Voluntary disclosure of intellectual capital in Chinese (mainland) companies

This research examines the extent, quality, and determinants of intellectual capital (IC) disclosure in Chinese companies in order to obtain a comprehensive understanding with regard to the current status of IC disclosure in China, and further to provide some recommendations for IC reporting guidelines. A mixed methods approach, combining both qualitative and quantitative elements, was used. Specifically, the research evolved in three stages. Firstly, an IC disclosure index was developed as an instrument for content analysis through a questionnaire survey and consultation with a panel of twenty Chinese IC experts. Secondly, two years annual reports of 100 top A-share Chinese firms were coded for data collection using a coding framework developed from the disclosure index. The collected data were then quantified and analyzed so as to determine the extent and quality of IC disclosure by Chinese firms. Finally, a series of hypothesis regarding the correlations between IC disclosure practices of Chinese firms and nine impact factors (or determinants) were deduced on the basis of prior literature and some relevant theories. Then the hypotheses were tested employing the empirical evidence obtained from the second stage through some statistical techniques, such as univariate analysis and multiple regression analysis. Inconsistent with prior research, the results in this study indicate that the current level of IC disclosure in China was quite high in both extent and quality, and there was no significant information gap between the expectation of Chinese stakeholders and the actual practices of Chinese firms. It is contended that there are three factors motivating Chinese firms to report their IC actively: to reduce information asymmetry between the management of a company and various stakeholder groups; to discharge accountability to various stakeholders; and to signal organizational legitimacy and excellence to the market. It was also found that all the impact factors other than ownership structure had a significant effect on the level of IC disclosure of Chinese firms in univariate analysis, while four out of nine factors comprising firm size, ownership concentration, board independence and stand-alone sustainability report had a significant impact on the level of IC disclosure in multiple regression analysis. It is believed that the findings in this research could have a number of implications for academics, investors, managers, regulators and policy makers

The impact of diverse factors on the success of Chinese start-ups: Byte Dance's success story

China is ranked second in the world for the number of unicorns (i.e., companies with a valuation of $1 bn USD without being listed on the stock market), with local start-ups driving disruptive innovation. The Western world is sometimes less aware of the success of Chinese unicorns and their economic value. This paper examines the impact of diverse factors on the success of Chinese start-ups. Incorporating evidence from a literature review, interviews, surveys, and databases, this study demonstrates how the start-up ecosystem in China contributes to the success and development of Chinese start-ups. The paper argues that the human capital, venture capital, and governmental initiatives present in China make a firm and dynamic start-up ecosystem. Moreover, the case conducted on ByteDance illustrates country-specific and firm-specific advantages

SME financing in Zhejiang province

This thesis laid the emphasis on Zhejiang Province which SMEs play a dominant role and is characterized with informal finance. The current financial system provided little opportunity for the SMEs to raise fund; companies in temporary illiquidity or facing solvency crisis obviously could not possibly rely upon internal capital for financing. Then, informal finance should be deeply studied. Guiding the informal finance to alleviate the SMEs financing difficulties could make contribution the financial and social stability at large. Therefore, it is a meaningful topic to be studied, both in theoretical and practical perspective. In chapter 2, the focus is mainly laid on studying the status quo of the SME financing in Zhejiang Province and exploring the role formal and informal financing play. Through literatures consulting, a tailor made questionnaire has been designed to learn the basic information, business establishment, business growth and funding sources of the firms. The copies of the questionnaire have been disseminated to the sampled entrepreneurs of SMEs across Zhejiang Province. Through the data collected from the valid copies, we could gain a brief understanding of these firms and its financing situation through basic descriptive statistics. With the data collected from the 150 valid copies, we have gained a brief understanding of these firms and their financing situation through basic descriptive statistics. In chapter 3, we tend to adopt various empirical methods to analyze the relationship of usage of formal (informal) lending and other factors. Correlation analysis, binary regression model and ordered logistic regression model is applied on the collected questionnaire data. With this empirical investigation, we try to further explore what impact these reputation and relationship variables may have on the financing practices they try to employ. From the empirical results, we find that firms with strong political ties, higher education, larger turnover and having received credit rating are more likely to employ formal financing practices. No consistent results have been found for informal financing practices. Moreover, we find that more factors work in the case of global financial crisis while only political ties and credit rating status work in the tightened monetary background like the period after year 2010. Combining these results, we conclude that reputation and relationship are vital in obtaining funds from formal financing channels in China. By contrast, all kinds of SMEs’ entrepreneurs are likely to tap the informal financing market. The finding is critical: on the one hand, the criteria necessary to obtain formal loans are quite stringent; on the other hand, the informal market seems to set no threshold for financing. In the light of these considerations, informal financing will inevitably play a dominant role within the financial system. In chapter 4, we firstly consult the extant literatures to learn the SMEs practice around the world. We then hold interviews with five managers from a commercial bank to learn their mindset towards SMEs business. Then, through the combination of what we find from the literature and the interviews, as well as the empirical results from the previous chapters, we propose specific policy suggestions. Policy suggestions are proposed from three different dimensions: the supply side of funds for SMEs financing (including both the formal and informal financial institutions); and the demand side. Such grand view will offer more insightful understanding in SMEs financing. The policy suggestions proposed are explicit, specific and practical

Augmentation of Chinese community relationships (Guanxi) in learning organisations - case study of a private Kunshan (Shanghai) company

The Kunshan factory enjoyed remarkable success over the past 24 months. The quick response, superior teamwork and scouting capability for opportunity and risk on the part of all staff outperformed that of their counterparts in multinational companies. Family ties, community affection, social ‘face’ and personal recommendations co-ordinated company members well. Chinese community relationships had a consolidating and stabilising function in the factory, enabling a convergent corporate movement. This phenomenal practice is explored here to understand quantitatively the roles of Chinese community relationships (guanxi) and learning organisation practice towards corporate performance. In this research, the bricolage method was adopted to cater for the diverse and vibrant nature in the research context. Ethically, this insider research had to ensure that all factory members received fair treatment in the course of the research. Their comments and reflections on learning organisations and Chinese community relationships had to be objectively recorded for examination. An assurance was made that there would be no impact on their job security and access to company caution money remained unchanged during the research, so that they remained in control. Guanxi encourages participation in community activity, at the same time advocating action learning. In research methods, repeated actions, a form of action research, are performed in cycles with input from stakeholders to develop a directed course of further actions. Soft Systems Method, and associated structural tools such as rich pictures and CATWOE, help factory members to dissect the business challenge. Qualitative interviewing was carried out among key managers to devise a master plan for divestment. All employees were recompensed for the disruption caused. New corporate spin-offs were established through the exchange of favours and scouting for opportunities. Later, a focus group was undertaken to evaluate progress in the business units and to examine the contribution of learning organisations and Chinese community relationships. Seven relational outcomes are identified in this research in this Kunshan factory. They are: 1) 360-degree dialogue; 2) group-level exchange of favours; 3) action learning; 4) acculturation; 5) community-prompted foresight capability; 6) personal recommendation; and 7) outside-in mentality. Collectivism on the part of the Chinese community’s participants equalises individual interests through acculturation to establish a common societal and business goal. Sharing a vision and a goal is a pragmatic means of attaining organisational integration and operational excellence. Self-organised vision and mission are attained swiftly through these seven factors to save the effort of initial ice-breaking and team-building activity. A Chinese social system is regarded as a high-context social system – it depends less on precise wording than collective understanding. The Chinese term ‘guanxi’ is used interchangeably in this thesis with ‘Chinese community relationships’ to describe the subtle and delicate interpersonal social interactions perpetuated among ethnic Chinese people in mainland China and overseas in settlements such as Hong Kong, Singapore, Taiwan and elsewhere. Guanxi comprises two aspects. One is a social construct of Chinese society and the other is the value generated by guanxi in action. In combination these position Chinese community relationships as a mediator of organisational transformation such as the implementation of a learning organisation and improved business performance. Historically, guanxi is perceived as having three characteristics: affection (ganqing, in Chinese), reciprocity (renqing) and credit (xinyong). The learning organisation paradigm describes a continuous process of corporate transformation through collective staff learning, aiming to anticipate and cope with the disruptive commercial challenges of today’s business world. When employees are committed to their organisation, it favours business sustainability. Operational and business risks are mitigated through shared vision and mentality. The attributes of individualism and collectivism substantially influence the implementation of a learning organisation. This research uncovers the mediating effect of Chinese community relationships on learning organisation effectiveness for fast business performance through acculturation and personal recommendation. It reveals the social systems in a Chinese community to empower learning organisation practice. The integrational capability of the seven relational outcomes augments guanxi’s mediating effect in empowering learning organisation practice so as to raise corporate performance substantially

China's Domestic Transformation in a Global Context

The phrase ‘New Normal’ captures the ongoing shift in the pattern and drivers of China’s economic growth. China’s new growth rate is both slower and imposing difficult structural change. These new economic conditions are challenging yet offer opportunities for China and its economic partners. Reforms must be deepened but also make growth more inclusive and environmentally sustainable, over this decade and beyond. This year’s Update offers both global context and domestic insight into this challenging new phase of China’s domestic economic transformation. How are policymakers elevating migrant workers concurrent with increasing consumption? Is China’s government spending enough on education and R&D to ensure it can achieve its aspirations to ascend the global manufacturing value chain and avoid the middle-income trap? Are energy market reforms reducing or increasing the price of gas and electricity in China? What are the consequences of China’s financial reforms and expanding Renminbi trading for foreign banks? What does China’s new growth model mean for the international resources economy and for Africa? Do SOEs face market conditions and are they dominating China’s fast-rising outbound investment? What is China’s strategy for navigating fragmented international trade policy negotiations

Ethics and taxation : a cross-national comparison of UK and Turkish firms

This paper investigates responses to tax related ethical issues facing busines

Executive leadership in China: an investigation into the leadership styles of Chinese executives working for American ventures in mainland China

Leadership and culture are complex fields. Some researchers assert that the transactional-transformational leadership paradigm is universally effective across cultures; whereas, some argue that specific culture traditions and norms, interaction between leaders and followers, as well as core value and belief systems are bound to differentiate leadership styles. It is realized that all these suggestions are subject to challenges and criticism. Adopting a realist philosophy and a case study strategy, this study embodies both qualitative and quantitative perspectives though the quantitative material has been used as an adjunct to the case study interviews rather than as a representative and random survey. Materials have been obtained from sixty five Chinese and American executive level managers within medium to large sized wholly American-owned companies of electronics industry in mainland China. This study argues that leadership seems to be oversimplified in Bass’ two-factor theory since there are a number of flaws that exist within the literature. The case analysis indicates that the leadership styles of Chinese and American executives can be both transformational and transactional. However, the findings suggest that American executives generally exhibited obvious transformational leadership, but also transactional contingent reward; conversely, Chinese executives displayed modest transformational leadership and more transactional management-by-exception (active)

The Case of the Autonomous Region of Madeira

Tourism has been highlighted as one of the sectors with the greatest potential for expansion on a global scale, so it is important to try to understand the factors of innovation and regional competitiveness in this sector. Competitiveness, particularly in the tourism sector, has experienced in recent decades an unprecedented development of experiences and now plays a very important role in markets and industries. However, the success of the tourist destinations in the world and regional markets is in a way influenced by their relative competitiveness. In this sense, innovation is a very important catalyst for the survival and growth of tourism and it is recognized the positive impacts, revealing that the innovative behaviors and products improve financial and economic performance positively. In this PhD thesis, several topics are analyzed, although some still need future investigation, related to the importance of the regional competitiveness and innovation for the tourism sector. This investigation is made up of four empirical studies with geographic focus in the Autonomous Region of Madeira. The first study of this PhD thesis (chapter 2), entitled “Regional Competitiveness and Innovation in the Tourism Sector: A Systematic Review and Bibliometric Analysis", aims to carry out a mapping of scientific publications, intellectual knowledge, trends research and potential future lines of investigation in the areas of the regional competitiveness and tourism innovation. It is used a systematic literature review using a bibliometric approach, based on the VOSviewer Software, focusing on the creation of the intellectual structure visualization maps. The analysis type is based on the number of published articles and number of annual citations, for the period from 1900 to 2016, through the Web of Science database. The results show that the intellectual structure of the regions' competitiveness is divided into three main categories: regional competitiveness, tourism innovation and tourism cluster. The main contribution of this study is the identification of the main research trends in this area and its gaps and specific needs of future scientific research within this field of research. The second empirical study (chapter 3), entitled "Impact of Satisfaction of Tourist Events as a Regional Tourist Competitiveness Product", aims to analyze the impact and contribution of satisfaction with tourist events as a product of regional tourist competitiveness, as well as evaluate factors of competitiveness. For that, a questionnaire was carried out on the four major tourist events in the Autonomous Region of Madeira (Carnival, Flower Festival, Atlantic Festival, and Wine Festival). The sample is composed of 2262 tourists surveyed during the year 2017 and structural equation models were used as statistical method. The results show that satisfaction is reflected in the client's loyalty to the choice of a tourist destination and it also contributes, directly and indirectly to the regional tourist competitiveness. This study contributes to the valorization of local and regional events, perceived by the level of satisfaction and loyalty of tourists, as products of regional competitiveness of a tourist destination. The third empirical study (chapter 4) entitled "Entrepreneurial Craft Products as Regional Tourist Competitiveness", aims to explore and analyze the role of handcrafted products in entrepreneurship and regional tourist competitiveness. This study is based on secondary data from different sources (Regional Statistics Office of Madeira, Institute of Wine, Embroidery and Handicraft of Madeira) and it covers the last 15 years (2001 - 2015). It was made a quantitative analysis of the data through an econometric approach using Pearson's regression and correlation models. The study contributes with empirical evidence which helps us to identify the role of handcrafted products for the entrepreneurial capacity and tourist competitiveness of a region. In addition, it also contributes to the knowledge of the scientific community with particular interest in artisan entrepreneurship, cultural and regional competitiveness in the tourism sector. Finally, the fourth and final empirical study of this PhD thesis (chapter 5) entitled "Innovation as a driver of the competitiveness of business tourism", aims to analyze factors and barriers to innovation and their impact (direct and indirect) on the competitiveness of the destination and business competitiveness. Based on primary data collected by a questionnaire from a sample of 119 companies operating in the tourism sector in the Autonomous Region of Madeira (Portugal), a quantitative methodology was applied using econometric and multiple linear regression models. The study empirically identifies and tests existing relationships underlying innovation (factors and barriers) as a level for the competitiveness of destination and business. The results show important theoretical and practical implications in the contribution of innovation to destination and business competitiveness, thus contributing to filling the gaps identified in the literature.O turismo tem sido destacado como um dos setores com maior potencial de expansão à escala mundial, deste modo torna-se importante tentar compreender os fatores de inovação e competitividade regional nesse setor. A competitividade, em particular no setor do turismo, tem enfrentado nas últimas décadas um desenvolvimento de experiências sem precedentes e desempenha agora um papel muito importante nos mercados e indústrias, no entanto o sucesso dos destinos turísticos, nos mercados mundiais e regionais é de certo modo influenciado pela sua competitividade relativa. Neste sentido, a inovação é um catalisador muito importante para a sobrevivência e crescimento de turismo e são-lhe reconhecidos os impactos positivos, revelando que os comportamentos e produtos inovadores melhoram positivamente desempenhos financeiros e económicos. Nesta tese de doutoramento são analisados vários tópicos, embora alguns ainda carecem de futura investigação, relacionados com a importância da competitividade regional e da inovação para o setor do turismo. Esta investigação é constituída por quatro estudos empíricos com foco geográfico na Região Autónoma da Madeira (RAM). O primeiro estudo desta tese de doutoramento (capítulo 2), intitulado “Competitividade Regional e Inovação no Setor do Turismo: Uma Revisão Sistemática e Análise Bibliométrica”, tem como objetivo a realização de um mapeamento, das publicações científicas, do conhecimento intelectual, das tendências de investigação realizadas e potenciais linhas futuras de investigação nas áreas da competitividade regional, cluster do turismo e inovação turística. Utiliza-se uma revisão sistemática da literatura mediante uma abordagem bibliometrica, com base no Software VOSviewer, com foco na criação dos mapas de visualização de estrutura intelectual. O tipo de análise é baseado no número de artigos publicados e número de citações anuais, para o período de 1900 a 2016, através da base de dados Web of Science. Os resultados evidenciam que a estrutura intelectual sobre a competitividade das regiões divide-se essencialmente em três grandes categorias: competitividade regional, inovação turística e cluster do turismo. O principal contributo deste estudo prende-se com a identificação das principais tendências de investigação nesta área e respetivas lacunas e necessidades específicas de investigação científica futura dentro deste campo de investigação. O segundo estudo empírico (capítulo 3), intitulado “Impacto da Satisfação dos Eventos Turísticos como Produto de Competitividade Turística Regional”, tem como objetivo analisar o impacto e contributo da satisfação com eventos turísticos enquanto produto de competitividade turística regional, bem como avaliar fatores de competitividade. Para tal foi realizado, um estudo por questionário aos quatro maiores eventos turísticos da Ilha da Madeira (carnaval, festa da flor, festival do atlântico, e festa do vinho), região insular localizada em Portugal. A amostra é composta por 2262 turistas inquiridos durante o ano de 2017 e foram utilizados modelos de equações estruturais, como método estatístico. Os resultados evidenciam que a satisfação se reflete na fidelidade do cliente quanto à escolha de um destino turístico e contribui ainda, direta e indiretamente para a competitividade turística regional. Este estudo contribui para a valorização dos eventos locais e regionais, percecionada pelo nível de satisfação e fidelização dos turistas, como produtos de competitividade regional de um destino turístico. O terceiro estudo empírico (capítulo 4) intitulado “Produtos Artesanais Empreendedores como Competitividade Turística Regional”, tem como objetivo, explorar e analisar o papel dos produtos artesanais no empreendedorismo e competitividade turística regional. Este estudo tem por base dados secundários de diferentes fontes (Direção Regional de Estatística da Madeira, Instituto do Vinho do Bordado e do Artesanato da Madeira) cobrido o período temporal dos últimos 15 anos (2001 – 2015). Foi feita uma análise quantitativa dos dados através de uma abordagem econométrica com recurso a modelos de regressão e correlação de Pearson. O estudo contribui com evidências empíricas que nos ajudam a identificar o papel dos produtos artesanais para a capacidade empreendedora e competitividade turística de uma região. Para além disso, contribui ainda para o conhecimento da comunidade científica com particular interesse no empreendedorismo artesanal, cultural e competitividade regional no setor do turismo. Finalmente, o quarto e último estudo empírico desta tese de doutoramento (capítulo 5) intitulado “Inovação como motor da competitividade do turismo empresarial”, tem como objetivo analisar fatores e barreiras de inovação e o seu impacto (direto e indireto) na competitividade do destino e competitividade empresarial. A partir de dados primários recolhidos por questionário a uma amostra de 119 empresas a operar no setor do turismo, na região autónoma da Madeira (Portugal), foi aplicado uma metodologia quantitativa com recurso a modelos econométricos e de regressão linear múltipla. O estudo identifica e testa empiricamente relações existentes e subjacentes à inovação (fatores e barreiras) enquanto alavanca para a competitividade do destino e empresarial. Os resultados evidenciam importantes implicações teóricas e práticas na contribuição da inovação para a competitividade de destino e empresarial, contribuindo assim para ao preenchimento das lacunas identificadas na literatura