Foreign direct investment, access to finance, and innovation activity in Chinese enterprises

A recent, comprehensive database is used to investigate the link between inward foreign direct investment (FDI) and innovation activity in China. The results of the analysis suggest that private and collectively owned firms with foreign capital participation and those with good access to domestic bank loans innovate more than other firms do. Among enterprises not owned by the state, inward FDI at the sectoral level is positively associated with domestic innovative activity only among firms that engage in their own research and development or that have good access to domestic finance. At the sector level the effect of inward FDI into technology transfer is distinguished from the effect on domestic credit opportunities. FDI affecting credit is of little significance for state-owned enterprises and is independent of their access to finance. In contrast, better access to credit is an important channel through which FDI affects the innovation of domestic private and collectively owned enterprises.

From transferred technology to technological capability:a framework for examining the acquisition of technological capability by Chinese enterprises

This paper conceptualises the enhancement of technological capability by firms, following international technology transfer, as an evolutionary process. During this process, the existing technological, managerial and other complementary resources may require restructuring. Since China is in transition from central planning to market orientation, the organisational and managerial practices of Chinese firms are different from those of international technology suppliers. Resourcebased and evolutionary theories of the firm, which provide insights into the evolution of structures, mechanisms, skills, experiences and technical know-how, have been applied to outline the processes of acquiring technological capability. Selected case studies have been used to illustrate the issues and the framework provides guide for further empirical work.

Strategies for performance improvement in the Chinese chemical industry:evidence from case study investigations

Purpose – This paper sets out to explore the proposition that building competences is more effective than privatisation and restructuring to improve performance in the Chinese chemical industry. Design/methodology/approach – Case study research has been undertaken in the Chinese chemical industry. The two case companies provide representative data on the factors under investigation. The case investigations that are described were complemented by a survey, the results of which have been reported elsewhere. Findings – Results obtained from the research show that privatisation of Chinese state-owned enterprises is not always an effective strategy to improve performance. In the case study companies, the development of core competences was more effective in enhancing performance. Research limitations/implications – The research results are limited by the scope of the study, which was carried out in the Chinese chemical industry. They are also based on in-depth case investigations in only two companies, but are supported by a large-scale survey reported elsewhere. The results have implications for academic researchers interested in China's privatisation programme. Practical implications – The research has practical implications for companies outside China that are considering collaborative operations with Chinese companies or investing in joint ventures. It also has implications for suppliers or customers of Chinese companies. Originality/value – The paper is based on original case study investigations carried out in Chinese enterprises and is supported by a survey of representative companies in China's chemical sector. Value is derived from understanding the basis of improved performance in the companies studied.

敏捷竞争的挑战与思考

在未来持续多变和不可预测的竞争环境中,保持企业的竞争地位和生存发展的重要概念就是由敏捷制造和动态联盟构成的敏捷竞争的概念。动态联盟的思想加上当今高速信息网的建立和CALS提供的支持全球合作的技术和标准,为我们确定先进制造技术的研究计划,帮助中国的广大企业顺利地进入21世纪的国际合作大环境都有着重要的意义。

21世纪企业的主要模式──敏捷制造企业

２０世纪９０年代以后，由于科学技术的迅猛发展，知识─技术─产品的周期日益缩短，如何加速开发质优价廉的新产品就成为企业竞争的核心内容。２１世纪即将到来，世界无疑将沿着２０世纪的道路继续向前发展，它的趋势是：新产品开发速度日益加快、产品生命周期不断缩短、生产批量越来越小、市场竞争日趋激烈；加上环太平洋地区的兴起，有能力参与这场竞争的企业不断增多。这一切虽给企业带来了机遇，但也给企业造成了严酷的生存环境。为了适应这种环境，１９９１年美国在总结日本、德国和本国经验的基础上，提出把现有企业改造成敏捷制造企业（ＡｇｉｌｅＭａｎｕｆａｃｔｕｒｉｎｇＥｎｔｅｒｐｒｉｓｅ）的模式，并认为这是奠定美国２１世纪经济霸主地位的战略举措。敏捷制造企业是从客观经济发展的实践中总结出来的。我国如何改造企业并和世界经济接轨，敏捷制造企业给我们提出了值得高度重视的发展方向，本文对此作了较为详尽的论述。

Estrategia organizacional y su relación con la adopción de prácticas saludables

Las organizaciones asumen en el mundo en el que vivimos el reto de transformarse permanentemente para evolucionar y prolongarse en el tiempo, y una alternativa es a través de actividades dirigidas hacia los distintos grupos de interés y hacia la propia organización. Es así, como surge el interés de realizar este estudio analizando la estrategia, desde los conceptos de algunos pensadores representativos, las tipologías y modelos existentes, así como el concepto de organizaciones saludables, las cuales a través de prácticas saludables logran llevar a cabo acciones dirigidas hacia el bienestar de los empleados, el medio ambiente, proveedores, compradores, y la comunidad. Con el propósito de establecer la relación existente entre las prácticas saludables y la estrategia empresarial, se tienen en cuenta algunos estudios académicos y empíricos relacionados con la aplicación de las prácticas saludables para contribuir a la estrategia de la organización. Para estudiar dicha relación, se llevó a cabo un trabajo de campo en una empresa de salud tomando como muestra a 134 empleados de la organización. Los resultados arrojados señalan que tres de las cuatro prácticas saludables, a saber: plan de desarrollo, empleados, medio ambiente, no poseen una relación significativa con la estrategia, siendo la práctica referente a la comunidad, proveedores y compradores la más relacionada con ésta. Resulta importante continuar con otras investigaciones acerca del tema, con el fin de seguir analizando cómo las prácticas saludables están o no relacionadas con la estrategia de la organización.

Is China's manufacturing sector becoming more high-tech? Evidence on shifts in comparative advantage, 1987-2005

Purpose – The paper assesses the extent to which China’s comparative advantage in manufacturing has shifted towards higher-tech sectors between 1987 and 2005 and proposes possible explanations for the shift. Design/methodology/approach – Revealed comparative advantage (RCA) indices for 27 product groups, representing high-, medium and low-tech sectors have been calculated. Examination of international market attractiveness complements the RCA analysis. Findings for selected sectors are evaluated in the context of other evidence. Findings – While China maintains its competitiveness in low-tech labour intensive products, it has gained RCA in selected medium-tech sectors (e.g. office machines and electric machinery) and the high-tech telecommunications and automatic data processing equipment sectors. Evidence from firm and sector specific studies suggests that improved comparative advantage in medium and high-tech sectors is based on capabilities developing through combining international technology transfer and learning. Research limitations/implications – The quantitative analysis does not explain the shifts in comparative advantage, though the paper suggests possible explanations. Further research at firm and sector levels is required to understand the underlying capability development of Chinese enterprises and the relative competitiveness of Chinese and foreign invested enterprises. Practical implications – Western companies should take account of capability development in China in forming their international manufacturing strategies. The rapid shifts in China’s comparative advantage have lessons for other industrialising countries. Originality/value – While RCA is a well-known methodology, its application at the disaggregated product group level combined with market attractiveness assessment is distinctive. The paper provides a broad assessment of changes in Chinese manufacturing as a basis for further research on capability development at firm and sector levels.

Transferring manufacturing technology in China:supplier perceptions and acquirer expectations

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.

Ventajas de aplicar la triangulación empresarial entre España, China y América Latina. Una relación win-win para todos los polos

España tiene la oportunidad de desempeñar un papel importante en el proceso de internacionalización de las empresas chinas hacia Europa y América Latina gracias a la histórica experiencia de las multinacionales españolas en estas regiones. Puesto que las relaciones diplomáticas entre España y China gozan de buena sintonía, si España aprovecha la posición de privilegio respecto al resto de economías europeas, el gigante asiático podría estar interesado en el apoyo de España en América Latina, propiciando así la implantación de iniciativas de cooperación entre los tres polos. Los puntos clave para construir una relación win-win en clave triangular es la importancia de un socio local para profundizar en su despliegue internacional en América Latina, que las empresas chinas requieren, además del expertise y know-how necesarios en los procesos operativos, siendo en estos ámbitos las empresas españolas las mejor posicionadas.

Standard Essential Patent in Telecommunication Standard: United States and China Comparison

Thesis (Ph.D.)--University of Washington, 2016-08

The effectiveness of non-executive directors in Chinese state-owned enterprises

Purpose – The primary aim of this paper is to examine whether boards of directors with independent members function as effective corporate governance mechanisms in Chinese State-Owned Enterprises(SOEs), by analysing four characteristics of non-executive directors (NEDs) that impact on their effectiveness, namely their degree of independence, information, incentive, and competence. Design/methodology/approach – Being exploratory in nature, the research uses qualitative methods for data collection. It is based on an interpretivist perspective of social sciences, analysing and explaining the factors that influence the effectiveness of NEDs. Findings – The findings indicate that the NED system is weak in China as a result of the concentrated ownership structure, unique business culture, intervention of controlling shareholders and the lack of understanding of the benefits brought by NEDs. Research limitations/implications – The paper examines the salient features of and challenges to the system of NEDs of SOEs in present-day China. It provides an understanding of how the various perceptions of the board, gathered from in-depth interviews of corporate directors, leads to new interpretations of board effectiveness. The research, however, is limited owing to a relatively small sample size and the sensitive nature of the information collected. Originality/value – The study aims to fill gaps in the literature and contribute to it by assessing the “real” views and perceptions of NEDs in China in an institutional environment significantly different from that of the USA, the UK and other western economies.

Rethinking the literature on the performance of Chinese multinational enterprises

We synthesize the literature on Chinese multinational enterprises (MNEs) and find that much of the prior research is based on as few as a dozen case studies of Chinese firms. They are so case-specific that it has led to a misplaced call for new theories to explain Chinese firms’ internationalization. In an attempt to better relate theory with empirical evidence, we examine the largest 500 Chinese manufacturing firms. We aim to find out the number of Chinese manufacturing firms to be true MNEs by definition, and to examine their financial performance relative to global peers using the financial benchmarking method. We develop our theoretical perspectives from new internalization theory. We find that there are only 49 Chinese manufacturing firms to be true MNEs, whereas the rest is purely domestic firms. Their performance is poor relative to global peers. Chinese MNEs have home country bound firm-specific advantages (FSAs), which are built upon home country-specific advantages (home CSAs). They have not yet developed advanced management capabilities through recombination with host CSAs. Essentially, they acquire foreign firms to increase their sales in domestic market, but they fail to be competitive internationally and to achieve superior performance in overseas operations. Our findings have important strategic implications for managers, public policy makers, and academic research.