Chinese Telecommunication Industry Research Articles

A Brief Discussion on the Impact of Sino-US Trade Barriers on the Chinese Telecommunications Industry

A Brief Discussion on the Impact of Sino-US Trade Barriers on the Chinese Telecommunications Industry

Analysis of Dynamic game with government subsidy in the telecommunication industry

With the development of the telecommunication industry, 5G service has become the core focus point in every country. This paper establishes a three-oligarchs game model in the Chinese communication service industry to study the oligarch game of communication service based on the 5G service and the influence of relevant government policies. Combined with the game theory and complex system theory, this paper analyzes the three oligarchs in the Chinese telecommunication industry from static and dynamic games perspectives. Firstly, the government's incentives and subsidies are conducive to enhancing the 5G service level in telecommunication oligarchs. Secondly, the cost subsidy and lump-sum incentive will have different impacts on the stability of the dynamic system; Thirdly, the government's incentive and subsidy are not conducive to the enthusiasm of enterprises' desire to get profit. Therefore, the government should not over encourage and subsidize mature enterprises when making relevant decisions and could fully consider the proportions of different incentives and subsidies when making decisions, combined with the actual demand situation to achieve the best effect.

Analyzing the Chinese Telecommunication Industry Based on Oligopoly Game and Dynamic Evolution

In this paper, we consider the impact of the product price, service level and delay parameters on the operation of enterprises in the current Chinese telecommunications industry. A three-oligarch game model is established, where system parameters are taken as important factors affecting the development of the involved companies. By improving their service levels, the three oligarchs could plunder the market of each other, but also enhance the reputation of the industry, thus bringing more communication data usage. In the paper, firstly we analyze the static Nash equilibrium, especially the impacts of competition intensity and service cost coefficiency. Then, we analyze the stability and evolution behavior of the system under the dynamic game. We found that the increase of competition intensity and cost coefficiency has adverse effects on the stability region. Finally, we show that a delay decision of a single company has a positive impact on its own profits, but not conducive to its own stability region and the profits of the opposing oligarchs, nor to the total profit.

Recombinant Capabilities and Technological Catch-Up in Open Innovation Context

Latecomer firms from emerging economies such as China are catching up quickly in recent years, and there is a burgeoning body of literature discussing which capabilities are required for these firms to compete in the global market. In this paper, we maintain that in order to catch up in the fast-changing high-technology industries, a deeper understanding is needed about whether and how the firms’ recombinant capabilities – the ability to alter the technological repertoire by recombining existing knowledge elements – can affect the technological catch-up process under the context of open innovation. Using a sample of publicly listed companies in the Chinese telecommunication industry from 2009 to 2015, our results suggest that both the ability of recombinant reuse and recombinant creation represent an opportunity for firms in the emerging economies to catch up; meanwhile, the technological returns from recombinant reuse are enhanced with a higher degree of R&D collaboration. This paper contributes to the literature of catch-up in high-technology industries by examining the dynamic capabilities required for competition in the open innovation context.

Disruptive innovation and technology ecosystem: The evolution of the intercohesive public–private collaboration network in Chinese telecommunication industry

Recent events involving Chinese technology firm Huawei and its role in the global 5th Generation (5G) telecommunication standard, as well as the role of the Chinese government in shaping the technology competition, have pushed the issue of public–private collaboration to the headline. To offer improved understanding about this issue of profound implication for research and practice, we trace the trajectory of a previous public–private collaboration and investigates the disruption and restructure of a technology ecosystem. The standardization of China’s TD-SCDMA technology reveals that (1) a network has a more centralized structure at its inception; (2) intercohesion increases and structural folds facilitate knowledge generation and disruptive innovation in the orchestration phase; (3) in the embedded phase, the public institutions’ status generally remained stable. Essentially, the government empowers various institutions to form a strategizing group, and leads this group across the disruption and reconfiguration of the industrial network.

The impact of organizational justice on employee innovative work behavior: Mediating role of knowledge sharing

This study attempts to find out the impact of organizational justice on the innovative work behavior of employees working in Chinese telecommunication sector, while analyzing the mediating role of knowledge sharing between the independent and dependent variables of this study. In order to test the study hypotheses, a data of 345 respondents working in Chinese telecommunication industry was collected. Confirmatory factor analysis suggested a good model fit, while structural equation model provided significant and positive effect of organizational justice on the employee innovative work behavior and knowledge sharing. Knowledge sharing mediated the relationship between organizational justice and employee innovative work behavior. Managerial and practical implications of the study are also provided.

The involvement of telecommunication industry in the road to corporate sustainability and corporate social responsibility commitment

AbstractThe study analyzes the importance of corporate social responsibility (CSR) for corporate sustainability through business image risk, taking into consideration the stakeholders and corporate image and reputation under different management of CSR commitment of Chinese telecommunication industry. From 154 respondents selected from Chaoyang and Haidian, two of the largest district in Beijing, China, in a survey, the study relied on company's internal and external CSR practices as the framework. The results proved that the presence of CSR practices in relation to business strategies had a significant impact on business image revalorization with employees and customers. It also found that adherence of CSR creates an internal dynamic to the company's internal image and as a strategy makes it possible to provide a positive image towards the customers' external image. This paper has implications for various audiences such as employees and customers and can help businesses better understand the significance of adopting constructive CSR initiatives.

Research on a Triopoly Dynamic Game with Free Market and Bundling Market in the Chinese Telecom Industry

Based on the real situation of telecom industry in China, we establish a triopoly game model, which includes two competitive telecom firms and their correlative corporation which produces the complementary product. Both free market and bundling market will be concerned in this dynamic model. Moreover, we consider a one-to-many bundling way instead of two complementary products in terms of the proportion of one to one in a bundling product. By numerical simulation, we find that stable space will decrease and decision chaos appears when the degree of the competition becomes fierce between the two competitive telecom firms. Besides, increasing the amount of bundling services provided by a telecom firm can lead to different impacts on the prices of the three firms investigated. This paper enriches the decision-making for the strategy of bundling pricing and will be valuable for the telecom operators.

Decision-making models for promoting consumption of low energy-intensive broadband terminal products in the Chinese telecommunication industry

PurposeThe purpose of this paper is to extend game analysis to explore decision-making mechanisms for promoting a specific type of products, low energy consumption for individual one while the total energy consumption is huge due to the high quantity of sales, that is, low for individual and high for total (LIHT) in terms of energy consumption.Design/methodology/approachGame models are developed to compare decisions of optimal prices for newly developed and environmentally friendly (NDEF) and regular products as well as associated sales quantity, profits, carbon emissions under different governmental policies, along with a case of low energy-intensive broadband terminal products in the Chinese telecommunication industry under the carbon tax and subsidy policies.FindingsFor both NDEF and regular products, optimal prices decrease under the subsidy policy while both increase under the tax policy. Manufacturers’ decision of optimal prices is highly relevant with unit carbon tax/subsidy and the consumers’ preference. Both the tax and subsidy policies can improve consumption of NDEF products while the subsidy policy can be more effective at the current initial stage.Research limitations/implicationsThis paper provides decision support for manufacturers to promote sustainable consumption of LIHT products. Research ideas on models development and solutions for optimal prices can be applied to other LIHT products.Practical implicationsThe results provide insights for governments on how to effectively evaluate and motivate sustainable consumption for LIHT products.Originality/valueThis paper first explores how to motivate sustainable consumption of LIHT products by developing models, examining effectiveness of potential governmental policies as well as associated carbon emissions.

How to Design a Common Telecom Infrastructure for Competitors to be Individually Rational and Collectively Optimal

The fast development of mobile networks calls for the massive consumption of materials, land, and energy in building and maintaining infrastructures, which is always intensified by the repetitive constructions of competing network operators. To reduce the resource consumption for social benefit, one business solution, implemented in the Chinese telecom industry, is forming a joint venture responsible for building and maintaining common infrastructures. The novelty of this practice is that the joint venture is shared by the competing operators who also rent infrastructures from the joint venture. We note that such a solution can be potentially generalized to other industries for reducing resource consumption. However, before generalization, an understanding of the pros and cons from the economic perspective of the business model is urgently needed. In this paper, we study this business model from a game theoretic approach. Our results show that if we properly regulate the joint venture, the market can converge to equilibriums with desirable properties which cannot be achieved without the joint venture. Furthermore, we also study the investment reduction in the presence of the joint venture. Our numerical results show that under a moderate user density, the total investment on the infrastructures can be significantly reduced.

Research on Cost Allocation Model of Telecom Infrastructure Co-construction Based on Value Shapley Algorithm

Under the circumstance that China Tower unified construction of 4G telecommunications infrastructure, how do the three operators fairly and reasonably share the telecommunications infrastructure cost is the key problem of Chinese telecom industry at present, and also is a hot issue for scholars. To alleviate this problem, after comparing the advantages and disadvantages of current methods of cost allocation, this paper try to introduce risk correction factor into Shapley Value algorithm, and propose a cost allocation model of telecom infrastructure co-construction based on the fixed Shapley Value algorithm. The validity and practicability of the method have been proved by the test of the actual calculation. With the help of this model, it is able to provide a more effective strategy for the cost allocation problem in the construction of China's telecom infrastructure.

Chinese collective management of copyright: the need for extensive changes

It has been more than twenty years since the founding of China's first collective management organization (CMO). To become well established, however, CMOs have a long way to go. The primary problem is rooted not only in the fact that CMOs are state controlled rather than fully member operated, but also in the poor design of the Chinese system for collective management of copyright. Chinese CMOs have encountered so many difficulties that change must be considered. Such change may involve either reform or revolution. In a reform, the supervision of Chinese CMOs would be strengthened and made more effective. In a revolution, CMOs’ authorized monopoly would be broken up to create a free market. In China, a good choice might be an authorized oligopoly (the so-called third path) that builds on the relatively successful experience of the Chinese telecommunications industry. No matter which type of reform is chosen, market-oriented characteristics should be stressed.

Improving Retail Sales Performance by Integrating HPT with Marketing Strategies

In order to accomplish organizational goals within constraints, marketers need to develop and implement marketing strategies effectively and efficiently. Trainers equipped with human performance technology (HPT) skills and knowledge may contribute substantially to strategy development and implementation and eventually contribute to organizational success. In this article, we demonstrate how HPT improved retail sales performance in an organization in the Chinese telecom industry. The outcomes highlight the benefits of integrating HPT with marketing strategies and the importance of forming partnerships between training staff and marketing professionals.

Corporate Disclosure in Relation to Combating Corporate Bribery: A Case Study of Two Chinese Telecommunications Companies

This paper investigates the association between global community concerns about bribery activities and anti‐bribery disclosure practices by two Chinese telecommunication companies operating internationally, namely China Mobile and ZTE. Based on content analysis of annual reports and global news media articles over a period of 16 years from 1995–2010, the findings suggest that the changes in the level of disclosures by the two major Chinese telecommunications companies were closely associated with the level of international concerns over bribery practices within the Chinese telecommunications industry. This finding indicates that the companies adopt anti‐bribery disclosure practices in order to minimise the gap of trust (social capital) between companies themselves and global stakeholders. In this paper we argue that, for domestic companies in China, culturally constructed social capital, such as guanxi, creates a level of trust between managers and their stakeholders, which obviates the need for managers to disclose anti‐bribery performance information. However, for companies operating internationally, as social capital is inadequate to bridge the gap of trust between managers and global stakeholders, managers use disclosures of anti‐bribery performance information as a way to minimise such a gap.

A new regional clustering approach for mobile telecommunications policy in China

In the Chinese telecommunications industry, the penetration rates of mobile telecommunications currently vary by province from less than 40% to over 100%. The purpose of this paper is to suggest a new regional clustering approach of China from the perspective of mobile telecommunications based on the diffusion characteristics of estimated innovation and imitation coefficients in the mobile telecommunications market. While China has traditionally identified three groups of regions, a cluster analysis based on those diffusion characteristics shows that the 31 provinces in China can be classified into six groups. This empirical result implies that the traditional regional classification seems too simple and that the market should be segmented further in order to develop policies more relevant to Chinese mobile telecommunications.

Commitment to Change: Its Role in the Relationship Between Expectation of Change Outcome and Emotional Exhaustion

AbstractSuccessful implementation of organizational changes greatly depends on committed employees. It is crucial for managers, leaders, and HRD professionals to understand the antecedents and outcomes of commitment to change. The purpose of this study is to investigate the relationships among expectation of change outcome at the individual level, commitment to change, and emotional exhaustion. Four hundred and sixty‐three usable surveys were returned from managers and employees from three companies in the Chinese telecom industry that were undergoing large‐scale organizational changes. Results of correlation analysis demonstrated that expectation of change outcome was positively correlated with affective and normative commitments to change and negatively correlated with continuance commitment to change. Affective and normative commitments to change were both negatively correlated with emotional exhaustion, while continuance commitment to change was positively correlated with emotional exhaustion. Structural equation modeling analysis indicated that a full mediation model fitted best to the data. The relationships between the two dimensions of expectation of change outcome and emotional exhaustion were fully mediated by affective and normative commitments to change. This study offers insights into understanding the complex nature of commitment to change, how to cultivate commitment to change, and how to use commitment to change as an intervention solution to reduce stress.

Reprint of: Competition and regulation in China's 3G/4G mobile communications industry—Institutions, governance, and telecom SOEs

When it comes to the analysis of the intrinsic mechanism of market behaviors and hence competition development and regulatory imperatives in the Chinese telecommunications industry, currently there is no consistent pattern offered in the literature. In China's emergent 3G/4G era, market behaviors can be affected by various institutional factors, along with various forms of informal forces, which may translate into different implications for competition regulation. Based on extensive archival research and interview, this current study aims to bridge the gap by following an interpretive approach. An input–output model was substantiated for pattern-matching in the Chinese context base on the postulation of a series of propositions and hence Industry-Gray-Box. Accordingly, two categories of market behaviors, that is, market-driven vs. institutions-driven, were arguably delineated as being underpinning the competition development. Policy implications and future reform imperatives were discussed. This study may advance knowledge in terms of: (1) the establishment of a relatively consistent pattern for mapping the landscape of China's communications industry; (2) the substantiation of the inner working mechanism of China's SOE system in the telecommunications sector; and (3) original first attempt in identifying different roles of telecom SOEs and the governing forces that affect them. The paper also offers extensive and cohesive insights on China's formal and informal institutional environment in general and for telecommunications in particular. Measurements developed in this study may serve as basis for future study.

Competition and regulation in China's 3G/4G mobile communications industry—Institutions, governance, and telecom SOEs

When it comes to the analysis of the intrinsic mechanism of market behaviors and hence competition development and regulatory imperatives in the Chinese telecommunications industry, currently there is no consistent pattern offered in the literature. In China's emergent 3G/4G era, market behaviors can be affected by various institutional factors, along with various forms of informal forces, which may translate into different implications for competition regulation. Based on extensive archival research and interview, this current study aims to bridge the gap by following an interpretive approach. An input–output model was substantiated for pattern-matching in the Chinese context base on the postulation of a series of propositions and hence Industry-Gray-Box. Accordingly, two categories of market behaviors, that is, market-driven vs. institutions-driven, were arguably delineated as being underpinning the competition development. Policy implications and future reform imperatives were discussed. This study may advance knowledge in terms of: (1) the establishment of a relatively consistent pattern for mapping the landscape of China's communications industry; (2) the substantiation of the inner working mechanism of China's SOE system in the telecommunications sector; and (3) original first attempt in identifying different roles of telecom SOEs and the governing forces that affect them. The paper also offers extensive and cohesive insights on China's formal and informal institutional environment in general and for telecommunications in particular. Measurements developed in this study may serve as basis for future study.

Patterns of technological learning and catch‐up strategies in latecomer firms

PurposeThe purpose of this paper is to discuss the development of high‐tech industry and the dynamics of technological learning, innovation, entrepreneurship in China through the telecom‐equipment industry.Design/methodology/approachThe paper derives a number of research propositions from the literature and then uses four case studies to show how domestic firms narrow their technological gap in different stages of catch‐up and how these firms have been influenced by their innovation capabilities to catch up to the multinationals.FindingsThe major findings of the paper may be summarized as follows. First, the innovation capability and self‐developed technologies have been the key to leading domestic firms in catching‐up with the MNCs. Second, leading domestic firms mainly depend on in‐house R&D development, supplemented with external alliance to build their innovation capability. Third, there are two different catching‐up patterns in China's telecom‐equipment industry. One is “path‐following” catching‐up in global system for mobile communication driven by using new technology in low‐end market. The other is “leapfrogging” catching‐up in the development of phone digital switches and China's own 3G standard (time division – synchronous code division multiple access). However, it seems that the leapfrogging strategy will meet more challenges and problems than the path‐following strategy.Originality/valueBased on the previous researches about technological learning, innovation and catch‐up in the newly industrializing economies, the paper provides a comprehensive elaboration in Chinese telecommunication industry by using case study approach in an original way.

Research on Evolution of Chinese Telecom Industry Ecosystem Based on Logistic Model

In order to study the evolution strategy adopted by the telecom industry in a new competitive environment, this paper introduces an ecological theory and method. The authors build a model for the telecom industry’s ecosystem and analyze the dynamic evolution process of the telecom industry through a Logistic model. The results show, when the telecom industry’s ecosystem comes to the mature phase, the main body of it need to change the evolution strategy from quickly occupying market with quantity to expanding market capacity by improving business innovation and constantly developing new value-added services. Different from traditional qualitative analysis, the dynamic and quantitative method adopted by this study gives a deep insight for the evolution mechanism of the telecom industry’s system, and guides the telecom market towards rational development.