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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Jimmy H.T. Chan, Anthony C.K. Ko, Alan K.M. Au and Matthew C.H. Yeung
The understanding of leaders’ network centrality in social networks has been acknowledged as a major topic that can advance the social network field; most studies in this area…
Abstract
Purpose
The understanding of leaders’ network centrality in social networks has been acknowledged as a major topic that can advance the social network field; most studies in this area have either taken firms as the subject by which the network centrality of firms was measured or/and have been conducted for the functional project context. Very little research has been done in the pure project context. This paper aims to revisit the centrality–performance link in the singular specialized project context.
Design/methodology/approach
The proposed relationships using panel data on 48 movie directors who lead pure projects has been studied. Freeman’s (1979) and Wasserman and Faust’s (1994) procedures have been adopted to compute our three centrality measures and their effects have been examined on box-office and artistic performance. A random effect and a mixed-effects Poisson model have been fit to examine the significance of the centrality–performance relationship.
Findings
The findings provide empirical evidence to support three out of the six hypotheses. The findings suggested that degree and closeness centrality are positively related to commercial performance and betweenness centrality is negatively related to commercial performance. However, it was found that only the degree centrality is related to artistic performance.
Originality/value
This study has two features that distinguish it from prior studies that link centrality to performance. First, the focus is on centrality attached to the leaders instead of the centrality attached to functional project teams or firms, as previously investigated. Second, this study is the first attempt of its kind to analyse the proposed relationship for an Asian market.
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Kuok Kei Law, Matthew C-H Yeung and Jimmy H-T Chan
This paper aims to examine the effect of short-term performance fluctuations on long-term performance of football clubs.
Abstract
Purpose
This paper aims to examine the effect of short-term performance fluctuations on long-term performance of football clubs.
Design/methodology/approach
This study did not develop any hypothesis for statistical testing. Instead, a database composing of 24 seasons of English Premier Club clubs’ performance was used to analyse for temporal fluctuations of club performance and examined whether such fluctuations would be substantiated in the long run.
Findings
Findings showed that club performance exhibited a non-unit root nature, which in turn suggested that clubs’ long-term performance was only temporally affected by short-term performance fluctuations, leading to the evidence that club performance tended to return to the club’s long-run equilibrium after experiencing temporary high or low positions.
Originality/value
Findings of this paper provide important information regarding the cost-benefit implications of the reactions of the club management to boost or rectify short-term performance fluctuations by, for example, replacing the club manager or head coach.
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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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Yubing Yu and Baofeng Huo
This paper aims to examine the impacts of relational capital on supply chain quality integration (SCQI) and operational performance from the holistic perspective of the entire…
Abstract
Purpose
This paper aims to examine the impacts of relational capital on supply chain quality integration (SCQI) and operational performance from the holistic perspective of the entire supply chain.
Design/methodology/approach
Structural equation modeling with LISREL was used to test the conceptual model based on data collected from 308 companies in China.
Findings
The results indicate that with the exception of internal relational capital not having a significant impact on customer quality integration, supplier, internal and customer relational capital have positive impacts on supplier, internal and customer quality integration, which consequently improve operational performance. The results also show that internal relational capital has positive impacts on supplier and customer relational capital, and internal quality integration has positive impacts on supplier and customer quality integration.
Practical implications
The results provide important managerial insights for the improvement of operational performance through the development of relational capital and the implementation of SCQI practices throughout the supply chain.
Originality/value
The authors contribute to the relational capital and supply chain quality management literature by exploring the effectiveness of relational capital in improving SCQI and operational performance from the holistic perspective of the entire supply chain. The findings enrich the knowledge of SCQI management from the perspective of relational capital.
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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.