhaps no companies are more intriguing and mysterious than Huawei Technologies.
It has developed from an unknown telecom company focusing on rural businesses in
China to a global technology giant facing tremendous geopolitical uncertainty. Is
Huawei similar to any other multinational corporation in developing its competitive
advantages? Are existing theories in international business sufficient to explain
Huawei’s global footprints and global challenges? Professors Zhang, Alon, and
Lattemann have edited two timely volumes of studies written by scholars from politi-
cal science and business to shed light on these questions. I highly recommend these
books to you. The diverse topics and approaches provide new perspectives much
needed to understand international business and politics.”
—Dr. Jing Li, Associate Professor of International Business,
Beedie School of Business, Simon Fraser University

“Huawei Goes Global is a scholarly two-volume set, in the new Palgrave Studies of
Internationalization in Emerging Economies series, which fills an important knowl-
edge gap in the literature on the internationalization of Chinese enterprises in the
midst of significant uncertainties. It provides both a specific in-depth view into the
most successful Chinese telecommunications firm to come out of the Chinese economic
rebirth, Huawei, and a broad-spectrum perspective on how Chinese firms, state-
owned or not, internationalize and overcome global challenges. This scholarly effort
sets a high standard for a deeper examination and understanding of the inner work-
ings of Chinese global firms. Importantly, it asks and answers the essential question:
what can we learn from the Chinese corporate strategy experience. Rarely is this
question posed in the growing Western body of literature on Chinese corporate gover-
nance. This two-volume set proves an essential research tool not only to scholars, spe-
cialized academics, graduate students in various international business programs but
also to public policy makers focused on a proper response to the China challenge and
global executives.”
—John R Mcintyre, PhD, Professor of International Management,
Founding Director, Georgia Tech Center for International Business
Education & Research, Atlanta, Georgia, USA

“This book offers a comprehensive description of the Chinese rush for innovation
supremacy, througth the extraordianry case of Huawei. The analysis of the strategic
choices, growth paths and the conquered innovation capacity of Huawei, guides the
reader in understanding the specificities of the internationalization processes of
Chinese companies. It is a must-read book to understand the rush of China towards
the 2049 goal of becoming a World leader for Innovation.”
—Dr. Francesca Spigarelli, Prof. of Applied Economics and Director of China
Center at University of Macerata; Vice Rector for European Research Policy
and Third Mission; Member of the Chinese Globalization Association
 Contents

1 Introduction  1
Ilan Alon, Wenxian Zhang, and Christoph Lattemann

Part I The Regional, Economic, and Geopolitical Perspectives   9

2 Market Entry Strategies of Huawei in Germany and the

Russian Federation from a Network Theory Perspective 11
Mario Glowik

3 Huawei’s Growth Strategies and Challenges in Russia 37

Tatyana Tsukanova

4 Crouching Tiger in a Transition Economy: Development

of Huawei’s Operations in Poland 69
Krzysztof Klincewicz, Magdalena Marczewska, and
Laura Zoboli

xi
xii Contents

5 Huawei in Central and Eastern Europe: Strategic Partner

or Potential Threat?105
Agnes Szunomar, Joanna Karas, and
Iulia Monica Oehler-Sincai

6 Huawei in Canada: Doing Business in the Midst of Game

of Thrones129
Hadi Chapardar, William X. Wei, and Houssam Chamseddine

7 Huawei Mexico: Between the Construction of Upgrading

and the Uncertainty Caused165
Jorge Carrillo and Jordy Micheli

8 Assessing the Impact of the Huawei Brand on the

Information Communication Technology Infrastructure
of Ghana187
Kwame Ohene Djan and Wilberforce Achiaw Owusu-Ansah

9 Huawei’s Carrier Business in Southeast Asia207

Sheryll Namingit and Serina Al Haddad

10 Huawei Goes to India: Can the Dragon and the Elephant

Marry?231
Deepraj Mukherjee

11 Exemplar Partner or Controversial Outsider? Huawei’s

Strategic Engagement in Oceania249
Jake Lin

Part II Huawei’s Crisis Management and Corporate

Communication 269

12 Untangling Legitimacy Complexity: Huawei’s

Engagement with Government and Media271
Lei Li and Sunny Li Sun
 Contents xiii

13 Red Teaming Strategy: Huawei’s Organizational Learning

and Resilience299
William Chongyang Zhou and Sunny Li Sun

14 Framing National Security Concerns in Mobile

Telecommunication Infrastructure Debates: A Text
Mining Study of Huawei319
Kenneth C. C. Yang and Yowei Kang

15 Image of Ren Zhengfei: Model Entrepreneur or an Agent

of State Power?341
Matthias Niedenführ

16 Final Reflections: Connectivity, Innovation,

Transformation, and Global Challenges365
Christoph Lattemann, Ilan Alon, and Wenxian Zhang

Index373
 Notes on Contributors

Ilan Alon is Professor of Strategy and International Marketing at the

University of Agder, Norway, and the editor-in-chief of the International
Journal of Emerging Markets and European Journal of International
Management. He is the president of the Chinese Globalization Association
which runs an annual conference China Goes Global. He has published
over 100 peer-reviewed articles and 30 books, including: Chinese Culture,
Organizational Behavior and International Business Management (Palgrave
2003), Chinese Economic Transition and International Marketing Strategy
(Palgrave 2003), Business and Management Education in China: Transition,
Pedagogy and Training (World Scientific 2005), The Globalization of
Chinese Enterprises (Palgrave 2008), and China Rules: Globalization and
Political Transformation (Palgrave 2009).
Jorge Carrillo holds a PhD in Sociology from COLMEX and is a
cofounder researcher of El Colegio de la Frontera Norte (COLEF) since
1982. He has wide recognition in Mexico and abroad for his studies on
the maquiladora industry; the automotive, electronics and aerospace sec-
tors; multinationals and small and medium-sized enterprises (SMEs); the
quality of employment and technology. He is author of 14 books and
230 chapters and scientific articles written in Spanish, English, German,
Portuguese, Italian, French, Japanese and Chinese. He has 4515 cita-
tions. He is a member of editorial committees of important journals in

xv
xvi Notes on Contributors

Mexico and abroad. He actively participates in the governing boards of

international research networks.
Houssam Chamseddine has recently completed his Bachelor of
Commerce at MacEwan University and is performing a number of stud-
ies and completing a Bachelor of Science at the University of Alberta,
while preparing to pursue a graduate degree in business.
Hadi Chapardar is an assistant professor at MacEwan University’s
school of Business. Chapardar’s research and teaching falls in the intersec-
tion of market and non-market strategies, including business sustainabil-
ity, and how firms can tackle complexities, tensions, paradoxes, and grand
challenges. He holds a PhD from Ivey Business School, Western
University, and also has more than 15 years of experience in business at
various capacities, mostly as an executive and consultant.
Mario Glowik is in charge of International Strategic Management at
the Berlin School of Economics and Law. He holds a doctoral degree in
business administration (Freie Universität Berlin) and a post-doctoral
degree (habilitation) from Vienna University of Economics and Business.
Before he was appointed as a professor, he has served more than eight
years in international marketing and management positions at the Korean
Chaebol Samsung at different locations all around the globe.
Serina Al Haddad is a visiting assistant professor at Rollins College in
Florida, where she teaches classes in business statistics and operations
management. She holds a PhD in Industrial Engineering and Management
Systems from the University of Central Florida. She is one of the main
authors of Excel Projects in Pearson MyLab Statistics and a contributing
author to Business Statistics book, 3rd Edition by R. Donnelly. Al Haddad
has more than 15 years of experience working in both academia and
industry. She has worked with many organizations including Junior
Achievement, State University of New York, and the United States
Agency for International Development (USAID).
Yowei Kang holds a PhD and is Assistant Professor of Oceanic Cultural
Creative Design Industries, National Taiwan Ocean University, Taiwan.
His research interests focus on new media design, digital game research,
 Notes on Contributors xvii

visual communication, and experiential rhetoric. Some of his works have

been published in International Journal of Strategic Communication and
Journal of Intercultural Communication Studies. He has received govern-
ment funding to support his research in location-based advertising and
consumer privacy management strategies.
Joanna Karaś is a PhD student in the World Economy Research
Institute at SGH Warsaw School of Economics. Her primary areas of
research interests are international economics, innovation studies and
economic growth, with the strong focus on foreign direct investment and
global value chains, innovation systems, industrial districts and clusters,
and technological change. She is particularly interested in developing
countries, especially Southeast Asian economies.
Krzysztof Klincewicz is Head of Department of Organization Theory
and Methods at Faculty of Management, University of Warsaw. He was a
former director at regional office of EIT Food and member of the first
management board of EIT Food. He specializes in management of tech-
nology and innovation, with particular interest in strategies of technol-
ogy firms and R&D management. Previously he had worked in high-tech
industry in Poland, Finland and the UK and at the Tokyo Institute of
Technology. He is an expert in analyzing innovation policies of EU mem-
ber states in the ERAWATCH, Research and Innovation Observatory,
Stairway-to-Excellence and Policy Support Facility projects of the
European Commission.
Christoph Lattemann is Professor of Business Administration and
Information Management at Jacobs University Bremen. He is Director of
the Jacobs Center for the Research on China and Globalization, Vice-­
Director of the Confucius Institute Bremen, and Vice President of the
Chinese Globalization Association. He was a visiting scholar at Harvard
University and Stanford University, and has published more than 150
scientific publications and 10 books, including: Cultural Distance in
International Ventures (Springer 2017) and China Rules: Globalization
and Political Transformation (Palgrave 2009). He is serving as a senior edi-
tor for the International Journal of Emerging Markets (Emerald UK).
xviii Notes on Contributors

Lei Li is Associate Professor of International Business and Strategy at

Nottingham University Business School China, located at the University
of Nottingham in Ningbo, China. He holds a PhD from the University
of Texas at Dallas, USA. His research focuses on internationalization
strategy and international social innovation and sustainable develop-
ment. His academic work has appeared in Journal of World Business,
Management International Review, International Journal of Management
Reviews, among others.
Jake Lin is a research fellow in the Faculty of Sociology, Bielefeld
University, Germany. He was JSPS Fellow at the Institute of Global
Studies, Tokyo University of Foreign Studies, after receiving his PhD in
international relations from Victoria University of Wellington, New
Zealand. His research interests include labor politics and social move-
ment, inequality and capitalism, politics and security in China, East Asia,
and the Pacific. His work has been published in journals such as Journal
of Contemporary Asia, International Sociology, Socialism and Democracy,
and Journal of Labor and Society. He is the author of Chinese Politics and
Labor Movements (2019, Palgrave Macmillan).
Magdalena Marczewska is an assistant professor at the Faculty of
Management, University of Warsaw. He specializes in innovation and
technology management, as well as project management, with the focus
on environmental technologies. He has participated in research projects
commissioned by the Polish Ministry of Environment, European
Commission, the World Intellectual Property Organization (WIPO), the
Polish Patent Office and the National Science Centre (NCN, Poland).
He has also participated in multiple international research and education
programs at the University of Kentucky, London School of Economics
and Political Science, University of Padova, Vienna University of
Economics and Business, Harvard Business School, University of Ferrara
and Lund University.
Jordy Micheli is a professor and researcher at Universidad Autónoma
Metropolitana, México. He holds a PhD in Design Oriented to Urban
Studies (UAM) and a Master in Economics (UNAM). This multidisci-
plinary trajectory began in the engineering practice. His fields of interest
are industrial and digital-based service economy, regional economy and
 Notes on Contributors xix

socioeconomics studies on innovation, technology and labor. He pro-

motes and coordinates the innovative-based entrepreneurship as part of
his management responsibilities at UAM. The whole of his academic
work and projects for public and private companies are available at www.
jordymicheli.com.
Deepraj Mukherjee is known for his contribution to institutional eco-
nomics and the emerging markets. He is the editor-in-chief of the
International Journal of Business and Economic Development published
from the Centre for Business & Economic Research (UK). Mukherjee is
the head of Quality Assurance and the Review Board for the Centre for
Innovative Leadership Navigation (UK). He is an affiliate member of the
Emerging Market Internationalization Research Group at the University
of Sydney, Australia, which studies the internationalization strategies of
emerging market firms. Mukherjee is a senior associate editor for the
International Journal of Emerging Markets.
Sheryll Namingit is Assistant Professor of Economics at Rollins College.
She holds a PhD in Economics from Kansas State University, and her
research interests are in labor, health, education and experimental eco-
nomics. Prior to Rollins, Namingit has worked as an economic develop-
ment specialist with the Philippine government and the World Bank. She
has coauthored various World Bank publications, including the Philippine
Economic Quarterly, The Philippine Development Report of 2009 and a
chapter of the book The Great Recession and Developing Countries.
Matthias Niedenführ is Assistant Professor of Chinese Studies and
Business Ethics at the Department of Chinese Studies of University of
Tübingen and Vice-Director of the China Centre Tübingen (CCT). He
was Managing Director of the European Centre of Chinese Studies
(ECCS) at Peking University and lived in East Asia for a decade. His
research interests include business culture, civil society development and
the political economy of communication in China. His current qualita-
tive research project focuses on studying model cases of Chinese entrepre-
neurship that try to implement Chinese traditional values, the so-called
Confucian Entrepreneurs (rushang 儒商). As its cofounder, Niedenführ
has been supporting the academic discussion platform ThinkIN China in
Beijing since 2010.
xx Notes on Contributors

Iulia Monica Oehler-Șincai is a senior research fellow at the Institute

for World Economy of the Romanian Academy, author, coauthor and
coordinator of numerous studies, research papers and books on topics
such as the EU foreign policy, foreign trade and investment policies,
emerging economies, Asian development models, BRICS cooperation
framework and the new public management. She is a reviewer of the
Romanian Journal of European Affairs, Global Economic Observer and
Journal of Global Economics.
Kwame Ohene Djan is a lecturer at the Department of Marketing and
Corporate Strategy at the Kwame Nkrumah University of Science and
Technology (KNUST) in Kumasi, Ghana. Ohene Djan holds an MSc
and a PhD in International Management from the University of Agder,
Norway, and a BS in Accounting from KNUST. His research interests
include ownership, corporate governance and performance of microfi-
nance institutions, and he has three publications in reputable journals
such as the Journal of Business Ethics, Strategic Change and Emerging
Market Finance and Trade. Ohene Djan has also authored one book chap-
ter on the internationalization of microfinance institutions.
Wilberforce Achiaw Owusu-Ansah is a senior lecturer and head of
Department of Marketing and Corporate Strategy at KNUST, Ghana.
Wilberforce has research, technical and writing experience across a range of
entrepreneurship, SME development, public policy and public health and
many academic awards. Prior to joining KNUST in 2009, he had worked in
private, public and not-for-profit organizations and academic institutions in
Norway, the Netherlands and Ireland in varied capacities and has numerous
publications. He holds an MBS and a PhD in Entrepreneurship from Ireland
as well as an MPhil from Public Policy and Administration, Norway.
Sunny Li Sun is Associate Professor of Entrepreneurship and Innovation
at the University of Massachusetts Lowell. He holds a PhD from the
University of Texas at Dallas, and his research interests cover entrepre-
neurship, corporate governance, venture capital, network and institu-
tions. He has published 46 papers in Strategic Management Journal,
Organization Science, Journal of International Business Studies,
Entrepreneurship Theory and Practice, Journal of Business Ethics, Journal of
Management Studies, Academy of Management Perspective, Industrial
 Notes on Contributors xxi

Marketing Management and Journal of International Marketing and other

English journals. He has four papers listed as “highly cited papers” (in the
top 1% of its academic field).
Ágnes Szunomár is the head of Research Group on Development Economics
at the Institute of World Economics, Centre for Economic and Regional
Studies and assistant professor at Institute of World Economy, Corvinus
University of Budapest. She has more than 90 scientific publications, and has
led and participated in several international and Hungarian research projects.
Her research focuses on East Asia, China’s foreign economic policy, including
the relation between China and East-Central Europe. She has also done
research on emerging markets as well as on foreign direct investment issues
and related policies in ECE countries.
Tatyana Tsukanova holds a PhD and is Assistant Professor of Strategic
and International Management Department at Saint Petersburg State
University Graduate School of Management, Russia. She teaches courses
on management, strategy and entrepreneurship, and was a visiting lecturer
at HEC Lausanne. She is a researcher at the Centre for Entrepreneurship
and her research interests include entrepreneurship, internationalization,
SMEs and emerging economies. She participated in multiple research proj-
ects and her articles have appeared in the leading scientific journals.
William X. Wei is an associate dean and professor with MacEwan
University’s School of Business. He is also associate editor of Chinese
Management Studies (SSCI) and Emerging Markets Case Studies. Wei’s
teaching areas are in international business with a research focus on for-
eign direct investment and emerging markets. He has over 200 journal
articles, book chapters, business cases and conference publications. Wei
has been awarded distinguished scholar by the Academy for Global
Business Advancement in 2012. He holds a PhD from University of
Limerick in Ireland and has been a post-doc visiting researcher at Ivey
Business School, Western University.
Kenneth C. C. Yang holds a PhD and is Professor in the Department of
Communication at the University of Texas at El Paso, USA. His research
focuses on new media advertising, consumer behavior, and international
advertising. Some of his many works have been published in
xxii Notes on Contributors

Cyberpsychology, Journal of Strategic Communication, International Journal

of Consumer Marketing, Journal of Intercultural Communication Studies,
Journal of Marketing Communication and Telematics and Informatics. He
has edited or coedited three books, Asia.com: Asia Encounters the Internet
(2003), Multi-Platform Advertising Strategies in the Global Marketplace
(2018) and Cases on Immersive Virtual Reality Techniques (2019).
Wenxian Zhang is a professor at the College of Liberal Arts, Rollins College,
Winter Park, Florida, and a recipient of the Cornell Distinguished Faculty
Service Award, as well as Arthur Vining Davis Fellow. In addition to many
articles on information studies, historical research and Chinese business man-
agement, his recent books include China’s Belt & Road Initiative: Changing
the Rules of Globalization (Palgrave 2018), China Visualized by Americans
(Peking University Press 2017), The Biographical Dictionary of New Chinese
Entrepreneurs and Business Leaders (Edward Elgar 2009), A Guide to the Top
100 Companies in China (World Scientific 2010), The Entrepreneurial and
Business Elites of China: The Chinese Returnees Who Have Shaped Modern
China (Emerald Publishing 2011), and China Through American Eyes: Early
Depictions of the Chinese People and Culture in the US Print Media (World
Scientific 2018), which received the Best Research Award from the Chinese
American Librarians Association.
William Chongyang Zhou is a PhD student in the University of
Massachusetts Lowell. His research interests include entrepreneurship
and innovation management in emerging markets. His research has
appeared in Technology Analysis & Strategic Management, China & World
Economy, and Environmental Science and Pollution Research.
Laura Zoboli is an assistant professor at the University of Warsaw, Faculty
of Management, and a coordinator of the Digital Markets and Data Economy
Laboratory, part of the Centre for Antitrust and Regulatory Studies. Before
joining the University of Warsaw, she obtained her PhD in International Law
and Economics at Bocconi University, where she taught in the fields of com-
petition law and data. Zoboli clerked in the Competition and IP Specialized
Court in Milan and was a visiting researcher at the Max Planck Institute for
Innovation and Competition and the Berkman Klein Center (Harvard). Her
research interests focus on the overlaps between competition law, IP and
regulation within digital markets and the data economy.
 List of Figures

Fig. 2.1 Relationship network of Huawei in Germany [status

December 2019] 19
Fig. 2.2 Relationship network of Huawei in the Russian Federation
[status December 2019] 24
Fig. 3.1 Key players in Russian Wireless Telecom Services. (Source:
MarketLine 2019a) 45
Fig. 3.2 Huawei’s revenues during 2001–2009 and 2016–2018.
(Source: SPARK database) 47
Fig. 3.3 Comparative revenue streams across the regions. (Source:
Huawei Investment and Holding Co. Ltd. 2011–2018
Annual Reports) 54
Fig. 4.1 Mobile phones retail volumes, 2014 (log scale) and market
growth, 2014–2018 (%). (Source: own analysis, based on
Euromonitor’s Passport database) 74
Fig. 4.2 Portable consumer electronics retail volumes, 2014 (log
scale) and market growth, 2014–2018 (%). (Source: own
analysis, based on Euromonitor’s Passport database) 75
Fig. 4.3 Huawei’s retail volumes (mobile phones and portable
consumer electronics) and operating revenues of Huawei’s
subsidiaries in European markets, 2014. Data for the
Netherlands exclude revenues of the holding company
Huawei Technologies Cooperatief U.A. (Source: own
analysis, based on Euromonitor’s Passport and Bureau van
Dijk’s Orbis databases) 82
xxiii
xxiv List of Figures

Fig. 4.4 Shares of major producers in the mobile phone market

worldwide and in Poland, 2014 and 2018 (%). (Source: own
analysis, based on Euromonitor’s Passport database) 83
Fig. 4.5 Shares of major producers in the portable consumer electron-
ics market worldwide and in Poland, 2014 and 2018 (%).
(Source: own analysis, based on Euromonitor’s Passport
database)84
Fig. 10.1 2018 Revenues of the top 12 global telecom equipment
providers (in billions USD). (Source: Chart Created by the
Author)233
Fig. 10.2 GDP Growth of India vis-à-vis China. (Source: Chart
Created by the Author) 239
Fig. 10.3 Tele Density in India between 2001 and 2018. (Source:
Chart Created by the Author) 242
Fig. 12.1 A conceptual illustration of the legitimacy research:
Stakeholder theory-­based approach versus traditional
approach278
Fig. 14.1 Extracted key phrases from China media corpus. (Source:
The authors) 329
Fig. 14.2 Extracted key phrases from non-Chinese media corpus.
(Source: The authors) 330
Fig. 14.3 Cross-national comparison among non-Chinese media
corpus (the key phrase: “national security”). (Note: The bar
chart is based on the word frequency of the extracted phrase.
Source: The authors) 331
 List of Tables

Table 3.1 Huawei in numbers 40

Table 3.2 Huawei’s major milestones in Russia 40
Table 3.3 Evolution of Huawei’s strategies in Russia 52
Table 4.1 Examples of Huawei’s local cooperators and agreements in
Poland78
Table 5.1 List of media sources used for the media content analysis in
Poland, Hungary, and Romania 109
Table 6.1 Key post-arrest events and actions 152
Table 7.1 The global operating structure of Huawei 168
Table 7.2 Huawei Mexico: Timeline 174
Table 8.1 Background data of respondents 196
Table 8.2 Sales performance of Huawei phones 197
Table 8.3 Other inquiries 198
Table 9.1 Territorial disputes between Southeast Asian Countries
and China 219
Table 10.1 Opportunities and challenges for Huawei in India 244
Table 12.1 Huawei and relevant stakeholders in selected case studies 274
Table 12.2 Percentage of global GDP by countries/regions’ stance
on Huawei 276

xxv
xxvi List of Tables

Table 14.1 Newspapers in our corpus from Nexis/Lexis academic

database (Subcategory: Major world newspapers) [search
pair: “Huawei” and “National Security”] 327
Table 14.2 Linear regression analyses 331
Table 15.1 WeChat survey of Chinese businesspeople on Huawei and
Ren Zhengfei 344
 1
Introduction
Ilan Alon, Wenxian Zhang, and Christoph Lattemann

Ever since the Trump administration economic war on China, Huawei

has been in the news and center stage in the ongoing drama that has
evolved between the two great powers, each with its own political and
economic philosophies: the USA with a liberal economic and democratic
one and China with its more authoritarian and state-centered model of
development.

I. Alon (*)
University of Agder, Kristiansand, Norway
e-mail: [email protected]
W. Zhang
Rollins College, Winter Park, FL, USA
e-mail: [email protected]
C. Lattemann
Jacobs University, Bremen, Germany
e-mail: [email protected]

© The Author(s) 2020 1

W. Zhang et al. (eds.), Huawei Goes Global, Palgrave Studies of Internationalization in
Emerging Markets, https://doi.org/10.1007/978-3-030-47579-6_1
2 I. Alon et al.

The drama between the USA and China great power struggle linchpin
by Huawei has spilled over to other countries with geopolitical implica-
tions. Volume 2 of our series on Huawei explores these geopolitical spill-
overs and Huawei-specific strategies to deal with other countries and
position its brand as a value adding, contributing part to technological
progress and economic prosperity. As such, Part I showcases Huawei in
different parts of the world, while Part II discusses the company impacts
via varying theoretical lens.

1  art I: The Regional, Economic,

P
and Geopolitical Perspectives
Part I consists of ten chapters examining Huawei operations in Germany,
Russia, Poland, Central and Eastern Europe, Canada, Mexico, Ghana,
Tanzania, India, Southeast Asia, and Oceania.
In Chap. 2, Mario Glowik, Berlin School of Economics and Law
(Germany), compares Germany and Russia. The Chinese company
Huawei has strengthened its global market presence during the last
decade in Germany and the Russian Federation, among other countries.
Russia recently moved into Huawei’s focus as a result of the economic
sanctions launched by western countries. Through a comparative analy-
sis, the market entry activities of Huawei in Russia and Germany are
introduced and compared with the aim of figuring out the similarities
and differences of Huawei’s networking efforts in the two countries.
Particular attention is paid, through relationship lens, to identify the
most important network actors (e.g., telecom providers, industry, and
governmental authorities) for Huawei during the course of its interna-
tional market entry in Germany and the Russian Federation. Research
outcomes allow further conclusions for the future in terms of Huawei’s
positioning in the global high-technology telecommunication industry
network.
Chapter 3 by Tatyana Tsukanova, Saint Petersburg State University
(Russia), sharpens the focus of Huawei in Russia. Convinced that Chinese
companies could have a global influence, Ren Zhengfei, the founder of
 1 Introduction 3

the telecommunications company Huawei, chose Russia as the first coun-

try for international expansion. In 1997, when its overseas office opened
there, Russia was facing an economic crisis. Many domestic companies
had slowed down their operations due to political and financial uncer-
tainty. Huawei seized this opportunity and invested in Russia. However,
initially it faced severe difficulties in attracting orders. Today, the Russian
market is among the key priorities for Huawei. It has 11 offices, R&D
and learning centers throughout the country, and is among the top three
suppliers of smartphones. How did this company overcome the lack of
presence and other difficulties? This chapter examines Huawei’s experi-
ence in doing business in Russia. In particular, it focuses on the growth
strategies that Huawei adopted to facilitate its expansion and examines
the challenges it faced in its quest to achieve the leading position in
the market.
In Chap. 4, Krzysztof Klincewicz, Laura Zoboli, and Magdalena
Marczewska, University of Warsaw (Poland), provide a contrasting exam-
ple of a neighboring country Poland. The chapter discusses Huawei’s
presence in Poland using various theoretical lenses, including theories on
non-market strategy, internationalization strategies, and the institutions.
After presenting the specificity of the Polish market for digital consumer
products and communication networks, the chapter depicts Huawei’s
business activities and market position in Poland, including partnerships
with industrial and scientific actors. Subsequently, the chapter offers an
overview of legal developments, which are expected to influence the mar-
ket dynamics. In particular, it considers the balance between security
concerns of the Polish regulators and the openness and competitiveness
of the market for 5G networks.
Examining more generally Central and Eastern Europe (CEE), in
which Poland is a member, in Chap. 5, Agnes Szunomar, Hungarian
Academy of Sciences, Joanna Karas, Warsaw School of Economics, and
Iulia Monica Oehler-Sincai, Institute for World Economy, Romanian
Academy, analyze Huawei’s operations in Central and Eastern Europe by
focusing on the company’s activities in Poland, Hungary, and Romania,
as these three countries are among the most important European bases
for Huawei in the CEE region. The chapter identifies the most important
characteristics of Huawei’s operations, how it cooperates with host
4 I. Alon et al.

country institutions, relates to competitors and how employment rela-

tions look like. The authors analyze firm-level data available from desk
research and interviews with current and former Huawei managers. The
chapter also shows CEE countries’ approach towards and engagement
with the company before and after the Huawei security scandal. The
authors examine how China, Huawei, and its growing presence are per-
ceived by the media in the analyzed countries, by using media content
analysis.
In Chap. 6, Hadi Chapardar, William Wei, and Houssam Chamseddine,
MacEwan University (Canada), take us to North America, which is where
some of the strongest global confrontations the company experienced.
Scholars of business have long studied how government politics, as one
group of exogenous macro-level factors, can influence cross-border firm
strategies. This chapter investigates Huawei’s business in the USA and its
close ally, Canada. Adopting a case-study approach, the authors review
the disruption of Huawei’s business in the USA and how this country’s
growing pressures, epitomized by the arrest of the company’s chief finan-
cial officer (CFO) in Vancouver, impacted Huawei’s strategy in Canada.
In contrast to what the conventional wisdom may suggest, the arrest did
not lead to a defensive strategy by Huawei and the company aggressively
preserved its business in Canada. Adopting the perspectives of strategic
resources and non-market capabilities, the authors discuss business-­
politics dynamics of multinationals from developing countries in sensi-
tive industries such as IT.
Traveling just south of the USA, in Chap. 7, Jorge Carrillo and Jordy
Micheli, Profesor-Investigador, Departamento de Estudios Sociales, El
Colegio de la Frontera Norte, analyzed Huawei in Mexico. The presence
of Huawei in Mexico is significant. Its growth strategy has been aggres-
sive: it has built assembly and logistics capacities for the region, R&D
activities, a global call center and important participation in the shared
network. Notwithstanding the foregoing, the growth and upgrading tra-
jectory of Huawei Mexico is at a crossroads due to pressure from the
Trump administration. The Huawei’s expectations of greater growth in
Mexico seem to have been left behind, which has resulted in its new strat-
egy. For instance, it has positioned its branch of devices in Mexico with a
new subsidiary. Starting from the analytical perspective on the new
 1 Introduction 5

innovative multinationals that should be reactive in changing national

contexts, this chapter shows the organizational evolution of Huawei and
points out the dilemmas of its future strategy.
Examining the global south in Chap. 8, Kwame Ohene Djan and
Wilberforce Owusu-Ansah, School of Business, Kwame Nkrumah
University of Science and Technology (Ghana), assess the African context
of Ghana. This chapter provides an empirically grounded assessment of
Huawei’s contribution to the Ghana’s ICT infrastructure and evaluates
the performance of the Huawei brand on the Ghana’s mobile phone mar-
ket. Analysis of field data suggests that, by far, Huawei is the largest for-
eign IT company with significant investments in the total Ghana’s IT
infrastructure managing and controlling the nation’s central datacenter.
Within the mobile telephone market, Huawei phones are considered to
be of high quality with its unique performance features. On the other
hand, customers and potential customers of Huawei mobile phones con-
sider its prices comparatively higher. Relevant stakeholders tend to deny
fears of any negative consequences of the recent US sanctions against
Huawei as far as the latter’s operations in Ghana is concerned.
Chapter 9, by Serina Al Haddad and Sheryll Namingit, Rollins College
(USA), analyzes another part of the global south, Southeast Asia. This
chapter discusses Huawei’s carrier business in Southeast Asia, focusing on
5G roll-out in the region. It covers the extent of business relationships
between the telecommunication companies and Huawei, as well as the
role that Huawei has played in the development of existing infrastruc-
ture. This chapter also attempts to study the probable direction of the
infrastructure development in Southeast Asia and how US policies, ter-
ritorial issues, and other factors affect Huawei’s future business in the
region. To provide a comprehensive picture of Huawei’s carrier business
in Southeast Asia, this chapter also discusses Huawei’s supply chain man-
agement in the region.
As a dominant player in South Asia, the case of India is particularly
interesting and is the subject of Chap. 10 by Deepraj Mukherjee, Associate
Professor of Economics, Kent State University (USA). Huawei is not yet
a major player in India’s competitive smartphone market. The company
has a low-end brand, called the “Honor” brand in India, and it expects
that the Indian smartphone market will use Huawei brand for high-end
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