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Open Access
Article
Publication date: 11 April 2024

Shiwen Gu and Inkyo Cheong

In this paper, we evaluated the impact of the US “Chip Act” on the participation of the Chinese electronics industry in the global value chain based on the dynamic CGE model. This…

Abstract

Purpose

In this paper, we evaluated the impact of the US “Chip Act” on the participation of the Chinese electronics industry in the global value chain based on the dynamic CGE model. This is a meaningful attempt to use the GTAP-VA model to analyze the electronics industry in China.

Design/methodology/approach

We employ a Dynamic GTAP-VA Model to quantitatively evaluate the economic repercussions of the “Chip Act” on the Chinese electronic industries' GVC participation from 2023 to 2040.

Findings

The findings depict a discernible contraction in China’s electronic sector by 2040, marked by a −2.95% change in output, a −3.50% alteration in exports and a 0.45% increment in imports. Concurrently, the U.S., EU and certain Asian economies exhibit expansions within the electronic sector, indicating a GVC realignment. The “Chip Act” implementation precipitates a significant divergence in GVC participation across different countries and industries, notably impacting the electronics sector.

Research limitations/implications

Through a meticulous temporal analysis, this manuscript unveils the nuanced economic shifts within the GVC, substantially bridging the empirical void in existing literature. This narrative accentuates the profound implications of policy regulations on global trade dynamics, contributing to the discourse on international economic policy and industry evolution.

Practical implications

We evaluated the impact of the US “Chip Act” on the participation of the Chinese electronics industry in the global value chain based on the dynamic CGE model. This is a meaningful attempt to use the GTAP-VA model to analyze the electronics industry in China.

Social implications

The interaction between policy regulations and global value chain (GVC) dynamics is pivotal in understanding the contemporary global trade framework, especially within technology-driven sectors. The US “Chips Act” represents a significant regulatory milestone with potential ramifications on the Chinese electronic industries' engagement in the GVC.

Originality/value

The significance of this paper is that it quantifies for the first time the impact of the US Chip Act on the GVC participation index of East Asian countries in the context of US-China decoupling. With careful consideration of strategic aspects, this paper substantially fills the empirical gap in the existing literature by presenting subtle economic changes within GVCs, highlighting the profound implications of policy regulation on global trade dynamics.

Details

Journal of International Logistics and Trade, vol. 22 no. 1
Type: Research Article
ISSN: 1738-2122

Keywords

Article
Publication date: 22 October 2010

Ning Li

This study investigates the evolutionary pattern of China's electronics industry and China's industrial integration into the Northeast Asian region from a historical perspective…

Abstract

Purpose

This study investigates the evolutionary pattern of China's electronics industry and China's industrial integration into the Northeast Asian region from a historical perspective. The purpose is to shed some light on the catch‐up path of China's technological capabilities using some empirical evidence covering the period of 1974‐2000.

Design/methodology/approach

Market share and the Finger‐Kreinin similarity index (FKSI) are used as measures to trace the path of catch‐up from both quantitative and structural perspectives and evidence is provided at the sectoral level. The Standard International Trade Classification (SITC) classification systems is adopted and FKSI values are derived from international trade data at both four‐digit SITC and sectoral levels.

Findings

First, the take‐off points toward rapid progress of China's technological capability in different sectors happened not concurrently but in a sequentially manner. Second, as to structural evolution, the process of China's integration into the world market and the Northeast Asian region started in 1978 and the extent of integration has become higher and higher ever since. Until late 1990s, gaps between China and Japan and between China and Korea have been successfully narrowed in terms of comprehensiveness of export structure in electronics.

Originality/value

The period of 1974‐2000 saw the tremendous transition in China from a centralized and planned system into a market‐driven economy. It also saw several noteworthy shifts of China's industrial policy in order to build up its innovative capacity and to catch‐up with Japan and Korea. Unlike many other studies that deeply root in macroeconomic approach, this study traces the evolution of China's performance at the sectoral level by focusing on electronics industry. The findings of this paper are explained in terms of national industrial policy, location effects, and low‐cost sourcing.

Details

Journal of Science and Technology Policy in China, vol. 1 no. 3
Type: Research Article
ISSN: 1758-552X

Keywords

Article
Publication date: 6 September 2011

Yenpao Chen, Chien‐Hsun Chen and Will C. Wu

This paper sets out to explore the effects that the setting‐up of an independent director system has on the operating efficiency of information electronics companies in China.

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Abstract

Purpose

This paper sets out to explore the effects that the setting‐up of an independent director system has on the operating efficiency of information electronics companies in China.

Design/methodology/approach

This paper uses 87 Chinese listed electronics companies during the initial stages of the independent directors system from 1999 to 2002 as sample subjects, and employs a two‐stage procedure for empirical investigation.

Findings

The non‐parametric test results verify that there is no significant difference in the operating efficiency of Chinese electronics companies following the establishment of an independent director system. The Tobit regression results show that the establishment of an independent director system in the Chinese electronics industry does not influence overall technical efficiency (TE), pure technical efficiency (PE), or scale efficiency (SE).

Research limitations/implications

Whether the related schemes of the current corporate governance structure practised in China can achieve their expected results, as well as the possible future development direction of the governance structure, is of the utmost importance, and is a research subject worth examining in greater depth.

Practical implications

It is of the utmost urgency for such corporate governance to improve the selection mechanism for independent directors, to establish incentives and responsibility‐taking mechanisms for independent directors, and to amend the company law and securities law to perfect the rules of an independent director system.

Originality/value

By using DEA and the Tobit regression model, this study attempts to investigate whether China, in addition to fraud prevention, has improved corporate operating efficiency by introducing a system of independent directors.

Details

Journal of Economic Studies, vol. 38 no. 4
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 10 July 2020

Alastair Marke, Carmen Chan, Gozde Taskin and Theo Hacking

The objectives of this research are to (1) fill the evidence gap of circular business activities and (2) enrich the knowledge base about the drivers of and barriers to circular…

Abstract

Purpose

The objectives of this research are to (1) fill the evidence gap of circular business activities and (2) enrich the knowledge base about the drivers of and barriers to circular economy business model (CEBM) that supports e-waste reduction in China’s mobile electronics industry. To answer the overarching research question of whether there are CEBMs emerging to address e-waste in China’ mobile electronics industry, we in this paper divided it into three sub-questions: (1) What CEBMs can support e-waste reduction? (2) Is there evidence for their implementation in China? and (3) What are the drivers of and barriers to these business model innovations?

Design/methodology/approach

We started with setting the scene on the importance of better e-waste management and the scale of e-waste problem in China. Building on the oft-quoted ReSOLVE framework, developed by EMF (2015) and consolidated in Lewandowski (2016), we have refined from it 11 CEBMs to suit the context of e-waste reduction. These 11 models include regenerate, life cycle extension, take-back services, product sharing systems, optimise resource value, produce on demand, circular supplies, resource recovery, industrial symbiosis, product-as-a-service and transformative innovation. We have mapped these refined models against the evidence of circular business practices identified in the corporate sustainability reports of eight out of top 12 mobile electronics manufacturers in China.

Findings

Our research findings show that six out of these 11 CEBMs are de facto practised in many of these companies. They include life cycle extension, collection services, optimise resource value, circular supplies, resource recovery and industrial symbiosis, although circular economy is still early-stage endeavours in the industry. As confirmed in our expert and company interviews, CEBM stems largely from profit and policy drivers. The key to building successful CEBMs to eliminate e-waste is, indeed, multi-stakeholder collaboration across the mobile electronics industry, which involves effective collection, reuse and recycling systems.

Originality/value

The lessons learnt can promote peer learning among EEE manufacturers and inform policymakers of effective strategies to create an enabling environment in which circular economy models can thrive.

Details

Asian Education and Development Studies, vol. 9 no. 4
Type: Research Article
ISSN: 2046-3162

Keywords

Book part
Publication date: 30 December 2013

Huang Chaofeng

China's defense industry is analyzed by comparing the technical level of the military and civilian products manufactured by China's nuclear, space, aviation, shipbuilding…

Abstract

China's defense industry is analyzed by comparing the technical level of the military and civilian products manufactured by China's nuclear, space, aviation, shipbuilding, ordnance, and electronics industries with their advanced counterparts. Generally, China's defense industry is about 20 years behind the global leaders. Thus, it is inappropriate to declare China's emergence as the world’s second military power. However, if it continues on its current development trajectory, it will attain that status in the near future.

Details

Cooperation for a Peaceful and Sustainable World Part 2
Type: Book
ISBN: 978-1-78190-655-2

Book part
Publication date: 24 November 2016

Xiaoyan Luo and Michał K. Lemański

To understand the rationale for foreign direct investment of Chinese electronic companies, their location decisions and entry mode choices

Abstract

Purpose

To understand the rationale for foreign direct investment of Chinese electronic companies, their location decisions and entry mode choices

Methodology/approach

Secondary data on foreign direct investment of the top 100 companies in China’s electronics industry are analysed. The first part covers an exploratory analysis of the industry and the second part presents a comparative longitudinal analysis of three case studies of representative companies: Haier, Huawei, and Lenovo.

Findings

The three key findings are: (1) market-seeking is the primary motivation for foreign direct investment of Chinese companies in the electronics industry, yet the strategic-asset-seeking gains importance as the internationalization of the company advances; (2) foreign investment path normally starts at adjacent foreign markets, but more distant markets are gradually targeted and become more important for the company; (3) wholly owned investments are the preferred market entry modes in the international expansion.

Research limitations/implications

This research is based on secondary data, and more in-depth, interview-based studies are needed to explore the perceptions of decision-makers, and a plethora of contextual factors, which result in specific market entry decisions. As only the 100 largest companies were studied, future research should put under scrutiny also internationalization of smaller firms.

Practical implications

Implications of such findings are discussed in the light of classic internationalization theories as well as the current research on internationalization of companies from emerging/developing countries.

Originality/value

Provides an account of foreign direct investment in a context of a substantial and growing importance for the practice of international business, and identifies an agenda for promising future scholarly inquiries.

Details

The Challenge of Bric Multinationals
Type: Book
ISBN: 978-1-78635-350-4

Keywords

Article
Publication date: 1 November 2000

Ji Li, Kevin Lam and Yong‐qing Fang

This study deals with one strategic issue for manufacturing firms operating in Asian emerging markets – technology commitment or investment. It compares two different approaches…

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Abstract

This study deals with one strategic issue for manufacturing firms operating in Asian emerging markets – technology commitment or investment. It compares two different approaches adopted by international manufacturing firms in China, one of the major emerging markets in the world. Analyzing the data from the 100 largest manufacturing firms (in terms of market share) competing in one of China’s manufacturing industries, i.e. electronics, this paper shows an interesting positive relationship between technology investment and firm performance in China’s manufacturing industries. This paper concludes with a discussion on the implications of the findings.

Details

Integrated Manufacturing Systems, vol. 11 no. 6
Type: Research Article
ISSN: 0957-6061

Keywords

Article
Publication date: 1 April 2000

Ji Li, Kevin Lam and Ping Ping Fu

Past research has suggested the influence of family‐oriented collectivistic culture on the behavior and performance of traditional Chinese manufacturing firms. However…

Abstract

Past research has suggested the influence of family‐oriented collectivistic culture on the behavior and performance of traditional Chinese manufacturing firms. However, insufficient empirical research has been conducted to empirically test the influence. More importantly, insufficient research has been conducted to test how the collectivistic culture in Chinese societies would affect the performance of manufacturing firms. This paper addresses these issues by comparing the behaviors and performance of two groups of firms in China, i.e., investment from overseas Chinese firms and investment from non‐Chinese Western firms, in one of China's fast‐growing manufacturing industries. Interesting differences are found between the overseas Chinese firms and those from other foreign countries. The findings support the influence of societal culture on firms' behavior and performance, but do not support the predictions on performance based on the arguments of cultural distance. This paper concludes with a discussion on implications of the findings for both researchers and practitioners.

Details

The International Journal of Organizational Analysis, vol. 8 no. 4
Type: Research Article
ISSN: 1055-3185

Book part
Publication date: 30 March 2022

Galina V. Gavlovskaya and Azat N. Khakimov

The chapter is devoted to considering the aspects of the COVID-19 pandemic influence on the global and Russian electronics industry. The work aims to examine the impact of the…

Abstract

The chapter is devoted to considering the aspects of the COVID-19 pandemic influence on the global and Russian electronics industry. The work aims to examine the impact of the COVID-19 pandemic on the electronic industry in the world and Russia from various angles. As a result of the study, the main features of the global electronic industry are highlighted, including leadership of Western European countries, Japan and the United States in the segment of high price electronics; the leadership of the new industrial countries in a lower price segment; active development of microelectronics as an electronics industry segment and its colossal role in the economy of modern countries; the trend towards acquisitions of small companies by large corporations and other industry. Key problems of the Russian electronics are identified, including a small fraction of the global electronics dependence of Russian industry on imported electronic components, a huge backlog of electronic industry of Russia in comparison of world leaders and the newly industrialized countries, technological backwardness of many enterprises of electronic industry, the low level of qualification as a whole industry. The novelty of the research is highlighting the impact of the COVID-19 pandemic on the electronics industry. The study highlights both negative consequences (decline in production of many electronic enterprises, disruption of supply chains, insufficient financing of the industry) and positive aspects (active growth of the segment of household appliances and electronics), as well as an impetus to the development of new directions of world electronics (radio-photonics, optoelectronic and quantum technologies, artificial intelligence, laser technology).

Details

Current Problems of the World Economy and International Trade
Type: Book
ISBN: 978-1-80262-090-0

Keywords

Article
Publication date: 6 May 2014

Stanley Kam-Sing Wong

What leads to new product success (NPS) is a very complex issue. Although prior research widely demonstrates that entrepreneurial orientation (EO) is a determinant for NPS and…

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Abstract

Purpose

What leads to new product success (NPS) is a very complex issue. Although prior research widely demonstrates that entrepreneurial orientation (EO) is a determinant for NPS and environmental turbulence is a form of unpredictability which impacts on the success of a product, little research has been conducted to examine if and to what extent environmental turbulence induces the EO behaviors of a firm and how these behaviors contribute to NPS. The paper aims to discuss these issues.

Design/methodology/approach

This study, which used data collected from 244 China-based electronics manufacturers, proposed and tested the theoretical relationships among the three constructs in the context of the electronics industry in China.

Findings

Results revealed that the three dimensions of EO (innovativeness, proactiveness and risk-taking) drive NPS. Environmental turbulence strongly influenced all three dimensions of EO, though its influence on NPS was mixed as there existed a strong negative but insignificant direct association between the two constructs. Innovativeness, which was found to be most effective in driving NPS in the EO and NPS relationship, was relatively less responsive to environmental turbulence than proactiveness. The study confirmed the postulated role of environmental turbulence in inducing the EO behaviors of a firm, signaling environmental turbulence, if tactfully leveraged, can play a positive role in new product development (NPD).

Research limitations/implications

The study is quantitative using data emanating from the electronics manufacturing industry in China, further empirical study would be useful to verify and complement the results in other industries and other countries.

Originality/value

This study contributes to the scholarly inquiry of EO and NPD by exploring the influences of environmental turbulence and EO on NPS. As environmental turbulence induces EO and EO mediates the relationship between environmental turbulence and NPS, simultaneous consideration of these two constructs can lend useful insight into their joint impacts on NPD. Theoretical and managerial implications were examined and policy implications, especially the practicality of the findings to policymakers in China, were discussed.

Details

European Journal of Innovation Management, vol. 17 no. 2
Type: Research Article
ISSN: 1460-1060

Keywords

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