Bala Ramasamy and Matthew Yeung
The purpose of this paper is to identify location factors that Chinese managers look for when making internationalization decisions and how the factors stack up in perceived…
Abstract
Purpose
The purpose of this paper is to identify location factors that Chinese managers look for when making internationalization decisions and how the factors stack up in perceived importance. Over the past ten years, Chinese enterprises have become more multi-national in nature. China’s outward foreign direct investment (FDI) has been growing at a phenomenal rate. In 2012, China became the third largest investor, after the USA and Japan; and the largest investor among developing countries. How can host governments attract more of this Chinese capital? What are some short- to medium-term policies that host governments can initiate to make their respective nations attractive to Chinese companies?
Design/methodology/approach
The authors consider these questions by using a best-worst choice exercise among 114 senior corporate decision makers of Chinese companies who have or are planning to globalize. We rank 16 most common determinants that influence FDI location choice and evaluate their degree of importance.
Findings
The authors propose five “low hanging fruits” that policy makers should consider that could ensure their countries come within the radar of Chinese multi-nationals. These include promoting a clean and efficient business environment and strengthening/establishing political and economic relationships with China.
Originality/value
The originality of this study lies in the methodology of the study that forces respondents to make a trade-off in their decisions, which in a way is closer to reality. The respondents are also actual decision makers in their companies with regards to international investment decisions.
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Bala Ramasamy and Matthew Yeung
Chinese investments abroad are being scrutinized more stringently because host governments fear that Chinese companies would steal domestically grown technology and know-how or be…
Abstract
Purpose
Chinese investments abroad are being scrutinized more stringently because host governments fear that Chinese companies would steal domestically grown technology and know-how or be duped into a debt trap. The purpose of this paper is to provide a narrative of Chinese investments in a region that is neither developed nor underdeveloped – Central and Eastern Europe. The authors aim to provide an alternative view of Chinese investments abroad.
Design/methodology/approach
The authors base their narrative on face-to-face semi-structured interviews with eight Chinese firms that carried out mergers and acquisition activities in the region.
Findings
The respondents claim that they saved companies and jobs in the aftermath of the global financial crisis. Access to the China market and elsewhere has increased as a result of these investments. Transfer of technology has gone both ways depending on which partner had superior technology.
Research limitations/implications
It is important that Chinese investors emphasize the positive spillover effects from their investments, such as jobs saved, potential technology transfer and increased exports, when applying for FDI approval from host governments. Host governments, on the other hand, should evaluate each Chinese investment on its individual merits.
Originality/value
There is little that has been researched on the contributions of FDI from developing countries to host economies. This paper is an early attempt in this direction.
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Hung Woan Ting, Bala Ramasamy and Lee Chew Ging
The purpose of this paper is to identify the most potent internal resources of a firm that contribute to the CSR agenda.
Abstract
Purpose
The purpose of this paper is to identify the most potent internal resources of a firm that contribute to the CSR agenda.
Design/methodology/approach
The study adopts a quantitative approach to analyze Malaysian companies. A scorecard is devised according to the Global Reporting Initiative (GRI) framework. A logit/probit model is employed to differentiate firms that are CSR‐active from their non‐active counterparts.
Findings
The results indicate that having universal accredited management systems in place differentiates CSR‐active companies from inactive companies. Also, firm size does not matter for CSR performance.
Research limitations/implications
The study uses proxies to examine a firm's resources, and thus it might not have captured the implication of the resources fully. Also it identifies resources that have a bearing on the CSR level but does not investigate the conditions in which such resources can be relevant.
Practical implications
The results imply that firms that are intent on being CSR‐active should consider implementing the various management systems relevant for their businesses. Managers responsible for the CSR agenda might wish to highlight the fact that adherence to such systems actually contributes to the bottom line, thus minimizing resistance from decision‐makers, who might view CSR as a costly initiative.
Originality/value
The study provides an insight into the influence of management systems on CSR performance among firms in a developing country in Asia. This, to the best knowledge of the authors, has not been studied before.
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Bala Ramasamy, Alan Au and Matthew Yeung
This paper aims to demonstrate the degree of dissimilarities among Chinese individuals' value profiles by using data collected from Shanghai and Hong Kong.
Abstract
Purpose
This paper aims to demonstrate the degree of dissimilarities among Chinese individuals' value profiles by using data collected from Shanghai and Hong Kong.
Design/methodology/approach
The shortened version of the Rokeach Value Survey for consumer research by Munson and McQuarrie was used. The data collection was done by distributing copies of questionnaires to researchers' contacts who worked at financial intuitions, e.g. banks, brokers and insurance agencies in Shanghai and Hong Kong.
Findings
The current study demonstrates the degree of dissimilarities among Chinese individuals' value profiles by using data collected from Shanghai and Hong Kong.
Research limitations/implications
The study selects two developed cities of China only and the samples from the two cities are relatively small.
Practical implications
The results imply that value‐based information should be used together with demographic information for segmenting the market. The study suggests the number of segments for Shanghai and Hong Kong.
Originality/value
This study explains the significance of studying values in the context of market segmentation, particularly among Chinese populations.
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Rolf D. Cremer and Bala Ramasamy
To date, more than 400 of the Fortune 500 companies have already established their presence in China. Like their larger counterparts, smaller multinationals are also attracted by…
Abstract
Purpose
To date, more than 400 of the Fortune 500 companies have already established their presence in China. Like their larger counterparts, smaller multinationals are also attracted by the huge potential market and cheap resources that China has to offer. Thus, the purpose of this paper to examine key strategies that small internationalizing firms (SIFs) need to focus on for a successful China engagement.
Design/methodology/approach
The findings of this study are based on a year‐long research of New Zealand firms in China. The study involved a survey of senior managers of New Zealand companies at home as well as a focus group discussion among executives in China.
Findings
The study identifies three dimensions of strategy that SIFs need to pay particular attention – the attributes of the China bound manager, the business focus of the enterprise, and the guanxi building capabilities.
Originality/value
This paper is based on the premise that the SIF cannot mirror the exact strategies of larger multinationals. Previous literature tends not to distinguish the size of the firm when discussing the China engagement. The paper emphasizes a carefully designed effort to choose the right general to lead the assault on the world's largest market.
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Reviews the latest management developments across the globe and pinpoints practical implications from cutting‐edge research and case studies.
Abstract
Purpose
Reviews the latest management developments across the globe and pinpoints practical implications from cutting‐edge research and case studies.
Design/methodology/approach
This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.
Findings
“It's good to talk” was the much‐quoted slogan of a series of advertisements for UK telecommunications company, BT. Simple, effective, to the point and – well, blatantly obvious. It is good to talk, and while the phone company was emphasizing giving friends and relatives a ring for a chat, rather than engage in a conversation with a business associate to share intellectual concepts, talking is a major component in what has become to be known as knowledge management.
Practical implications
Provides strategic insights and practical thinking that have influenced some of the world's leading organizations.
Originality/value
The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy‐to digest format.
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Bala Ramasamy and Matthew Yeung
The purpose of this paper is to examine the relationships between foreign direct investment (FDI), wages and productivity in China. The direction of causality among these…
Abstract
Purpose
The purpose of this paper is to examine the relationships between foreign direct investment (FDI), wages and productivity in China. The direction of causality among these variables is also to be emphasized.
Design/methodology/approach
The authors develop a system of equations and test the relationships based on a vector autoregressive regression (VAR) model and two‐step generalized method of moments (GMM)‐type estimation approach. They use a panel data set of China's provinces for a 20‐year time period, 1988‐2007, and also distinguish between the coastal and inland provinces.
Findings
The result confirms the cheap labor argument for China, although this particularly true for inland provinces. In the coastal provinces, FDI inflow influences the wage rates upwards. FDI also has a positive effect on productivity, particularly in the coastal provinces, but does not act as a significant determinant of FDI.
Research limitations/implications
Factors other than wage rates and labor productivity are also important determinants of FDI. This paper focuses on the interplay of these three variables, while assuming other factors constant.
Practical implications
Cheap labor as an attraction of FDI is a short term policy. Improvements in productivity should be the focus both in the coastal and the inland provinces. A conducive business environment, a suitable education policy and incentives for greater R&D contribute toward improving labor productivity, which in turn attracts greater FDI inflow.
Originality/value
The paper provides empirical evidence on the direction of causality between FDI inflow, wages rates and labor productivity in one system of equations.
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Bala Ramasamy and Matthew C.H. Yeung
Growth, both in terms of size and choice, in the mutual fund industry among emerging markets has been impressive. However, mutual fund research in emerging markets hardly exists…
Abstract
Growth, both in terms of size and choice, in the mutual fund industry among emerging markets has been impressive. However, mutual fund research in emerging markets hardly exists. This paper intends to fill this gap. In particular, the paper surveys the relative importance of factors considered important in the selection of mutual funds by financial advisors in emerging markets. Our survey focuses on Malaysia where the mutual industry started in the 1950s but only gained importance in the 1980s with the establishment of a government initiated programme. The results of our survey point to three important factors which dominate the choice of mutual funds. These are consistent past performance, size of funds and costs of transaction. Factors which relate to fund managers and investment style are not considered to be relatively important. With the impending liberalization of the financial markets in the developing world, our findings would assist those international funds that are considering expanding their operations into these emerging markets.
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Abstract
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Purnima Singh and Ajai Pal Sharma
In the course of worldwide COVID-19, the phenomenon of corporate social responsibility (CSR) gained more importance and publicity. Many organizations made a significant…
Abstract
Purpose
In the course of worldwide COVID-19, the phenomenon of corporate social responsibility (CSR) gained more importance and publicity. Many organizations made a significant contribution in dealing with the crisis situation and even increased their spending on the welfare activities. This study aims to evaluate the attitude of community, especially young generation, towards the CSR undertaken by the organization during the pandemic period.
Design/methodology/approach
Descriptive research design has been employed using purposive sampling for data collection through a structured questionnaire. A sample of 550 was taken, and pilot survey was conducted among 100 respondents before administering it at full scale. A model has been proposed and tested by using structural equation modelling in AMOS.
Findings
The results of the study show that compulsory provisions of CSR have enhanced the trust of community and made the organizations more responsive towards philanthropic, legal, ethical and economic responsibility. The respondents were found to be aware about the welfare activities carried out by the organizations and developed a positive attitude towards them.
Research limitations/implications
First, the study is limited to examining the attitude of community towards CSR, especially young generation. Second, it is difficult to say whether outcomes of this study can be generalized for such other potential global crisis. Third, the study is based on the Carroll’s “CSR Pyramid” framework when other such frameworks and approaches could be available to analyse the impact of COVID-19-related CSR initiatives. Last, this study has been conducted only in the state of Maharashtra, and results may not be applicable to other states as well other countries.
Practical implications
The findings of the study may help the organizations to plan their activities in line with the amendments made time to time. This shall also help the regulating agencies to monitor and catch the wrongdoers and take appropriate action. Findings of such studies, based on public opinion, can also help the governments to make further amendments, time to time, in related acts. It can also be said that with the involvement of public/society, more transparency can be brought in the functioning of the organizations, especially in the context of CSR.
Social implications
Earlier, most of the organizations were falsely recording the CSR expenditure in their balance sheets without actually spending it, but the amendment in act has made it compulsory for the organizations to follow it honestly. The pandemic period gave an opportunity to the society to evaluate the organizations on these parameters and to make their opinion about them in real time. Therefore, it is concluded that pandemic has created awareness in the society and significantly influenced their attitude about CSR activities. This shall also help the organizations feel a pressure in future while planning and implementing the activities under CSR.
Originality/value
The results of the study show contribution of the corporate towards social welfare during pandemic. The results would help the policymakers to monitor the execution of practices more closely and organizations to execute their strategies in a more effective manner.