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Purpose

Complementary resources and dual learning play crucial roles in enhancing the innovation capabilities of latecomer firms. However, the precise processes through which they contribute to this enhancement remain unclear. The aim of this study was to elucidate the underlying mechanisms involved.

Design/methodology/approach

A longitudinal case study spanning the period from 1986 to 2022 was conducted to examine Haier water heaters from the perspective of the catch-up process of latecomer firms in emerging economies.

Findings

The development of digital infrastructure has not shown a notable ability to advance the transformation and modernization of the small home appliance industry. Additionally, digital industrialization has had a minimal constraining effect on this process. Nonetheless, digital governance has persistently exhibited substantial influence in facilitating the transformation and modernization of the small home appliance industry. Although both industrial digitization and digital innovation possess significant potential for promoting the transformation and modernization of the small home appliance industry, their sustainability remains limited.

Practical implications

It is crucial for late-developed enterprises to concentrate on building complementary assets while simultaneously alternating between exploratory learning and utilization learning. Additionally, it is essential to consider the dynamic relationship between complementary assets and dual learning during the catch-up process.

Originality/value

This study addresses the inadequacy in the literature concerning the operational process of complementary assets and dual learning in fostering the innovation capacity of late-developing companies, thereby augmenting the theoretical frameworks pertaining to complementary assets and technological catch-up, as well as extending the scope of dual learning to some extent.

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