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

Koichiro Kimura

No 130, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

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.

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 (search for similar items in EconPapers)
JEL-codes: D23 L63 O12 O53 (search for similar items in EconPapers)
Date: 2007-12-01
New Economics Papers: this item is included in nep-cna, nep-cse and nep-tra
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Published in IDE Discussion Paper = IDE Discussion Paper, No. 130. 2007-12-01

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