Search results

Viewing business groups as institutionally embedded agents, the purpose of this paper is to theoretically addresses the distinctions between institutional embeddedness renewal and overembeddedness, and empirically analyzes the proposed effecting mechanisms in the context of China.

The paper predicts the specific performance effects accompanying the collective and local processes governing systematic institutional embeddedness phenomena, and examine the proposed hypotheses using a real experimental setting of Chinese business groups during the period of enterprise reform and stock market liberalization, employing data on 38 business groups in the textile industry from 2000 to 2008.

The results of the econometric analysis support an optimistic view that business groups can strategically renew their embeddedness even in the late stages of market-oriented institutional transition as in China. Specifically: first, the positive effect of the self-enhancing isomorphic pressure around both the new and the old institutions implies the relative dominance of systematic institutional embeddedness renewal within business group communities; second, at the local level, institutional strategies promoting the market orientation of adopted organizational forms bring about not only positive but also negative effects, suggesting the need to manage a simultaneous significant risk of overembeddedness.

The paper establishes an institutional strategy framework to predict potential effects associated with systematic institutional embeddedness phenomena, such as institutional embeddedness renewal and overembeddedness, in the context of market-oriented institutional transition.

The purpose of this paper is to explore the correlations among entrepreneurial environment, market-oriented strategies, and entrepreneurial performance.

Entrepreneurial environment is measured by institutional environment and industrial environment. A survey of 176 large Chinese automobile firms is conducted. The structural equation model is applied to perform analysis.

The uncertainty of the institutional environment is positively related with market-oriented strategies and market-oriented strategies are positively related with firms’ performance. The stronger the uncertainty of the industrial environment is, the larger impact that market-oriented strategies have on firms’ performance will be. There is no distinct positive relationship between the uncertainty of industrial environment and firms’ market-oriented strategies. The hypothesis, that the stronger the uncertainty of institutional environments is, the larger the impact that market-oriented strategies will be on firms’ performance, is not supported.

In terms of research design, this paper does not select survey samples randomly. This paper only takes institutional and industrial environments into consideration while the environmental characteristics are omitted.

This paper expands entrepreneurship research by integrating previous studies. Findings in this paper are helpful for firms in emerging countries to implement “going abroad strategies,” to start up new businesses in other countries, and to achieve the goals of improving competitiveness and integrating with international firms.

Social network theory emphasizes that, to acquire needed resources, new ventures should cultivate industrial connections (intra-industry ties and extra-industry ties). In the meanwhile human capital theory focuses on entrepreneurs' employment experience, especially with respect to its breadth and depth. This study examines ties and experience to determine whether, in combination, they have positive or negative effects on resource acquisition in new ventures.

This study tests research hypotheses using questionnaire survey data with a sample of entrepreneurs in new ventures. Multivariate regression analysis is used to analyze the data.

Combining intra-industry ties and experience breadth or extra-industry ties and experience depth affects resource acquisition positively, whereas combining intra-industry ties and experience depth or extra-industry ties and experience breadth affects resource acquisition negatively.

Conclusions may be constrained by the limited sample size and source. Rather, the impact of the study lies in its identification of the effects of interaction between network ties and entrepreneurs' experience on resource acquisition. Future research can explore the effects of interaction between other dimensions of network ties and a range of entrepreneurs' experience characteristics on resource acquisition.

Entrepreneurs are provided with effective strategies to make use of their ventures' network ties and their personal accumulated experience in the process of obtaining resources.

The findings enrich the entrepreneurship literature by providing a more nuanced understanding of how and when new ventures' industry ties and entrepreneurs' employment experience together influence resource acquisition.

Over the past four decades, China has strived to make the market mechanism play a decisive role in resource allocation under the conditions of adhering to the basic socialist economic system. The paper aims to discuss this issue.

On this matter, this paper proposes a three-phase transition hypothesis for the Chinese institutional change models, namely, a de facto path, which gives potential to a successful incremental transition of a centralized country from planned economy to a market economy, lies in the incremental transitions of the institutional change models from a supply-oriented model at initial reform to a middle-proliferation model and to a demand-induced model along with the gradual establishment of exclusive property rights, thereby completing the transition to a socialist-market-economic system.

The Chinese economic model’s unique connotation is the reason why the solution to this model often baffles both the traditional political-economic logic and western mainstream institutional change theory.

This hypothesis corroborates that China’s unswerving practice of economic reform has provided unprecedented opportunities and challenges for the development of economic theory. The Chinese model constitutes the source of innovation for the subject of Economics with Chinese Studies.

The purpose of this paper is to model the Chinese unique regulation changes with the supply-and-demand analytical framework and structure the relationship between initial public offerings (IPO) underpricing and institutional changes with the comparative static method. A well-functioning stock market is crucial to the transition into a market economy, but the Chinese stock market is somehow twisted with frequent government interventions, particularly the IPO market. Can the underpricing issue be mitigated in the changing institutional settings? Can the market-orientated incremental reform of regulations succeed in the Chinese stock market?

The theoretical analysis confirms that IPO underpricing becomes relatively better with dynamic changes of relaxation of the approval and pricing systems. Collecting and examining the data of newly listed firms from 1993 to 2010, the influence of institutional changes on IPO underpricing with regressions, such as ordinary least square (OLS), bootstrap and two stage least square (2SLS) estimation methods was further empirically examined.

The magnitude of the Chinese IPO underpricing during the past two decades is as high as 181.6 per cent on the average. The sizes of IPO underpricing significantly reduce with an increase in the issuing sizes and the ratios of price-earnings ratios. The dummy variables of government-approved regulations are negatively associated with IPO underpricing. The dummy variables of pricing regulations are positively related to IPO underpricing and the coefficients become smaller with newer regulations. Generally, the magnitude of the Chinese IPO underpricing decreases over time.

This paper enriches the IPO literature by dynamically examining the effect of institutional changes on IPO underpricing in Chinese primary markets. We argue that institutional changes characterized by incremental marketization can help to alleviate extreme IPO underpricing and to promote financial development. The Chinese transition from the planning system to the market system in the IPO market will be a long and strenuous process, but it works.

Previous studies demonstrate that market-oriented reform has contributed significantly to China's economic growth from the efficiency-based economic view. But some argue that state-owned firms have access to policy information, scarce resources, and government support, and thus state-owned firms might foster innovation. This study tries to find out either market force or state ownership helps improve firms' R&D efficiency.

Using data from China's high-tech industry, we employed the fixed-effect stochastic frontier model and the spatial panel Han-Philips linear dynamic regression model to investigate the relationship between market-oriented reform and the dynamic evolution of R&D efficiency in both temporal and spatial dimensions. Moreover, we examined whether the relationship is affected in a state-owned economy and an industry protection environment.

The results indicate the following: (1) the R&D efficiency of China's high-tech industry has improved steadily and has converged gradually across its regions during the market-oriented reform; (2) the marketization degree is positively correlated with R&D efficiency and its regional convergence; (3) the state-owned economy and industry protection have significantly weakened the ability of market forces to shape R&D efficiency — i.e. they reduce, rather than enhance, R&D efficiency.

This investigation helps understand the drivers of R&D efficiency in transition economies, and the findings are also helpful in defining the boundaries and constraints of market forces.

Extant research on the crowding-out effects of government subsidies on the positive role of firm innovation resources or activity remains limited. This paper aims to investigate the crowding-out effects of subsidies on the utilization of technological capabilities and also the contingency mechanisms of market-oriented economy based on the resource-based view (RBV), given the co-existence of the subsidies and technological capabilities for firm innovation in transitional economy.

This paper used panel data of 115 Chinese high-tech firms from 2002 to 2010. Fixed-effects model was used to test several hypotheses.

This paper empirically demonstrates that the subsidies crowd out the utilization of firms’ technological capabilities for invention outcomes in the near-term. Furthermore, this paper finds that the crowding-out effects are weaker when firms have high export intensity or are located in provinces with high market-oriented systems.

The findings of this paper apply to Chinese firms. Future research could test their generalizability to different samples and other transitional economies.

This paper highlights the crowding-out effects of the subsidies, revealing that high-tech firms should balance the direct effects and crowding-out effects of the subsidies.

This paper highlights the neglected interactions between the subsidies and technological capabilities based on RBV and provides a more nuanced understanding of the crowding-out effects of the subsidies in transitional economy.

This paper aims to examine the institutional and social determinants, and consequences of social entrepreneurship with respect to China's rural enterprises. It also attempts to provide a conceptual framework concerning how rural Chinese enterprises act as social entrepreneurial institutions and contribute to both business development and social welfare of local communities.

The conceptual framework is developed through a critical review of literature and an integration of multiple disciplinary studies, with a focus on the perspectives of institutional governance, managerial networks, and market orientation.

The study identifies three framework layers for the development of China's rural enterprises, which are fundamentally driven by market preserving authoritarianism, local state corporatism, community culture, social entrepreneurship and market orientation.

The proposed framework can help contribute to the theoretical development of strategic issues of social entrepreneurship in transitional economies. It may also provide insights about local state governance, ownership structures and market competition in China.

As China's rural enterprises are widely regarded as a phenomenon related to the core nature of a “socialist market economy”, an ideology embraced since the beginning of Chinese social‐economic reforms, a study of institutional and entrepreneurial nature of this kind serves as a stepping stone for understanding the emerging phenomenon of the country's social entrepreneurship, which is characterized by open market mechanisms and socialist legacies.

The purpose of this paper is to examine the evolution of China's securities market regulation from 1980 to 2007 and the dual role of the government in this process.

When the government is simultaneously the owner and regulator of the securities market, the evolution of securities market regulation follows a path of compulsory institutional change. China's Government authorities have played a dual role in this process by acting both as the securities market regulator and the controlling owner of the stock exchanges. The paper uses the evolution of China's securities market regulation from 1980 to 2007 to illustrate this theoretical framework.

Using the case of China, this paper provides unique evidence of how securities regulation evolves in response to government direction and supervision if the government is both the owner and the regulator of the securities market.

The paper offers insight into issues of securities market regulation in China and other emerging markets.

China has followed an unique transition from central planning to a market economy. The purpose of this paper is to examine how China's unique blend of capitalism and socialism has influenced Chinese firms’ market orientation.

Broadly speaking this paper's methodological approach can be described as a positivistic epistemology.

The paper provides insights into how Chinese institutions facilitate or hinder firms’ market orientation practices through direct effect, externality effect and indirect causal chains. The central theme is that, compared with other countries, China's unaltered political institutions and newly created market institutions have led to unique roles of coercive, normative and mimetic pressures in the diffusion of market orientation among Chinese firms. Especially, regulative institutions’ influence on other institutions is more salient in China than in many other countries.

A lack of primary data and empirical documentation and a lack of in‐depth treatment of some of the key issues are major limitations here.

The paper analyses institutional pressures facing firms operating in China and their variation across different types of firms. An understanding of these pressures is essential to devise market‐oriented approaches in the country. It also examines different institutional factors (e.g. Chinese professional associations) that influence a firm's capability to implement market‐oriented practices.

This paper's greatest value stems from the fact that it employs institutional theory as a lens to understand firms’ market orientation. The institutions‐market orientation nexus is a very important but highly underexamined subject.