Search results

Past decades have witnessed significant contributions to theories of the firm, innovation and economic growth from two closely related paradigms, namely, the Capabilities School and National Innovation Systems Approach. Unlike the neoclassical models of the firm and growth, these two paradigms place emphasis on the knowledge and learning process in understanding economic development. Despite being closer to reality in their treatment of economic issues than their neoclassical school counterpart, the two paradigms have not put human agency in the forefront of their analysis. This paper constructs a theory of national capabilities in the subjectivist perspective, which is then extended to understand firm and national capabilities and competitiveness. While this paper recognizes the influence of institutions on firms' decision making, unlike contemporary evolutionary literatures, the subjectivist perspective highlights the fact that all institutions are the coordinating effort of human actions which attempt to interpret external events or make sense out of social or economic interactions.

The purpose of this paper is to explain the miraculous rise of the mobile phone industry in China in particular and China’s impressive industrial growth in recent decades in general.

This paper uses qualitative or story-telling approach for empirical analysis. Specifically, it uses case studies to illustrate the authors’ arguments.

Utilizing the theory of imitative strategies of latecomer firms and I.M. Kirzner’s concept of entrepreneurial alertness, this paper argues that adaptive entrepreneurs in China’s phone industry survive by being alert to profit opportunities, flexible and adaptable to the changing environments. With limited resources and low technological capabilities at the beginning, Chinese phone makers conduct replication via reverse engineering. Through entrepreneurial learning and imitation, they are able to make indigenous or incremental innovation. The modified models with functions compatible to different groups of consumers and sold at low prices are able to penetrate the low-end markets in the Third World nations.

The authors’ explanation on the success of China’s mobile phone industry sheds light on broader China’s industrial growth as a result of economic reform.

Most studies on China’s mobile phone industry focus on technological analysis, without acknowledging the role of entrepreneurship. This study fills the gap.

Applies Kirzner’s concept of entrepreneurship to explain the economic success of Hong Kong. The city economy possesses neither natural resources, nor sophisticated technologies, and yet it has successfully developed into one of the most prosperous economies in East Asia. This study argues that Hong Kong’s industrial dynamism relies mainly on a large number of adaptive entrepreneurs who are constantly alert to opportunities, maintain a high degree of flexibility in their production and respond rapidly to change. In the textile and garment industry, firms survived by pursuing a product imitation strategy, operating at a small‐scale, extensively utilizing subcontracting networks, producing customer label garments as well as performing spatial arbitrageurship. Employing these adaptive entrepreneurial strategies, Hong Kong manufacturers have learnt from foreign firms and imitated their products. By selling improved commodities at lower prices, they have competed against the original suppliers from the western advanced countries. Furthermore, to exploit new profit opportunities, Hong Kong’s entrepreneurs have shifted their production activities from one product to another, from one industry to another, from higher cost to lower cost regions, from traditional fishing and agriculture into manufacturing, and then to finance and other services. Their efforts have brought about structural transformation in the economy and enabled Hong Kong to catch up with early industrialized nations.

Utilises recent advances in the evolutionary theories of the firm to analyse the competitive strategies of small Chinese family firms in Asian latecomer economies such as Hong Kong, Taiwan and Nangyang. Begins with an examination of the distinctive features of a Chinese family firm. Argues that the unique features of these establishments form firms’ resource bases and contribute to their competitive advantages. The two notable competitive advantages are: the capability to maintain a high degree of flexibility; and reducing transaction costs. These arguments are analysed from two aspects: first, the organisational structure and internal communication methods (internal capabilities), and second, the subcontracting networks (external capabilities). Furthermore, given the organisational structure and the resource bases, most Chinese family firms choose not to upgrade their technological bases within global competition. Rather, they tend to pursue guerrilla entrepreneurship, imitative follower‐my‐leader and specialise in international co‐ordination. These strategies enable them to compete and survive in the world market.

This paper attempts to develop a model of the “entrepreneurial state” based on Schutz’s theory of human action. It aims to improve the understanding of the nature of state action and of entrepreneurial processes in the public sector. From the subjectivist paradigm, this paper argues that the state, like private enterprises, has purposes and public sector agents engage in conscious actions toward chosen goals which can be attended only in the future. In terms of mental constructs, the public entrepreneur’s opportunity identification activities involve four major stages. Using their imagination, they project, select, elaborate on and eventually implement the opportunity ideas. Given structural uncertainty, public sector agents will unavoidably make errors in trying to plan and implement a new project. Over time, with learning and the growth of knowledge, errors are then eliminated. The revision of plans by state agents – the source of policy change – is thus portrayed as a continuous process of learning and experimentation oriented towards the future. Since entrepreneurship implies strategic planning, and the nation needs to formulate development strategies with the aim of building competitive advantage, the last part of the paper discusses entrepreneurial intervention in association with the state’s resource base and capabilities. By referring to the Asian newly industrialised economies, this paper suggests a new approach to understanding state action and government intervention.

The purpose of this paper is to examine how a Chinese entrepreneur, Zhang Yin, exercises international entrepreneurship in her paper recycle business – Nine Dragons Paper company, and has become one of the most successful female business women in the world.

The paper uses an in‐depth case study or storytelling approach to explain the economic success of a Chinese female entrepreneur, Zhang Yin and her Nine Dragons Paper company. The illustration of Zhang's global coordination is divided into three parts: first, from Shenzhen, China to Hong Kong; second, from Hong Kong to Los Angeles; and finally, from the USA back to her home country, China.

This case illustrates and concludes that the business success of a paper recycling enterprise, namely Nine Dragons Paper, is attributable to the global coordination efforts of its founder, Zhang Yin, who is able to identify profit opportunities around the globe. With correct foresight, Zhang Yin is able to overcome cultural barriers, and venture into foreign markets. Her international entrepreneurship and global coordination enable world resources to be allocated in the most efficient way.

Austrian economics, using storytelling approach, can be a very useful tool in interpreting entrepreneurial behavior and business strategies.

The case provides us with an understanding of how the entrepreneur can earn profit by being alert to opportunities.

The case is the first of its kind to illustrate the international coordination function of a female Chinese entrepreneur and her paper recycle business.

Provides a new perspective on the role of the government in economic affairs. Utilising recent advances in the evolutionary theories of the firm, the coordination function of the government is emphasised. This paper argues that the government possesses certain unique features that allow it to restrict competition, and provide stable and reliable conditions under which firms organise, compete, cooperate and exchange. The coordinating perspective is employed to re‐examine the arguments for industrial policies regarding private investment decisions, market competition, diffusion of technologies and tariff protection on infant industries. This paper concludes that dynamic private enterprises assisted by government coordination policies explains the rapid economic growths in post‐war Japan and the Asian newly industrialising economies.

This paper aims to formulate an Austrian model of the governmental process and to apply the theory of human agency to discuss the problems in transforming government into a digital organization.

The paper applies the Schutzian theory of human agency to analyse public agents' behaviour and the decision‐making process involved in adopting information technology (IT) in the public sector. The study incorporates cognitive elements such as opportunity discovery, learning, experimentation, trial and error, and revision of plans to understand problems in adopting new technology in government.

From an Austrian perspective, the government is viewed as an institution for coordinating economic affairs. Advances in IT will facilitate the coordination. However, public agents will face structural uncertainty when they consider adopting new technology. During the process of making an adoption decision, public officials perceive new incoming events and formulate plans according to their experience and knowledge. The subjective interpretation of a problematic situation by public officials yields provisional judgements to be confirmed by subsequent experience. With new information and experience, they subsequently revise their plans in order to eliminate errors. A new problem situation requires the public planner to produce new trial solutions which are then subjected to further testing in daily operation. The revision of plans by public officials is thus seen as a continuous process and results in administrative and coordination changes.

Unlike neoclassical public economists who act as omnipotent advisers on how the e‐government should behave, the theory of human agency analyses the operation of digital government from the “first person perspective”. It suggests that public officials, equipped with better IT, act or make decisions under uncertainty and constraints. Hence, the impact of a government action on an economic issue is not deterministic. Instead, many government policies take society by surprise and result in institutional change. It is concluded that agents in both the private and the public sectors are journeying into an unknown future.

This paper discusses Frank H. Knight's thought under three major themes, namely subjectivism, interpretation and social economics. Knight's economics starts with a conscious mind construct which is able to infer under partial knowledge. Conscious human action is purposive, forward looking and extends towards other individuals. Rejecting neoclassical positivism, Knight points to the need for economics to reconceptualize itself as an interpretative study, a methodology in the Weberian tradition. Furthermore, his allure for phenomenological economics opens a methodological possibility for the Austrian School of Economics. This paper concludes that Knight's insight earns himself a place in the history of subjectivist economics.

China’s economy is transforming at a brisk pace. A partially dismantled command economy and introduction of competition have fueled consumer demand for a greater selection of innovative new products in the retail market. The challenge for retail buyers is to adjust their procurement processes to respond to consumer needs in an efficient and effective manner. This study examines factors influencing buyer‐supplier relationships in a transition economy. We present a model to explain the factors driving retail buyer dependence on suppliers. We find that retailer evaluation of supplier credibility mediates the relationship between retailer perceptions of a supplier ability to add value to its business and the ability to achieve its desired goals. In part, this is due to the supplier’s market orientation. Interestingly, guanxi ties have no impact on the retailer perceptions of the supplier credibility, but have a positive affect on retailer dependence on its supplier partners.