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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
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    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.

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    File URL: http://ir.ide.go.jp/dspace/bitstream/2344/700/3/ARRIDE_Discussion_No.130_kimura.pdf
    File Function: First version, 2007
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    Bibliographic Info

    Paper provided by Institute of Developing Economies, Japan External Trade Organization(JETRO) in its series IDE Discussion Papers with number 130.

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    Date of creation: Dec 2007
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    Publication status: Published in IDE Discussion Paper. No. 130. 2007.12
    Handle: RePEc:jet:dpaper:dpaper130

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    Related research

    Keywords: Boundaries of the Firm; Backwardness; Mobile Handset; China; Telephone; Information services industry; Business enterprises;

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