Organisation development practices in Hong Kong: Current state and future challenges

This paper examines the current state of OD practices in Hong Kong. The results of two recent studies among major firms and among the managers of large firms are reported. It is found that Hong Kong firms put more emphasis on the human processual type of interventions, followed by strategic planning. Some firms are practising state-of-the-art OD activities, though the majority are still using traditional OD interventions. The current state of OD practice is then reviewed and implications for the future are discussed.The author is from the Department of Management, The Chinese University of Hong Kong. The author would like to acknowledge the financial support of UPGC Direct Grant of the Chinese University of Hong Kong for this project.     

Empirical study of the subjective meanings of culture between American and Chinese

Subjective culture is a group's characteristic way of perceiving its social environment. This study analyzes cultural meanings through free verbal association derived from the Associative Group Analysis technique. More than one hundred important and relevant stimulus words were identified. Respondents were asked to list all the ideas associated with each stimulus word. The purpose is to find out the differences and similarities in the subjective meaning of selected words among American, Hong Kong and PRC Chinese. The research results provide empirical data on the understanding of culture-specific meanings of words. It is cultural experience that produces the unique distribution of association in a particular word. The spontaneously emerging response clusters offer deep insights into what is salient and what is dominant in the group's subjective meanings of selected themes.The authors are from The Chinese University of Hong Kong.     

Causality of interest rate,exchange rate and stock prices at stock market open and close in Hong Kong

By an ARIMA approach and verified by the Granger causality tests, the causality of daily interest rate, exchange rate and stock prices in Hong Kong were explored for the period 1986 to 1991. Depending on the subperiods being considered, sporadic unidirectional causality from closing stock prices to interest rate, and weak bi-directional causality between stock prices and the exchange rate were found. The overall evidence, however, appears to show that the Hong Kong market efficiently incorporated much of the interest rate and exchange rate information in its price changes both at daily market close and open.The author would like to acknowledge helpful comments from two anonymous referees, helpful suggestions by Dr Daniel Cheung and research assistance from Theresa Tam. This project is supported by a research grant from the Institute of Social Studies, The Chinese University of Hong Kong.     

International business research output and rankings of Asia-Pacific universities: A 40-year time-series analysis

This study measures and ranks the performance of countries and academic institutions based on a 40-year analysis of publications appearing in 14 leading business and management journals. The focus is on the evolution of Asia-Pacific institutions in international business research output during this period. In addition, an examination is performed to identify factors associated with Asia-Pacific institutions that have achieved the highest rankings. This research shows that the Journal of International Business Studies and the Journal of World Business were central in spreading international business research, as well as in supporting research by authors from the Asia-Pacific region. Further, schools such as Harvard, Wharton, and University of South Carolina have maintained the highest ranks in research output throughout the 40-year period, but recent years have witnessed the emergence of the Chinese University of Hong Kong and University of Hong Kong, among others, in those top ranks.     

Perceptions of the political environment and top management orientations in Hong Kong public enterprises

Although the scope for unfettered private initiative in the Territory remains substantial, the degree of government economic intervention in Hong Kong is greater than is generally realised. Thus,inter alia and contrary to popular belief, public enterprise constitutes a noticeable segment of the local economy. In the present article, an attempt is made to draw some conclusions about this sector's characteristics on the basis of attitudinal data.Both authors are with the University of Hong Kong, Hong Kong     

China’s business network structure during institutional transitions

This study adopted a structural approach to examine the formation and characteristics of Chinese business networks via interlocking directorates during a stage in China’s institutional transitions. Analyses of the network structures of 949 listed companies revealed that: (1) Chinese business networks were smaller in scale and lower in density than their Western counterparts; (2) no nationwide network with a dominant center existed; (3) interlock occurred mainly in the form of smaller business groups which tended to be regionally fragmented; (4) ties were more prevalent among industrial peers than with financial institutions; and (5) government ownership was predominant. These findings therefore deepen our understanding about the pattern and extent of business interlock in China. Not only do these findings provide substantive implications to the notion and dimensionality of guanxi, but they also offer inspiration to managers and policy makers by illuminating key characteristics of network structure. Laying these foundations shall pave the way for future research in the structure of Chinese business networks.

Adjustment of Western Business Expatriates in Hong Kong Versus the Chinese Mainland

Business expatriates assigned to Hong Kong and the Chinese mainland, mostly from Western Europe and North America, responded to a survey assessing the extent of sociocultural and psychological adjustment. As expected, results showed that the expatriates were better socioculturally adjusted to Hong Kong than the Chinese mainland, whereas no difference was found for psychological adjustment between the two samples. Examining the adjustment of different nationalities it was found that French business expatriates were less well socioculturally adjusted both in Hong Kong and the Chinese mainland than their British and U.S. counterparts. Practical implications of these findings for business expatriates as well as for their firms are discussed and future avenues for extending research of this nature is explored.     

The significance of trust and renqing in the long-term orientation of Chinese business-to-business relationships

While business relationships with China are receiving increased attention in both practitioner and academic discourse, very little empirical work however, has been undertaken to isolate and examine measures that focus on business-to-business relationships, and as such, research in this area is somewhat scant. In an attempt to bridge this gap, and add to the knowledge in this emerging discipline, the research aims to develop a conceptual framework to explore the relationship between trust and the long-term orientation in Chinese business-to-business market relationships. Based on a survey with Hong Kong companies that have a buyer-seller relationship with Chinese companies, the empirical findings indicate the mediating role and significance of ‘renqing’ for enhancing trust and contributing towards the long-term stability in relational exchange. The results highlight several implications for practicing managers to consider when aiming to establish and develop relationships in a Chinese business-to-business context.     

A multivariate statistical analysis of the characteristics of problem firms in Hong Kong

This paper presents a two-group discriminant analysis of the characteristics of problem firms in Hong Kong. The purpose of this study is to identify and describe the common financial characteristics which distinguish problem firms from nonproblem firms.Benjamin Y.K. Tai is a Professor at the Department of Accountancy, California State University, Fresno. Lawrence S.T. Tai is a Lecturer at the Department of Accounting & Finance, The Chinese University of Hong Kong.     

Capital investment practices: A survey of large corporations in Malaysia,Singapore and Hong Kong

This paper presents the results of a survey on the capital investment practices of large corporations in Malaysia, Singapore and Hong Kong. Our findings are fairly consistent with those from similar U.S. surveys. However, Malaysia, Singapore and Hong Kong companies seem to use multiple techniques, both simple and sophisticated, in evaluating investment projects, while U.S. companies appear to make great use of discounted cash-flow rate of return. Although Malaysia, Singapore and Hong Kong companies often make annual cash-flow forecasts over the life of a project, they do not undertake much analysis of risk involved in the project. Moreover, there is room for improving the practice of project implementation, the post-audit of implemented projects, and the use of post-audit data.Dr Wong Kie Ann is with the School of Management, National University of Singapore; Dr Edward J Farragner is with the Department of Finance, DePaul University, U.S.A.; and Mr Rupert K.C. Leung is with the Department of Business Management, Hong Kong Baptist College.     

Feeling trusted by business leaders in China: Antecedents and the mediating role of value congruence

This paper examines the antecedents of felt trust, an under-explored area in the trust literature. We hypothesized that subordinates’ felt trust would relate positively with their leaders’ moral leadership behaviors and negatively with autocratic leadership behaviors and demographic differences between leaders and themselves. We also hypothesized the above relationships to be mediated by the leader-member value congruence. Results supported our hypotheses that value congruence mediated between autocratic leadership behaviors and demographic differences and subordinates’ felt trust, but not moral leadership behaviors, which had direct effects on subordinates’ perception of feeling trusted. Theoretical and practical implications are discussed.

Commitment to Company and Union: Evidence from Hong Kong

This article examines the pattern and antecedents of employee commitment to company and union in the Hong Kong context. Findings are consistent with those from the United States. In general, company and union commitment have different antecedents, although the perceived industrial relations climate is a common predictor. Dual commitment is in evidence. Union membership is a function of union commitment. The findings caution against attempts to explain the pattern of Hong Kong industrial relations purely in terms of culture.     

Small Firm Marketing: A Comparison of Eastern and Western Marketing Practices

This article reports on the analysis of 110 published, undisguised stories about Chinese owner-managers in Hong Kong and determines whether Chinese small firms exhibit the same marketing activities and behavior as their Western counterparts. Content analysis suggests that Chinese small firms are production oriented, whereas small American firms are customer oriented. Chinese small firms are also found to have limited marketing expenditure while their owner-managers have limited marketing expertise. The findings also suggest that Chinese small firms do little strategic marketing planning. One possible reason for this may be that Chinese owner-managers apply innovative tactics and change their marketing planning techniques to suit the characteristics of their firms and their particular circumstances. Thus, it is not unusual to find that Chinese small firm marketing can be described as entrepreneurial and their marketing planning activities as unstructured.     

Expatriate management succession in foreign business subsidiaries

In most foreign subsidiaries, expatriate top managers are routinely exchanged after a certain period of time. The handing over procedure between the expatriate predecessor manager and his successor has attracted very little academic research. A proper succession ensures continuity and the accumulation of experience in the foreign operation. Our sample includes expatriate business managers employed by companies from Australia, Germany, Holland and Italy assigned to Hong Kong. A mail questionnaire is used to collect the information, and this investigation is a direct extension of a previous exploratory study undertaken by one of the authors. The main issue in this paper is to investigate the duration of the overlap period at the foreign subsidiary. This dependent variable is related to three sets of independent variables: personal, corporate and subsidiary characteristics.Dr Jan Selmer is Reader and Head, Department of Management, and Mrs Vivienne Luk is Senior Lecturer and BBA (Hons.) Degree Course Leader, both at the School of Business, Hong Kong Baptist University. The authors gratefully acknowledge the helpful comments and suggestions of two anonymous reviewers as well as the Chief Editor on earlier versions of this paper. The research was supported by a Faculty Research Grant from Hong Kong Baptist University.     

Strategies of upward influence: A cross-national comparison of Hong Kong and American managers

This study compares American and Hong Kong Chinese strategies for advancing in organisations. Evaluated are the likelihood of using a particular strategy, the perceived risk associated with each strategy, and the ethical appropriateness of the strategy. Multivariate analysis of variance was used to determine overall differences. Univariate analysis of variance identified the particular strategies that differentiated the American and Hong Kong respondents. For example, the Hong Kong Chinese were more likely to use informal information networks. The Americans were more likely to employ more individual strategies, such as image management, in order to differentiate themselves from the competition in their organisation.     

Participative management and its varying relevance in Hong Hong and Singapore

First, the process whereby developing countries become developed is discussed in terms of complexity, neutrality in social relations, and the achievement ethic. An examination of managerial attitudes in eight South-East Asian countries is followed by the results of a comparative study of manufacturing industry in Hong Kong and Singapore. It was concluded that in Singapore participation leads to higher productivity (r_s 0.71, p<0.05) but only because the context is mainly foreign. This relationship was not found in Hong Kong probably because Hong Kong enterprises remain non-bureaucratic, i.e. non-western. A more participative style of management requires radical changes in non-managers' expectations of their employers, as well as a significant increase in the extent to which superiors trust their subordinates. The evidence suggests that Asian managers (except those in Japan and, possibly, Singapore) favour an autocractic approach.Dr. S.G. Redding is Professor of Management Studies and Head of Department at the University of Hong Kong. Dr. S. Richardson formerly Head, Production & Industrial Engineering Department, Hong Kong Polytechnic is now in the School of Management, National University of Singapore.     

Do the best new product development practices of US companies matter in Hong Kong?

Past research offers numerous “best practice” studies in New Product Development (NPD). One important characteristic of the earlier “best practice” studies is that they are primarily based on Western samples. Because management practices, cultures, and norms differ around the world it has been argued that the findings of the earlier studies will likely to be less applicable to firms managing NPD outside the West. This study fills this gap by surveying Hong Kong companies and comparing the NPD activities in Hong Kong with those in the US. The results revealed interesting similarities and differences between US and Hong Kong firms with regard to their NPD activities.     

Industrialization and Values Evolution: The Case of Hong Kong and Guangzhou, China

This field study evaluated the convergence, divergence, crossvergence, and multi-crossvergence perspectives of value system evolution in industrializing regions. Value differences were identified among graduating business university students in the People's Republic of China, Hong Kong, and the United States. Specific value dimensions in this study reflected the primary influence of either industrialization or regional culture. Thus, our overall results suggest that both industrialization and culture influence the combination of values held in Hong Kong. This finding could be interpreted as supporting the crossvergence perspective of value system evolution. A more precise interpretation, however, is that some value dimensions converge with increasing industrialization, while others remain divergent.