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Purpose

– Reverse innovation plays an important role in the innovation catch-up by latecomer enterprise. With the development of economic globalization, reverse innovation of the latecomer enterprise research has received increased attention day by day. The purpose of this paper is to reveal the key success factors and the realization mechanism of reverse innovation of the latecomer engineering and technical services enterprise.

Design/methodology/approach

– This paper adopts the grounded theory analysis as the research method, by analyzing the phenomenon, collating the results, mining through the systematic data and verifying the theory temporarily. Therefore, it is ideal for the research to build the theory by analyzing the phenomenon. Before the serious coding begins, the reliability of coders is first examined. Coders extract some sample as the first test sample; then, three coders code according to the description and requirements and calculate the coding results according to the formulas that the noted scholar Holsti has proposed. Then, the authors perform the coding three times that include open coding, axial coding and selective coding, and then, the key factor model of reverse innovation of the engineering and technical service enterprise is refined.

Findings

– The investigation reveals that technology localization, connection with the international market and industrial chain integration are the key success factors of reverse innovation of the latecomer engineering and technological service enterprise. Meanwhile, the latecomer enterprise gives full attention to local comprehensive comparative advantage to carry out technology localization during the reverse innovation. The diversified international coupling mechanism is an important support for technology localization. The engineering and technical service enterprise needs to pay attention to the service chain of the vertical integration in the process of reverse innovation.

Originality/value

– The paper enriches the related research of reverse innovation based on a new industry and provides management support for innovation catch-up of the latecomer enterprises that have a big technological gap when compared with the multi-national companies.

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