The Reform of Employee Compensation in China’s Industrial Enterprises

Although employee compensation reform in Chinese industrial sector has been discussed in the literature, the real changes in compensation system and pay practices have received insufficient attention and warrant further examination. This paper briefly reviews the pre- and post-reform compensation system, and reports the results of a survey of pay practices in the four major types of industrial enterprises in China. The research findings indicate that the type of enterprise ownership has little influence on general compensation practices, adoption of profit-sharing plans, and subsidy and allowance packages. In general, pay is linked more to individual performance and has become an important incentive to Chinese employees. However, differences are found across the enterprise types with regard to performance-related pay. Current pay practices are positively correlated to overall effectiveness of the enterprise

SMEs and Entrepreneurship in the era of Globalization: Advances and Theoretical Approaches

Scholars have long studied small and medium-sized enterprises (SMEs) and recognize the need for SMEs to postulate strategies to compete and succeed in the global market. In the current ultra-competitive business environment, SMEs face several internal and external challenges. In this introduction to the Special Issue (SI), we review the theoretical models and frameworks in this stream of research and outline some research questions that could be potentially used in future research in this era of globalization. The six papers selected for inclusion in this SI analyze this field from different angles, offering interesting overviews on the present situation of research in the field, as well as relevant new findings and perspectives for future research

Transformational leadership and follower citizenship behavior: The roles of paternalism and institutional collectivism

The current study examines the relationship between transformational leadership and citizenship behavior as mediated by paternalism. In addition, individual-level institutional collectivism orientation is hypothesized to moderate the relationship between transformational leadership and paternalism. Two hundred and forty-six employees (123 managers/supervisors and 123 subordinates) participated in a survey conducted in eight of the top 45 high-performing firms listed on the Indonesia Stock Exchange. The study suggests that transformational leadership is positively related to follower citizenship behavior through a pervasive cultural feature in the region, that is, paternalism. Individual-level institutional collectivism moderates the relationship between transformational leadership and paternalism, such that the relationship is stronger when institutional collectivism is higher rather than lower. Analysis of mediated moderation also indicates that institutional collectivism moderates the mediating effects of paternalism on transformational leadership–citizenship behavior linkage. Implications of the study findings for research and practice as well as future research directions are discussed at the conclusion of the paper