Knowledge,Skills, and Abilities for the Market Economy: An Investigation of Student Perceptions Before and After China's WTO Entry

This exploratory study conducted in the People's Republic of China sought to determine the managerial knowledge, skills, and abilities (KSAs) that are perceived as important for the Chinese market economy. Questionnaire responses were collected from 145 business students in 2001 (before China's WTO entry) and 141 business students in 2006 (after China's WTO entry). The identified set of eight managerial knowledge, skills, and abilities included: business area knowledge and skills, communication skills, creativity/adaptability, ethics, leadership, problem solving, teamwork, and work habits. For each time period examined, the mean score for “importance” of each KSA was significantly higher than the mean score for “presence.” The differences between the importance mean and the presence mean for each KSA was denoted as a “gap.” This study revealed that five of the eight KSAs had a significantly smaller gap in 2006 than in 2001. This suggests that the business education system in China is enabling the development of more effective managers for the Chinese market economy.     

An Empirical Analysis of Danish Companies' Experiences in the People's Republic of China

In the last ten years or so, the People's Republic of China has been the subject of increasing attention on the part of researchers and practicioners alike, not least because of the potential trading implications for Western firms (and economies) of China's "open door policy." This paper examines the business experience of small and medium-sized Danish companies in dealing with the People's Republic of China. Based on information provided by 49 companies responding to a mail questionnaire, the study provides empirical evidence relating to (1) the motivation underlying the firms' decision to enter the Chinese market, (2) the forms of initial market contact and modes of market entry, (3) the bases of competitive advantage, (4) the specific difficulties/problems associated with setting up and operating in this market, and (6)the perception of the companies as to the success of their efforts. The results are placed in the context of previous analyses of the peculiarities of China as a trading partner for Western firms and their managerial implications are considered in terms of highlighting issues of practical importance for companies contemplating the establishment of links with what has come to be known as "the world's largest untapped market."     

Perceptions of Offensive Advertising Elements: A China–U.S. Comparison

ABSTRACT

As China continues to rapidly expand and further open itself to market forces, the People's Republic arouses significant interest as a new mega-market. Consequently, the influx of new business opportunities and advertising has resulted in Chinese consumers increasingly exposed to potentially offensive advertising. While some products and images may seem acceptable when advertised in the West, there are some that may offend Chinese cultural sensitivities. The purpose of this study is to better understand similarities and differences that exist between American and Chinese perceptions surrounding offensive advertising. The results highlight a number of statistical cultural differences that have business implications for international marketers.     

Young Hong Kong managers: Their doubts about 1997

The economic success of Hong Kong—especially when compared to its much larger neighbor the People's Republic of China—has been a source of worry among business leaders in light of the colony's planned reversion back to China in 1997. Young managers in particular are nervous that, under the bureaucratic and repressive dominion of China, economic growth and opportunities will dwindle. How China handles its own affairs, as well as those of Hong Kong, may well affect the region's economy well into the next century.     

Guanxi and Salesforce Management Practices in China

Executives in 111 foreign enterprises selling within the People's Republic of China completed questionnaires examining the extents to which guanxi was recognized as a critical factor in salesforce marketing, and the influences of such recognition on their companies' local salesforce remuneration policies. The results suggest that businesses which did regard guanxi as important for Chinese salesforce marketing were more likely to employ behaviour-based than outcome-based reward systems. This finding is compatible with the proposition that the banking and recall of personal favours, network integration, willingness to rely on partners and other guanxi-related characteristics can lead to sales performances for which outcome-based remuneration systems may not be appropriate. Notwithstanding the influence of guanxi on the manners in which salespeople were paid, volatility in the business environments within which firms operated encouraged their managements to adopt more market-led approaches to remuneration. Differences in the perceptions of the role of guanxi held by managers in foreign firms based in Chinese commonwealth and in other countries were also investigated. It emerged that companies based in the Chinese commonwealth acknowledged the importance of guanxi to a greater extent than companies with headquarters in Western nations. The longer a company had operated in China the more likely it was to incorporate guanxi considerations into its local management systems.     

Key success factors of multinational firms in China

This article presents the latest empirical findings on factors critical to the success of multinational companies (MNCs) investing in the People's Republic of China. The study, based on recent face-to-face interviews with managers from MNCs in China, shows that critical success factors for these MNCs include: CEO's long-term commitment to the Chinese market, thorough predeparture training and feasibility studies, patience and persistence, effective use of Chinese intermediaries, bringing a brand name image, establishing wholly owned structures whenever possible, finding qualified local partners in joint ventures, winning trust from Chinese officials and managers, and developing good human resource management. The study has laid a solid foundation for a quantitative survey of these issues in the future. ©1998 John Wiley & Sons, Inc.     

Innovation and risk-taking in a transitional economy: A comparative study of chinese managers and entrepreneurs

This research was set in the People's Republic of China. As former socialist China moves from central planning toward a more market-driven economy, improved knowledge about the new environment and firm decisions within such an environment has significant implications. For organizational researchers, such a transition represents a genuine shift of paradigm, and thus offers a unique opportunity to test existing organizational theories and develop new ones. For multinational businesses seeking business opportunities, they have to compete or cooperate with these Chinese firms, whether state-owned or privately owned.Motivated by a deep curiosity in, using the language of Williamson (1996), “What is going on there” behind the “bamboo curtain,” and underpinned by a strong conviction that organizational researchers have much to gain as well as to offer by focusing on transitional economies, I undertook this study to examine characteristics of a regulatory environment and the impact on innovation and risk-taking among Chinese managers and entrepreneurs. I collected original primary data that represents managers from large state-owned enterprises (SOEs) and entrepreneurs from small privately-owned enterprises (POEs) through personal interviews and a survey. Significant differences were found between managers and entrepreneurs in their reported environmental characteristics, strategic orientations, size, and firm performance, indicating that managers are not as innovative and are less willing to make risky decisions than entrepreneurs. Being smaller and faster than SOEs, entrepreneurial firms have adopted some strategies that distinguish them from their larger and more established competitors. Speed, stealth, and sound execution allow entrepreneurs to harvest first-mover advantages and thus increase their chances for survival in a turbulent environment.     

Undergraduate Business Education in the People's Republic of China

Abstract

Adaptation to the Market Economy

The People's Republic of China is transforming its economy to a market-driven focus. A key aspect of this is the conversion and elimination of state-owned enterprises. To do this requires a mass education program for enterprise managers. The approach to change examined in this study is based on curriculum internationalization models. This paper examines the needs perceived by potential employers for university graduates. Conclusions are based on in-depth interviews held in and around Shanghai as part of a City University of New York-Shanghai University cooperative program.     

A multiple constituency approach to IJV performance measurement

This paper analyses the differences in the way partner firms assess the performance of international joint ventures (IJV). It is argued that an understanding of these differences is important for the practice of, and for research into IJV management. From a managerial point of view, firms, as well as IJV management, need to know how the partners evaluate the venture's performance. From a research perspective such differences can distort the results of studies that compare the performance of IJVs with other organizational designs or aim to identify the determinants of IJV performance. A multiple constituency approach is employed to develop hypotheses and test them using empirical data gathered through a questionnaire survey among 110 managers of German–Chinese joint ventures (GCJV) in the People's Republic of China. This is supplemented by qualitative data gathered through in-depth interviews with 25 managers. The findings highlight a number of differences regarding the way in which partner firms assess the performance of IJVs that are relevant for practice and research.     

Determinants of the satisfaction of firms with the competencies of university students: a Spanish case study

Spanish universities pay little attention to business demands with regard to workforce training and to the research that has been developed in this area. The present study analyses the effect of various factors on firms’ satisfaction with the education provided by universities. The factors include the content of the student's major subject of study and social, methodological and participation skills. The data were obtained from a survey of businesses. Although the results obtained show that all of the factors have an impact on overall satisfaction, they are not of equal importance. University managers may be able to use the information obtained from this study as a basis for designing and implementing action that might improve employers’ level of satisfaction, which has considerable positive consequences. Moreover, the study's methodology could be applied to other outputs of universities, such as the research performed.     

Perceptions about managerial advancement in the people's republic of China

Cultural differences are evident in the managerial advancement strategies of People's Republic of China managers. Using the findings of prior research for comparison, PRC managers were found to be similar to Hong Kong mangers in not valuing highly the strategies preferred by US managers that emphasize individual achievement. Yet PRC managers differ from the Hong Kong managers in terms of the extent to which information control/networking strategies meet ethical approval. The findings here support the implications of prior studies: awareness of cultural differences is necessary in order to understand managerial behavior and achieve success in international business transactions. © 1995 John Wiley & Sons, Inc.     

The Impact of Individual Needs on Work Behavior: China and North America

ABSTRACT

Twenty individual needs were measured using the Personality Research Form in two different samples in the People's Republic of China (PRC); one sample from Chengdu, the other from Wuhan. Based on reliability estimates, eleven needs were retained for analysis. The Chinese samples were compared with each other and with established North American norms. Gender differences were also examined. Rank order correlations suggest the two PRC samples are relatively similar, and each is different from established North American norms. Implications for Chinese and North American managers working with the other group are discussed, as well as the need for further research.     

The Influence of McClelland's Need Satisfaction Theory on Employee Job Performance

Abstract

As free trade expands and grows in the post-GATT global era, the South African economy will increasingly rely on firms that are able to compete, survive and prosper in the global village. To this end the production factors of these firms, of which human resources are the most important, must be productively utilised and managed. Successful business firms have been linked to the achievement activities of the human resources of these firms.

Despite being a topic of both teaching and research now for almost forty years, uncertainty still exists about McClelland's (1962) assertion that the achievement need (nACH) is a learned need that all people possess. This uncertainty has resulted in the questioning of the motivation and reward strategies of human resource specialists in many firms. Of special importance in the present study is the neglect of achievement motivation of lower-level employees by managers in firms.

By using structural equation modelling the causal influence of the nACH and the other McClelland needs on the performance intentions of managers and frontline employees is assessed in this study. The empiri cal results support the learned need assertion. The findings highlight the disadvantages to firms that disregard the achievement motivation of lower-level employees. The managerial implications of these findings are discussed.     

Multinational Corporations and the Transforming Operational Environment in China

China and the multinational corporations (MNCs) have had a long period of close relationship. In locating operations in China, MNCs beneficially followed the principle of least‐cost location. However, China's economic and business environment has been undergoing a striking transformation. The Chinese economy is losing some of its beneficial emerging‐market traits. Many foreign business enterprises and MNCs have experienced deep erosion of profits. This article first focuses on the growing importance of China and the Chinese markets for foreign business firms and MNCs. The sheer size of the market naturally draws them in. Next, it dwells on the challenges that have evolved over the years and the budding new business environment, often referred to as “the new normal.” Many MNCs realize the need to adapt to the new operating environment in China. This article proposes a list of adaptive and coping measures for the foreign enterprises and MNCs. © 2015 Wiley Periodicals, Inc.     

IMC in an emerging economy: the Chinese perspective

Integrated marketing communications (IMC) planning and implementation vary greatly by market and country. This study, based on the survey data compiled from 135 Chinese marketing executives, focuses on IMC in China's emerging economy, with the goal of providing an outlook of IMC's current development in China while uncovering factors in the country's socioeconomic and business infrastructures that may cause IMC to deviate from the traditional Western model. The study also explores Chinese responses to the rising proliferation of digital media and its implications for IMC development.

The study concludes that despite uneven business development and a current lack of training in IMC-related skills, IMC appears to be the inevitable course or the future of Chinese marketing communications. Due to factors unique to the Chinese business landscape, such as government-owned business structures, political nuances in marketing channel relationships, and uneven development of consumer culture, IMC in China will likely evolve differently than in the US. Survey respondents reveal that IMC is progressing much faster in local, privately owned firms than in their state-owned counterparts. The rise of digital media will also disrupt traditional media outlets, providing challenges to the Chinese marketer.     

Market Orientation and Business Performance in the PRC

Abstract

This study examined the applicability of Narver and Slater's market (1992) orientation model across different economies (planned versus market economy). First, we assessed the scale properties of market orientation from different cities in Mainland China (Hong Kong, Beijing, Shanghai and Guangzhou). Second, we then tested the relationship between market orientation and business performance. Tests for convergent, discriminant and predictive validity across the four Chinese economies with different market environments were supported by our findings. On the other hand, the impact of market orientation on business performance were found to be different across the four cities.     

Examining the impacts of institutional change on knowledge sharing and management learning in the People's Republic of China

As increasing numbers of markets and businesses internationalize, understanding the factors that determine how knowledge is shared and how management learning occurs within international businesses is also becoming more pronounced. In examining management learning in a major transition economy, the People's Republic of China (PRC), this article specifically addresses how institutional developments within this nation are affecting the extent to which knowledge is shared and management learning ensues. The article elucidates new ways of thinking about the role of institutional building for knowledge sharing and management learning and concludes with presenting some challenges for international managers working with institutional changes in the PRC. © 2005 Wiley Periodicals, Inc.     

High Performance Firms in a Complex New China

SUMMARY

A study published in the Journal of Global Marketing(Deshpandé and Farley 2000) found that, for a representative sample of Shanghai firms competing in business-to-business markets, success was related to innovativeness, a high level of market orientation, and outward-oriented organizational cultures and climates. Because of the great cultural diversity of China, questions were raised at that time and subsequently as to whether these results generalize to other parts of China. To the extent that the Shanghai results do generalize, the development of a more general strategy for dealing with Chinese business-to-business markets will be feasible. We compare organizational cultures and personal values of managers in representative samples of firms in six Chinese cities. There are indeed systematic differences among the cities- Beijing, Shanghai, Guangzhou, Tianjin, Shenzhen and Wuxi. Shanghai firms seem the best-positioned for transformation to a more market-oriented economy in terms of innovativeness and market orientation. There are also some differences among State-Owned Enterprises, Joint Ventures, Village-Based Enterprises and Wholly-Owned Foreign Subsidiaries. There are, however, clear patterns of similar response among firms which perform well in terms of high levels of innovativeness and market orientation, plus organizational cultures relatively open to outside influences. All kinds of firms seem to draw their managers from a pool of people who hold much the same kinds of values.     

Efficiency and Ethically Responsible Management

One common justification for the pursuit of profit by business firms within a market economy is that profit is not an end in itself but a means to more efficiently produce and allocate resources. Profit, in short, is a mechanism that serves the market’s purpose of producing Pareto superior outcomes for society. This discussion examines whether such a justification, if correct, requires business managers to remain attentive to how their firm’s operation impacts the market’s purpose. In particular, it is argued that the value of efficiency, despite views to the contrary, cannot be fully separated from the planning and intentions of business managers as long as those managers direct their firms in an ethically responsible fashion. This position is inspired by, and serves as a supportive clarification of Joseph Heath’s so-called “market failures approach” to business ethics.     

What are the drivers of channel length? Distribution reform in The People's Republic of China

The objective of this paper is to develop a model for analyzing the relative importance of the predictors of channel length. Identifying and explaining the factors that influence channel length is one of the most important tasks of channel research. The focus of this paper is The People's Republic of China (hereafter, PRC). The PRC is in transition from a planned to a market economy. As the economy evolves from a planning orientation to a market orientation, distribution structure reform is a critical factor in this process. Yet, very little is known about the factors that shape a nation's channel system. Understanding how improvements in distribution systems contribute to economic development can aid decision-makers in developing countries to improve resource allocation.Drawing from channel structure theory, the proposed model hypothesizes that channel length is a function of economic development, consumption, consumer mobility/outreach, urbanization and government policy. Both cross-sectional and time-series analyses were used for hypothesis testing. The results show that economic development, government policy and consumption are predictors of channel length. These findings show that government policy can aid market reform as economic development takes place, Moreover, the findings show that the evolution of distribution channels is not unidirectional as hypothesized by some, but channels may evolve from short to long and then shorten again.