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Hong Kong has been a major entrepôt for China for decades and its intermediate role has been enhanced in recent years. With the open door policy of China, Hong Kong manufacturers have relocated extensively their low‐cost operations to the Pearl River Delta in Southern China. Under the outward processing arrangement, raw materials, components and work‐in‐progress are shipped to China for further processing and the finished products are shipped back to Hong Kong for re‐export to other countries. This mode of operation has created tremendous loads on the already congested cross‐border traffic between Hong Kong and the Pearl River Delta. In order to modernize its outdated and inadequate transportation systems, China has embarked on huge infrastructure development programmes in the Pearl River Delta and other fast developing regions. Hong Kong has also launched multi‐billion‐dollar ports and airport development projects scheduled to be completed in 1997/98. On completion of these projects, the strategic position of Hong Kong as an entrepôt of Southern China will be further enhanced, despite increasing competition from neighbouring ports and airports in the medium to long term.

In response to stakeholder concerns for social responsibility in global supply chains, companies have implemented codes of conduct in outsourcing activities. The purpose of this paper is to examine empirically how a multinational buying office implements its social responsibility and the codes in purchasing activities in the Hong Kong and Pearl River Delta (HK/PRD) region.

This paper reports a case study that reviews the experience from three sourcing projects of a multinational buying office in the HK/PRD region. This company has successfully adopted purchasing social responsibility (PSR) practices for years.

The results show that the environment, ethics, health and safety, and human rights are more important than diversity, community, and financial responsibility in PSR practices in the HK/PRD region. The benefits of adopting PSR include reduced operating costs, enhanced brand image and reputation, increased sales and customer loyalty, increased productivity and quality, increased ability to attract and retain employees, and risk management. The challenges include the cost of compliance, communication with uneducated workers, conflicts among different codes of conduct and sub‐contracting.

The paper reflects the recent PSR situation in the HK/PRD region, primarily giving new insights for future research.

The paper provides empirical evidence on PSR implementation in the HK/PRD region, proposing seven core/non‐core dimensions of PSR and identifying the benefits and obstacles to its implementation. The paper provides academic and managerial guidelines for implementing PSR practices in the HK/PRD region.

This paper aims to explore Hong Kong firms' training needs in the Pearl River Delta, a booming region in the fast growing People Republic of China economy, by resorting to a human capital approach. Also, to identify the training policies selected by those firms in order to cater for those needs.

A survey based mail questionnaire was sent to a large sample of Hong Kong firms (mostly SMEs) operating in the Pearl River Delta area. The questionnaire was designed in two parts: the first asked close‐ended questions about firm characteristics, knowledge needs of staff and recruitment policies; the other enquired about preferences for study training programs. Results are analyzed employing an Anova and Conjoint Analysis within the context of a human capital framework.

Finds that Hong Kong firms investing in PRD recruit their senior staff from Hong Kong, whereas junior and intermediate level staffs are hired from the Mainland. It also shows that intermediate and senior level staff benefit from most of the training investments, where unskilled are deprived of training altogether.

Obtains a practical insight on human capital management policies by foreign investors in fast‐growing emerging economies.

Provides an innovative study of an under‐researched area in the fastest growing region of the People Republic of China.

The primary objective of this paper is to ascertain the impact of supplier quality management (SQM) on the quality performance of manufacturing companies operating in the Pearl River Delta (PRD) area of Southern China.

Path analysis is used to build a model that demonstrates how SQM contributes to quality performance and also the constructive effect of supply quality on organizational quality performance. Data were collected from 138 manufacturing and manufacturing‐related companies in the PRD. Hypotheses were formulated by means of the published literature and interviews with experienced industry personnel.

The path model indicates that SQM practices contribute significantly to quality performance and also illustrates the constructive effect of supply quality on the overall quality performance of the organization. Results also indicate that TQM philosophies can act as an essential driver in SQM implementation.

The study is confined to the PRD of Southern China and only examines the interrelationships between the constructs of TQM values and SQM practices. Several insignificant paths between SQM and quality measures should be further investigated.

The model developed can be used to help companies improve their current supplier management systems and can also aid the implementation of new supplier quality management systems. The findings should also be useful to those companies seeking to source from the PRD.

The paper explores the role that SQM plays in minimizing operating costs, in shortening delivery times, and in improving overall quality performance along a demand chain. The results reinforce the need to enhance the competitiveness of the business units along a demand chain through better management of the supply functions.

This study models cost-efficiency against revenue for hotels in the Pearl River Delta (PRD) – in Guangzhou, Hong Kong and Macau – by considering regional differences and weight restrictions on revenue output.

The authors modified and applied a context-dependent assurance region data envelopment analysis (CAR-DEA) model in assessing the performance of 41 hotels in the PRD. The model considers the relationships among output variables and sets the revenue composition of the hotels as weight restrictions in accounting for the relative importance of different revenue sources.

When assessing the 41 hotels all together, those in Guangzhou outperformed the hotels in other two cities by showing better pure technical efficiency (PTE), while those in Macau had the best scale efficiency (SE). When the assurance region (AR) restriction was imposed, the hotels in Macau outperformed those in the other two cities by showing better SE. When considering regional differences, the Macau hotels ranked first in terms of both the average efficiency score and the overall ranking. All the sample hotels in Guangzhou and half of the sample hotels in Hong Kong and Macau exhibited increasing, constant and decreasing returns to scale.

The research results are limited by data quality and the variables included in the models.

The study helps hotel practitioners in the PRD better assess their cost-efficiency performance by considering regional differences and operational parameters so as to strategically improve their performance.

This study improves upon previous hotel efficiency studies by considering the influence of different operational parameters across different localities. It can be extended to examine the performance of different calibers of hotels, restaurants or tourism entities located in various localities and possessing different operational characteristics.

The purpose of this paper is to explore the relationship between the strategic fit of supply chains and the formulation of future strategies.

This study focuses on Taiwanese investments in China and offers models based mainly on the transaction cost theory and the eclectic theory using data surveyed from 1,100 Taiwanese companies in China's Pearl River Delta (PRD) and the Yangtze River Delta (YRD).

Strategic fit from the perspective of the degree of vertical integration and the degree to which a Taiwanese firm fits in the local supply chain can affect the propensity for strategic change. That is, strategic fits in internalization strategy for vertical integration and in localization strategy for fit in the local supply chain are related to how a firm formulates its future strategies. Industrial factors between technological sectors and non‐technological sectors, and geographical factors between the YRD and the PRD further reveal different levels of significance in the strategic fit‐change relationship.

The paper fills some gaps. First, the study described in the paper examines strategic fit from the supply chain perspective to fill the knowledge gap regarding the significance of strategic fit in a supply chain and its impact on strategic change. To deal with the multi‐dimensionality of strategic fit, this study attributes to evidence of multiple perspectives. Second, the study extends the industrial effect and the geographic effect on the strategic fit‐change relationship. Third, the evidence‐based findings provide academia, business practitioners and government agencies with evidence regarding foreign direct investment strategies from supply chain perspectives.

This paper aims to provide a general review of the massive infrastructures now being developed in Macao and its surrounding area from a transportation and mobility perspective. The purpose of the paper is to highlight how rapid growth in tourism and regional mobility can transform and integrate a small historic city like Macao as part of its larger neighbours. In so doing, the paper raises important questions about the cultural nature and identity of Macao.

The paper provides a geographic description of major projects and trends in regional mobility of residents and visitors in the study’s coverage area (the Pearl River Delta), drawing principally from several technical reports and studies in which the author took part.

The massive mega infrastructures now being developed in and around Macao provide better and closer integration with its neighbours and will likely enhance the efficiency of travel to and from the city. However, this may forever alter the nature of the city and its inhabitants.

The paper provides a critical exposé of infrastructure development associated with and spurred by rapid growth in tourism and regional mobility and raises questions of necessity and the long-term transformation such massive changes bring to tourist cities and its residents.

After retirement, energetic seniors still can contribute to social development. This paper aims to explore the structural relationship between energetic seniors’ social reengagement intention (SRI) and its five drivers. The antecedents of energetic seniors’ SRI were identified through extensive literature (including social marketing) review and focus group interviews.

Data was collected from Pearl River Delta region of Guangdong Province, China. The proposed model was tested using partial least squares structural equation modeling with a community-based valid sample size of 750 energetic seniors (ages 60+).

Results indicate that energetic seniors’ SRI is directly determined by their perceived social value and knowledge sharing intention, which are, in turn, directly determined by their individual social capital, social achievement motivation and perceived social risk.

To the best of the authors’ knowledge, this is the first study to provide a new approach toward reengagement social development for energetic seniors. The discussion provides implications and managerial new insights for research and practice of population aging.

Global manufacturers have faced unprecedented cost pressures in China because of Chinese currency appreciation, rising labour costs, higher oil prices and reduced value‐added tax rebates. This paper aims to reassess the decision of operating global manufacturing facilities in China.

A mixed integer programming model is developed for a typical global manufacturing supply chain that includes production in the Pearl River Delta region and trade in Hong Kong. A case study with a footwear product is used to illustrate model application and present detailed analyses.

The modelling results affirm the need of relocating labour‐intensive production that mainly competes on low costs. Nevertheless, coastal China offers considerable benefits from industrial clustering and a logistics advantage in comparison with inland China and Asian countries where labour costs are still relatively low. Hong Kong remains a robust location choice for trade operations because of its favourable tax policies.

Retaining production in China faces high risks from Chinese currency appreciation, while relocation to lower‐cost Asian countries is more vulnerable to risks from high oil prices. An intermediate trade operation in Hong Kong can be used to hedge against risks from unfavourable tax policy changes at manufacturing locations.

China has risen to an important position in global manufacturing because of its cost advantages. This paper analyzes the new phenomenon of dramatically increasing cost pressures in China. It develops a first‐of‐its‐kind supply chain configuration model for the popular front‐shop‐back‐factory business model in China.

The purpose of this paper is to provide an updated picture of the emergence of specific firms, cities and sectors of excellence in one of the best performing industrial areas of China: Guangdong Province.

The paper focuses on a single province‐case study and zooms on its leading territories, sectors, firms and policies. Geographical areas, industrial sectors and firms are defined “of excellence” according to their contribution to the overall industrial performance of the province.

High industrial performances are not equally spread in the province. They involve specific sectors (such as electronics), areas (Pearl River Delta) and even specific firms (particularly Chinese‐owned and SOEs). This picture is in line with the recent policy objectives (support to ODI by national companies, indigenous innovation, national and local champions, restructuring of SOEs) and with the history of preferential industrial development policies.

Given the concentration of industrial excellence in the province, there is a need to further investigate the leading actors. Given the persistent policy practice to encourage excellences (areas, sectors and firms), there is a need to further investigate the linkages between provincial/local policies and performances. The empirical test on the existence of a causal link between policies and performances of specific territories and sectors is left for further research.

While much of the existing literature concentrates on the impressive industrial growth of China as a whole, the paper stresses the degree of concentration of such growth and the importance of focusing on specific leading actors in order to fully understand the industrial development of the country.