Business and government interdependence in China: Cooperative goals to develop industries and the marketplace

Although government withdrawal from business has traditionally been considered a key reform in developing a market economy, the Chinese government remains active. This study uses the social psychological theory of cooperation and competition to analyze the interdependence between government and business. Structural equation results of interviews of specific incidents collected from 105 government officials and business people in Shanghai, China, support the model that cooperative, but not competitive or independent, goals induce open-minded discussions that in turn strengthen their relationships, accomplish tasks, foster confidence they will work productively in the future, and develop their industry and the marketplace.

A strategic analysis of surging Chinese manufacturers: The case of Galanz

Recent years have witnessed the surging of Chinese manufacturers, as China has become the world’s factory floor. This paper presents a case study of one of the most successful manufacturers in China, the Galanz Group, now the world’s largest microwave manufacturer. Based on theories of multinational corporations from emerging economies, the paper examines the process of Galanz’s integration into the global market. The company has developed unique competitive strategies that have made it a great success within China and in overseas markets. The Galanz model suggests strong strategic implications for both Chinese firms and incumbent multinational corporations.

Impact of state ownership and control mechanisms on the performance of group affiliated companies in China

This paper examines the moderating impact of state ownership and group control mechanisms on the relationship between diversification and performance of companies affiliated with large business groups in China. We find that the state ownership has enhanced the performance of group affiliated companies when they adopted higher degrees of diversification. We also find that cash flow rights have a positive impact on the performance of companies with lower degrees of diversification while in general group control rights have a negative impact on the performance. These results suggest that a group’s control mechanisms, derived from pyramid ownership structures, enable the dominant owners to expropriate the value from minority shareholders or tunnel corporate resources for their own interest.

Guanxi and leader member relationships between American managers and Chinese employees: open-minded dialogue as mediator

Effective open relationships with employees can help foreign managers rely upon and utilize the local knowledge of their employees. One hundred and sixty-three Chinese employees from various industries in China were surveyed on their relationships (leadership–member relationship and personal guanxi) with American and Chinese managers, their constructive controversy, that is, their constructive controversy with them, and the job assignments and promotions received from their managers. Results support the hypotheses that quality leader–member relationship and personal guanxi promoted their constructive controversy, which in turn facilitated employees receiving challenging jobs and promotions. Results suggest that leader–member relationship and Chinese value of guanxi may be important for enhancing their constructive controversy; this kind of open dialogue can be a foundation upon which American managers can develop the confidence to give their Chinese employees challenging tasks and promotions.

How does strategic orientation matter in Chinese firms?

As China continues to transition toward a market economy, how strategic orientation affects firm performance has received significant attention. This article reviews the extant literature with a framework that depicts contemporary work on strategic orientation, the drivers of strategic orientation, and its boundary conditions. We identify important research gaps and propose to integrate institutional theory, dynamic capability perspective, and the knowledge-based view within the strategic orientation research stream for future investigations.

Four tigers and the dragon: values differences,similarities, and consensus

This study examines the influence of economic and political factors that contribute to the convergence and/or divergence in value priorities of five East Asian societies—China, Hong Kong, Singapore, South Korea, and Taiwan. We find that political and social-economic factors influence the values orientations of managers within this region. However, economic development level is an insufficient explanation for values convergence without consideration of the societal context and cultural traditions in which that development occurred.

Does knowledge management matter for information technology applications in China?

This study explores the role of knowledge management (KM) in mediating and moderating the relationship between information technology (IT) and firm performance based upon the data collected from 236 firms in China. Through a structural equation model and hierarchical regression analysis, we found that KM capability partially mediated the performance impact of IT resources. Furthermore, KM capability affected the strength of the IT-performance relationship. The theoretical contributions and managerial implications are discussed and limitations of the study are highlighted accordingly.

Venture capital in China: A view from Europe

This article provides commentary on the analysis of venture capital in China by Ahlstrom, Bruton, and Yeh (Venture capital in China: Past, present, and future. Asia Pacific Journal of Management, 2007). The article considers issues relating to the scope of venture capital and private equity, the nature of venture capital and private equity organizations, the life-cycle process of VC investing, internationalization, and foreign venture capital firms. The paper identifies areas for future research and compares the Chinese VC context with those in Western Europe and Central and Eastern Europe.

The effects of emotional intelligence on job performance and life satisfaction for the research and development scientists in China

To demonstrate the utility of the emotional intelligence (EI) construct in organizational studies, this study focuses on the effect of EI on job performance among research and development scientists in China. We argue that EI is a significant predictor of job performance beyond the effect of the General Mental Ability (GMA) battery on performance. This predictor effect is supported by results on a study of research and development scientists working for a large computer company in China. Our results also show that a self-reported EI scale developed for Chinese respondents, the WLEIS, is a better predictor of job performance than the scale developed in the U.S., the MSCEIT. Implications of the findings are discussed.

Organizational values and procedures as antecedents for goal interdependence and collaborative effectiveness

Organizational values of people and respect and interdependent structures of team procedures and task interdependence may help departments believe their goals are cooperative and thereby coordinate effectively. CEOs in China completed measures of their organization’s values and interdependent structures and their Vice-Presidents completed measures of the department’s goal interdependence (cooperative, competitive, and independent) and collaborative effectiveness. Structural equation analysis suggested that values and interdependent structures promote cooperative, but not competitive or independent, goals that in turn results in collaborative effectiveness. These results, coupled with previous research, were interpreted as suggesting that people and respect values, team procedures, task interdependence, and cooperative goals are complementary foundations for synergy in China and perhaps other countries as well.

Business groups and their types

We clarify what business groups are and analyze their various types. We first distinguish business groups from other types of firm networks based on the strategic relationships among companies; business groups are defined as those networks that exhibit unrelated diversification under common ownership. We then separate business groups into three types based on their ownership: family-owned, widely-held, and state-owned. We argue that each type has different agency costs and diversification logics. As a result of these differences, their performance varies, with family-owned business groups outperforming widely-held ones, and these in turn outperforming state-owned business groups.

Parent country nationals or local nationals for executive positions in foreign affiliates: An empirical study of Japanese affiliates in Korea

This study examines how the host country experience of Japanese multinational corporations (MNCs) affects their staffing policies for executive manager positions at foreign affiliates. Hypotheses on executive staffing policies for foreign affiliates are tested using survey data collected from 103 Japanese affiliates in Korea. Findings show that the level of global integration and the degree of centralization of decision-making positively affect an assignment of parent country nationals as executive managers of foreign affiliates. We further find that foreign affiliates’ experience in a host country moderates the effects of both global integration and centralization on staffing decisions for the affiliates.

Managers’ conflict management styles and employee attitudinal outcomes: The mediating role of trust

This study examines the mediating effects of trust on the relationships between manager’s conflict management styles (CMS) and employee attitudinal outcomes, as well as identifies the potential deviations in the areas of CMS and trust from the west in Chinese culture. One hundred sixty-nine employees in Guangzhou of China participated. As predicted, Integrating CMS of managers is found significantly correlated to trust and subordinates’ job satisfaction and turnover intention. Trust fully mediates the link between Integrating CMS and subordinates attitudinal outcomes. Results also support the expectations concerning the deviations on the impacts of the uncooperative CMS on subordinates under Chinese culture. Discussion and implications are presented.

The influence of firm,industry and network on the corporate social performance of Japanese firms

We develop and test the thesis that corporate social performance (CSP) constitutes a socially constructed and shared strategic asset, which is not only influenced by factors specific to a firm, but also by the social performance of firms in its industry and inter-corporate network. Using variance decomposition, we analyze data from 130 large Japanese firms and find that both firm-specific and industry-level factors account for significant variance in CSP, but network-level factors do not.

The adolescence of Asia management research: <Emphasis Type="Italic">APJM</Emphasis>, 1997–2006

In this article we reflect on the adolescent years of Asia management research published in the Asia Pacific Journal of Management (APJM) by reviewing work published in the past 10 years (1997–2006). We report that during the last decade, APJM has published 223 research articles, written by 373 different authors, who are affiliated with 203 different institutions. Our discussion of the future of Asia management research is guided by Kuhn’s (Kuhn, T. S. The structure of scientific revolutions. Chicago: University of Chicago Press, 1962) perspective on the nonlinear progression of science. We argue that as a growing community, Asia management research is finding its “identity” and establishing its presence in the larger worldwide management research community. Following our analysis, we conclude that the growth of Asia management research—as captured by APJM publications—throughout its “adolescent” years has set forth a challenging and exciting path for the future. All authors contributed equally. We thank Mike Peng (Editor-in-Chief) for his encouragement and advice. This work was completed when Yu-Shan Su was a Fulbright visiting scholar at the University of Texas at Dallas (UTD). She thanks the Fulbright Association and the Taiwanese Ministry of Education for partially funding this work.

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Evidence of the practical utility of Wong’s emotional intelligence scale in Hong Kong and mainland China

Emotional intelligence (EI) has been an emerging topic for psychological, educational, and management researchers and consultants in recent years. However, there is a lack of scientifically valid measures of this concept, especially for those that have practical utility in the Asian context. Recently, a 40-item forced-choice instrument was developed for Chinese respondents in Hong Kong. We collected data in three studies to further test the practical utility of this instrument in Hong Kong and mainland China. The results provided clear evidence for the instrument’s practical utility. More research that uses this measure in Asian countries is required.

Program equity issues in schooling: The testimony of technology teachers

Assimilation into society via academic achievement is a premise and practice that is universal in schools and school systems. Drawing on the testimonies of technological education teachers and the sociology of knowledge literature, this narrative inquiry research sets the stage for a critical analysis of our reliance on knowledge versus experience in western education policy and planning. A crisp and constructive analysis of the premises school systems take for granted becomes possible, a case for transcending limited ways of thinking about knowledge and experience is made.

Managerial ties,absorptive capacity,and innovation

Managerial ties—the boundary-spanning ties and interpersonal connections of top managers—contribute to a corporation’s innovativeness in emerging economies because of the absence of market supporting institutions, transparent laws, and clear regulations. Moreover, managerial ties are apt to interact with absorptive capacity to facilitate knowledge sharing and innovation. This paper examines the joint influence of managerial ties and absorptive capacity in two communities in China, one characterized by a high level of foreign direct investment (FDI) and the other consisting mainly of local corporations. We find that absorptive capacity moderates the effect of managerial ties on a corporation’s innovativeness. Furthermore, when examining the two communities separately, we find that business ties and university ties have opposite effects.

Japanese <Emphasis Type="Italic">keiretsu</Emphasis>: Past,present, future

This article reviews major theoretical and empirical work on vertical and horizontal Japanese keiretsu. We first outline the history, characteristics, and strategic and performance implications of each type of business group. We then discuss changes in the Japanese economy during the post-1992 Japanese economic decline and their implications for the persistence and continued benefits of each form of inter-corporate grouping followed by a discussion of empirical findings regarding the continued role of keiretsu in the Japanese economy. The review concludes by exploring areas of future research into the evolution of keiretsu ties and their implications.

Negative externalities of close guanxi within organizations

In this conceptual article we present a critical analysis of close guanxi, i.e., close personal connections, in terms of their negative externalities on organizations. We adopt a social dilemma perspective and examine how close guanxi parties, while cooperative toward each other, may nevertheless defect against the organization, causing negative externalities. We contend that relationalism exacerbates such negative effects of close guanxi and propose various institutional mechanisms and individual variables that can reduce them. Finally, we discuss research and practical implications of solving social dilemmas of close guanxi in Chinese organizations and strong ties in Western organizations.