Corporate governance and technological dynamism of Chinese firms in mobile telecommunications: A quantitative study

This paper sets out two frameworks, one for measuring static and dynamic technological capability in developing countries, one for predicting the effects on this of finance and corporate governance characteristics, and applies them together to Chinese mobile telecommunications manufacturing. Hypotheses on the effect of access to finance, ownership type and other corporate governance factors on capability are generated and tested on survey data for this industry. It is found that ownership type matters, but government's influence over management selection, matters more. Semi-privatised firms with arms-length relationships to government are most dynamic.