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Collaboration in the Australian and Chinese Mobile Telecommunication Markets

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Abstract

Inter-firm collaboration has become a common feature of the international economy (Beamish and Delios 1997; Adobor 2006b) and the driver of value creation (Doz and Hamel 1998). Firms as well as nations have become more interested in collaboration to encourage business synergy, innovation, and economic development (Ireland et al. 2002; OECD 2004; Papadopoulos et al. 2008). Chapter 2 analysed the basic transaction cost theory, resource based view, and some management theories that are related to inter-firm collaboration. These theories helped in understanding inter-firm collaboration. Each of them has its own advantages and disadvantages in studying inter-firm collaboration as discussed in Chap. 2

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Notes

  1. 1.

    Opportunity cost here is the cost in terms of lost profits by maintaining existing practices and not collaborating.

  2. 2.

    For example, the Chinese telecommunication operator’s licenses were only released to local firms or joint ventured firms (dominated by Chinese firms). Therefore, the foreign firms have to collaborate with local firms to enter the Chinese market.

  3. 3.

    Market power or monopoly power is the ability of a firm to affect market prices through its actions (Landsburg 2005).

  4. 4.

    A cartel is a group of firms engaged in collusion (Landsburg 2005).

  5. 5.

    Markup is the increase in the price of goods to create a profit margin for a business.

  6. 6.

    Risk-averse people always preferring the least risky among baskets with the same expected value (Landsburg 2005).

  7. 7.

    Guan Xi, personal and business relationship in China, is one of the major dynamics in Chinese society (Lu et al. 2006).

  8. 8.

    Longevity was defined as the number of years a venture persisted (Barkema et al. 1997).

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Zhang, Y.(. (2014). Literature Review. In: Collaboration in the Australian and Chinese Mobile Telecommunication Markets. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-40151-0_3

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