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Article
Publication date: 19 September 2016

Bala Ramasamy and Matthew Yeung

The purpose of this paper is to identify location factors that Chinese managers look for when making internationalization decisions and how the factors stack up in perceived…

Abstract

Purpose

The purpose of this paper is to identify location factors that Chinese managers look for when making internationalization decisions and how the factors stack up in perceived importance. Over the past ten years, Chinese enterprises have become more multi-national in nature. China’s outward foreign direct investment (FDI) has been growing at a phenomenal rate. In 2012, China became the third largest investor, after the USA and Japan; and the largest investor among developing countries. How can host governments attract more of this Chinese capital? What are some short- to medium-term policies that host governments can initiate to make their respective nations attractive to Chinese companies?

Design/methodology/approach

The authors consider these questions by using a best-worst choice exercise among 114 senior corporate decision makers of Chinese companies who have or are planning to globalize. We rank 16 most common determinants that influence FDI location choice and evaluate their degree of importance.

Findings

The authors propose five “low hanging fruits” that policy makers should consider that could ensure their countries come within the radar of Chinese multi-nationals. These include promoting a clean and efficient business environment and strengthening/establishing political and economic relationships with China.

Originality/value

The originality of this study lies in the methodology of the study that forces respondents to make a trade-off in their decisions, which in a way is closer to reality. The respondents are also actual decision makers in their companies with regards to international investment decisions.

Details

Journal of Business Strategy, vol. 37 no. 5
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 30 August 2019

Bala Ramasamy and Matthew Yeung

Chinese investments abroad are being scrutinized more stringently because host governments fear that Chinese companies would steal domestically grown technology and know-how or be…

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Abstract

Purpose

Chinese investments abroad are being scrutinized more stringently because host governments fear that Chinese companies would steal domestically grown technology and know-how or be duped into a debt trap. The purpose of this paper is to provide a narrative of Chinese investments in a region that is neither developed nor underdeveloped – Central and Eastern Europe. The authors aim to provide an alternative view of Chinese investments abroad.

Design/methodology/approach

The authors base their narrative on face-to-face semi-structured interviews with eight Chinese firms that carried out mergers and acquisition activities in the region.

Findings

The respondents claim that they saved companies and jobs in the aftermath of the global financial crisis. Access to the China market and elsewhere has increased as a result of these investments. Transfer of technology has gone both ways depending on which partner had superior technology.

Research limitations/implications

It is important that Chinese investors emphasize the positive spillover effects from their investments, such as jobs saved, potential technology transfer and increased exports, when applying for FDI approval from host governments. Host governments, on the other hand, should evaluate each Chinese investment on its individual merits.

Originality/value

There is little that has been researched on the contributions of FDI from developing countries to host economies. This paper is an early attempt in this direction.

Details

Journal of Business Strategy, vol. 41 no. 4
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 3 August 2010

Hung Woan Ting, Bala Ramasamy and Lee Chew Ging

The purpose of this paper is to identify the most potent internal resources of a firm that contribute to the CSR agenda.

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Abstract

Purpose

The purpose of this paper is to identify the most potent internal resources of a firm that contribute to the CSR agenda.

Design/methodology/approach

The study adopts a quantitative approach to analyze Malaysian companies. A scorecard is devised according to the Global Reporting Initiative (GRI) framework. A logit/probit model is employed to differentiate firms that are CSR‐active from their non‐active counterparts.

Findings

The results indicate that having universal accredited management systems in place differentiates CSR‐active companies from inactive companies. Also, firm size does not matter for CSR performance.

Research limitations/implications

The study uses proxies to examine a firm's resources, and thus it might not have captured the implication of the resources fully. Also it identifies resources that have a bearing on the CSR level but does not investigate the conditions in which such resources can be relevant.

Practical implications

The results imply that firms that are intent on being CSR‐active should consider implementing the various management systems relevant for their businesses. Managers responsible for the CSR agenda might wish to highlight the fact that adherence to such systems actually contributes to the bottom line, thus minimizing resistance from decision‐makers, who might view CSR as a costly initiative.

Originality/value

The study provides an insight into the influence of management systems on CSR performance among firms in a developing country in Asia. This, to the best knowledge of the authors, has not been studied before.

Details

Social Responsibility Journal, vol. 6 no. 3
Type: Research Article
ISSN: 1747-1117

Keywords

Article
Publication date: 1 August 2010

Bala Ramasamy, Alan Au and Matthew Yeung

This paper aims to demonstrate the degree of dissimilarities among Chinese individuals' value profiles by using data collected from Shanghai and Hong Kong.

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Abstract

Purpose

This paper aims to demonstrate the degree of dissimilarities among Chinese individuals' value profiles by using data collected from Shanghai and Hong Kong.

Design/methodology/approach

The shortened version of the Rokeach Value Survey for consumer research by Munson and McQuarrie was used. The data collection was done by distributing copies of questionnaires to researchers' contacts who worked at financial intuitions, e.g. banks, brokers and insurance agencies in Shanghai and Hong Kong.

Findings

The current study demonstrates the degree of dissimilarities among Chinese individuals' value profiles by using data collected from Shanghai and Hong Kong.

Research limitations/implications

The study selects two developed cities of China only and the samples from the two cities are relatively small.

Practical implications

The results imply that value‐based information should be used together with demographic information for segmenting the market. The study suggests the number of segments for Shanghai and Hong Kong.

Originality/value

This study explains the significance of studying values in the context of market segmentation, particularly among Chinese populations.

Details

Cross Cultural Management: An International Journal, vol. 17 no. 3
Type: Research Article
ISSN: 1352-7606

Keywords

Article
Publication date: 30 October 2009

Rolf D. Cremer and Bala Ramasamy

To date, more than 400 of the Fortune 500 companies have already established their presence in China. Like their larger counterparts, smaller multinationals are also attracted by

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Abstract

Purpose

To date, more than 400 of the Fortune 500 companies have already established their presence in China. Like their larger counterparts, smaller multinationals are also attracted by the huge potential market and cheap resources that China has to offer. Thus, the purpose of this paper to examine key strategies that small internationalizing firms (SIFs) need to focus on for a successful China engagement.

Design/methodology/approach

The findings of this study are based on a year‐long research of New Zealand firms in China. The study involved a survey of senior managers of New Zealand companies at home as well as a focus group discussion among executives in China.

Findings

The study identifies three dimensions of strategy that SIFs need to pay particular attention – the attributes of the China bound manager, the business focus of the enterprise, and the guanxi building capabilities.

Originality/value

This paper is based on the premise that the SIF cannot mirror the exact strategies of larger multinationals. Previous literature tends not to distinguish the size of the firm when discussing the China engagement. The paper emphasizes a carefully designed effort to choose the right general to lead the assault on the world's largest market.

Details

Journal of Business Strategy, vol. 30 no. 6
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 1 May 2006

Reviews the latest management developments across the globe and pinpoints practical implications from cutting‐edge research and case studies.

Abstract

Purpose

Reviews the latest management developments across the globe and pinpoints practical implications from cutting‐edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

“It's good to talk” was the much‐quoted slogan of a series of advertisements for UK telecommunications company, BT. Simple, effective, to the point and – well, blatantly obvious. It is good to talk, and while the phone company was emphasizing giving friends and relatives a ring for a chat, rather than engage in a conversation with a business associate to share intellectual concepts, talking is a major component in what has become to be known as knowledge management.

Practical implications

Provides strategic insights and practical thinking that have influenced some of the world's leading organizations.

Originality/value

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy‐to digest format.

Article
Publication date: 9 February 2010

Bala Ramasamy and Matthew Yeung

The purpose of this paper is to examine the relationships between foreign direct investment (FDI), wages and productivity in China. The direction of causality among these…

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Abstract

Purpose

The purpose of this paper is to examine the relationships between foreign direct investment (FDI), wages and productivity in China. The direction of causality among these variables is also to be emphasized.

Design/methodology/approach

The authors develop a system of equations and test the relationships based on a vector autoregressive regression (VAR) model and two‐step generalized method of moments (GMM)‐type estimation approach. They use a panel data set of China's provinces for a 20‐year time period, 1988‐2007, and also distinguish between the coastal and inland provinces.

Findings

The result confirms the cheap labor argument for China, although this particularly true for inland provinces. In the coastal provinces, FDI inflow influences the wage rates upwards. FDI also has a positive effect on productivity, particularly in the coastal provinces, but does not act as a significant determinant of FDI.

Research limitations/implications

Factors other than wage rates and labor productivity are also important determinants of FDI. This paper focuses on the interplay of these three variables, while assuming other factors constant.

Practical implications

Cheap labor as an attraction of FDI is a short term policy. Improvements in productivity should be the focus both in the coastal and the inland provinces. A conducive business environment, a suitable education policy and incentives for greater R&D contribute toward improving labor productivity, which in turn attracts greater FDI inflow.

Originality/value

The paper provides empirical evidence on the direction of causality between FDI inflow, wages rates and labor productivity in one system of equations.

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. 3 no. 1
Type: Research Article
ISSN: 1754-4408

Keywords

Article
Publication date: 1 June 2003

Bala Ramasamy and Matthew C.H. Yeung

Growth, both in terms of size and choice, in the mutual fund industry among emerging markets has been impressive. However, mutual fund research in emerging markets hardly exists…

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Abstract

Growth, both in terms of size and choice, in the mutual fund industry among emerging markets has been impressive. However, mutual fund research in emerging markets hardly exists. This paper intends to fill this gap. In particular, the paper surveys the relative importance of factors considered important in the selection of mutual funds by financial advisors in emerging markets. Our survey focuses on Malaysia where the mutual industry started in the 1950s but only gained importance in the 1980s with the establishment of a government initiated programme. The results of our survey point to three important factors which dominate the choice of mutual funds. These are consistent past performance, size of funds and costs of transaction. Factors which relate to fund managers and investment style are not considered to be relatively important. With the impending liberalization of the financial markets in the developing world, our findings would assist those international funds that are considering expanding their operations into these emerging markets.

Details

International Journal of Bank Marketing, vol. 21 no. 3
Type: Research Article
ISSN: 0265-2323

Keywords

Content available
Article
Publication date: 3 February 2012

243

Abstract

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. 5 no. 1
Type: Research Article
ISSN: 1754-4408

Keywords

Article
Publication date: 9 November 2015

Lujun Su, Scott R. Swanson and Xiaohong Chen

– This study aims to model and test the relationships between corporate social responsibility (CSR), corporate reputation, customer satisfaction and behavioral intentions.

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Abstract

Purpose

This study aims to model and test the relationships between corporate social responsibility (CSR), corporate reputation, customer satisfaction and behavioral intentions.

Design/methodology/approach

A total of 451 complete questionnaires were obtained from randomly approached ethnic Chinese leisure tourists. Following a two-step approach, a measurement model was estimated and then a structural model analyzed to test proposed hypotheses.

Findings

CSR and reputation significantly impacted customer satisfaction, which, in turn, affected repurchase and word-of-mouth intentions. Customer satisfaction fully mediated the relationship between CSR and behavioral intentions in addition to corporate reputation.

Research limitations/implications

The study considered only a limited number of lodging customers in a specific geographic area in China. Additional investigation across hospitality business types and cultures is needed.

Practical implications

Investments in CSR activities in a Chinese hospitality consumption context can contribute to customer satisfaction and ultimately contribute positively to customer future behaviors.

Originality/value

This study provides insights into the role that CSR may play for domestic Chinese hospitality customers. Little attention has been paid to the importance of corporate reputation in a tourism/hospitality context. This study contributes in helping to close this gap. Finally, this study embeds customer satisfaction within a framework of antecedents and consequences in an integrated causal model.

Details

International Journal of Contemporary Hospitality Management, vol. 27 no. 8
Type: Research Article
ISSN: 0959-6119

Keywords

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