Intellectual Capital Management and Sustainable Competitiveness of SMEs in Transition Economy: A Teaching Case Study of SRNE Solar Co., Ltd.

SRNE Solar Co., Ltd. is a high-tech enterprise specializing in the R&D, production, and sales of solar charge controllers. With China’s policies in favor of the photovoltaic industry and market in 2006–2009, the company was established in Shenzhen in 2009 and launched its first-generation product — solar street light controller, thus opening the market and establishing a reputation. In response to fluctuations in the global photovoltaic industry and to adjustments in China’s photovoltaic industrial policies, SRNE Solar Co., Ltd. iterated its product line three times to forge ahead with increasingly fierce market competition and equity financing bottlenecks. This case characterizes the development path of small technology companies in China’s economic transformation process, from experiencing dramatic policy and market changes as a start-up to attempting to solve difficulties encountered when seeking the next stage of expansion. The objective is to provide an in-depth discussion of the underlying logic of SMEs to maintain their competitive advantage and business vitality. The case attempts to guide students to understand the importance of sustainable competitive advantage in extending and renewing the life cycle of new energy products, and to clarify the links between the elements of intellectual capital and such advantage. The case also has implications for how companies can build and manage intellectual capital to achieve enhanced strength and performance.