Proceedings of the International Conference on Chinese Enterprise Research 2007

The International Conference on Chinese Enterprise Research (Iccer) is an annual event organized by the Lien-Chinese Enterprise Research Centre, Nanyang Technological University. Held on 13 and 14 December 2007 at Nanyang Technological University and the Singapore Chinese Chamber of Commerce & Industry respectively, the succeeding Iccer enjoyed immense support from local and international Management scholars, boosting the scale and academic standing of the conference. The conference invited famous keynote speakers, including Professor Zhang Weiying, Dean of Guanghua School of Management, Peking University and Professor Zhao Renwei, former director of the Institute of Economy, Chinese Academy of Social Science. At the same time, attendance also included heads of Nanjing University, Sun Yat-Sen University, Northwest University and Sichuan University's Management and Economics schools, together with research directors and professors of the finest educational institutions. In addition to academic presentations, a panel of prominent economists such as Professor Tan Khee Giap from Nanyang Technological University, Mr Xu Li, General Manager of Industrial and Commercial Bank of China (Singapore) and Mr Jack Niu, Deputy Group Chief Credit Officer, Standard Chartered Bank also deliberated on the topic 'Internationalization of Banks in China'. The keynote speeches, together with a collection of 25 excellent research papers from the conference are presented to the readers in this proceedings. These topics highlight the recent work on the use of nuclei to understand the fundamental symmetries of nature. It presents current results as well as proposals for future experiments. Research Papers......Page 16 Conference Highlights Speech by Guest-of-Honour President, Singapore Chinese Chamber of Commerce and Industry Mr. Chua Thian Poh......Page 12 Preface Secretary, Nanyang Technological University, Anthony Teo and Director, Lien Chinese Enterprise Research Centre, Associate Professor Tan Teng-Kee......Page 14 Keynote Speeches......Page 20 Competitiveness of Chinese Enterprises in the Global Era Weiying Zhang......Page 22 China’s Gradual Economic Reform in Light of Income and Wealth Distribution Renwei Zhao......Page 32 Teaching Technopreneurship to Mandarin Classes: Some Early Results Charles Hampden-Turner......Page 40 Session 1 Global Competitiveness for Chinese Companies......Page 48 A Study on the Development of Global Competency Leadership Shuming Zhao......Page 50 Introduction......Page 52 What is Global Competency Leadership?......Page 53 The challenges facing Chinese companies going global......Page 56 The approaches of developing global competency leadership......Page 57 Professional ability training......Page 59 References......Page 60 Beware the Penrose Effect on High-Growth Enterprises: A Study on Controlling the Rate of Enterprise Growth Xiaoming Xu and Yongmei Zhang......Page 64 Penrose Effect during Enterprises Growth Content of Penrose effect......Page 66 Penrose effect infl icts a signifi cant impact on large-scale enterprises......Page 67 Empirical test of Penrose effect......Page 68 The binding effect of management resource......Page 69 The Necessity of Controlling the Growth Rate......Page 70 Maintain a growth rate of management capacity higher than that of expansion......Page 71 Strengthen the construction of the professional managers markets......Page 72 References......Page 73 Labor Relations Under China’s Mixed Economy Tiande Li and Ruiqin Zhang......Page 74 Conflicting labor relations vs harmonious labor relations......Page 76 Status Quo of Labor Relation in China’s Multi-ownership Economy Actions of public-owned and private enterprises tend to be similar......Page 77 Problems of labor relation in China’s mixed ownership economy......Page 78 Reasons of Labor Confl icts in China’s Mixed Economy......Page 79 Ways to Solve Labor Confl ict Problems in Enterprises of China......Page 81 References......Page 85 China’s Strategy in Acquiring Oil, Gas and Other Energy Resources: A Study of Impact on FDI Sikander Khan......Page 86 Introduction......Page 88 Research Methodology......Page 89 China’s current non-renewable energy sources (fossil)......Page 90 The demand for oil in China......Page 91 What measures are taken to energy effi ciency, save energy and develop alternative energy resources?......Page 92 What is China doing internationally to obtain new energy resources and how are these energy resources being transported to China?......Page 93 How is FDI to China affected due to shortage of energy and strategic industrial raw materials?......Page 95 References......Page 97 Glossary......Page 98 Innovations in Cultural Integration: The Experience of Chinese Enterprises in Cross-National Mergers and Acquisitions — A case study of Northeast Hengli Company’s attempts at reducing cultural risks through the forging of a common identity Dongbin Lu......Page 100 Introduction......Page 102 The Status Quo of Researches on Cultural Integration in Cross-national M&A......Page 103 The Selection of Integration Models of Cross-national M&A......Page 107 The Innovation of Hengli on the Cultural Integration in Cross-national M&A......Page 110 Basis of innovation: Risk identifi cation......Page 111 Innovation in way of thinking: Enhancing identifi cation......Page 113 The implementation: Getting a good grasp of procedures......Page 114 Integration of performance: Multi-effects......Page 116 Conclusions and Discussion......Page 118 References......Page 119 The Composition and Role of Family Boards in Chinese Businesses: A Business Cultural Perspective Lin Guo......Page 122 Introduction......Page 123 Board composition and role......Page 124 Family Business Culture and Board Composition and Role......Page 126 Research Design......Page 128 Family culture and board composition......Page 130 Family business culture and board role......Page 131 Conclusions and Implications......Page 134 References......Page 135 Attaining Corporate Competitiveness Through Soft Power Jinfa Xu, Jian Du and Tao Jiang......Page 138 Power and Soft Power......Page 140 Enterprise Soft Power......Page 141 The Mechanism of Soft Power......Page 142 Corporation Soft Power and Competitiveness......Page 143 References......Page 146 A Study on Excessive Competition of Chinese State-Owned Duopoly Enterprises Cases of China Telecom and China Netcom Qingsheng Wu and Rui Bao......Page 148 Introduction......Page 149 Model and Methodology Decision and profi t analysis......Page 150 Analysis for social welfare......Page 154 Discussion about the effectiveness of competition......Page 156 Empirical Analysis......Page 157 Conclusion......Page 158 Reference......Page 159 Competitiveness of China’s Food Exports: An Empirical Analysis Xing Zhou and Yanping Fan (Bruce)......Page 160 Introduction......Page 161 Analysis of statistical indices......Page 162 Gradual worsening agricultural ecological environment, affecting the developmental prospects of the industry......Page 167 International market is encountering “intangible” trade barrier......Page 169 Keeping up with changes in international standards in a timely fashion, advocate for greater use of international standards in technical and environmental issues......Page 170 More R&D investment, raise the overall quality of food products......Page 171 References......Page 172 Session 2 Financial Market and Capital Market......Page 174 Corporate Restructuring Function of Stock Markets: Key Developmental Proprosals for the Chinese Course Yunshi Mao, Sidan Wu and Yuexin Jiang......Page 176 Introduction......Page 178 Corporate Restructuring Function in Chinese Stock Market......Page 179 Innovations of the Stock Market and the Mechanism of FCR Innovations of the stock market in FCR......Page 181 Mechanism of stock market in FCR......Page 182 The superior effi ciency of the stock market in United States drives corporate restructuring......Page 184 The motive of FCR is lacked in Japanese market......Page 187 Enhancing supervision and institutionalization; ensuring proper fi nancing activities on the stock market......Page 189 Uncompromisingly opposing, punishing and eliminating nonessential restructuring......Page 190 Effectively exerting the function of institutional investors in the stock market......Page 191 References......Page 192 An Empirical Study on the Long-term Dynamic Adjustment of Firms’ Capital Structure in China Zhiqiang Wang and Yixun Hong......Page 194 Introduction......Page 195 Methodology......Page 196 Predicting target capital structure......Page 199 Contemporaneous effects test......Page 200 Sustainable effects test......Page 202 Reverse effects test......Page 204 Robustness Test......Page 206 References......Page 207 How Chinese City Commercial Banks May Compete With Overseas Banks Dongsheng Wang......Page 210 Favorable fi nancial position but weak ability to generate profi ts......Page 211 As the service scale expands, the commercial banks are facing pressures to supplement levels of capital......Page 212 The city commercial bank still has lots of problems in management systems, internal control, risk management and so on......Page 213 Staff quality is in need of improvement......Page 214 Promote the fi nancial service innovation; enhance competitive power of the city bank......Page 215 Establish the persistent effect mechanism for the maintenance of capital suffi ciency......Page 216 Establish comprehensive risk management system......Page 217 Strengthen the construction of corporate culture, and establish modern commercial banking management concept step by step......Page 218 Implement scientifi c innovation, enhance technical levels......Page 219 References......Page 220 Released papers......Page 222 The fi rst transformation — city commercial bank rebuilt as city co-operative bank......Page 224 Highly polarized differences between regions......Page 225 Low social prestige......Page 226 Unreasonable stock property structure, imperfect corporation administration, and weaknesses of internal control and risk management......Page 227 Background of Bank Sector Liberalization......Page 229 Current status of the opening up of China’s banking sector......Page 230 Impact on City Commercial Banks from Finance Industry Liberalization......Page 231 Negative impact on commercial banks......Page 232 Push Chinese commercial banks to enhance client resource management......Page 233 Push Chinese commercial banks to pay more attention to talent management......Page 235 Inter-regional development strategy......Page 236 Development of inter-regional strategic choice: the district strategic advantage......Page 237 Re-organization strategy......Page 238 Positioning for the SMEs......Page 239 Brand Strategy......Page 240 The introduction of foreign strategic investors......Page 241 Listing strategies......Page 242 References......Page 243 Session 3 From “Made in China” to “Designed in China”......Page 244 Analysis of Trends in China’s Venture Capital Industry Zhengping Fu and Binbin Li......Page 246 Background......Page 247 Fundraising situation......Page 249 Essential Feature of China’s VC Investment Market Total amount of VC analysis......Page 251 The stage of investment analysis......Page 252 Exit Strategy Analysis......Page 254 Incubation period (1985–1996)......Page 255 Period of substantial growth (1997–2001)......Page 256 Adjustment period (2002–2003)......Page 257 Full recovery fourth period (2004 till present)......Page 258 References......Page 261 Towards a Network Approach: Trends in China’s Logistics Industry Song-Dong Ju and Jie Xu......Page 264 Introduction......Page 265 The Connotation and Features of Logistics Organization Network The connotation of logistics organization network......Page 266 Demand drives the networking of logistics services......Page 267 Logistics resource integration requires networking......Page 268 Case 1: The collaboration of network among the logistics district......Page 270 References......Page 271 Competing in Global Markets: A Case Study on the Wenzhou Shoe-Manufacturing Industry Yongyi Shou and Jie Wang......Page 274 Introduction......Page 275 Wenzhou’s Manufacturing Industries......Page 276 Wenzhou Shoe Manufacturing Industry......Page 277 Typical Examples of Wenzhou Shoe Manufacturing......Page 279 Analysis and Discussion......Page 281 References......Page 282 A Business Model for Knowledge-Based Service Enterprises in China: The Case Study of Kunshan Joseph Z Shyu, Jou-Chen Chen and Chia-Han Yang......Page 284 Introduction......Page 285 Definition of KIBS......Page 286 Development of BPO......Page 288 Concept of institute for technology commercialization......Page 289 Development of KIBS in China Economic evolution in China......Page 291 Industrial Development in Kunshan City......Page 293 Management of KITC......Page 295 Implementation of KITC......Page 297 References......Page 299 Introduction......Page 302 Literature on Rationales and Impact of R&D Collaborations Rationales of R&D collaborations......Page 304 Impact of R&D collaborations......Page 306 R&D Collaborations in China: Rationales and Impact Increasing foreign competition......Page 307 Division of innovative labor and organizational learning......Page 309 Relationship between rationales and strategies......Page 311 Data and Methods Data......Page 313 Dependent variables......Page 314 Independent variables......Page 315 Control variables......Page 316 Model specification......Page 317 Statistical Results Descriptive Statistics......Page 319 Rationales for R&D Collaborations......Page 320 The Impact of R&D Collaboration on R&D Performance......Page 325 Discussion and conclusion......Page 327 References......Page 329 Innovation Dilemmas of Science-Park Based Chinese University Spin-Outs (USO): A Pilot Case Study Joseph Yuan Zhou......Page 332 Introduction......Page 333 Objective of this Study......Page 334 Theoretical Background......Page 335 Brief Literature Review......Page 336 Innovation......Page 337 Resource-based view......Page 338 The theory of the growth of the firm......Page 340 Dilemma Theory......Page 346 Summary of this section: developing a preliminary framework......Page 349 The case: V2 Technology Inc......Page 350 Reflections on this case......Page 354 Research Design for This 3-Year Research Project......Page 355 References......Page 357 Bridging Universities and Enterprises: A Study on ChineseUniversity Technology Transfer Modes Shichao Li......Page 362 Talk from “The Darwinian Sea”......Page 363 Selection of three modes of Chinese university technology transfer Technology transfer mode......Page 365 Co-operation and participation mode......Page 367 Derived enterprise mode......Page 368 Analysis on Enterprise Adaptability of Three Modes in Practical Level......Page 369 References......Page 371 Session 4 Internationalization and Brand Strategy......Page 372 On the Internationalization of Chinese Brand: The Case of the Shaanxi Blower Group Yongxiu Bai and Hongfang Zhang......Page 374 The Overview of the Research on the Globalization of Brands......Page 375 Exporting products......Page 377 Direct investment in overseas factories......Page 378 Broadening market channel......Page 379 Underlying Factors Affecting on the Choice of Brand Internationalization Mode......Page 380 The feature of technology innovation and maturity level......Page 381 The cultural content of company brands......Page 382 Human resource base and the impact of support functions......Page 383 Impact of key features of the international target market......Page 384 The Case of the Shaangu Group: A Model Brand Internationalization......Page 385 The achievements and characteristics of Shaangu brand building......Page 386 The selection and implementation of its strategic model of brand internationalization......Page 388 Conclusion......Page 389 References......Page 390 Strategies on Brand Internationalization: A Study Based on Business Capability Huiping Ding and Xiaodong Qiu......Page 392 Literature Review......Page 394 Logical Relations Between Business Capabilities and Brand Internalization......Page 395 Business Capability Requirements for Brand Internationalization......Page 396 Resources Allocation for Supporting Brand Internationalization......Page 397 Strategy Development of Brand Internationalization......Page 399 Conclusions......Page 400 References......Page 401 Enterprise Brand Internationalization in China: Challenges and Strategies Wei Zhang......Page 402 Rising entry barriers for brand internationalization......Page 403 Changing modes of brand internationalization......Page 404 Mounting diffi culties faced by China’s brand internationalization......Page 405 The constraints of brand internationalization capacity......Page 406 The Chinese government should focus on talent development......Page 408 The Chinese government must strengthen protection......Page 409 Chief Editor’s Bio......Page 410 Chief Editor’s Bio......Page 412 Keynote speeches. Competitiveness of Chinese enterprises in the global era / Weiying Zhang. China's gradual economic reform in light of income and wealth distribution / Renwei Zhao. Teaching technopreneurship to Mandarin classes: some early results / Charles Hampden-Turner -- Session 1. Global competitiveness for Chinese companies. A study on the development of global competency leadership / Shuming Zhao. Beware the Penrose effect on high-growth enterprises: a study on controlling the rate of enterprise growth / Xiaoming Xu and Yongmei Zhang. Labor relations under China's mixed economy / Tiande Li and Ruiqin Zhang. China's strategy in acquiring oil, gas and other energy resources: a study of impact on FDI / Sikander Khan. Innovations in cultural integration: the experience of Chinese enterprises in cross-national mergers and acquisitions - a case study of Northeast Hengli Company's attempts at reducing cultural risks through the forging of a common identity / Dongbin Lu. The composition and role of family boards in Chinese businesses: a business cultural perpsective / Lin Guo. Attaining corporate competitiveness through soft power / Jinfa Xu, Jian Du and Tao Jiang. A study on excessive competition of Chinese state-owned duopoly enterprises cases of China Telecom and China Netcom / Qingsheng Wu and Rui Bao. Competitiveness of China's food exports: an empirical analysis / Xing Zhou and Yanping Fan (Bruce) -- Session 2. Financial market and capital market. Corporate restructuring function of stock markets: key developmental proprosals for the Chinese course / Yunshi Mao, Sidan Wu and Yuexin Jiang. An empirical study on the long-term dynamic adjustment of firms' capital structure in China / Zhiqiang Wang and Yixun Hong. How Chinese city commercial banks may compete with overseas banks / Dongsheng Wang. City commercial bank strategy in the light of financial sector liberalization / Zhen Liu and Xiangjun Song -- Session 3. From "Made in China" to "Designed in China". Analysis of trends in China's venture capital industry / Zhengping Fu and Binbin Li. Towards a network approach: trends in China's logistics industry / Song-Dong Ju and Jie Xu. Competing in global markets: a case study on the Wenzhou shoe-manufacturing industry / Yongyi Shou and Jie Wang. A business model for knowledge-based service enterprises in China: the case study of Kunshan / Joseph Z. Shyu, Jou-Chen Chen and Chia-Han Yang. R&D collaboration and innovation in China's emerging market / Wubiao Zhou. Innovation dilemmas of science-park based Chinese university spin-outs (USO): a pilot case study / Joseph Yuan Zhou. Bridging universities and enterprises: a study on Chinese university technology transfer modes / Shichao Li -- Session 4. Internationalization and brand strategy. On the internationalization of Chinese brand: the case of the Shaanxi Blower Group / Yongxiu Bai and Hongfang Zhang. Strategies on brand internationalization: a study based on business capability / Huiping Ding and Xiaodong Qiu. Enterprise brand internationalization in China: challenges and strategies / Wei Zhang "The International Conference on Chinese Enterprise Research is an annual event organized by the Lien Chinese Enterprise Research Centre, Nanyang Technological University. Held on 13 and 14 December 2007 at Nanyang Technological University and the Singapore Chinese Chamber of Commerce & Industry respectively, the succeeding International Conference on Chinese Enterprise Research enjoyed immense support from local and international Management scholars, boosting the scale and academic standing of the conference. The conference invited famous keynote speakers, including Professor Zhang Weiying, Dean of Guanghua School of Management, Peking University and Professor Zhao Renwei, former director of the Institute of Economy, Chinese Academy of Social Science. At the same time, attendance also included heads of Nanjing University, Sun Yet-Sen University, Northwest University and Sichuan University's Management and Economics schools, together with research directors and professors of the Anest educational institutions. In addition to academic presentations, a panel of prominent economistssuchas ProfessorTan Khee Giap from Nanyang Technological University, Mr Xu Li, General Manager of Industrial and Commercial Bank of China (Singapore) and Mr Jack Niu, Deputy Group Chief Credit Officer, Standard Chartered Bank also deliberated on the topic 'Internationalization of Banks in China'. The keynote speeches, together with a collection of 23 excellent research papers from the conference are presented to the readers in this proceedings."--BOOK JACKET The International Conference on Chinese Enterprise Research (ICCER) is an annual event organized by the Lien-Chinese Enterprise Research Centre, Nanyang Technological University. Held on 13 and 14 December 2007 at Nanyang Technological University and the Singapore Chinese Chamber of Commerce et Industry respectively, the succeeding ICCER enjoyed immense support from local and international Management scholars, boosting the scale and academic standing of the conference. The conference invited famous keynote speakers, including Professor Zhang Weiying, Dean of Guanghua School of Management, Peking University and Professor Zhao Renwei, former director of the Institute of Economy, Chinese Academy of Social Science. At the same time, attendance also included heads of Nanjing University, Sun Yat-Sen University, Northwest University and Sichuan University's Management and Economics schools, together with research directors and professors of the finest educational institutions. In addition to academic presentations, a panel of prominent economists such as Professor Tan Khee Giap from Nanyang Technological University, Mr Xu Li, General Manager of Industrial and Commercial Bank of China (Singapore) and Mr Jack Niu, Deputy Group Chief Credit Officer, Standard Chartered Bank also deliberated on the topic "Internationalization of Banks in China". The keynote speeches, together with a collection of 25 excellent research papers from the conference are presented to the readers in this proceedings