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Growth of the Firm and Economic Backwardness: A Case Study and Analysis of China's Mobile Handset Industry

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  • Kimura, Koichiro

Abstract

Economic backwardness often influences the growth of firms in developing countries. In this paper, we investigate the growth conditions and paths available for latecomers competing with first movers. Employing the concepts of boundaries of the firm and the disadvantage of backwardness, we present a case study of China's mobile handset industry and proceed to develop a simple model. We find that although significant disadvantage does not allow latecomers to grow, there are possibilities for changing the conditions of growth if latecomers can utilize outside resources and/or indigenous advantages.

Suggested Citation

  • Kimura, Koichiro, 2007. "Growth of the Firm and Economic Backwardness: A Case Study and Analysis of China's Mobile Handset Industry," IDE Discussion Papers 130, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper130
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    More about this item

    Keywords

    Boundaries of the Firm; Backwardness; Mobile Handset; China; Telephone; Information services industry; Business enterprises; 企業の境界; 後発性; 携帯電話端末; 中国; 電話; 情報産業; 企業;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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