Download PDF by Koichiro Kimura (auth.): The Growth of Chinese Electronics Firms: Globalization and

By Koichiro Kimura (auth.)

ISBN-10: 1137391065

ISBN-13: 9781137391063

ISBN-10: 1349482951

ISBN-13: 9781349482955

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Additional resources for The Growth of Chinese Electronics Firms: Globalization and Organizations

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They realized growth by selling inexpensive handsets in local and rural markets, which foreign firms did not focus on. Chapter 5 presents the development of a model to illustrate the essence of the previous chapter and to generalize the case study. Specifically, we incorporate the concept of the technology gap into the models on the make-or-buy decision. Our results are as follows. Even though it is optimal to make technologically advanced services in-house in terms of the theory of the make-or-buy decision, indigenous firms may not be able to realize this ideal situation if advanced technologies are required.

The Chinese government has actively sought to open the economy and to receive inward FDI; therefore, inward FDI has had a significant influence on economic growth and industrial development. Qiu (2009) analyzed the relationship between inward FDI and total factor productivity (TFP) at the industry-level and demonstrated a spillover effect through inward FDI. TFP is the productivity generated by the total input, not by individual inputs, such as capital and labor. It is generally considered a technological change, though it is merely a residual seen from the productivities of the individual inputs.

Technologies can diffuse through a variety of channels. However, sometimes they do not diffuse due to various reasons. The first reason is the characteristics of technologies. If technologies are developed through implicit knowledge and know-how, it is difficult to access them by definition. For example, LBD also demonstrates such characteristics. Since technologies that result from LBD can be acquired only through production and business experience, the benefit of LBD is restricted to the learners themselves.

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The Growth of Chinese Electronics Firms: Globalization and Organizations by Koichiro Kimura (auth.)


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