China

41 Results

 

Encouraging Niche Content in an Ad-Driven World

Research by Feng Zhu and Monic Sun explores how advertising drives bloggers to shift their writing to subjects that will grab more eyeballs—namely, the stock market, celebrities, and salacious behavior. But surprise: Ads might also help generate more niche content. Open for comment; 0 Comments posted.

Book Excerpt: ‘Can China Lead?’

Creativity and innovation can be nurtured in different educational and institutional settings, but does China have a good institutional framework for innovation? An excerpt from Can China Lead? Open for comment; 0 Comments posted.

China’s Economic System has Difficult Road Overcoming its Political System

It's fashionable to be bullish on China. But the new book "Can China Lead?" urges a more cautious view on the prospects of the country, where government bureaucracy stifles innovation. Open for comment; 0 Comments posted.

Return Migration and Geography of Innovation in MNEs: A Natural Experiment of On-the-Job Learning of Knowledge Production by Local Workers Reporting to Return Migrants

Since the mid-1990s, a large number of multinational enterprises (MNEs) have set up research and development centers in China, India, and other emerging markets. Such MNEs face constraints in expanding their "geography of innovation" —that of producing and transferring knowledge across borders—because for the MNE knowledge is likely to be localized within larger, more established centers of knowledge production. How do MNEs in emerging markets circumvent this constraint? In this paper, the author uses personnel data from a Fortune 50 technology firm and studies the role of return migrants in facilitating patenting at the emerging market R&D center. The author also studies on-the-job learning of knowledge production by local employees who report to return migrants at an emerging-market R&D setting. The findings generate insights into the functioning of 'internal labor markets' of multinationals. The results are also important for managers: Given the great many Fortune 500 MNE R&D centers in countries such as China and India, and the large fraction of these centers managed by return migrants, the findings may assist those who set up and manage current and future MNE R&D centers. Read More

Economic Transition and Private-Sector Labor Demand: Evidence from Urban China

One of the key economic and historic events of the late twentieth century was the transition of centrally planned socialist economies to market economies, including the movement of labor from state employment to private employment. The authors examine two questions: 1) What are effective policies for gradually transitioning labor into the private sector? 2) What is the adaptability of labor demand in the new private sector during economic transition? Data from urban China and show that delinking housing benefits from state-sector employment accounts for more than a quarter of the overall increase in labor supply to the private sector during 1986-2005. Furthermore, increasing the private-sector labor supply by 10 percent reduces wages by 1.8 to 3.2 percent. These results have several implications: First, employer-provided housing benefits contribute to reduced labor mobility across sectors, a phenomenon called "job-lock" (similar patterns have been documented for employer-provided health benefits in the United States). Second and more importantly, the private sector, even in its infancy, can absorb a significant amount of labor without large wage declines. However, the projected magnitudes of labor movement into the Chinese private sector are so large that they still imply drastic private-sector wage reductions, if capital and technology movements remain at the same rate as in these data. Thus, to minimize wage reductions, Chinese policy makers may want to consider policies that increase the availability of other factors of production into the private sector, such as greater capital availability or adoption of newer technologies, to raise labor productivity. Read More

Just How Independent are ‘Independent’ Directors?

A rule in China, which mandates publicly-traded company directors to explain their dissenting votes, provides Tarun Khanna and Juan Ma with rich data looking into the inner workings of how board members interact. Open for comment; 1 Comment posted.

Hiding From Managers Can Increase Your Productivity

Harvard Business School Assistant Professor Ethan S. Bernstein explains why decreasing workplace transparency can increase productivity. Open for comment; 26 Comments posted.

Competition and Social Identity in the Workplace: Evidence from a Chinese Textile Firm

Social identity theory suggests that individuals derive part of their self-concept from their perceived membership in a social group and behave differently towards in-group versus out-group members. But despite the importance of social identity in organizational contexts, the existing empirical evidence in managerial economics has mostly come from lab experiments, and there exist few quantitative studies on the impact of social identity on worker behaviors in real workplaces. This paper provides novel evidence of the impact of social identity on workers' competitive behaviors in a Chinese textile firm that uses relative performance incentives. The firm provides an unusual empirical setting in which there is a historical and institutional division of all weavers into two distinct groups with different social identities: urban resident and rural migrant workers. Our findings show that the weavers do not compete against coworkers who share the same social identity even though there is a tournament incentive to outperform their coworkers in general. Instead, they only compete against coworkers who do not share the same social identity. Managers who design incentive schemes without understanding the dynamics of social incentives in the workplace may fail to achieve the intended effects on productivity. Read More

Board Games: Timing of Independent Directors’ Dissent in China

Independent directors are an integral part of corporate governance. Despite the copious scholarly debates surrounding board independence, however, little progress has been made in studying the inner workings of public boards. Fortunately, the regulatory environment in China offers a rare window to observe the inner workings of independent directors. This paper is one of the first statistical investigations of the circumstances under which so-called "independent" directors voice their independent views. The authors explore the following questions: 1) Why do independent directors dissent? 2) Under which circumstances is an independent director more likely to issue an open dissent? and 3) Does dissent matter sufficiently to affect independent directors' careers and firm performance? Unlike most of the previous models that view boards as a monolithic entity that "shares a common agenda on all matters," this study allows the authors to see boards as consisting of individuals with different utility functions and to examine board behaviors at the individual director level. Read More

Not Your Father’s State-Run Capitalism

The face of state-owned companies in Russia, China, and other countries has changed dramatically over the last several decades, says professor Aldo Musacchio. What capitalists need to know about these increasingly powerful competitors. Open for comment; 1 Comment posted.

Big BRICs, Weak Foundations: The Beginning of Public Elementary Education in Brazil, Russia, India, and China

Economists have argued that the "Great Divergence" between the developed and underdeveloped world in the nineteenth century was reinforced—if not caused—by rapid improvements in schooling that occurred in the advanced economies. Explaining differences in economic development today may hinge on understanding why most societies failed to develop adequate primary education in the late nineteenth and early twentieth centuries. This study sheds new light on the comparative experiences of Brazil, Russia, India, and China (BRIC) during the formative years of their primary education systems. Read More

Climbing the Great Wall of Trust

New research from Assistant Professor Roy Y.J. Chua investigates the difficulties for foreigners doing business in China, and what they can do to overcome the challenge. Closed for comment; 20 Comments posted.

Historical Trajectories and Corporate Competences in Wind Energy

Analyzing developments in the wind turbine business over more than a century, Geoffrey Jones and Loubna Bouamane argue that public policy has been a key variable in the spread of wind energy since the 1980s, but that public policy was more of a problem than a facilitator in the earlier history of the industry. Geography has mattered to some extent, also: Both in the United States and Denmark, the existence of rural areas not supplied by electricity provided the initial stimulus to entrepreneurs and innovators. Building firm-level capabilities has been essential in an industry which has been both technically difficult and vulnerable to policy shifts. Read More

Immigrant Innovators: Job Stealers or Job Creators?

The H-1B visa program, which enables US employers to hire highly skilled foreign workers for three years, is "a lightning rod for a very heated debate," says Harvard Business School professor William Kerr. His latest research addresses the question of whether the program is good for innovation, and whether it impacts jobs for Americans. Open for comment; 36 Comments posted.

KFC’s Explosive Growth in China

In China, Yum! Brands is opening a KFC store every day. But this is not the KFC you know in America. A recent case study written by professor David Bell and Agribusiness Program director Mary Shelman reveals how the chicken giant adapted its famous fast-food formula for the local market. Open for comment; 22 Comments posted.

Big BRICs, Weak Foundations: The Beginning of Public Elementary Education in Brazil, Russia, India, and China, 1880-1930

In deducing why some nations are more developed than others, it makes sense to look at their educational systems. While comparative studies on the subject focus either on developed nations or on differences between developed and developing economies, this paper hones in four of the largest developing nations at the turn of the twentieth century: Brazil, Russia, India, and China (BRIC). Research was conducted by Aldo Musacchio of Harvard Business School, Laktika Chaundhary of Scripps College, Steven Nafziger of Williams College, and Se Yan of Peking University. Read More

The New Face of Chinese Industrial Policy: Making Sense of Anti-Dumping Cases in the Petrochemical and Steel Industry

The researchers set out to explain differences in China's antidumping actions against importers in the petrochemical and steel industries. During the study period, 66 percent of the country's antidumping cases targeted petrochemical imports, while steel imports were targeted only in 5 percent of the cases. Why did China's petrochemical and steel industries behave so differently in seeking trade protection? The answers put forward by researchers Regina Abrami (Harvard Business School) and Yu Zheng (University of Connecticut) point toward the structural nature of the industries themselves, and against arguments that antidumping actions in China have been driven by retaliation or national industrial strategy alone. Read More

Mindful Leadership: When East Meets West

Harvard Business School professor William George is fusing Western understanding about leadership with Eastern wisdom about the mind to develop leaders who are self-aware and self-compassionate. An interview about his recent Mindful Leadership conference taught with a Buddhist meditation master. Closed for comment; 33 Comments posted.

The Role of Institutional Development in the Prevalence and Value of Family Firms

Family firms dominate economic activity in most countries, and are significantly different from other companies in their behavior, structural characteristics, and performance. But what explains the significant variation in the prevalence and value of family firms around the world? The two leading explanations are legal investor protection and institutional development, but cross-country studies are unable to rule out the alternative explanation that cultural norms are what account for these differences. In contrast, China provides an excellent laboratory for addressing this question because it offers great variation in institutional efficiency across regions, yet the country as a whole shares cultural and social norms together with a common legal and regulatory framework. In this paper, HBS professor BelÚn Villalonga and coauthors study ownership data from a sample of nearly 1,500 publicly listed firms on the Chinese stock market. They conclude that institutional development plays a critical role in the prevalence and value of family firms, and that the differences observed across regions are not attributable to cultural factors. Read More

Strategy and Execution for Emerging Markets

How can multinationals, entrepreneurs, and investors identify and respond to new challenges and opportunities around the world? In this Q&A, HBS professors and strategy experts Tarun Khanna and Krishna G. Palepu offer a practical framework for succeeding in emerging markets. Plus: Book excerpt with action items. Read More

Looking Behind Google’s Stand in China

Google's threat to pull out of China is either a blow for Internet freedom or cover for a failed business strategy, depending on with whom you talk. Professor John A. Quelch looks behind the headlines in a new case. Read More

The End of Chimerica

For the better part of the past decade, the world economy has been dominated by a unique geoeconomic constellation that the authors call "Chimerica": a world economic order that combined Chinese export-led development with U.S. overconsumption on the basis of a financial marriage between the world's sole superpower and its most likely future rival. For China, the key attraction of the relationship was its potential to propel the Chinese economy forward by means of export-led growth. For the United States, Chimerica meant being able to consume more, save less, and still maintain low interest rates and a stable rate of investment. Yet, like many another marriage between a saver and a spender, Chimerica was not destined to last. In this paper, economic historians Niall Ferguson of HBS and Moritz Schularick of Freie Universitńt Berlin consider the problem of global imbalances and try to set events in a longer-term perspective. Read More

Business Summit: China in the Global Economy

While the global economic downturn will affect China's exports, the domestic economy is expected to remain strong, agreed panelists at the HBS Business Summit. Read More

Business Summit: Historical Roots of Globalization

In this breakout session, panelists shared insights, informed by history, of the convergence that globalization promotes. Read More

Professional Networks in China and America

While American managers prefer to separate work and personal relationships, Chinese counterparts are much more likely to intermingle the two. One result: Doing business in China takes lots of time, says HBS professor Roy Y.J. Chua. Read More

Are the Olympics a Catalyst for China Reforms?

By hosting the Summer Games, China is putting itself at the center of the world's stage, a position some reformers would like to leverage to spark human rights improvements in the country. Can outsiders influence Chinese policy? Not without help, says HBS professor Tarun Khanna. Read More

Accountability and Inequality in Single-Party Regimes: A Comparative Analysis of Vietnam and China

While both China and Vietnam have experienced rapid annual growth over the past two decades, income inequality has risen more rapidly in China than in Vietnam during the same period. Structural and socio-cultural determinants fail to account for these divergent paths, as nearly every variable predicts higher inequality in Vietnam. This paper by Regina Abrami and colleagues focuses on differences in political institutions to explain these divergent paths. In so doing, it contributes to a growing body of literature describing variation in authoritarian regimes, but focuses on variation within one authoritarian regime type. Read More

The Marketing Challenges of the China Olympics

The Olympic Games are normally a marketer's dream. Not so much this year, given widespread protests against the Chinese government. Professor John Quelch outlines the branding challenges posed by this year's Games in Beijing. Read More

Podcast: The Potential Partnership of India and China

Even without cooperation between them, China and India appear headed toward economic superpower status in the coming decades. But what if they worked together? In this podcast, Harvard Business School professor Tarun Khanna discusses the possibility of Sino-Indian cooperation and its impact on global business. Read More

Billions of Entrepreneurs in China and India

Entrepreneurship in both China and India is rising dramatically and thriving under quite different conditions. HBS professor Tarun Khanna explains what it all means in this Q&A about his new book, Billions of Entrepreneurs: How China and India Are Reshaping Their Futures and Yours. Plus: book excerpt. Read More

How Brand China Can Succeed

A series of recent setbacks including the Mattel toy recalls threaten China's new and improving image, says Professor John Quelch. There is just not enough preexisting brand equity among the world's consumers to inoculate Brand China against the current tide of negative publicity. What should the country do to polish its image? Read More

Diversification of Chinese Companies: An International Comparison

Many observers have argued that Chinese managers are particularly quick to diversify their enterprises. Fueled by robust economic growth and the scant enforcement of intellectual property rights that could serve as barriers to entry, Chinese companies appear to be aggressively expanding into new industries whenever economic opportunities appear to beckon. There is much anecdotal evidence to support this view. But because the Chinese economy is extraordinarily large and dynamic, it is difficult to know whether anecdotes reflect an underlying trend toward greater diversification. This paper provides systematic evidence about the scope of Chinese companies, and compares the data with the evolution of firm scope in 8 other large economies. Read More

Mattel: Getting a Toy Recall Right

Mattel has been criticized heavily for having to recall not once but twice in as many weeks 20 million toys manufactured in China. But Mattel also deserves praise for stepping up to its responsibilities as the leading brand in the toy industry. Harvard Business School professor John Quelch examines what Mattel did right. Read More

Learning from Failed Political Leadership

Strategic independence and better leadership assessment—these are the critical issues for both business and government in the future, says Professor D. Quinn Mills. In this Q&A he describes key lessons from his new book, Masters of Illusion, coauthored with Steven Rosefielde. A book excerpt follows. Read More

What’s Behind China’s Wild Stock Ride?

Podcast: The recent one-day plunge of 9 percent in China's stock markets has continued to weigh heavily on other markets around the world. What caused the fall? Are more ups and downs to come? Professor Li Jin discusses the unique characteristics that drive Chinese stocks. Read More

Handicapping the Best Countries for Business

India? South Africa? Russia? Which are the best countries for a firm to invest in? In a new book, Professor Richard Vietor looks at the economic, political, and structural strengths and weaknesses of ten countries and tells readers how to analyze the development of these areas in the future. Read our Q&A and book excerpt. Read More

India Needs to Encourage Trade with China

Although India and China have increased bilateral trade over the last five years, the amount is far less than what would be expected. Harvard Business School professor Tarun Khanna says India has primarily itself to blame. From The Economic Times. Read More

Report from China: The New Entrepreneurs

When a delegation of Harvard Business School faculty visited Chinese entrepreneurs, they came away with something unexpected: the start of what could be a fundamental rethinking of how entrepreneurship works. Read More

U.S. Tops Business Competitiveness Index 2006

The United States and Germany continue to top an annual review of the business competitiveness of 121 countries, which is compiled by Professor Michael Porter's Institute for Strategy and Competitiveness at Harvard Business School. While India climbed in the rankings, China fell. Read More

Meeting China’s Need for Management Education

On a recent trip to China, Steven C. Wheelwright noted an increasing interest in entrepreneurship, globalization, and competitiveness. Most of all, the Chinese have an increasing thirst for management education. Read More

The China Dilemma for U.S. Firms: Comply, Resist, or Leave?

If you were an advisor to the senior managements of these companies doing business in China, what would you propose that they do? Closed for comment; 34 Comments posted.