Telecommunications Equipment Industry Research Articles

Government resource allocation practices toward carbon neutrality in China: A hybrid system approach

Government resource allocation practices for achieving carbon neutrality need to be guided by dynamic system theory to identify potential dynamics in China. In particular, dynamic system theory addresses the complex interrelationships and identifies the changes in dynamics to support the decision-making process in pursuing carbon neutrality among international trade, transportation, industrial demand and dynamic control. However, carbon neutrality involves various activities to better understand the complex activity interrelationships. The data are collected from four major databases including 30 Chinese provinces/cities covering a six-year period with the accumulated frequency in the Baidu Index. This study proposes a hybrid system approach to dynamic resource analysis. The results showed that carbon intensity control dynamics impose a greater influence on the other dynamics toward carbon neutrality. Many provinces can achieve carbon neutrality by regulating the electronics and telecommunications equipment industry.

Corporate restructuring in the telecommunications equipment industry: The case of Spain in the late twentieth century

A new technological paradigm coupled with a powerful wave of deregulation and liberalisation that was unleashed worldwide from the 1980s onwards acted as a catalyst for profound transformation in the telecommunications equipment industry, which was dominated at the time by large multinational corporations. These developments, in turn, led to worldwide restructuring in the sector. The present paper hypothesises that the sector’s oligopolistic structure remained, but that it did so under the leadership of new global players that sought to impose their strategies in response to the prevailing conditions. The paper also aims to explain the reasons for the global restructuring in the sector by looking at the strategies, choices, and decisions of the involved multinationals from the viewpoint of the nation-state. Based on the assumption that a separate analysis of one national unit can help to understand the process as a whole, the paper draws on primary sources to describe and analyse the adjustment path within Standard Eléctrica, a Spanish subsidiary first of IT&T and then of Alcatel.

World telecommunications equipment industry from the National champions to outsourcing: the case of ALCATEL

World telecommunications equipment industry from the National champions to outsourcing: the case of ALCATEL

Uncovering the Historical Process and Micro Mechanism of China’s Indigenous Innovation in the High-Tech Industry: A Comment on Li Yin’s China’s Drive for the Technology Frontier:Indigenous Innovation in the High-Tech Industry

China’s Drive for the Technology Frontier: Indigenous Innovation in the High-Tech Industry, a new book by Prof. Li Yin of Fudan University, has employed the framework of “social conditions of innovative enterprise” to investigate the historical process of China’s telecommunication equipment and semiconductor industry, arriving at the conclusion that strategic control, organizational integration and financial commitment contributes to firms’ indigenous innovation. From the perspective of innovative enterprise, this book dives into innovative firms and uncovers the micro mechanism of innovation processes, which is helpful for readers to understand the drive of China’s indigenous innovation and valuable for policy makers, and those scholars interested in innovation or catch-up studies.

THE EFFECTS OF R&D AND ITS DIFFERENT TYPES ON FIRM PRODUCTIVITY: EVIDENCE FROM CHINA

This paper employs the Olley and Pakes [(1996). The dynamics of productivity in the telecommunications equipment industry. Econometrica, 64(6), 1263–1297.] method and the generalised propensity score (GPS) methodology to estimate the effects of R&D and its different types, including research activity and development activity, on productivity. Our research sample is an unbalanced panel data consisting of 1808 Chinese listed manufacturing firms from the period 2006–2015. Our analysis reveals how R&D and its different types impact firm productivity: (1) there exists an S-shaped relationship between firm R&D intensity and productivity, which implies the existence of the threshold and diminishing marginal return of R&D for productivity growth. Due to the unbalanced composition of R&D in China, after R&D intensity reaches a critical level (around 50%) a negative marginal effect of R&D presents; (2) an increase of research intensity can improve firm productivity. However, research intensity reaches a saturation point (around 65%) beyond which firm productivity plateaus; (3) there exists an inverted U-shaped relationship between firm development intensity and productivity. The marginal effect of development on firm productivity is negative when development intensity is over 28%. Our empirical evidence implies that firms need to optimise the composition of R&D expenditure in order to realise sustained productivity growth.

The Development of Telecom Equipment

The telecom equipment industry is one of the most competitive industries globally. It is characterized by a few big corporations that dominate the industry. The industry is also among the industries that have been leveraging Data Analytics, especially Big Data Analytics. One of the big players in this industry is Huawei. Huawei is a Chinese multinational company that is involved in the sale of production and sale of telecommunication equipment, smart devices, and various consumer electronics. This shows how Huawei applies Data Analytics to manage its human resource, accounting, and finance, product design and development, supply chain and logistics, sales and marketing, and support services. The report also makes predictions of what the future of Analytics will look like for this industry. It is predicted that data volume for companies will continue to grow, creating space issues. It is also projected that the use of machine learning will accelerate, and advanced analytics applications will be needed.

The Competitiveness of Value Chains for the Telecommunications Equipment Industry: Analysis and Policy Implications

The Competitiveness of Value Chains for the Telecommunications Equipment Industry: Analysis and Policy Implications

China Technological Transformation: A Case Study of Telecommunications Equipment Industry

China is the world's biggest telecoms equipment exporter. Several telecommunications equipment companies from China dominate the global market, for example, Huawei and ZTE. This study aims to identify factors contributing to China's rapid technological transformation, particularly in the telecommunications equipment industry. In addition, the relationship between the government, SOE, and entrepreneurs is also identified in strengthening the sector. This study uses qualitative and quantitative approaches, data collection through literature study and observation, and data analysis using descriptive data analysis patent analysis, and network analysis. The results show that government technology policy, human resource development and education, foreign technology adoption and adaptation, together with indigenous R & D efforts are essential factors in China's technological transformation process in the telecommunications equipment industry. Due to China’s government's encouragement, SOEs can innovate and encourages the growth of domestic entrepreneurship. Therefore, Indonesia can learn several things from China, including fostering innovation through various strategies such as implementing technology transfer, mentoring with overseas experts, increasing R & D financing support, providing support for industry and researchers in the form of tax incentives or patent subsidies. Furthermore, strengthening collaboration and cooperation with the foreign telecommunications equipment industry with win-win schemes can offer benefits to Indonesia.

Aggregate Productivity Growth and Firm Dynamics in Korean Manufacturing 2007–2017

We study aggregate productivity growth of the Korean manufacturing industry for the 2007–2017 period after the Great Recession. We find the nature of such growth was quite different for two measures of productivity. For labor productivity, most of growth comes from productivity changes among surviving firms while, for TFP, most of the productivity growth comes from that of new entrants. We observe interesting industry dynamics, as exiting firms contributed positively to aggregate productivity growth, which suggests that the market had gradually eliminated firms of lower productivity in this period. Using the dynamic Olley and Pakes (1996. The dynamics of productivity in the telecommunications equipment industry. Econometrica, 64, 1263–1298.) decomposition, we find that a substantial productivity growth after the Great Recession was due to market share reallocations between firms, but this between-firm contribution has reduced since the recovery. Our industry sector level analysis also demonstrates that there has been heterogeneous productivity growth patterns and components across manufacturing sectors. Finally, we speculate that the wage level also plays a role as a moderating or accelerating factor for different productivity growth paths among surviving, entering, and exiting firms.

Riding out the storm of industry convergence: how do alliance and acquisition experience matter for firm survival?

PurposeThis paper aims to investigate how alliances and acquisitions matter for the adaptation of firms facing industry convergence. Building on the disruptive innovation perspective, this study theorizes that during industry convergence, as firms' inter-industry alliance (acquisition) experience increases, those that have more intra-industry alliance (acquisition) experience will exhibit higher survival chances than those that do not.Design/methodology/approachA longitudinal panel data set of 147 firms' alliances, acquisitions and exit data was constructed in the context of convergence between the US telecommunications equipment and computer networking industries from 1989 to 2003. The survival analysis method was used to test hypotheses. Firms' patent and product-market portfolio data reveal a steady rise in the extent of convergence between the two industries within the period of the study.FindingsThe results suggest that both hypotheses gain support, having only inter-industry alliance experience negatively affects firm survival and the survival-enhancing impact of combined inter- and intra-industry acquisition experience is weaker than the impact of combined inter- and intra-industry alliance experience.Originality/valueThis paper contributes to the industry convergence literature and disruptive innovation research by furnishing evidence that the combination of inter- and intra-industry alliance (acquisition) experience can be a valuable source of survival-enhancing benefits during industry convergence that has pernicious influences on firms.

Does Firm's Value Matter With Firm's Patent Quality in Technology-Intensive Industries?

During the contemporary studies on the measurement of the patent quality, two typical research circles gradually protruded. One research circle concerns on the detailed metrics and measuring methods on the patent quality, whose members could be mostly from public policy, governance, and so forth. Another research circle pays more attention on the relationships between firm's performance, technology capability, and patent count or quality. Sometimes, the research fruits from the first community occasionally fail to timely transmit to second research community; especially the possible effects of firm's patent quality on firm's market value under the context of technology management in China were much less mentioned during the past decades. In this article, an integrated or multidimensional metrics on the patent quality evaluation are utilized to reshape the analytical model, and the possible relationships between firm's value and firm's patent quality are further explored based on a quantitative means. In empirical analyses, two technology-intensive industries in China, i.e., China's telecommunication equipment industry and China's pharmaceutical industry are conducted for case studies. The selected industries are relatively competitive, and they are all technology intensive or patent intensive. Through the theoretical hypotheses designing, and regression analyses based on the unbalanced panel data, some interesting phenomenon and conclusions could be revealed.

La reconversión en la industria de equipos de telecomunicación entre finales de la década de 1980 e inicios del siglo XXI . El caso de Alcatel-SESA

The technological developments brought about by microelectronics, computer science and fiber optics paved the way for the powerful global wave of deregulation of telecommunications in the last decade of the 20th century. In turn, they activated profound transformations in the telecommunications equipment industry. The traditional link between operators and equipment producers broke down and the vertical integration between the service and the industry was fragmented. As a consequence, even when the market of the sector remained oligopolistic, restructuring was required. This article examines the reconversion in the aforementioned industry in Spain between the end of the 1980s and the beginning of the 21st century. It analyzes the complex interaction between multiple actors in the shaping of the new global industry within the increasing integration of Spain to the world economy, the international division of labor and the intensification of international competition.

Productivity growth in Indian telecommunications equipment industry

This study has analysed whether the high growth rate in telecommunications service sector has a favourable impact on productivity growth rates of the telecommunications equipment industry in India. In this study, the total and partial factor productivity growth rates are measured for the telecommunications equipment industry during 1999-2016. The translog index is used to estimate the total factor productivity (TFP) growth rate of this industry in a five input KLEMS - framework. The period of study is divided into two sub-periods, i.e., 1999-2007 (sub-period I) and 2008-2016 (sub-period II). The annual growth rate of total factor productivity is estimated to be 3.56% in sub-period I and 2.22% in sub-period II. It has been observed that the growth rate of gross value added (GVA) has decelerated between two sub-periods as the industry has become more import-centric due to implementation of the information technology agreement.

Productivity Growth in Indian Telecommunications Equipment Industry

This study has analysed whether the high growth rate in telecommunications service sector has a favourable impact on productivity growth rates of the telecommunications equipment industry in India. In this study, the total and partial factor productivity growth rates are measured for the telecommunications equipment industry during 1999-2016. The translog index is used to estimate the total factor productivity (TFP) growth rate of this industry in a five input KLEMS - framework. The period of study is divided into two sub-periods, i.e., 1999-2007 (sub-period I) and 2008-2016 (sub-period II). The annual growth rate of total factor productivity is estimated to be 3.56% in sub-period I and 2.22% in sub-period II. It has been observed that the growth rate of gross value added (GVA) has decelerated between two sub-periods as the industry has become more import-centric due to implementation of the information technology agreement.

Survival Strategies in the Spanish ICT Sector: Amper between Two Crises

This article aims to study the performance of an oligopolistic sector through the case of a medium-sized multinational company, belonging to the telecommunications equipment industry, at a time of crisis. Its interest lies in the contrast with a general situation during the first decade of the new millennium, sealed by the numerical predominance of the small size in the companies of the planet, on the one hand, and the determining weight of the big multinational companies. In this sense, it aims to make a contribution to the debate on the impact of resource and size constraints on the internationalization of small and medium-sized enterprises (SMEs) . It also seeks to intervene in the controversy over patterns of adaptation to markets and technological change in general in their struggle for survival. In the particular facet of internationalization based on foreign direct investment (FDI), it seeks to delve into the patterns and reasons for SME FDI defended by traditional theories. The business model based on proprietary technology and strong internationalisation that Amper exemplifies achieved irrefutable results in the face of the crisis, but some evidence suggests a return, insufficiency and unfulfilled results.

Navigating Disruption during Technological Speciation through Multimarket Contact with Outsiders

The competitive context in which incumbents are embedded has played a minor role in the theory of disruption to date. We posit that incumbents might detect disruptions through multimarket contact (MMC) when industries are affected by technological speciation. Speciation occurs when firms, often from different industries, experiment to apply a new technology to a variety of products. MMC between firms from different industries could provide crucial information about the latent potential of, and expectations for, nascent product innovations. We hypothesize that MMC with firms outside an incumbent’s industry can reduce the incumbent’s uncertainty about the value of these innovations and accelerate its entry into a disruptive product market. Alliances can substitute for MMC and thus should attenuate the effect of MMC with outsiders on the incumbent’s speed of entry. We find support for these ideas using data on the telecommunications equipment industry in 19991-2003, during the rise of packet-switching technology.

Alcatel-Lucent falls, Huawei ascends: new product development makes the difference

PurposeThis study aims to use the new product development (NPD) perspective to understand why traditional leading telecom equipment companies, such as Alcatel-Lucent (ALu), have stagnated but the newcomer Huawei has achieved steady growth.Design/methodology/approachThis paper takes the form of a comparative case study.FindingsThree significant differences in NPD process between the companies were discovered: first, although both companies claim that they are market-oriented, Huawei’s NPD projects are customer-driven, and ALu projects are joint considerations of customer demand and technology leadership; second, Huawei uses a design-to-value strategy, and ALu applies a design-for-quality-premium strategy; third, resources are allocated and shared at the corporate level in Huawei and at the business division level in ALu.Practical implicationsThis study offers several implications for NPD managers. First, holding a market leader position is more important than being a technology leader. Companies must fundamentally change their mind-sets, restructure NPD models and prioritize and empower marketing and sales departments in the decision-making and management of NPD projects. Second, to maximize customer value, managers must balance cost and quality and avoid overengineering. A quality premium no longer necessarily leads to product competitiveness. Third, to improve the efficiency of NPD performance, companies must build up a mechanism to enable across-boundary resources.Originality/valueThis study highlights a number of key NPD strategy issues. It was conducted in the telecom equipment industry, but NPD managers of other industries will also gain useful insights from the discussion.

Related yet diverging sectoral systems: telecommunications equipment and semiconductors in China

This study examines the evolution of the telecommunications equipment and semiconductor industries in China from 1978 to 2012 using the sectoral systems framework. The article advances research on sectoral systems by examining the diverging evolution of two vertically related industries from a common starting point. In one case, system factors worked to foster global competitiveness, while in the other case, system factors slowed the formation of a competitive industry. The findings contribute to research on industrial dynamics and catching up by suggesting that the characteristics of vertically integrated industries may be seen as two sectoral systems that interact and influence the speed and direction of innovation and industrial development of each other’s industries.

The Alliance Experience Transfer Effect: The Case of Industry Convergence in the Telecommunications Equipment Industry

A central premise of the industry change literature is that firms change their strategic actions when an industry changes. Industry convergence (IC), the blending of boundaries between industries creating competition among firms that previously did not compete, is increasingly impacting many industries and is a salient case of industry change. Acquisitions are an important action shaping the course of IC because they trigger imitation and bandwagon effects further accelerating IC. This paper focuses on why and when learning from alliances reduces uncertainty resulting in acquisitions during IC: an ‘alliance experience transfer effect’. We demonstrate the utility of this mechanism for the substitution‐based form of IC that occurred between the telecommunications equipment and computer networking industries. Our key insight is that when the extent of IC is low there are significant transfer effects but, as the extent of IC increases, firms have access to an expanding volume and diversity of information sources that reduce uncertainty, thus weakening the transfer effect mechanism. We contribute to the alliance–acquisition relationship and learning literatures by demonstrating that the alliance experience transfer effect mechanism explains changes in firm strategic action (alliancing and acquiring) as the extent of IC changes. We also introduce a semi‐convergence perspective by directly measuring the extent of IC.

New trends in the development of Chinese high-tech companies: an open innovation perspective

Despite the recent success of the open innovation theories, none of the authors have described so far the innovation strategy of Chinese companies from an open innovation perspective. This paper aims at filling this gap in the literature, providing an analysis of the innovation strategy of Chinese companies adopting the open innovation paradigm. The study relies on a confirmative multiple-case study analysis of the innovation strategy implemented by four Chinese high-tech companies operating in the telecommunications equipment industry. The results demonstrate that the paradigm of open innovation shows its beneficial effects also in contexts like China that do not have the typical features of Western contexts where this paradigm was born and has been tested.