China →
- 08 Feb 2010
- HBS Case
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. Key concepts include: China has become more emboldened and self-confident as a result of its increasing economic significance. Google acted precipitously without giving due consideration to the impact of its announcement on stakeholders. The Google issue has become a cause célèbre that exacerbates the already fragile and festering U.S.-China relationship. Closed for comment; 0 Comments.
- 16 Dec 2009
- Working Paper Summaries
The End of Chimerica
Economic historians Niall Ferguson and Moritz Schularick of Freie Universität Berlin consider the problem of global imbalances and try to set events in a longer-term perspective. First published in 2009. Closed for comment; 0 Comments.
- 14 Jul 2009
- Research & Ideas
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. Closed for comment; 0 Comments.
- 07 Jul 2009
- Research Event
Business Summit: Historical Roots of Globalization
In this breakout session, panelists shared insights, informed by history, of the convergence that globalization promotes. Closed for comment; 0 Comments.
- 30 Mar 2009
- Research & Ideas
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. Key concepts include: It generally takes much longer to build trusting business relationships in China than in the United States. When cultivating business relationships in China, American managers may want to know as many people in the Chinese counterpart's network as possible. Closed for comment; 0 Comments.
- 06 Aug 2008
- Research & Ideas
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. Closed for comment; 0 Comments.
- 04 Jun 2008
- Working Paper Summaries
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. Key concepts include: Compared with China, Vietnam's institutions empower a larger group of insiders and place far more constraints on the party leadership, both through vertical checks and through semi-competitive elections. As a result, Vietnamese economic policies must consider a larger cross section of society. Vietnam spends a far larger portion of its revenue on transfers, and has been able to engender greater equalization among provinces and individuals. It is still too early to tell whether the development paths in China and Vietnam will converge or diverge. Growing income inequality has pressured the Chinese government to shift its focus from promoting all-out economic growth to solving social tensions. Closed for comment; 0 Comments.
- 01 May 2008
- Research & Ideas
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. Key concepts include: Political pressure directed at the Chinese government will also pose challenges for Olympic Games sponsors, who don't want to be associated with the controversy. Given the prominence of China as a supplier and customer, it is unlikely that we will witness grandstanding boycotts of the Games by any company. Some marketers are employing a dual marketing approach, with China-specific campaigns inside the country but less Beijing-centric messaging outside. Marketers are not over-committing funds to Olympics-related brand advertising and promotions. The normal Olympics year advertising boost may be less than expected. Closed for comment; 0 Comments.
- 04 Feb 2008
- Research & Ideas
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. Closed for comment; 0 Comments.
- 28 Jan 2008
- Research & Ideas
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. Key concepts include: In China and India, much of entrepreneurship is in response to constraints—societal, political, or other. The business landscapes of China and India differ in two main respects: their degree of openness to outside influence, and the extent and type of government involvement. Foreign direct investment pours into China. India has embraced foreign direct investment much less, for good and bad reasons. Traditionally, India has been more open to ideas than has China. In India, caste is both less important and more important than it used to be. Closed for comment; 0 Comments.
- 18 Sep 2007
- Research & Ideas
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? Key concepts include: Recent setbacks threaten China's new and improving image. China looks like a country that loves the world's markets but does not play by the world's rules. To fix the situation, China should: Tighten and enforce nationwide manufacturing quality standards and health and safety laws. Move towards an economy based on invention rather than imitation. Use the Olympics as an event for national progress, not just Beijing progress. Closed for comment; 0 Comments.
- 07 Sep 2007
- Working Paper Summaries
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. Key concepts include: This research shows no evidence that emerging-market companies are systematically more diversified than their developed-market counterparts. Contrary to some claims, the level of diversification of Chinese firms has remained stable over the past 5 years. In all other countries in the research sample, firms have become more focused over time. Chinese companies did not follow this trend. Chinese state-owned enterprises diversified their operations more aggressively than other Chinese firms. Closed for comment; 0 Comments.
- 27 Aug 2007
- Op-Ed
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. Key concepts include: Mattel's recall of 20 million toys made in China was handled deftly: The CEO took personal charge of the problem. Consumers are being empowered by Mattel's communications. The recall Web site is a model of excellence. Mattel's compensation program to customers may not be sufficient. Closed for comment; 0 Comments.
- 26 Mar 2007
- Research & Ideas
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. Key concepts include: Business leaders must be able to predict changing dynamics between powerful organizations under multiple international economic and geopolitical scenarios. A major failing of current leadership models is the lack of knowledge, awareness, or even interest in life beyond our country's borders, a limitation of growing importance as the global economy expands. The most important threats to America in the decade ahead are from major powers, not terrorists per se. Closed for comment; 0 Comments.
- 20 Mar 2007
- Research & Ideas
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. Closed for comment; 0 Comments.
- 19 Mar 2007
- Research & Ideas
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. Key concepts include: Governments create the overall environment for successful competition in the global economy. Bad government can only lead to less competitive businesses. To be competitive, countries need to offer businesses sound fiscal and monetary policies, secure property rights, high savings and investment, an absence of corruption, and exports that are competitive in enough areas to eventually balance imports. Business people must understand where markets and countries are headed by analyzing the present and then extending current performance trends forward three to five years. Although each has issues, Singapore, China, and India are currently the best bets for FDI and, pending political stability, so is Russia. Closed for comment; 0 Comments.
- 06 Dec 2006
- Op-Ed
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. Key concepts include: China and India recorded $19 billion in bilateral trade in 2005, much less than would be expected of countries similar in size, within geographic proximity, and with shared cultural ties. Indians' fears about Chinese competition and unease over past border wars result in procedural and other roadblocks to increased trade, at India's disadvantage. China benefits from the trade more than India, both by selling more and better products to India and by welcoming Indian investment in China. Closed for comment; 0 Comments.
- 16 Oct 2006
- Research & Ideas
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. Key concepts include: At least in selected areas, entrepreneurs in China are thriving and opportunities are abundant in times of change, chaos, and uncertainty. National, regional, and local governments continue to play a role in business formation, and can be helpful securing resources for entrepreneurs. Studying China provides fertile ground for rethinking what conditions are necessary to foster a healthy entrepreneurial environment. Closed for comment; 0 Comments.
- 11 Oct 2006
- Research & Ideas
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. Key concepts include: The Business Competitiveness Index measures the underpinnings of a country's prosperity. While a nation's macroeconomic factors are often considered fundamental to long-term prosperity, productivity depends on microeconomic factors such as the level of company sophistication and quality of the business environment. Unless microeconomic capabilities improve, sustainable improvements in prosperity will not occur. Closed for comment; 0 Comments.
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 Belén 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. Key concepts include: Family firms do not inhibit growth and development, as is sometimes argued. This seems clear due to the relatively higher prevalence of family firms even in regions with high institutional efficiency. The effects of family, ownership, control, and management in China are remarkable similar to those found by professor Villalonga in her earlier research based on U.S. data. Namely, family ownership is positively related to value, family control in excess of ownership is negatively related to value, and family management, when exercised by the firm's founders as is primarily the case in China, is positively related to value. However, in China these effects are largely driven by the low institutional efficiency regions. In the high efficiency regions, none of these effects are significant. These findings are particularly relevant for China as it continues its transition from a central planning system to a market economy. On average, family firms are significantly smaller, younger, and less capital-intensive than non-family firms. Yet they exhibit significantly lower systematic risk, and they are not significantly different from non-family firms in their growth and leverage. Closed for comment; 0 Comments.