Midea’s Re-adoption of M-form Structure

With a focus on the alignment between business strategies and organization design, this illustrative case study describes and analyzes the evolution and reform of Midea’s organizational structure when confronting both internal and external changes. As one of China’s biggest and fastest-growing household appliance enterprises, Midea adopted, discarded and readopted an M-form1 organizational structure within a five-year period from 1997. This case study first investigates the reasons behind Midea’s reform toward decentralization and the formation of governing rules to balance centralization and decentralization. Different decentralized structures are then contrasted basing on product segments, business streams or even key subsidiaries acting as second-tier group companies. After its trial transformation into an H-form company that holds majority shares in several incorporated subsidiaries, Midea chose to switch to a group company incorporated structure soon after its leadership transition in 2012. Preceding the shortening of the group’s ownership chain was the construction, refinement, and evolution of its 9+2+4 divisional structure. This case study is prepared to provoke discussion and thoughts on the (re)design of a properly decentralized structure suitable for large-sized companies with multiple businesses and the links with external and internal factors.     

Evaluating training programs: development and correlates of the Questionnaire for Professional Training Evaluation

Psychometrically sound evaluation measures are vital for examining the contribution of professional training to organizational success in a reliable manner. As training evaluations tend to be both time‐consuming and labor‐intensive, there is an increasing demand for economic evaluation inventories. Simultaneously, evaluation measures have to meet psychometric standards. The present paper develops a time‐efficient training evaluation questionnaire that (1) has psychometrically sound properties; (2) measures more than the participants’ reactions; and (3) is widely applicable across different training contents, thus allowing for comparisons of training programs within and between organizations. The Questionnaire for Professional Training Evaluation is primarily developed for use in practice but is also applicable to field research and covers short‐term as well as long‐term training outcomes. Analyses based on a total of n = 1134 employees show the stability of the factor structure and hint at the questionnaire's differential and discriminant validity. Theoretical and practical implications are discussed.     

经济成长、金融结构变革与证券公司的未来发展

进入21世纪以来,中国经济的快速增长对经济生活的方方面面都产生了深刻的影响,也为中国资本市场带来了新的历史转折期和重要机遇期。作为资本市场上金融服务主要提供者的证券公司,迎来了新的发展机遇。然而在中国,什么样的证券公司能在激烈的竞争中发展壮大?什么样的证券公司拥有未来?本文认为,有三点至关重要:第一,对中国经济未来发展趋势和特点要有系统分析;第二,对中国金融结构的演变规律和方向要有准确把握;第三,要具有自身独特的核心竞争力。本文对这三个方面的内容进行系统研究,并提出了一些见解。     

Training evaluation based on cases of Taiwanese benchmarked high‐tech companies

Although the influence of workplace practices and employees’ experiences with training effectiveness has received considerable attention, less is known of the influence of workplace practices on training evaluation methods. The purposes of this study were to: (1) explore and understand the training evaluation methods used by seven Taiwanese companies benchmarked for their excellence; and (2) compare Kirkpatrick’s and Swanson’s training evaluation models with practices used by the benchmarked Taiwanese organizations from a cross‐cultural perspective. Five themes emerged from in‐depth interviews, extending our understanding of training evaluation in the benchmarked Taiwanese organizations.     

Employee voice and lifelong education capabilities in France and Germany: two models of responsibility

This paper discusses the scope of the employee’s voice in lifelong education decisions, with a focus on qualified assembly‐line workers and professional development schemes allowing their upward mobility out of the assembly line. Using a capability approach, it investigates voice as part of people’s agency. Beyond examining the channels that allow employees to have a say in training matters – weak definition of voice – it addresses voice as a process that participates in the conversion of the available training resources and opportunities into lifelong education achievements – strong definition of voice. Comparing two subsidiaries of a multinational firm, one located in Germany and the other in France, we ask under what institutional and organizational conditions employees are able to express and then achieve what they value. In adopting a multi‐level perspective which integrates qualitative data of an institutional, organizational and individual nature, we show how in France and Germany the worker’s voice in training matters pertains to two different models of responsibility sharing. In Germany the worker’s voice is associated with self‐determination and self‐care as a consequence of the externalization of lifelong education outside the confines of the firm; this results in a weak voice that requires personal or family resources in order to get converted into a strong voice. In France, where national legislation obliges firms to devote a percentage of the gross wage bill to training, companies have historically played an important role in the lifelong education of workers, so that until the country’s last training reforms introducing a personal training account in 2014, the worker’s voice was strongly shaped by organizational factors. Whether this voice is weak or strong depends upon the organizational strategy, processes and involvement in lifelong training.     

Individual influences on knowledge acquisition in a call center training context in Germany

From both a practical and a theoretical point of view, it is important to identify factors that foster knowledge acquisition in organizational training programs. Recent models of training effectiveness have proposed relationships between trainees’ characteristics and subsequent learning. The present study tested the impact of trainees’ pretraining expectations, post‐training reaction to training, expectation fulfillment and commitment on declarative knowledge acquisition, while controlling for education and motivation to learn. Participants were call center agents (N = 84), working in 10 call centers in Germany. Results showed that, in addition to education and motivation to learn, only expectation fulfillment significantly predicted learning. Implications for practice and future research were discussed.     

论我国金融控股公司发展模式

随着我国金融市场的全面开放及经济的全球化,面对国际金融集团涌入国内市场,加快整合我国金融业、提高市场竞争力变得越来越迫切,金融控股公司成为我国金融业由分业经营向混业经营过度的现实选择。由于我国目前处于“准金融控股公司”的现状,必须借鉴国外金融控股公司的发展经验,确立我国金融控股公司的发展。     

The profile of women entrepreneurs: a sample from Turkey

This research was carried out among 220 married women in business in Ankara. Its aim was to determine the profile of women entrepreneurs. A random sampling method was used and data were collected through individual interviews (face‐to‐face). The study examined working status, reasons for being in business and the types of businesses involved. It examined the difficulties experienced in starting up and maintaining the businesses, the risks involved, earnings, the characteristics of the entrepreneurs and future planning. Government rules and regulations were considered, as was the willingness of women entrepreneurs to participate in training programmes. The women’s ages, educational levels and the extent of their business experience were also examined.     

International acquisition processes: A cultural analysis of GE Appliances’ business transformation

International acquisitions of large, well-established western organizations by Chinese companies are now common. The cultural differences between the actors are often critical amid these processes. However, they can also be an opportunity for transformation and renewal for the acquired businesses. Regarding the dimension of organizational culture, this article analyzes the transformation of a 100-year-old American firm, General Electric Appliances (GEA), after its acquisition by the Chinese multinational company Haier. As a result, the company went from a nonrevenue growth business to a double-digit growth company in only 5 years. To study this transformation, we apply a cultural analysis framework based on Edgar and Peter Schein’s work. This article contributes to the debate on corporate cultural analysis in the context of international acquisitions by providing managers and scholars with a detailed account of GEA’s transformation.     

Company support for employee volunteerism: Does size matter?

This article examines the relationship between company size and support for employee volunteering. Based on organizational ecology and organizational stages theory, the study hypothesizes that larger versus smaller companies demonstrate greater formalization and codification of their support for employee volunteering. Similarly, larger versus smaller companies use employee volunteering efforts more strategically; this finding is consistent with a need to justify decisions. These outcomes in turn impact the nature of volunteering and the organizations benefiting from such programs. Survey data from a size-stratified sample of 990 randomly selected Canadian businesses indicates that large companies support employee volunteerism in a more formalized and strategic manner than small companies. This behavior includes having formal policies and programs, as well as exercising greater influence over the causes which benefit from employee volunteering. Additionally, large companies are more likely to tie other forms of charitable support to employee volunteering. The article discusses how the more formalized approach of large companies may impact society.     

The Business(es) of the Chinese State

The state industrial sector is the Achilles heel of China's otherwise remarkable economic performance over the past two decades. Most other countries in transition from socialism have transformed SOEs into commercial entities through systematic, market‐driven restructuring and privatisation to become more efficient and competitive. In China, a series of innovative, if often administrative, insitutional reforms since 1978 have begun to achieve the Chinese authorities' goal of ‘separating governemtn from business.’ But the Chinese State still maintains ownership of key enterprises, and government agencies carry out shareholder functions typically performed by private owners in a market economy. Although privatisation and restructuring of SOEs is occurring, it mostly pertains to small and medium sized firms. For the principal businesses, by contrast, the creation of large state enterprise groups and holding companies (and experiments in other forms of ‘state asset management’) have become the main form of restructuring. Today, China's SOEs still account for more than one‐quarter of national production, two‐thirds of total assets, more than half of urban employment and almost three‐quarters of investment. While direct budgetary subsidies have declined, explicit and implicit subsidies are still making their way to prop up loss‐making SOEs through the financial system and other routes. At the same time, SOEs are still producing non‐marketable products, resulting in a sizeable inventory overhang. These inefficiencies and distortions represent a drain on the country's resources and thus present a challenge to the Chinese leadership for reform. This paper sheds light on these challenges by analysing the incentives and constraints on China's SOE reform programme. Four critical aspects of the reforms are highlighted and evaluated against the backdrop of international experience: clarification of property rights; establishment of large group/holding companies and other new organisational structures; improved corporate governance incentives; and implementation of international financial accounting and auditing practices. The paper concludes with policy recommendations.     

Going green: the evolution of micro‐business environmental practices

This paper examines the process through which micro‐businesses ‘go green’. It builds upon previous studies that have identified the different drivers of this greening process. However, rather than a static focus on specific drivers, the study articulates the evolution of environmental practices over time. The paper uses comparative case studies of six micro‐businesses to build a composite sequence analysis that plots the greening process from its roots through to large‐scale and ambitious ecological projects. The study identifies three distinct stages that businesses pass through during this greening process. This has important implications for policy‐makers and advisors as it was found that the support needed by the businesses changed as they passed through these different stages. In particular, it was found that appropriate support is currently lacking at certain key points of the businesses' greening development. The paper therefore adds to current understanding of small business ecological responsibility by showing how activities and drivers change with the level of engagement. Pointers are provided as to how support can be improved.     

Industry drivers of global strategy and organization

This article reports on a research study of how 18 worldwide businesses belonging to some of the largest American multinational companies responded in their strategies to industry globalization forces. The findings reveal some effective approaches, but at the same time show that most of these businesses lagged in their response. In particular, organizational, managerial and cultural barriers to implementation hampered efforts to change. This article develops a series of lessons on how multinational companies can improve their formulation and implementation of global strategy. © 1995 John Wiley & Sons, Inc.     

The Study of the Relations among Ethical Considerations, Family Management and Organizational Performance in Corporate Governance

Corporate governance is increasingly becoming an issue of global concern, not least because we are more and more living in a corporate world that transcends international boundaries. The main purpose and motivation of this study is to determine how the international community should motivate businesses in fostering exemplary corporate governance, therefore eliminating obstacles to ethically exemplary behavior. The empirical approach utilized here has been applied to 161 businesses, both listed and over-the-counter (OTC) companies, with the results indicating that ethical considerations, corporate governance and organizational performance are inextricably linked and, to an extent, demonstrably proportional. This study also indicates a major finding that family management is a significant mediating variable of the ethical considerations of corporate governance and organizational performance. Finally, this study has developed an operational model of ethical considerations of corporate governance as a consultancy aid for businesses that wish to implement and/or boost their performance in respect to corporate governance.     

Give everyone a prize? Employee stock options in private venture-backed firms

This study examines employee stock options in private entrepreneurial companies. I focus on private U.S. venture-backed firms because they are renowned for the intensity and organizational depth of their stock option grants. Contrary to simple stereotype, however, I show that 27% of U.S. venture-backed firms do not grant stock options to all employees. I seek to explain this by theorizing that the economic and legal settings in which venture-backed companies exist lead to both costs and benefits from the use of stock options to attract, compensate, incent, monitor, and retain certain employees, and that sometimes the costs exceed the benefits. I test the theory by determining whether variation in the organizational depth to which venture-backed firms grant employee stock options can be explained by proxies for these economic and legal costs. Such proxies include the fraction of employees who are in technical positions; the degree of flatness in the firm's organizational structure; its proximity to other venture-backed companies; the number of patents it has been granted; and the fraction of equity held by venture investors. The results support the theory and thereby imply that venture-backed firms grant employee stock options in an economically sophisticated manner.     

Corporate governance,ownership and firm value: Drivers of ownership as a good corporate governance mechanism

This study analyses the role of ownership as a good corporate governance mechanism. We study cross-national differences between companies with different level of investor protection. In addition, we account for the type of owner (young family vs. non-young family businesses) and the owner’s relationship with a second significant shareholder (monitoring vs. collusion). When the main owner has effective control over the firm (i.e., absolute control or less than absolute control but without the control of a second significant shareholder), the relation between ownership concentration and firm value is U-shaped. Our findings also suggest that the conflicts between majority and minority shareholders are weaker for companies with higher investor protection and young family-owned businesses.     

The Effects of Initial Location,Aspirations, and Resources on Likelihood of First Sale in Nascent Firms*

The formation of a new venture includes initial choices that affect the process of start‐up. Primary among these decisions is the choice of location whether to start from home or from an away location. This paper examines the impact of initial firm location choices and aspirations of the entrepreneur on the resource assembly process and the likelihood of first sale. Results show that home‐based businesses assemble different types of resources from their away‐based counterparts. Higher aspirations were associated with greater accumulation of organizational resources. The combined influence of location and aspirations showed that home‐based firms with high aspirations were less likely to achieve first sale. A post hoc analysis examined these affects within a subgroup of service firms and confirmed the previous results. This study suggests that in the initial stages of the new venture, there are processes and routines that home‐based businesses engage in that lead them to achieve first sales in a timelier manner than those businesses that are located away from home. Furthermore, high aspirations are associated with greater scale of organizational resources but not necessarily with achievement of sales. Implications are discussed.     

The Emergence of Big Business: The Largest Corporate Employers of Labour in the United Kingdom,Germany and the United States c. 1907 1

This article, which builds on previous studies published in Business History, documents the largest employers of labour in the Edwardian United Kingdom. It provides a more comprehensive coverage than hitherto by indicating several important firms which have previously escaped enumeration. More specifically, it demonstrates the neglected importance of several large companies in the coal industry and in metallurgy. With the identification of large employers in Wales, Scotland and the north-east of England, it also redresses an imbalance caused by previous under-enumeration of large firms in ‘Outer Britain’. This more comprehensive coverage also contributes to analysis of several aspects of big business in twentieth-century Britain: first, it contributes to analysis of concentration, analysis which can be undertaken for the whole economy or with reference to specific sectors; second, it reveals firms which exhibited economic dynamism, stasis or decline; third, it is indicative of the impact of internal growth and amalgamation for individual companies; fourth, it discloses many of the firms which would have had recourse to an internal labour market. An international perspective is adopted by comparative analysis of similar developments in Britain's major rivals, the USA and Germany. All told, it sheds important light on both the emergence of big business and the historiography of this phenomenon, reaffirming a revisionist view that British companies were larger and more varied in their activities than previously suggested.     

Unlocking the potential to influence government skills policy: a case study of the UK construction industry

Despite a series of national policy initiatives aimed at addressing skills shortages in a number of sectors, little evidence of longer‐term change is apparent. This paper examines concerns expressed by small businesses that their local views are not sought or considered when national training policies and initiatives are either being developed or being implemented, and that the investment in skills development does not appear to adequately represent their skills needs. The research was carried out on the UK construction industry, which is characterized by a small number of large contractors who employ mainly managerial and professional staff, and a large number of small, micro‐ and self‐employed firms that provide, on a subcontract basis, the majority of the industry's demand for a skilled manual workforce. The identification and delivery of vocational education and training at an industry level rests firmly on addressing the skills needs of the small and micro‐type organizations and not those of the large construction firms, although it is the voice of the larger firms that appears to dominate the skills and training development agenda. The public policy model that articulates the requirements for training and skills development in the UK is based on sector‐specific skills councils. This model is examined in relation to the construction sector by drawing upon the experiences of the South Wales region as a case study. Findings indicate that the current construction skills framework, upon which public policy is formulated and delivered, fails to adequately reflect the structure, skills and training priorities of the industry. The tensions that exist in this system are highlighted and the implications for reform of public policy articulation with regard to sector skills councils are discussed.     

Training objectives,transfer, validation and evaluation: a Sri Lankan study

Using a stratified random sample, this paper examines the training practices of setting objectives, transfer, validation and evaluation in Sri Lanka. The paper further sets out to compare those practices across local, foreign and joint‐venture companies based on the assumption that there may be significant differences across companies of different ownership. The findings reveal evidence of the awareness and practice of setting objectives, transfer, validation and evaluation. Overall, the results of the analysis of variance do not confirm the hypotheses that foreign‐owned companies exhibit more training practices of setting objectives, transfer, validation and evaluation than local and joint‐venture companies. The paper addresses existing practice and implications.