How Variations in Business Systems Affect the Innovativeness of Chinese Firms

Historical Background, Framework, and Case Studies

Jiajia Liu, Andrew Tylecote

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

We look at how three features of current business systems—governance and finance, work management practices and inter-firm relations—have evolved during the reform process since 1978 in China, and how over the last decade they have shaped the technology strategies of Chinese firms. We examine three cases of more-or-less successful innovators—Delixi, Midea, and CNEGC, in electrical distribution equipment, microwave cookers, and steel plant, respectively; the first two privately-owned, the third a central state-owned enterprise. We point to weaknesses—Delixi’s dependence on a foreign joint venture partner, Midea’s production engineering—and strengths: Delixi’s strong relationships with suppliers, Midea’s ability to fund R&D, CNEGC’s ‘engaged’ governance. We find that the strengths are less typical of Chinese business than the weaknesses, even in the medium-high technology sectors to which these firms belong. We argue that the situation is less favourable in high-tech sectors.
Original languageEnglish
Title of host publicationChanging Asian Business Systems
Subtitle of host publicationGlobalisation, Socio-Political Change, and Economic Organisation
EditorsRichard Whitley, Xiaoke Zhang
Place of PublicationLondon
PublisherOxford University Press
Chapter13
Pages333-358
Number of pages26
Volume1
Edition1st
ISBN (Print)9780198729167
DOIs
Publication statusPublished - 25 Feb 2016
Externally publishedYes

Fingerprint

Chinese firms
Innovativeness
Technology strategy
High-tech
Finance
Reform process
Microwave
State-owned enterprises
Suppliers
Management practices
Joint ventures
High technology
Steel
China
Governance

Cite this

Liu, J., & Tylecote, A. (2016). How Variations in Business Systems Affect the Innovativeness of Chinese Firms: Historical Background, Framework, and Case Studies. In R. Whitley, & X. Zhang (Eds.), Changing Asian Business Systems: Globalisation, Socio-Political Change, and Economic Organisation (1st ed., Vol. 1, pp. 333-358). London: Oxford University Press. https://doi.org/10.1093/acprof:oso/9780198729167.003.0014
Liu, Jiajia ; Tylecote, Andrew. / How Variations in Business Systems Affect the Innovativeness of Chinese Firms : Historical Background, Framework, and Case Studies. Changing Asian Business Systems: Globalisation, Socio-Political Change, and Economic Organisation. editor / Richard Whitley ; Xiaoke Zhang. Vol. 1 1st. ed. London : Oxford University Press, 2016. pp. 333-358
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Liu, J & Tylecote, A 2016, How Variations in Business Systems Affect the Innovativeness of Chinese Firms: Historical Background, Framework, and Case Studies. in R Whitley & X Zhang (eds), Changing Asian Business Systems: Globalisation, Socio-Political Change, and Economic Organisation. 1st edn, vol. 1, Oxford University Press, London, pp. 333-358. https://doi.org/10.1093/acprof:oso/9780198729167.003.0014

How Variations in Business Systems Affect the Innovativeness of Chinese Firms : Historical Background, Framework, and Case Studies. / Liu, Jiajia; Tylecote, Andrew.

Changing Asian Business Systems: Globalisation, Socio-Political Change, and Economic Organisation. ed. / Richard Whitley; Xiaoke Zhang. Vol. 1 1st. ed. London : Oxford University Press, 2016. p. 333-358.

Research output: Chapter in Book/Report/Conference proceedingChapter

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Liu J, Tylecote A. How Variations in Business Systems Affect the Innovativeness of Chinese Firms: Historical Background, Framework, and Case Studies. In Whitley R, Zhang X, editors, Changing Asian Business Systems: Globalisation, Socio-Political Change, and Economic Organisation. 1st ed. Vol. 1. London: Oxford University Press. 2016. p. 333-358 https://doi.org/10.1093/acprof:oso/9780198729167.003.0014