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By Hailan Yang

This ebook analyses how China's companies within the shopper electronics (CE) region have built their company technique and company governance through the reform technique. The CE area is considered one of China's most vital and dynamic production sectors. As one of many earliest market-oriented sectors after 1978, its event illustrates the adoption of the Western version of administration in China. this can be the 1st ebook to examine the hyperlink among enterprise process, company governance and function of agencies, explicitly evaluating state-, collective-, and privately-owned corporations. This booklet argues that the aggressive dynamics of the industry are principal to the survival of companies in modern China.

  • Focuses at the country, collective and personal chinese language companies within the client electronics sector
  • Provides insights into the interactions between political, financial and company elements within the China company setting that effect the options and function of those firms
  • Compares the company governance of those chinese language enterprises throughout diverse possession forms

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Extra info for Business Strategy and Corporate Governance in the Chinese Consumer Electronics Sector

Sample text

Therefore, informal institutions such as networks that have been established during the past period of the planned economy continue to play a role regulating economic exchanges in these countries. Peng (2002) argues that there are three main informal institutions: interpersonal relations for managerial networking; external connections linking executives, key stakeholders, especially government officials; and the reputation of conglomerates. Informal institutional arrangements may remain operative despite official reforms because they are culturally based (North, 1990).

1 Theoretical model 43 Business Strategy and Corporate Governance in the Chinese Sector Business strategy is a necessary but not sufficient condition for a competitive position. A competitive position is also influenced by the incentives given to managers to adopt appropriate strategies (Filatotchev and Toms, 2003) and by the networks that tie together firms and managers (Boisot and Child, 1996; Peng, 2002; Peng and Heath, 1996; Luo and Park, 2001; Luo, 2003). Corporate governance tackles the influence on the competitive position of two factors: the ownership structure and the board characteristics.

Based on these two definitions, exploitation is a requirement for implementing an advantage-seeking growth strategy, and exploration is needed for succeeding in opportunity-seeking growth (Caldart and Ricart, 2007). In addition, this study also refers to the definition in Meyer’s (2007: 1500) study of exploitation vs exploration in transition economies: ‘Exploitation learning refers to the pursuit and acquisition of knowledge, which is new for the companies in a transition economy, but already in existence in the West.

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