Skip to Main Content
International Business Institute

China Article and Book Chapter Abstracts

China Article and Book Chapter Abstracts

A Bibliography of Ivey-authored China-Related Publications
As of August 29, 2017

Refereed Articles

Beamish, P.W., 2017, "The Transferability of Western Business Education to the East", Journal of Management Studies, Forthcoming.

Keywords : Case method; Innovation; Knowledge transfers.

Abstracts : This essay focuses on the transference of a business education practice common in the West – the use of the case method – to the East (specifically China).  It is framed according to Rogers’ ‘Diffusion of Innovation’ model.  Selective innovation examples from 21 case studies across 15 “contextual” themes are presented.  They include specific reference to theories, models, and cultural traditions from various countries in the east.  Milestones are reviewed regarding the introduction of the case method which were initiated in China.  The paper argues that China has completed the early majority stage in terms of the diffusion of the case method in its business schools.

 

Cui, V., Vertinsky, I., Robinson, S., Branzei, O., 2016, "Trust in the Workplace: The Role of Social Interaction Diversity in the Community and in the Workplace", Business and Society, Forthcoming.

Keywords : Social interaction; Diversity; Social trust; Community; Workplace; Individualistic and collectivistic cultures.

Abstract : Extending the literature on social capital development in the community, this article examines the impact of diverse social interactions (in the community and the workplace) on the development of social trust in the workplace, and investigates whether their effects differ in individualistic and collectivistic cultures. Using survey data collected in Canada and China, the authors find that the diversity of one’s social interactions in the community is positively associated with one’s social trust in the workplace, and this relationship is not significantly different between the two cultures. Diversity of one’s social interactions in the workplace is also positively associated with one’s social trust in the workplace, though only in collectivistic cultures.

 

Peng, A.C., Zeng, W., 2017, "Workplace Ostracism and Deviant and Helping Behaviors: The Moderating Role of 360 Degree Feedback", Journal of Organizational Behavior, 38(6): 833 - 855.

Abstract : Drawing on sociometer theory, we argue that when 360 degree feedback is used in a work setting, being ostracized by coworkers has a stronger negative influence on employees' state self-esteem, which promotes interpersonal deviance and demotivates helping directed toward coworkers, as compared to settings in which 360 feedback is not used. We tested our hypotheses using data collected from North American employees (Study 1) and a two-wave survey of employees in China (Study 2). Results from both studies support the hypothesized interaction between workplace ostracism and 360 degree feedback on interpersonal deviance and helping behavior. Results from Study 2 further show that lower state self-esteem accounts for the stronger negative association of ostracism with helping behavior among employees who are exposed to 360 degree feedback. Ostracism is not related to subsequent state self-esteem or behavior when 360 degree feedback is absent. We discuss the implications for theory and research concerning employee exclusion.

 

Stallkamp, M., Pinkham, B.C., Schotter, A., Buchel, O., 2017, "Core or Periphery? The Effects of Country-of-Origin Agglomerations on the Within-Country Expansion of MNEs", Journal of International Business Studies, Forthcoming.

Abstract : We show how the initial subnational entry location of foreign multinational enterprises (MNEs) in China influences their subsequent within-country location choices and expansion speed. We distinguish between MNEs that establish their first subsidiary in co-ethnic cores—dense agglomerations of other firms from the same country of origin—and MNEs that locate their first subsidiary in the periphery, i.e., outside of these co-ethnic cores. To identify co-ethnic cores in China, we employ a geo-visualization methodology, which draws the boundaries of cores organically and dynamically over time. We contrast our findings with the prevailing approach of using static administrative boundaries for identifying agglomerations. Our results provide evidence of path dependency, in that (a) entry through subnational locations with strong co-ethnic communities is followed by expansion into other locations where co-ethnic communities are present, and that (b) entry through co-ethnic communities accelerates the pace at which MNEs establish additional subsidiaries in China. We also find that co-ethnic community effects continue to influence within-country MNE activities over time, despite a host of economic, institutional, and investment developments.

 

Jiang, M., Branzei, O., Xia, J., 2016, "DIY: How Internationalization Shifts the Locus of Indigenous Innovation for Chinese Firms", Journal of World Business, 51(5): 662 - 674.

Keywords : Knowledge; Emerging market firms; Internationalization; Indigenous innovation.

Abstract : We elaborate theories of indigenous innovation by explaining how internationalization choices help emerging market firms transition from dependence on external knowledge to self-reliance on internal knowledge. Using a 1998–2007 census dataset of Chinese manufacturing firms, we theorize and test the moderation effect of foreign equity and export orientation on the relationship between knowledge and indigenous innovation. We show that foreign equity dis-incentivizes, while export orientation incentivizes, investments in internal knowledge. We contribute by showing that internationalization choices may radically change indigenous innovation outcomes by shifting the locus of problem solving outside or inside the firm. Our study corroborates the negative direct and indirect effects of external knowledge on indigenous innovation at the firm level previously suggested by China-centric scholars but also shows how two types of internationalization choices may gradually relieve firm-level dependence on imported technology. We bridge the gap between Western research and Chinese thought and practice by introducing a do-it-yourself (DIY) explanation of how firms may implement China’s indigenous innovation (zizhu chuangxin) policy.

 

Zhu, Y., Konrad, A.M., Jiao, H.J., 2016, "Violation and Activation of Gender Expectations: Do Chinese Managerial Women Face a Narrow Band of Acceptable Career Guanxi Strategies?", Asia Pacific Journal of Management, 33(1): 53 - 86.

Keywords : Stereotype activation; Gender roles; Social capital; Human capital; Guanxi; Chinese women managers.

Abstract : We proposed a conceptual model arguing that stereotype violation and stereotype activation combine to create a narrow band of acceptable career strategies for women in management. Utilizing a sample of 324 Chinese managers (162 pairs of women and men matched on education, years of work experience, and employing organization), we examined the effects of gender on three career development outcomes: number of subordinates supervised, life satisfaction, and career satisfaction. Results indicated that being female had a significant negative main effect on all three outcomes. Ten significant interactions supported the theoretical effects of both stereotype violation and activation on women’s managerial career development, consistent with our conceptual model. The findings suggest that Chinese women in management face a narrow band of acceptable career strategies, especially in the area of creating social capital. The results highlight the importance of testing both stereotype violation and stereotype activation effects and of creating social capital through appropriate networking.

 

Busaba, W.Y., Guo, L., Sun, Z., Yu, T., 2015, "The Dark Side of Cross-Listing: A New Perspective from China", Journal of Banking & Finance, 57: 1 - 16.

Keywords : Cross-listing; Agency problem; Tunneling.

Abstract : An interesting phenomenon for Chinese firms that list their stock both in China and abroad is that the overwhelming majority had gone public, and listed, abroad first. We find that when these companies return to China to issue stock and list, they experience poorer post-issuance stock and operating performance in comparison to purely domestic issuers. Also, they raise more funds relative to their sales, leave less money on the table for investors, and incur lower direct flotation costs. Among returning firms, those which raise higher proceeds relative to sales experience poorer long-run stock performance and lower Tobin’s q post issuance. Our results offer a new perspective on cross-listing, which we term “dressing-up-for-premium”. Firms from less-developed markets take advantage of the enhanced visibility and prestige associated with the foreign listing to issue shares domestically at inflated prices and favorable terms, and to raise greater proceeds than they can efficiently use.

 

Su, N., 2015, "Cultural Sensemaking in Offshore Information Technology Service Suppliers: A Cultural Frame Perspective", MIS Quarterly, 39(4): 959 - 983.

Keywords : IT outsourcing; IT supplier; cultural sensemaking; cultural frame; China.

Abstract : In today’s global IT outsourcing relationships, individual employees need to operate effectively in culturally diverse environments. Such intercultural interactions can be especially challenging for members of IT service suppliers based in offshore locations. Through an in-depth qualitative case study of one of the largest China-based IT service firms with diverse clients from Japan, the United States, and China, this research elaborates the cultural sensemaking activities of the supplier’s individual employees. Specifically, drawing on the dynamic constructivist view of culture, this study develops the construct of “cultural frames” in the context of global IT outsourcing to characterize the knowledge structures guiding an individual’s collaboration with diverse clients. A portfolio of cultural frames emerges and evolves through the individual’s cultural sensemaking activities, which consist of the iterative enactment, alignment, and retention of cultural frames. In the cultural sensemaking process, the activity of frame bridging, in particular, creates significant value for the outsourcing relationship, and is especially salient among bicultural employees.

 

Schotter, A., Teagarden, M., 2014, "Protecting Intellectual Property in China", Sloan Management Review (MIT), 55(4): 41 - 48.

Abstract : Intellectual property (IP) protection is the No. 1 challenge for multinational corporations operating in China. According to the U.S. government, China accounted for nearly 80% of all IP thefts from U.S.-headquartered organizations in 2013, amounting to an estimated $300 billion in lost business. Among European manufacturers, the loss of IP in China reduced potential profits by 20%.The effects from IP leakage in China are ubiquitous. They are visible in counterfeited items including toys, luxury goods, automotive and aircraft parts, pharmaceuticals and other complex high-tech products. But IP violations go beyond products. They extend to pirated operational processes and the replication of entire business and service models. Although multinational corporations can’t afford to stay away from China, in order to remain competitive they must develop mechanisms that enable them to shift some of their innovation capabilities to China safely, without losing critical know-how. To learn about how companies are managing the China IP protection challenge, we studied more than 50 multinational corporations. We identified nine IP protection practices that can be used as a web of protection including (1) Developing strategic clarity; (2) Collecting business intelligence; (3) Following legal fundamentals; (4) Creating interest alignment; (5) Disaggregating processes; (6) Implementing a controls discipline; (7) Creating dynamism; (8) Managing human resources strategically and; (9) Engaging in focused corporate social responsibility activities. These practices allow corporations to expand faster within China and across other emerging markets while enhancing local and global innovativeness, which leads to improved performance.

 

Su, N., 2013, "Internationalization Strategies of Chinese IT Service Suppliers", MIS Quarterly, 37(1): 175 - 200.

Keywords : IT outsourcing; Supplier’s perspective; Internationalization; Strategy process; China.

Abstract : With China emerging as a new frontier of global IT outsourcing, many Chinese IT service suppliers are actively expanding in three major markets: Asia, especially Japan, the West, especially the United States, and the Chinese domestic market. Compared to multinational suppliers and established Indian suppliers, Chinese IT service firms are at a relatively early, but rapidly growing stage, which offers a unique opportunity to explore an understudied topic in the information systems literature: internationalization strategies of IT service suppliers from emerging economies. Through a three-part qualitative case study of 13 China-based IT service firms, including almost all of the Chinese suppliers recognized globally, this study elaborates the internationalization behavior and decision rationale of these suppliers. The findings show that these major Chinese suppliers include both firms that incrementally internationalize and firms that are 'born global.' For both types of firms, the entry and growth in different markets is a highly dynamic activity combining a strategically planned, resource-seeking process and a flexible, opportunistic bricolage process based on existing operation capabilities and client relationships. The suppliers dynamically oscillate between these processes to exploit and create opportunities while expanding in multiple markets.

 

Tjosvold, D., Peng, A., Chen, Y.F., Su, F., 2013, "Individual Decision-Making in Organizations: Contribution of Uncertainty and Controversy in China", Group Decision and Negotiation, 22(4): 801 - 821.

Abstract : Uncertainty has been thought to challenge the cognitive capabilities of managers and thereby undermine their decision-making abilities. However, managers who experience uncertainty in that they are unsure of the adequacy of their own position may open-mindedly consult with their colleagues in the organization before they make the decision. A sample of 122 Chinese mainland managers described and rated a critical incident when they tried to make a decision. Regression analyses indicated that to the extent that managers initially felt uncertain about the solution they engaged in constructive controversy, i.e. the open-minded discussion for mutual benefit, which, in turn, led to effective decision-making. Cooperative goals further moderated the association of uncertainty with cooperative goals such that the positive association was stronger with less cooperative goals. These results underline the positive role of uncertainty in solving difficult problems, especially under competitive goals.

 

Tang, J., Rowe, W.G., 2012, "The liability of closeness: Business relatedness and foreign subsidiary performance", Journal of World Business, 47(2): 288 - 296.

Keywords : Liability of closeness; Business relatedness; Foreign subsidiary performance; China, Japan foreign direct investment.

Abstract : It is widely accepted that business relatedness, defined as the extent to which a foreign subsidiary is related to its parent’s core business, has a positive effect on subsidiary performance. With a sample of 165 Japanese subsidiaries located in China, however, we found that modestly related subsidiaries, on average, outperformed both unrelated and closely related subsidiaries, and that closely related subsidiaries performed poorly especially when the parent had a heavy majority ownership in the subsidiary and the subsidiary was at its early stage of operating in the host market. Our results indicate that being too closely related to the parent could be potentially detrimental, suggesting a liability of closeness.

 

Schotter, A., Beamish, P.W., 2011, "General Manager Staffing and Performance in Transition Economy Subsidiaries", International Studies of Management and Organization, 41(2): 57 - 89.

Keywords : Transition economies; Multinational corporation; Foreignness and emerging markets; Cross-cultural issues in HRM; Role of formal and informal networks; FDI legitimacy; Joint venture; China.

Abstract : Drawing from institutional theory, we address the issue of local versus expatriate subsidiary CEO staffing decisions of multinational corporations (MNCs) at the sub-national level. Our analysis of 2315 MNC subsidiaries in China shows that foreign direct investment (FDI) legitimacy is a reliable measure of institutional environment differences at the sub-national level and that the commonly used country level measures including institutional distance and cultural distance mask pertinent within-country differences. MNCs that invest in Chinese provinces with lower FDI legitimacy use more local nationals as subsidiary CEOs compared to provinces with higher FDI legitimacy. In provinces with low FDI legitimacy, subsidiaries with local CEOs perform relatively better than subsidiaries with expatriate CEOs. This effect is particularly strong for wholly foreign owned subsidiaries and applies to all provinces except the most developed coastal regions. In provinces with higher levels of FDI legitimacy these effects are reversed.

 

Tzeng, C-H, Beamish, P.W., Chen, S-F.S., 2011, "Institutions and entrepreneurship development: High-technology indigenous firms in China and Taiwan", Asia Pacific Journal of Management, 28(3): 453 - 481.

Keywords : Institutional environments; Entrepreneurship development; High-technology firms in China and Taiwan.

Abstract : This study takes an inductive approach in analyzing the roles played by the state, the market, and the social sector in indigenous entrepreneurship development. Data collected from six high-technology companies in China and Taiwan serve to broaden our prior knowledge on how the three institutions work collectively in nourishing indigenous firms at three stages of entrepreneurship development. At the start-up stage, the state influences a firm’s entrepreneurial motivation by creating contexts, providing necessary financial resources, and setting up policy hurdles. At the growth stage, the social sector facilitates technology transfer to indigenous firms and protects them from lawsuits filed by multinational corporations. At the mature stage, the market allows multinational corporations to either enhance or destroy the technological capabilities of local firms. These findings provide strong theoretical and policy implications.

 

Delios, A., Beamish, P.W., Zhao, X., 2009, "The Evolution of Japanese Investment in China: From Toys to Textiles to Business Process Outsourcing", Asia Pacific Business Review, 15(3): 323 - 345.

Keywords : Japan; FDI; China; Emerging markets; Regional strategy.

Abstract : The nature of Japanese firms' international activity in China has undergone a substantive change in the 1995-2006 period. Japanese companies compete actively in many more regions in China, and they have shifted their investment strategies in the various provinces and municipalities in China to reflect the new competitive realities created by rapid economic development in the East, mid-South and North regions of China. The changing nature and evolution of Japanese international activity has created substantial opportunities and challenges to scholars and practitioners alike. The challenge comes from trying to develop a nuanced understanding of sub-national variations in Japanese firms' strategies in China. The opportunities come from the chance to deepen research in three particular areas of scholarly endeavour: (1) subsidiary development and multinational firm strategy; (2) institutions and international business; and (3) offshoring, outsourcing and international business theory.

 

Beamish, P.W., Bapuji, H., 2008, "Toy Recalls and China: Emotion Vs. Evidence", Management and Organization Review, 4(2): 197 - 209.

Keywords : Product recalls; Toy recalls; Evidence-based management; Global supply chains; China; Emerging markets.

Abstract : Product recalls in 2007 raised serious questions about the safety of products made in China and resulted in widespread outrage. Our analysis of toy recalls in the U.S. between 1988 and 2007 revealed that the vast majority of recalls were due to flaws in product designs, conducted in the corporate headquarters of toy companies, rather than to poor manufacturing by the factories in Asian countries. Also, we found that the recalls have increased over the years, due both to design and manufacturing flaws. Our findings generated wide-spread interest and influenced the course of debate on import product safety. Our findings and experiences have significant implications for the research on product quality in international operations and the role systematic research evidence can play in shaping management practice and public debate.

 

Peng, G., Beamish, P.W., 2007, "Evolving FDI Legitimacy and Strategic Choice of Japanese Subsidiaries in China", Management and Organization Review, 3(3): 373 - 396.

Keywords : Density dependence theory; Entry mode; Expatriate staffing; FDI legitimacy; Institutional theory; Strategic choice; International; Emerging markets.

Abstract : We examine how evolving FDI legitimacy in China influences two strategic choices (entry mode and expatriate staffing) of Japanese subsidiaries there over the period 1993-2000, based on data aggregated from Toyo Keizai and the National Bureau of Statistics of China. As FDI legitimacy improves over time, we find that smaller subsidiaries tend to choose the wholly-owned subsidiary mode and deploy a higher percentage of expatriates, whereas larger subsidiaries tend to choose the joint venture mode and use a lower percentage of expatriates; and that Japanese subsidiaries are more likely to have a local manager, and this tendency may be stronger for larger subsidiaries. The theoretical and practical implications of these findings are discussed from a density dependence theory perspective.

 

Lu, J., Beamish, P.W., 2004, "Network Development and Firm Performance: A Field Study of Internationalizing Japanese Firms", Multinational Business Review, 12(3): 41 - 61.

Keywords : Emerging markets; Internationalization; Networks, FDIs; Alliances; Performance.

Abstract : This paper explores the potential competitive advantages from the development of an internal network of subsidiaries and external network of alliances. Given the broad scope and lack of systematic investigation in prior research, clinical field research was conducted in eleven Japanese subsidiaries in China. Our in-depth interviews revealed that there are benefits and costs associated with the development of both subsidiary networks and alliance networks. While there are exploitation and exploration benefits from subsidiary network development, internationalizing firms (especially smaller firms) are subject to the liability of foreignness. Alliance network development is an effective way to mitigate this liability if internationalizing firms choose the right alliance strategy.

 

Beamish, P.W., Jiang, R., 2002, "Investing Profitably in China: Is It Getting Harder?", Long Range Planning, 35(2): 135 - 151.

Keywords : Emerging markets; FDI; China; Ownership; Subsidiaries; Japan; International.

Abstract : Using information from the Japanese database Toyo Keizai, this article studies the performance of 2,962 foreign subsidiaries across the period 1985-1999 to show a picture of declining profitability from foreign direct investment by MNE's in China. Despite the influence of macro-level factors, such as the historically fluctuating performance of the Chinese economy, we observed that of the many factors that may affect profitability, subsidiary-specific factors had the greater influence. The findings suggest that there are significant benefits for early entrants into the market, but caution against the use of high majority ownership control. Other evidence showed that larger subsidiaries tended to perform better. Managerial implications for MNEs and the future prospects of foreign direct investment in China are discussed.

 

Dawar, N., Chattopadhyay, A., 2002, "Rethinking Marketing Programs for Emerging Markets", Long Range Planning, 35(5): 457 - 474.

Keywords : Emerging markets.

Abstract : We point to a fundamental inconsistency in the emerging market strategies of multinational firms. On the one hand, they seek billions of new consumers in the emerging markets of China, India, Indonesia, and Latin America; on the other, their marketing programs are scarcely adapted for these markets. The result is low market penetration, low market shares, and poor profitability. These multinationals are trapped by their own devices in gilded cages, serving the affluent few and ignoring the potential of billions of new consumers that attracted them in the first place. In this paper, we propose that, in order to attract billions of new consumers, the marketing programs of multinationals need to be rethought from the ground up. We identify three key factors that characterize emerging markets: (1) low incomes, (2) variability in consumers and infrastructure, and (3) the relative cheapness of labor, which is often substituted for capital. We draw on numerous case studies from around the world to illustrate how to incorporate these realities into marketing programs. We conclude with a discussion of the implications of such an approach for the multinational's core strategic assumptions.

 

Beamish, P.W., 1993, "The Characteristics of Joint Ventures in the People's Republic of China", Journal of International Marketing, 1(2): 29 - 48.

Keywords : Emerging markets; Planned economy; Market economies; LDCs; Joint ventures; Foreign partnerships; Comparative studies; Characteristics.

Abstract : The characteristics of international equity joint ventures in the People's Republic of China (PRC) are compared to joint ventures in developing country market economies. The characteristics of Sino-foreign joint ventures were derived from 12 studies published since 1986. Twelve joint venture characteristics are reviewed along dimensions of design, management, and performance. Joint ventures in the PRC are frequently used, created due to government pressure and with government partners, and often formed with partners from ethnically related countries. Further, many intended joint ventures are never implemented and those that are implemented have often been set up for a predetermined duration. The foreign partner most commonly has a minority equity position, and those who have used split control have seen stronger performance. Overall joint venture stability has been high, but is expected to decline, and foreign partner satisfaction with performance is low.

 

Beamish, P.W., Wang, H., 1989, "Investing in China Via Joint Ventures", Management International Review, 29(1): 57 - 64.

Keywords : Emerging markets; Joint ventures; Foreign investment; China; International.

Abstract : Data on 840 joint ventures (JV) formed in the Peoples' Republic of China between foreign and Chinese organizations are taken from the China Investment Guide (1985, 1986), entered into a computerized database, and statistically analyzed using a frequencies program. These data cover: 1. the region of investment in China, 2. the industry where the investment occurred, 3. the total investment in US dollars, 4. the foreign equity contribution in US dollars, and 5. the predetermined duration in years of the JVs formed. Foreign firms considering investing in China typically are pointed in the direction of the 4 Special Economic Zones, the Major Municipalities, or the 14 Coastal Cities. Up to 1984, more then 75% of the JVs in China were with partners from Hong Kong. Most of the JVs established have been in the manufacturing sector, with accommodation, particularly tourism, being the 2nd largest area. Foreign investors must remember that a long-term, flexible attitude is needed at all times.

 

Non-Refereed Articles

Su, N., 2011, "China's Domestic Market for Software and Information Services", Cutter Consortium Executive Report

Abstract : China's national government has devised a strategic plan to support the growth of the software and information services industry. The plan focuses on improving the industry's innovative capability and increasing information services innovation. The plan sets a specific goal, which is increasing the proportion of software and information services revenue in the overall electronics and information industries from 12% to 15%.

 

Su, N., 2011, "China's IT Outsourcing Industry after the Global Financial Crisis", Cutter Consortium Executive Report.

Abstract : The global financial crisis from 2007 to the present has been viewed as an opportunity by many Chinese business leaders. According to a 2010 ranking of the global Tech 100, several Chinese technology firms have grown into the world’s most innovative and competitive players.

 

Su, N., 2011, "Five Opportunities in Outsourcing to China", Cutter Consortium Executive Report.

Abstract : China's transformation toward a technology powerhouse gives Western firms new opportunities for IT services sourcing. However, with it comes significant managerial challenges.

 

Beamish, P.W., 2009, "Book Review of 'The Chinese Business Environment' by F. Jiang and B. Stening", Journal of Asian Business, 23(3): 4 - 5.

Keywords : Emerging markets; FDI; Joint ventures.

Abstract : This is a book of journal article abstracts which deal with the Chinese business environment. It draws from published material relevant to foreign firms engaged in, or seeking to engage in, business in mainland China. The editors have annotated nearly 1,000 articles from a wide range of journals, published between 1990-2006. In addition, they have indexed all the articles against 16 subject areas: General, Institutional Environment, Economic Environment, Cultural Environment, Determinants and Patterns of Foreign Direct Investment in China, Foreign Direct Investment Entry Modes/Strategies, Joint Venture Partner Selection, Foreign Direct Investment Location Choice within China, Foreign Direct Investment Venture and other Foreign Business Management, Foreign Direct Investment Performance Evaluation, Negotiations, Human Resource Management, Markets and Marketing Management, Accounting and Financial Management, Ethics, Governance.

 

Bapuji, H., Beamish, P.W., 2008, "Avoid Hazardous Design Flaws", Harvard Business Review, 86(3): 23.

Keywords : Emerging markets; China; Learning; Product safety.

Abstract : Companies can do a much better job of avoiding the design mistakes which are at the root of the majority of toy recalls. Companies should establish a learning culture in which employees feel safe reporting concerns. Once a product flaw is discovered, they should engage in reactive learning by examining and improving the systems and processes that contributed to it. Companies should also engage in four major types of proactive learning: study competitor's recalls and overall recall trends; listen to design and test engineers; test effectively for safety issues; track customer feedback.

 

Bapuji, H., Beamish, P.W., Laplume, A., 2007, "Toy Import and Recall Levels: Is There a Connection?", Asia Pacific Foundation of Canada(12): 1 - 8.

Keywords : Emerging markets; China; Outsourcing.

Abstract : This paper analyzes US toy imports and toy recalls between 1992 and 2006. We found that toy recalls have increased at a faster rate than the increase in imports from foreign countries. Also, design-related recalls were higher, and increased faster, than manufacturing-related recalls. Interestingly, these trends were less pronounced for Chinese-made toys than those made in other countries. We discuss the implications of these three trends and suggest potential remedies.

 

Beamish, P.W., Bapuji, H., 2007, "Toy Recalls - Is China Really the Problem?", Asia Pacific Foundation of Canada(45): 1 - 8.

Abstract : The recall of an estimated 20 million Chinese-made toys by Mattel on August 14, 2007, coming in the wake of reports about other defective products made in China , has generated a severe reaction. Defending the recalls, Chief Executive Officer of Mattel, Robert Eckert, said "we wouldn't have faced this problem if our suppliers followed the rules." The popular sentiment against Chinese-made products potentially has serious implications for global trade. Chinese-made goods from a range of industries such as toothpaste, pet food, toys, tires and jewelry have been found to be of poor quality or even dangerous. The authors analyzed recalls specifically of toys over the last two decades (1988 - 2007) to see if the number of recalls had systematically increased and what kind of problems were causing the recalls. The study finds that the number of recalls and the number of recalls of Chinese-made toys have shown an upward trend. However, the number of defects related to design issues attributable to the company ordering the toys is far higher than those caused by manufacturing problems in China . In light of the latest recall of toys by Mattel, the report makes two major suggestions: first, ensure the accountability of toy companies to improve their product designs and second, encourage the development of global standards to enhance product safety. The findings are based on toy recalls and apply to the toy industry. Nevertheless, they point to the need to examine the issue more broadly to find out where the responsibility for recalls lies.

 

Chen, S-F.S., 2007, "Don't bash China - U.S. toy makers are at fault", Globe and Mail(3).

Keywords : Emerging markets.

Abstract : This article offers a fresh look at the recalls of 19 million pieces of Chinese-made toys by Mattel Inc. To lower costs, many US firms subcontract production to Chinese manufacturers, To assure success in outsourcing, they must make sure that they design a product properly and set up a quality control system to screen out defects. So long as US firms take full credit for the success of an outsourced product, they should also bear the full responsibility its potential failure. They can outsource products, but cannot outsource responsibility.

 

Beamish, P.W., 2006, "The High Cost of Cheap Chinese Labor", Harvard Business Review, 84(6): 23.

Abstract : While low-skilled Chinese labor is abundant, over the past two decades, some 140 million low-skilled workers have either moved off the payrolls of state-owned enterprises into the private sector or migrated out of rural areas into the cities to seek their fortunes. Yet the average worker earns just 75 cents an hour. Migrant workers--who account for one-fifth of the 750 million people in China's labor market--typically earn less than $130 a month. For them, a five-cent-an-hour raise is a significant increase. No wonder, then, that turnover rates among slow-skilled workers are frequently in the range of 30% to 40% annually--and sometimes rise above 100%. Compare those figures with industrialized countries, in which annual employee turnover rates in manufacturing are roughly 5%.

Companies that seek to exploit cheap Chinese labor may be penny-wise, but some are pound-foolish. If your head of manufacturing in China can't retain a low-skilled workforce, he will certainly not be able to help you if you need more value-added work done. When Chinese employees leave for work that pays better, the costs to companies are high. These include the same problems that plague any firm with high turnover--higher HR management and training costs, greater quality control problems, increased chances of competitive disruption, and more difficulty establishing a stable corporate culture. The lesson in all this? The costs of labor churn should be taken into account when assessing the costs of doing business in China.

 

Kelly, M.J., Schaan, J-L., 2006, "Market Leaders Look to Asia for Innovation", National Post(6).

Keywords : Emerging markets; Multinational corporations; Research & development; Knowledge management.

Abstract : More than 50% of the 300 largest R&D spending firms in the world now conduct R&D in India and China, and 75% of new R&D sites planned over the next three years will be in these two countries. Companies seeking market leadership will increasingly need to find ways of accessing knowledge and talent globally. Managing and integrating complex knowledge from around the world requires companies to develop organizational structures and processes that support learning and knowledge acquisition. It also requires significant investments in the development of a cadre of global managers who are comfortable dealing across both cultural and organizational boundaries.

 

Beamish, P.W., Delios, A., 2005, "Selling China: Looking Back and Looking Forward", Management and Organization Review, 1(2): 309 - 313.

Keywords : SOE; Private sector; MBA; Profitability; Emerging markets.

Abstract : This is an invited comment on Yasheng Huang's 2002 book "Selling China: Foreign Direct Investment in the Reform Era." His objective was to better understand the operations of the Chinese economy and its FDI patterns. Huang argued that in the 1990s domestic Chinese firms were less competitive because the Chinese government had favored state owned enterprises, and has real concern with FDI's disproportionately large role in the economy.

In our comment, we expect the 1990s relationship between SOEs, FDI and China's private sector which was laid out by Huang to change because:
1. More recent data suggests major changes have been occurring over the decade since the 1995 data so extensively used by Huang were published.
2. SOE share of employment in China has declined dramatically to 240 million people in 1999, from 436 million in 1994.
3. Companies that were formerly 100% state-owned, were just 33% state-owned by 2001, and this proportion continues to decline.
4. Over the past 20 years, the number of MBA programs in China has grown from 0-90. Many more people are available to establish and manage businesses, many of whom have been trained in western management practices.
5. We observe a clear decline in the profitability of Japanese subsidiaries in China, especially relative to other countries. Many will eventually exit, and replace their investments with contractual arrangements with domestic Chinese firms to provide the desired supply of low cost manufactured products.

 

Dawar, N., 2005, "Prepare now for a Sino-Indian trade boom", Financial Times, (31): 13 - 14.

Keywords : Emerging markets; Bilateral trade; China; India; International competition; Multinationals.

Abstract : Intra-regional trade in Asia, such as that between India and China is on the verge of explosive growth. Multinationals' business models are not well suited to serving intra-regional trade. Low overhead costs in both countries mean that India and China are better positioned to cater to consumers in both countries than are multinationals who still rely on replicating their up market developed-country products and brands. The author argues that multinationals that fail to rethink their business models are in danger of missing out on intra-regional trade. Furthermore, if local rivals do seize the opportunity, the resulting economies of scale will allow them to be well positioned to pressure the multinational business model globally. The article proposes possible actions multinationals can take part in intra-regional trade.

 

Jiang, R., Beamish, P.W., 2005, "Japanese Expansion in China: A Cautionary Tale", Ivey Business Journal Online: 1 - 5.

Keywords : Emerging markets; Market expansion; Strategic planning; Foreign investment; Performance; Joint ventures; Japan; China.

Abstract : China is one of the worlds largest host countries for foreign direct investment (FDI). Conventional business wisdom encourages swift expansion in potentially lucrative emerging markets such as China. However, a comparative analysis of the performance of Japanese subsidiaries in China suggests that when Japanese companies set up subsequent subsidiaries too quickly after they have entered China, the subsidiaries tend to have a lower likelihood of survival, growth, and profitability. This article examines trends in Japanese investments in China using data derived from the 2001 Toyo Keizai (The Oriental Economist) surveys of 3,416 Japanese subsidiaries that belong to 1,578 parent firms that were established in China between 1980 and 2001. The impact on the pace of expansion of factors such as the firms' prior resource base, the type of venture (joint ventures versus wholly owned subsidiaries), and strategic choices, such as timing of first entry into China is considered. The majority of Japanese firms seem to have rushed to expand in China, and have done so to negative consequences to performance measured by survival; sales growth measured over five years, and profitability. This article details why companies should pace subsequent expansions in markets like China in a more cautious manner. It suggests that parent companies only increase their commitment to market expansion as they develop a better understanding of the local competition and as the market uncertainty declines over time.

 

Beamish, P.W., 1998, "Equity Joint Ventures in China: Compensation and Motivation", Ivey Business Quarterly, 63(1): 67 - 68.

Keywords : Compensation; Motivation; Joint ventures; Organizational behavior; Emerging markets.

Abstract : With more than 100,000 foreign-local joint ventures operating in China, many executives are trying to determine what makes them work and what they can do to improve performance. Some American joint ventures are failing in China because managers do not seem to understand compensation and motivation within the ventures. Two issues dominate: 1. fairness, more specifically expatriate versus local compensation packages, and 2. the use of North American reward management based models versus hybrids. The paper suggests (A) the value of aggressively localizing subsidiary management (B) when expatriates are sent to a joint venture in order to broaden their experience, charge the cost to the parent company, not JV (C) use overseas Chinese as a bridge between western and Chinese management practices, (D) consider establishing a bonus pool for a workgroup, not just for individuals.

 

Beamish, P.W., Spiess, L., 1991, "Post-Tiananmen China: Should You Invest?", Ivey Business Quarterly, 55: 67 - 72.

Keywords : Emerging markets; Joint ventures; State-planned; China; Strategy.

Abstract : The joint venture process in China is different from that found anywhere else particularly because many of the problems encountered are external to the venture and relate to the interaction of a market organism and the state-planned economy's impact on material supply, distribution and transportation. Although most investment in China is concentrated in Beijing and China's fourteen coastal cities, enormous variability exists in the infrastructure present within these and other areas of China. For most projects it is advisable to approach officials in each area to determine if demand exists for the foreign firm's technology or product.

Foreign investors contemplating a joint venture in China have a commercial code as well as historical data to clarify common practice. However, there remains a sizeable gap between joint venture agreements signed and those that are actually implemented. This gap arises due to many factors including inflexibility from partners, a short-term orientation, management problems, foreign exchange difficulties, the time lag between signing and full start-up, and the fact that the persons who signed the agreement are seldom the ones who have to implement it. Because decision making is decentralized for over 85% of the investments in China, the authors emphasize the importance of investigating various packages that might be offered to any potential investor. The authors also examine the three types of financing arrangements that can be made to do business in China: equity joint ventures, cooperative ventures and wholly foreign-owned enterprises. Firms should however be warned that it might be difficult to secure loans in the future: To prevent undercapitalized joint ventures from failing, China has recently issued stringent debt financing guidelines.

 

Conley, T.W., Beamish, P.W., 1986, "Joint ventures in China: Legal implications", Business Quarterly, 51(3): 39 - 43.

Keywords : Emerging markets; Joint venture; FDI; Law.

Abstract : Nearly all of the foreign direct investment in China has been through the joint venture organization form. The Chinese joint venture laws governing such investment are quite distinct from those in other countries. Managers - not solely lawyers - in Canadian firms contemplating an equity joint venture investment in China require familiarity with this legal system. This article presents a managerially oriented overview of recent developments in Chinese joint venture laws. Particular emphasis is placed on various dimensions of the Implementing Regulations: Establishment and Approval; Capital Contribution; Control and Management; Planning, Purchasing and Selling; Taxation; Financial Matters and Foreign Exchange; Duration, Dissolution and Liquidation; and Dispute Settlement and Arbitration.

 

Books

Bartlett, C. A. and Beamish P.W., 2018, Transnational Management: Text and Cases, Cambridge, Cambridge University Press (forthcoming January 2018).  Short Form Chinese translation containing 8 chapters, 2 readings and 10 Ivey cases published by McGraw Hill Education (Asia) (Dongbei University of Finance and Economics Press)

 

Wei, X and Beamish P.W. (eds.), 2014, Ivey Business School Selected Cases, Shanghai, Truth And Wisdom Press (in Chinese).

 

Beamish, P.W., 2013, Multinational Joint Ventures in Developing Countries, London, U.K.: Routledge, Chapman & Hall Inc. (Reprint of 1988 publication)

 

Fang, Y., Neufeld, D.J., Compeau, D.R., 2012, Profiting from Information Resources: China Practices and Global Trends, Beijing, China: Beijing Normal University Press.

 

Beamish, P.W., Wang, H., 2011, An Anthology of Ivey Business Journal, Beijing, China: Huazhang.

 

Bartlett, C.A., Ghoshal, S., Beamish, P.W., 2010, Transnational Management: Text, Readings and Cases in Cross Border Management (Simplified Chinese Edition), 5th edition, Beijing, China: McGraw-Hill Education (Asia). (Based on English 5th edition, in condensed form.)

 

Delios, A., Beamish, P.W., Lu, J., 2010, International Business: An Asia Pacific Perspective, 2nd edition, Singapore: Prentice Hall/Pearsong Education South Asia.

 

Beamish, P.W., 2008, Joint Venturing, Charlotte, NC: Information Age Publishing, Inc..

 

Beamish, P.W., Morrison, A.J., Inkpen, A.C., Rosenzweig, P.M., 2006, International Management, Chinese Translation, 5th edition, Beijing, China: China Renmin University Press.

 

Beamish, P.W., Morrison, A.J., Inkpen, A.C., Rosenzweig, P.M., 2005, International Management: Text & Cases, 5th edition, Beijing, China: China Renmin University Press. (English/Chinese version)

 

Beamish, P.W., Morrison, A.J., Inkpen, A.C., Rosenzweig, P.M., Yu, C-M., 2005, International Management: Cases (Traditional Chinese Translation), Vol. 2 edition, Taipei, Taiwan: Best-Wise Publishing. (Based on English 5th edition)

 

Beamish, P.W., Chuang, C-M., 2004, International Business (Traditional Chinese), Taipei: Yuan Liou Publishing Company Limited.

 

Bansal, P., 2002, Management Cases (Simplified Chinese), 2nd edition, Beijing: China Machine Press / Huazhang Graphics Company.

 

Bansal, P., Hsu, S-C., Chen, H-F., 2002, Management (Traditional Chinese), 1st edition, Taipei: Yuan Liou Publishing Company Limited.

 

Beamish, P.W., Neupert, K., Wei, L., 2002, International Entrepreneurship Cases (Simplified Chinese), 1st edition, Beijing: China Machine Press / Huazhang Graphics Company.

 

Slaughter, K.E., Cheng, B-S., Jen, C-K., 2002, Management Communications (Traditional Chinese), 1st edition, Taipei: Yuan Liou Publishing Company Limited.

 

Beamish, P.W., Chen, X., 2001, An Anthology from the Journal of International Business Studies (Simplified Chinese), Beijing: China Machine Press.

 

Beamish, P.W., Delios, A., Makino, S., 2001, Japanese Subsidiaries in the New Global Economy, Cheltenham, UK: Edward Elgar.

 

Frost, A.C., 2001, Human Resource Development and Management Cases (Simplified Chinese), 2nd edition, Beijing: China Machine Press / Huazhang Graphics Company.

 

Loree, D.W., 2001, Organizational Behaviour Cases (Simplified Chinese), 1st edition, Beijing: China Machine Press / Huazhang Graphics Company.

 

Beamish, P.W., 2000, Asia Pacific Cases in Strategic Management, Burr Ridge, IL, USA: McGraw Hill.

 

Beamish, P.W., Jun, Y., 2000, The Casebook of International Business: The Asian Management of Multinational Companies (Korean), Seoul, Korea: Mun Yong Sa.

 

Hubbard, G., Morkel, A., Davenport, S., Beamish, P.W., 2000, Cases in Strategic Management, 3rd edition, Sydney, Australia: Pearson Educational.

 

Beamish, P.W., 1999, International Business Cases (Simplified Chinese), 1st edition, Beijing: Multi-Lingua Publishing International Inc., Huazhang Graphics Company/China Machine Press.

 

Beamish, P.W., Chen, X., Morrison, A.J., Rosenzweig, P.M., 1999, International Management: Text and Cases (Simplified Chinese), Beijing: Multi-Lingua Publishing.

 

Morrison, A.J., Beamish, P.W., 1999, Strategic Management Cases (Simplified Chinese), 1st edition, Beijing: Multi-Lingua Publishing International Inc., Huazhang Graphics Company/China Machine Press.

 

White, R.E., 1999, Management Cases (Simplified Chinese), 1st edition, Beijing, China: China Machine Press.

 

Beamish, P.W., 1998, International Business Cases, China: China Machine Press.

 

Morrison, A.J., Beamish, P.W., 1998, Strategic Management Cases, China: China Machine Press.

 

White, R.E., 1998, Management Cases, China: China Machine Press.

 

Beamish, P.W., Killing, J.P., 1997, Cooperative Strategies: Asian Pacific Perspectives, San Francisco: The New Lexington Press.

 

Beamish, P.W., Killing, J.P., 1996, Special Issue: Global Perspectives on Cooperative Strategies, Journal of International Business Studies: Academy of International Business.

 

Beamish, P.W., Chen, X., 1991, International Joint Ventures: A Casebook (Chinese Version), Beijing, China: Tsinghua University Press.

 

Chapters

Beamish, Paul W., 2016 “The Case-Study Legacy of Ivey’s Early Linkages in China” in R. Hayhoe, J. Pan and Q. Zha (eds) Canadian Universities in China’s Transformation: An Untold Story, McGill-Queen’s University Press, pg. 125-137.

Abstract : For the past thirty years, the Ivey Business School at Western University has been very active in China, much more so than most university business schools from Canada or elsewhere. Many of these activities have been in relation to introducing and popularizing the case method in China. Yet school activities have gone well beyond this emphasis. Of particular note is the fact that Ivey was the very first business school from the US or Canada to establish a full degree program campus in greater China. This chapter is divided into two sections. The first part examines Ivey’s case-study initiatives in China. Several of these started in the Canadian International Development Agency (CIDA) funding era. The second part examines the longer-term consequences and contributions from the original university linkages.

 

Beamish, Paul W., 2010, “Engaging the Chinese Market”, in M. Crossan, J. Gandz and G. Seijts (eds) Cross-Enterprise Leadership: Business Leadership for the Twenty-First Century, Wiley, pg. 121-155.

Abstract : Though the statistics and evidence offered in support of embracing the China market have been overwhelming, thousands of firms have opted not to jump on the China bandwagon. The chapter begins by reviewing over a dozen reasons why some companies avoid China. Their avoidance was anchored in old-fashioned functional “silo-thinking”. Given the dynamic, complex and uncertain context of emerging markets such as China, executives should move beyond traditional general management approaches and activate a cross-enterprise leadership perspective that is anchored in a deeper strategic commitment to important business issues which permeate functional silos. In conjunction with general intellect, the four basic ingredients of cross-enterprise leadership capability (strategic, business, people and organizational intelligence) are reviewed in the context of developing a China strategy.

 

Beamish, Paul W., Gigi Wong and Joanne Shoveller, 2005, “Meeting China’s Need for Case-Based Teaching Material: The Ivey Business School Experience”, in J. McIntyre and I. Alon (eds) Business and Management Education in China: Transition, Pedagogy, and Training, New York, Singapore, World Scientific Publishing Co. Inc., pg. 195-203.

Abstract : This paper shares the experience of the Ivey Business School in its endeavours to assist in modernization of the MBA programs in China by the introduction of a large body of teaching materials (case studies) and faculty training programs (case writing/ case teaching). In 1991, China started the first MBA degree programs at nine selected business schools, all at top-tier national universities. Recognizing the rapidly escalating need for Chinese managers with international business skills and knowledge, the National MBA Education Supervisory Committee quickly increased the number of MBA programs to 62 by 2001. They further mandated that 25 per cent of China's MBA curriculum be delivered using the case method. The committee's endorsement of the case method created an immediate need for teaching materials and qualified instructors. Ivey saw that as an opportunity to assist in the development of China's institutional capacity for management education.

 

Beamish, Paul W. and Andrew Delios, 2001, “Japanese Investment in Transitional Economies: Characteristics and Performance” in D. Denison (ed.), Managing Organizational Change in Transition Economies, New Jersey, Lawrence Erlbaum Associates, pg. 71-92.

Abstract : This paper presents and analyzes comparative data on 2,343 foreign-owned organizations operating in the transitional economies of China, Viet Nam and the countries of Central and Eastern Europe (CEE). It compares the extent, sectoral distribution, characteristics and performance of Japanese subsidiaries established in these three regions. Among the three, most Japanese investment has flowed to China where subsidiary performance was highest and where subsidiaries were concentrated in the manufacturing sector. Further, the employment levels of expatriate managers, and the propensity to engage in joint ventures, were higher in China and Viet Nam. The tighter linkages between domestic and foreign organizations, and the greater incidence of investment, provided more significant opportunities and scope for the transfer of organizational practices, and change, in domestic incumbents in China and Viet Nam than in the CEE.

 

Beamish, Paul W. and Douglas Reid, 1995, “Business Journal Focus on China”, in M. Kirpalani (ed.) Canada-China Business Linkages, Vancouver; pg. 37-48.

Abstract : This paper examines the amount and orientation of academic and practitioner writings on China and two other countries since 1979. 276 issues of four major journals - two practitioner and two academic - were reviewed.

Writings on China were infrequent in all journals before 1986. Although the practitioner journals tended to precede the academic journals in publishing articles on China, the academic journals have placed far greater emphasis on China in the past seven years. Some journals tend to favour one country or another: Harvard Business Review has published very little on China, but extensively on Russia. A bibliography is provided of China-related articles appearing in the four journals from 1979-1994. Suggestions were provided to practitioners about how they can regularly better access the available writings on China.

 

Beamish, Paul W. and Lorraine Spiess, 1993, “Foreign Direct Investment in China” in L. Kelley and O. Shenker (eds.) International Business in China, pg. 152-171.

Abstract : This chapter examines the evolution of foreign direct investment (FDI) in the People's Republic of China between 1979 and mid-1990 through consideration of the major alternatives: equity joint ventures, contractual (cooperative) ventures, and wholly foreign-owned enterprises. As part of this review, data is presented relating to 840 equity ventures, the most oft-used form of FDI. Data is provided on the region of investment in China, source of investment, industry in which the investment occurred, total investment, foreign partner equity contribution, foreign equity percentage (by range, in absolute terms, and by country), and the predetermined duration of the joint ventures formed.

 

Frost, Tony S., 1989, “Persistent Adaptability as Survival Strategy for MNCs in Emerging Markets” in P. Beamish and A.E. Safarian (eds.) North American Firms in East Asia, HSBC Bank Canada Papers on Asia, Vol. 5, University of Toronto Press, pg. 17-47.

Abstract : In the early 1980's, Nortel Networks, a major Canadian based MNC found itself frozen out of the main public switch market in China due to an earlier decision to delay investment there. This article illustrates how persistent adaptability allowed Nortel Networks to overcome its initial handicap while offering the company a broader range of strategies in reconciling the demands of globalization with those of localization. The chapter also examines various industries as well as recent events within the telecommunications sector in China to discuss the relationship between strategy and competition in global industries. The concepts of global competition, critical markets and local responsiveness are explained to underline that persistent adaptability is an important strategy particularly for firms that find themselves in 'black hole' situations.