How local latecomer firms catch-up on technological innovation has been an important and well-researched topic. Inspired by the success of China's Shanzhai mobile phone business, we propose a new path for latecomers to such strategic catch-up. Initially, technological development and profit seeking lead to technology modularization and value chain evolution. Specifically, some firms in possession of better technologies refocus their business on the design and production of chipsets and software, while others with other advantages such as market information reallocate their effort in cosmetic design, differentiation, or marketing. These local firms that used to be electronics suppliers to major original equipment manufacturers (OEMs) gradually transform themselves into module designers and producers, causing the value chain to evolve from a vertical and OEM-centric system to a horizontal, project-oriented and loosely cooperative network. Modularization and the evolution of value chain significantly lower the technological threshold of entering the mobile phone business, promote disruptive innovations, and accelerate latecomers' accumulation of knowledge and technology.
Accounting conservatism is a long-standing and the most influential convention in preparing financial statements. Surprisingly then, there is considerable debate regarding conservatism among standard setters and researchers. This paper reviews the recent literature on accounting conservatism and shows that the existing controversy surrounding conservatism stems partly from confusion over definitions and measures of accounting conservatism. This paper aims to address several common misconceptions about accounting conservatism and suggests directions for future research.
Although online business has been growing for some time, third-party e-platforms and their impact on e-channels are an under-explored area in the literature on dual-channel supply chains. Considering different combinations of open and self-support e-platform, this paper develops dynamic game models in four dual-channel e-retail structures to study pricing strategies and channel preference for manufacturers. The results provide interesting insights. First, a manufacturer’s optimal prices vary in different e-channels. Second, e-retail prices on the self-support e-platform and open e-platform are both affected by the e-platform’s service quality and commission fee. Regardless of the channel structure, a better service quality by one e-platform leads to an increase in its own e-retail prices and forces the competing e-platform to either improve its service quality or take a lower price. Lastly and more importantly, we compare the manufacturer’s pricing strategies and performances in different dual-channel e-retail structures and identify its preferences. Specifically, if the commission fee is dynamic, we find that the manufacturer always prefers to use two e-channels provided by different e-platforms, and at least one of the e-channels is the self-support model, although it is a sub-optimal strategy.
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