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1 – 10 of over 23000The exogenous factors influencing state enterprise managerial decision making in the People's Republic of China are identified. These environmental forces are categorized as…
Abstract
The exogenous factors influencing state enterprise managerial decision making in the People's Republic of China are identified. These environmental forces are categorized as governmental and sociocultural in nature. Governmental influences are the centralized management of the economy, the dual command structure found in the Chinese state enterprises, state enterprise financing, product quality, and state enterprise production quotas. Sociocultural influences are morality, deference to authority, risk avoidance, long term view, community versus individual orientation and the legal system.
David Bennett, Zhao Hongyu, Kirit Vaidya and Wang Xing Ming
Results of complementary surveys of foreign and Chinese manufacturing enterprises with respect to their objectives and expectations regarding technology transfer into China show…
Abstract
Results of complementary surveys of foreign and Chinese manufacturing enterprises with respect to their objectives and expectations regarding technology transfer into China show that the major strategic objective of foreign enterprises, to gain access to the Chinese market, fits well with Chinese enterprises’ main objective of improving domestic competitiveness but less well with that of accessing world markets through technology transfer. Foreign firms rate highly the capability of Chinese enterprises to learn new technologies and also find the Chinese macro environment for business favourable. The survey results provide information that will help managers with their negotiations on co‐operating with prospective partners for the transfer of technology as well as assisting policy makers who wish to facilitate more effective transfer arrangements.
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Jun Ying Liu, Sui Pheng Low and Miaomiao Niu
In recent years, several high‐profile cross‐border acquisitions made by Chinese enterprises have attracted the world's attention. However, none of these acquisitions were related…
Abstract
Purpose
In recent years, several high‐profile cross‐border acquisitions made by Chinese enterprises have attracted the world's attention. However, none of these acquisitions were related to Chinese construction enterprises despite their expanding role in the international construction market. The purpose of this paper is to evaluate the objectives and impediments faced by Chinese construction enterprises in cross‐border acquisitions based on existing theories and research studies.
Design/methodology/approach
Based on a literature review and the analysis of the current status of cross‐border acquisitions in China, an industry‐wide questionnaire survey was conducted to investigate the objectives and impediments of cross‐border acquisitions faced by Chinese construction enterprises.
Findings
The main objective of Chinese construction enterprises towards cross‐border acquisitions is to create new markets and to optimize the industrial structure. Although a majority of the construction enterprises demonstrated an intention for cross‐border acquisitions which is driven by their past and current overseas activities, their preparation for cross‐border acquisitions is impeded by concerns over post‐acquisition issues and a lack of knowledge and experience.
Originality/value
The paper originally contributes to a better understanding of the current status of cross‐border acquisitions by Chinese construction enterprises based on an analysis of their objectives and impediments, which will be useful for researchers and practitioners.
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The study aims to analyze the role of the Made in China 2025 (MIC2025) initiative in China's Outward Foreign Direct Investment (OFDI) and the factors affecting the success or…
Abstract
Purpose
The study aims to analyze the role of the Made in China 2025 (MIC2025) initiative in China's Outward Foreign Direct Investment (OFDI) and the factors affecting the success or failure of Chinese enterprises' OFDI from the perspectives of the heterogeneity of home country enterprises.
Design/methodology/approach
Based on data on China's OFDI obtained from the China Global Investment Tracker (CGIT), the study uses the difference-in-differences model to analyze 2,670 completed OFDI deals and 211 failed OFDI deals by Chinese enterprises, from 2009 to 2018.
Findings
The study found that the effect of MIC2025 on Chinese enterprises' OFDI varies according to the ownership structure of the home country's enterprises. For successful OFDI, MIC2025 significantly impacted central state-owned enterprises (CSOEs), while it did not significantly influence local SOEs and privately owned enterprises. For failed OFDI, the MIC2025 plan only increased the failure of CSOEs' OFDI for the technology-seeking motivation in high-income host countries. Further, the investment options of local SOEs differ from those of CSOEs. Considering their aim to drive the local economy and seek profits, they are more similar to those of privately owned enterprises.
Originality/value
This study used a new database (i.e. the CGIT) to analyze Chinese enterprises' OFDI. It discussed the role of MIC2025 for different enterprises from the perspectives of successful and failed OFDI. It thus provided a new basis for analyzing policy affecting the OFDI of Chinese enterprises.
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Gang Xiang and Ying Wu
The purpose of this paper is to increase understanding of the real situation of Enterprise's Sustainable Innovation (ESI) in China.
Abstract
Purpose
The purpose of this paper is to increase understanding of the real situation of Enterprise's Sustainable Innovation (ESI) in China.
Design/methodology/approach
First, the paper analyzes the practice of Chinese ESI in the past 30 years, and then reviews research results of the topic in China, by the authors and by other Chinese scholars. Finally, it provides the future prospects for ESI in China.
Findings
The practice of Chinese ESI started in 1978 when this country began reform, and two stages of Chinese ESI practice has been summarized. Otherwise, six major characteristics have been highlighted. China is one of the earliest countries that began to research on ESI and has achieved significant results since 1995. The paper summarizes major research findings of ESI in China, which can be divided into two categories. Especially, it stresses that one of the distinguishing achievements is research on mechanisms of ESI in China.
Research limitations/implications
The research on ESI in China is initially implemented based on Chinese practice. So, future research may explore whether the research results could be suitable for abroad, or not.
Originality/value
This original paper analyzes ESI practice and research findings in China, and may have value in helping people to understand ESI's real situation.
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Hailin Lan, Shuo Liu, Manli Huang and Ping Zeng
The past 40 years of reform and opening up have seen the role of core competence receive unprecedented attention because of the impact of the new normal economy as well as the…
Abstract
Purpose
The past 40 years of reform and opening up have seen the role of core competence receive unprecedented attention because of the impact of the new normal economy as well as the pressure of transformation and upgrading. Few Chinese enterprises have effectively constructed core competence, and there is also a lack of strategic perspective and contextual embedding of its construction process in theory. This study aims to analyse the unique contextual characteristics of China in the transitional period and the impact on the core competence construction of Chinese enterprises and proposes its construction mechanism for Chinese enterprises.
Design/methodology/approach
Through theoretical deduction and speculation, this paper analyses the process of concept formation, clarifies the concept, analyses its connotations and structure and emphasises its relativity. Based on a review of the theoretical research on the core competence construction process and an analysis of dual contextual impact, this paper puts forward a mechanism for core competence construction.
Findings
The results reveal that four specific characteristics of entrepreneurs in balancing and coping with the dual nature of external context constitute the key driving force for a Chinese enterprises’ core competence construction; under the influence of this driving force, the core competence construction mechanism includes process mode, knowledge source, management mode and key success factors.
Originality/value
Approaching it from a Chinese context, this study deepens the concept of core competence; enriches and develops the research related to the core strategic research proposition of its construction; and provides positive significance for Chinese enterprises to effectively build, develop and strengthen core competence and enhance their international competitiveness.
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Liqin Ren, Deming Zeng and Koos Krabbendam
The purpose of this paper is to report a recent technological innovation investigation to the Chinese enterprises with different ownerships. The goal of this research is to…
Abstract
Purpose
The purpose of this paper is to report a recent technological innovation investigation to the Chinese enterprises with different ownerships. The goal of this research is to discuss whether there are innovation mechanisms in place, and to test the influence of the innovation mechanisms and the government policies to the Chinese enterprises' innovation performance.
Design/methodology/approach
The investigation and analyses are based on a survey to the firms (n=42) from different sectors in central China, for which a research framework and analytical model of firm‐level innovation in China was developed.
Findings
The paper finds that the innovation mechanisms in the Chinese firms are to a certain extent in place, and the market factor has become the driving force for the enterprises' innovation. By using the pooled‐variance t‐test for comparing means, the authors further tested that innovation mechanisms and the government innovation policies have positive influences on the innovation performance of the Chinese enterprises.
Originality/value
The first‐hand technological innovation situation of the Chinese firms are evaluated by the relevant firm leaders (insiders) and analyzed by a Western research team (outsiders), which is of great significance to the Western academic and practitioners.
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Siyue Chen, Gengzhi Huang, Hongou Zhang, Yuyao Ye and Qitao Wu
Institutional factors play an important and complex role in Chinese outward foreign direct investment (OFDI) location choices that do not seem to be influenced by a host country’s…
Abstract
Purpose
Institutional factors play an important and complex role in Chinese outward foreign direct investment (OFDI) location choices that do not seem to be influenced by a host country’s high political risks. Moreover, the location choice for OFDI is key to corporate strategic decision-making on internationalization. Therefore, this study aims to examine the direct investments of Chinese multinational enterprises (MNEs) in Laos.
Design/methodology/approach
Combining the purposive sampling strategy and snowball sampling method, the authors interviewed nine market- and resource-seeking Chinese enterprises in Laos. Drawing from the mainstream eclectic paradigm and the theory of new institutional economics, the authors analyzed two key variables – enterprise investment motivation and enterprise heterogeneity.
Findings
Chinese MNEs are not insensitive to the regressive institutional quality of host countries; the relationship effect and institutional distance are the location decision pathways along with which institutional factors influence Chinese multinationals’ investments in Laos; political stability is necessary for Chinese-funded enterprises to invest in Laos and the degree of corruption is an overestimated institutional preference factor.
Originality/value
The relationship effect is introduced into the analysis framework as an intermediate variable that influences the decision of MNEs to invest in countries with underdeveloped institutions. It verifies the significant roles of bilateral political relations and network relations in the OFDI location decisions of state-owned and private enterprises, respectively.
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For the studies whose purposes are to evaluate the relationship between industrial characteristics and innovation activities of the enterprises, there are some limitations in the…
Abstract
Purpose
For the studies whose purposes are to evaluate the relationship between industrial characteristics and innovation activities of the enterprises, there are some limitations in the measures of industrial characteristics and using traditional statistical techniques. The purpose of this paper is to investigate the relationship between industrial characteristics and innovation capabilities within Chinese high-tech industries using grey system theory. The research results show that grey system theory is suitable to investigate the relationship between industrial characteristics and innovation capabilities within Chinese high-tech industries.
Design/methodology/approach
This paper proposes the measures of industrial characteristics and innovation capabilities of high-tech enterprises. First, based on the data on Chinese large and medium-sized high-tech enterprises for the period of 2011-2013, this paper applies grey relational analysis to identify the relatively most important indexes on affecting innovation capabilities of Chinese high-tech enterprises. Second, based on the results from grey relational analysis, this study draws a ranking of the five Chinese high-tech industries in terms of innovation capabilities by grey decision making. Finally, based on the results from grey decision making, this study applies GM (0, N) model to investigate the relationship between industrial characteristics and innovation capabilities within Chinese high-tech industries.
Findings
The results of this study show that in the evaluation indexes system of innovation capabilities of high-tech enterprises, personnel in R & D institutions, R & D personnel, internal expenditure on R & D, expenditure on new product development, expenditure on technology imports, expenditure on technology renovation, and expenditure on technology assimilation and absorption are relatively most important elements affecting innovation capabilities of Chinese high-tech enterprises. In addition, the two top ranking on innovation capabilities are manufacture of electronic equipment and communication equipment, and manufacture of medicines. At last, the findings indicate that in the measures of industrial characteristics, the three top ranking on affecting innovation capabilities of Chinese high-tech enterprises are R & D intensity, technology absorption intensity of indigenous high-tech enterprises and foreign-invested enterprises size. The opening level is in the middle position. Technology intensity, market concentration, and state-owned enterprises size are the three bottom ranking on affecting innovation capabilities of Chinese high-tech enterprises.
Research limitations/implications
This study has some limitations. First, this study is limited to Chinese high-tech industries. The findings may not be applicable to other countries’ high-tech industries. Further studies with other countries’ high-tech industries could be extended and examined how industrial characteristics affect innovation capabilities of the firms in these industries. Second, the measures of industrial characteristics proposed in this study are somewhat theoretically weak. In the future, the authors will further improve the current analysis, and develop the measures of industrial characteristics. Finally, with the advent of the more data with the consistent statistical coverage released by China’s National Bureau of Statistics during the more continuous years, other methods, such as panel data regression model in econometrics could be used to evaluate the relationship between industrial characteristics and innovation capabilities within Chinese high-tech industries. By then, the scholars can compare the results from grey system theory and those from panel data regression model in econometrics.
Practical implications
Appropriate industrial environment is favorable for Chinese high-tech enterprises to feed their innovation capabilities. Scientific evaluation on the relationship between industrial characteristics and innovation capabilities within Chinese high-tech industries is of great significance for Chinese high-tech enterprises in exerting technological catch-up and promoting their competitive advantage. The purposed measures of industrial characteristics and innovation capabilities of high-tech enterprises in this paper, and combined methodology based on grey system theory could be applied to evaluate the relationship between industrial characteristics and innovation capabilities of Chinese high-tech enterprises.
Originality/value
This paper proposes the measures of industrial characteristics and innovation capabilities of high-tech enterprises, and uses grey system theory to evaluate the relationship between industrial characteristics and innovation capabilities within Chinese high-tech industries.
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Yuejin Zhou, K.B. Chuah and Shuping Chen
This paper deals with the modelling of an information system for Chinese herbal medicine manufacturing enterprises, describes its structures and functions, and discusses its…
Abstract
Purpose
This paper deals with the modelling of an information system for Chinese herbal medicine manufacturing enterprises, describes its structures and functions, and discusses its implementation issues.
Design/methodology/approach
A case experience is presented.
Findings
Enterprises within this industry have big differences in production and management process and practice. The implementing plan must consider these differences and have adaptable solutions to fit the firm's conditions. It has been found that the information system model proposed here is feasible and can be used not only in other Chinese herbal medicine manufacturing enterprises, but also in other flow‐process industries.
Originality/value
The issues discussed in this paper are common to many Chinese enterprises today, particularly the small and medium‐sized enterprises. The experience described here provides a useful reference for such enterprises’ venture into technological and management process innovation.
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