What Factors are Driving China's Mobile Diffusion?

Electronic Markets, Vol. 12, No. 1, pp. 22-26, 2002

10 Pages Posted: 11 Nov 2005

See all articles by Nir Kshetri

Nir Kshetri

University of North Carolina (UNC) at Greensboro - Bryan School of Business & Economics

Maggie Cheung

Legerity, Inc.

Abstract

This paper identifies and analyses the forces influencing the rapid mobile diffusion in China. The analysis indicates that major factors influencing the hyperbolic growth rate of mobile technology penetration in China include the influence of Marxist labour theory, post-Mao reform resulting in market openness and heavy FDI inflow, rapid economic growth, reengineering of the telecommunication sector leading to fierce competition, China's interest in the WTO membership and the development in mobile technologies. Some of the causes are unique to mobile diffusion while others are also applicable to telecom diffusion and ICT diffusion in general. The causes are highly interactive and hence their impact on mobile diffusion cannot be individually analysed and assessed. As a consequence, it is difficult to copy the Chinese examples in other developing countries. Some 'exportable' factors influencing rapid mobile diffusion in China include heavy investment in telecom sector, government initiative to encourage people to buy mobile phones and intense competition in and reengineering of the telecom sector.

Keywords: China, Mobile technology, diffusion, Marxism, reengineering

JEL Classification: O33

Suggested Citation

Kshetri, Nir and Cheung, Maggie, What Factors are Driving China's Mobile Diffusion?. Available at SSRN: https://ssrn.com/abstract=796144

Nir Kshetri (Contact Author)

University of North Carolina (UNC) at Greensboro - Bryan School of Business & Economics ( email )

401 Bryan Building
Greensboro, NC 27402-6179
United States
336-334-4530 (Phone)
336-334-4141 (Fax)

Maggie Cheung

Legerity, Inc. ( email )

4509 Freidrich Lane
Building 2
Austin, TX 78744-1812
United States

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