Researcher Examines How Bombardier Maintains its Leading Edge in China
Professor of Strategic Management/Policy and Newmont Endowed Chair in Business Strategy Justin Tan examines the Chinese rail transportation manufacturing industry with a focus on the high-speed train sector. Despite Canada not having the infrastructure operational, domestic rail manufacturer Bombardier has become a leader in the Chinese rail market, which is among the most sophisticated in the world.
“Canada is one of four countries in the world with a leading edge in the high-speed train sector,” Tan said. “Bombardier has the technology, but Canada does not have the population density to support the infrastructure required for high-speed rail. My research reviews how companies like Bombardier collaborate and compete internationally.”
As successful as Bombardier has been in leveraging Canadian technology for the international market, because the Chinese Government requires the company to align with a local manufacturer, they fall into a sticky strategic situation and risk nurturing their future competitors.
Professor Tan plans to dig deeper into the Chinese Railway Corporation and specifically how they are beginning to use their high-speed train technology to grow overseas. They have acquired contracts to build the future Boston Mass Transit System, a strong contender in the bid for California’s planned high-speed train, in addition to multiple other contracts across the world. “With the growth of the Chinese companies bidding on major international projects, it is putting them in direct competition with Bombardier in the global market,” Tan said.
For his research efforts, Professor Tan was recognized as the top contributor of Chinese Entrepreneurship research based on three leading entrepreneurship journals; the Journal of Business Venturing, Entrepreneurship Theory and Practice, and Journal of Small Business Management.