Abstract In this study, we analyzes the process of latecomers value delivery and competence deficiency improvement, to seek processbased explanations on why latecomers fall into the customer lockin. Taking a clue of event path, we select a typical Chinese stateowned enterprise and extract 1,299 events in terms of manufacturing, quality and marketing from its 40year history. Following the procedures of the grounded theory approach, we divide them into four categories and three phases, and spot an eventtrend graph. The event categories (internal implementation, quality delivery, customer feedback and demand input) constitute basic processes of latecomers’ value circle. Our findings suggest that: 1) latecomers’ value circle, accompanying with a reverse competencedeficiency improvement, shapes a “valuecompetence” dual circle; 2) in open period, technology introduction and customer need build substitutive pipelines, which take both positive and negative effect on the dual circle; and 3) in market blowout period, the circle is prone to be broken by tight customer ties, and latecomers might be trapped by customer lockin dilemma. Finally, we conclude the study with three theoretical findings on processbased absorption capacity, dual resource dependence, and coevolutionary lockin, which provide implications for future research.
2015, Vol. 12 
