Price stability is not only an important indicator of the healthy and stability of macro-economy, but also one of the goals of macroeconomic policy. There are many factors affecting inflation. Different monetary policy instruments, such as money supply, liquidity and market expectations, have different effects on inflation. Meanwhile, monetary policy goals, such as inflation rate, employment rate and economic growth rate, also affect each other.
This paper provides an empirical study of money supply, inflation and unemployment in the US economy. Based on the existing theoretical and empirical analysis, this paper selects different research models and new data dimensions to study the relationship between money supply, unemployment and inflation from different angles for both theoretical and empirical aspects. This paper analyzes and defines the historical impact based on three-dimensional VAR model. In order to construct a multi-dimensional VAR model for analysis, this paper chooses the money supply in the monetary policy instruments and the unemployment rate in the monetary policy goals as the endogenous variables affecting inflation, and chooses the import price stably related to the growth of money supply as the exogenous variable. This paper uses the consumer price index (CPI) to represent the inflation rate and M1 money supply to represent the monetary aggregate. Finally, through the comparative analysis of inflation between China and the US, the paper puts forward some thoughts and suggestions on the monetary policies. Through the research, it proves that the choice of money supply as an intermediary target is effective, but there is a certain lag in regulating consumption inflation. Meanwhile, it shows that there is a policy contradiction between the employment rate and the inflation rate.
Analysis of Factors Influencing the Bailout of Distressed Enterprises by Local Asset Management Companies
In recent years, the number of distressed enterprises in China has gradually increased due to radical enterprise strategies, excessive expansion, poor management, and a trend of accelerating growth. Unable to adapt to fierce market competition, a large number of “zombie enterprises” disrupt the market order, reduce the use efficiency of social resources, and aggravate market risks. However, some enterprises are
temporarily caught in financial distress due to a deterioration of their financial situation caused by factors such as debt structure or capital liquidity. If such enterprises can be bailed out in time, they can escape their distress, which not only protects the interests of creditors and the returns for investors, but also improves the efficiency of resource allocation in society as a whole. The key to distinguishing between “zombie enterprises” and enterprises with bailout value is to identify the factors that influence the bailout value of distressed enterprises.
After reviewing literature, I find that the existing research focuses mostly on the reasons for the bailout of distressed enterprises and the significance of reorganization and less on how local asset management companies (also known as “local AMCs”) evaluate distressed enterprises. In this thesis, I first analyze the methodology of GOHO Assets Management Co., Ltd. (hereinafter “GOHO Assets”) in the bailout of distressed enterprises, and examine the analytical approach of GOHO Assets to establish a decision-making model for the bailout of distressed enterprises. The model contains control factors, including local government support, the judicial environment, debt status, employee situation, equity structure, and fundamental factors, including macroeconomic industry outlook and other macro-fundamental factors, as well as firm-fundamental factors such as gross margin, total asset turnover ratio, interest ratio,financing rate, equity concentration, corporate structure. Subsequently, I use the decision model to analyze three successful bailout cases of distressed enterprise and two cases without bailout value, and the results show that the decision model has good practical applicability.
In the subsequence large sample empirical analysis, I select listed companies that were subject to a risk warning (ST) or delisting warning (*ST) in the Shanghai and Shenzhen Stock Exchanges during the four years from January 2014 to the end of January 2018. Using logit model and probit model, I use the gross profit rate, total asset turnover ratio, leverage ratio, financing rate, equity concentration, and enterprise
nature of the listed companies to predict whether the companies could successfully remove their warnings status.
The empirical results show that the model yields better predictions in both time fixed effect and industry fixed effect specifications. Two indicators — gross margin and enterprise nature —are significant, and the other indicators are not significant in predicting whether the companies could successfully remove their warnings status.
Thus, the key factors proposed in my decision model—gross margin and enterprise nature—should be used as key factors in determining whether a distressed enterprise has bailout value. I also conduct a detailed analysis of the motivations and specific behavioral patterns of local government intervention in distressed enterprises, and find that local governments play an important role in the bailout outcomes of both private and state-owned listed enterprises.
Analysis of the indicators that are not significant reveals that their insignificance is mainly due to the fact that distressed enterprises often do not truly disclose their assets, liabilities, or income, leading to distorted indicators. Therefore, when conducting due diligence on the distressed enterprises, it is necessary to make
adjustments to important indicators and use the adjusted indicators as the basis for bail-out decision-making.
How about the innovation performance of enterprises clustered in the industrial parks? This is the core question of this study. Based on the thinking and evolution of the question, this study will focus on the impact of industrial agglomeration on enterprise innovation performance with enterprise relations and informal institution as intermediate variables.
In this study, Shenzhen, as a city of innovation, is selected as the research area where sample parks and enterprises can be investigated to obtain data. This study constructs and measures the strength of informal institution and enterprise innovation performance through grounded theory and fuzzy matter-element method, evaluates the enterprise relationship in the parks through social network analysis(SNA), and then takes cluster enterprises, the operation of industrial park, enterprise relations in the parks and enterprise innovation performance as four variable sets, build models, and use the method of regression analysis to judge the impact of various factors on enterprise innovation performance in the industrial parks.
This study found that the industrial agglomeration has no direct and significant positive impact on the network of clustering enterprises, but significant positive impact on enterprise innovation performance. Network and informal institution also have significant positive impact on enterprise innovation performance, and informal institution has an intermediary effect between industrial cluster and enterprise innovation. Especially in Shenzhen, the informal institutional relationship consisted of blood, geography, industry and learning plays an important role. For industrial parks with a certain scale, due to industrial upgrading and renewal, they pay more attention to the exploration of the potential of innovative enterprises, and even give considerable preferential policies to actively guide them to settle in and promote their innovation performance.
For a long time, industry, financial institutions, PE investment funds, and capital market investors have determined the business performance and market value of a company, usually based on the data of the three audited financial tables provided by the company, and further comprehensive analysis will be carried out the evaluation. Due to the limitations of accounting standards, the three financial tables cannot truly reflect all the business conditions of the enterprise. At the same time, the economic stage with traditional manufacturing as the main body and the economic stage with the digital economy as the main body are concerned with the scope, focus, and focus of financial information. The performance requirements are also very different. More and more listed companies use data that is not accurately defined by accounting standards in their financial reports. At the same time, the issuance review committee and exchanges are also increasingly requiring listed companies and prospective listed companies to further disclose non-listed companies in their audits and inquiries financial data. How to ensure the standardization, consistency, measurability, objectivity, and traceability of these data disclosures has become a more realistic requirement. In 2016, at a seminar held by the Shanghai National Accounting Institute, Deloitte China partners put forward and explained the concept of the company’s fourth report, that is, through non-financial data, with users as the core, establishing a platform that covers users, products and platforms The three-dimensional corporate value evaluation system provides deeper insights for corporate management. We believe that the targeted design and construction of the fourth report in the two dimensions of industry and business model will help to sort out the correlation between business data and financial performance to make the third report in advance. Pre-judge the future performances, discover the potential value enhancement space of the company in advance, to make the correct investment decisions. Through investment case studies and questionnaire surveys, this paper demonstrates in detail the importance of constructing the "fourth report" and its effectiveness in the specific investment process.
2021 will be the final year of the centenary goal of “building a moderately prosperous society in all respects”. Looking back over the past century, China has not only witnessed an increase in national income, but also ushered in abundant changes in social culture and people's spiritual world, and completed the transformation from a traditional single homogeneous cultural society to a flexible and diverse heterogeneous cultural society. In this process, brands become the product of values change and multicultural shock, and consumers shop not only to meet the needs of material functions, but also to express their personal values. To establish an effective relationship with consumers, brands must understand their value demands.
However, traditional brand research rarely focuses on the fact that brands are the product of changing consumer values, and consumer research is mostly limited to the rational level. This leads to the questions: what is the role of consumers' perceptual values for brands? Is there a method to quantify and apply the intangible perceptual values? Is there a way to study and guide the application of intangible perceptual values in a quantitative way?
To solve the above questions, we adopt abductive reasoning method to explore the following points: first, we put forward the core hypothesis -- consumers' perceptual value has a positive impact on brand development, and CVBBM (Customer-values-based Brand Management) is an effective perceptual value research tool.
CVBBM is an original consumer research tool that helps brands identify their core consumer groups and their perceptual value points. Based on the brand management practice of a certain brand, we elaborate on the theoretical basis, operation process, output results and landing guidance of CVBBM. Further, to evaluate the impact of perceptual value on brand development and verify the effectiveness of CVBBM tool, we use fuzzy-set qualitative comparative analysis (fsQCA) to explore the impact of perceptual value and other conditions and their combinations on brand performance growth.
Finally, we’ve found that: 1) brand development is not the result of a single point of force, but the product of the interaction of multiple factors, and no single variable can constitute a sufficient and necessary condition for brand performance improvement; 2) there are a variety of success paths for brands, but consumers' perceptual values are the overlap of these success paths and the necessary condition to drive performance improvement; 3) CVBBM can help brands define perceptual value, drive multi-dimensional practice optimization and performance improvement, and is an effective tool for perceptual value research.
The ongoing pandemic provides an invaluable opportunity to observe family businesses under extenuating circumstances, especially the Circuit Breaker which forced all non-essential workplaces to close to curb the spread of COVID-19; this in effect mandated that everyone should work from home. (Ministry of Health Singapore, 2020). This meant that for those working in intergenerational family businesses, they could also be living and working in the same confined space for an extended period. Does the accumulation of these circumstances create a phenomenon that leads to interactions that generate innovation and renew family bonds leading to succession?
Family businesses are known to be motivated and committed to the preservation of socioemotional wealth (Miller & Le Breton-Miller, 2014). This study is keen on understanding the influence of a crisis on any gaps or overlaps in between each’s generations notion of socioemotional wealth and how this gap or overlap affects innovation and succession in family businesses. Past research has shown that the succession period can be a threat to family businesses but also an opportune time for innovation. Transgenerational entrepreneurship is a way for FBs to pursue innovation practices that improve entrepreneurship and to overcome the succession challenge. Building on transgenerational entrepreneurship research, the proposed family transgenerational entrepreneurship theory explains how intergenerational family businesses overcome generational gaps through the lens of socioemotional wealth to achieve succession and innovation before and during a crisis. Semi-structured interviews were conducted with privately owned family business owner/founder and potential successors respectively to investigate the impact of the crisis on innovation and succession in intergenerational family businesses.
The proposed family transgenerational entrepreneurship theory extends our understanding of the implicit succession process within private intergenerational family businesses and the methods deployed to build intergenerational foundations that overcome conflict and promote intergenerational collaboration. This study expects to provide intergenerational family businesses clarity and handles to promote innovation and succession success and researchers a novel way of a examining the interaction and effects of individual intergenerational socioemotional wealth dimensions.
Real estate sales industry in China has long suffered the problem of inefficient matching of customers to projects. Inspired by the design of recommender systems, which have been widely used in the online retail industry, and are shown to facility customer-product matching and improve sales, we apply this system to the real estate sales industry using a novel approach. Instead of recommending products to customers, we suggest the best potential customers to salespeople with whom they will conduct sales with. Using city-wide sales data from the largest real estate sales company in China, we first develop a recommend system based on the predictive model where successful sales are explained by the combined characteristics of customers and real estate projects. We then conduct a field experiment to test the effectiveness of the system. We find that employing such system improves salespeople’s engagement with customers as well as customers’ willingness to visit, key contributors to successful sales.
Given the lack of research on the critical success factors of the whole process of BOT projects, this paper conducts research on the BOT projects in Fujian Meizhou Bay, Guangdong Shajiao, and Guangxi Laibin, which applies the critical success factor (CSF) model analysis, and uses scientific questionnaire scoring evaluation to determine the success or failure of the BOT projects. The research results of the paper are in line with the local governments’ summaries and evaluation of the power plants after the end of the projects. This paper uses a mixed research method combining "expert argument + questionnaire + case analysis" to summarize the critical factors for the success of BOT projects. The critical factors are extracted from five dimensions: "economic development needs”, “social environmental support”, “technology and funding guarantee”, “consideration of all parties’ interests” and “scientific project management". The specific influencing factors, "economic development level and capital demand", "credit guarantee", "technical and business plan and financing plan", "detailed project plan and development", "risk sharing mechanism" play a positive role in promoting and decisive influence on the smooth implementation of the project. This paper takes the Laibin B power factory BOT project as a typical case, combined with the entire process of start-up, construction, operation, and handover, and deeply analyzes the critical factors for the success of the whole process of the project. The important role of the five factors is highly consistent with the criticality of the success of the project.
Institutional investors, the most important consumer of analyst research, consistently rank industry knowledge as the most important attribute of analysts. Despite this, little is known about how investors measure industry knowledge since analyst output which can be evaluated objectively is usually associated with firm-level outcomes such as earnings forecasts or price targets. Comprehensive data are recently available for analyst forecasts of key performance indicators (“KPIs”), firm-performance metrics specific to a particular industry. Whereas reactions to earnings forecasts and other firm-level outputs only inform us about analyst skill in firm-level predictions, stock-price reactions to forecast revisions of industryspecific KPIs can proxy for industry-specific expertise of sell-side analysts. I find that stockprice reactions to KPI forecast revisions are economically meaningful and statistically significant, even when accounting for contemporaneous stock recommendation changes and earnings forecast revisions. These reactions are stronger for KPI forecast revisions that jump over the prior consensus, and for same-store sales forecast revisions on retail stocks.
In case of emergency such as pandemic or earthquake, there are usually surge demands for some necessary products, which are usually far more than available production capacities thus it is necessary to quickly build more production capacities. However, building production capacities is not just building production lines but to constructing whole supply chains, from raw materials and equipment sourcing, manufacturing flow lines to demand management.
To quickly construct a supply chain for fulfilling such emergency demands is very challenging both theoretically and practically. This thesis aims to develop a model of supply chain construction for emergency demand and identify the critical success factors for constructing the supply chain for emergency.
Based on the theoretical framework of supply chain processes and elements, we develop a model for constructing the supply chain for emergency demands. With this theoretical framework, the case of KF company’s facemask project and the construction process of such an emergency supply chain is analyzed, where manufacturing flow, materials and equipment sourcing and supply relationship management are discussed in depth. The construction of KF’s facemask supply chain in Chinese context during COVID-19 pandemic is very successful and several critical success factors are identified, including maintaining good relationship with stakeholders, strong organizational ability and efficient execution of strategic decisions, owning core technology for the products of the supply chain, and responding to demand quickly.
The model for constructing for constructing the supply chain can be employed for dealing with interruptive situations and the critical success factors may be useful in similar scenarios.
Organizational Factors that Facilitate Collective Social Entrepreneurship: An Exploratory Study
This research aims to contribute to the literature on collective social entrepreneurship (CSE) by exploring and examining the organizational factors that facilitate and motivate participation in CSE. Data were collected through an interview with the founder of a cooperative, and a survey, wherein respondents presented their expectations of a collective, their motivation to join, and the resources they deem important.
It was found that organizational factors, initialled as RRSI (relevance, resources, likelihood of success and innovativeness) which if met, have a reasonable chance of attracting participation in organizations pursuing CSE. These organizational factors had different appeal to stakeholders, based on their demographics and hence it was possible to group respondents based on these factors. The time respondents were willing to commit to the organization was also influenced by how relevant the organization was for the respondent and their employment status.
Findings from the research could help organizations orient themselves to develop these factors and attract participation; It could help empower the communities that it serves; it could guide the realignment of public spending and give a new direction to government institutions to strategically help create more dynamic and sustainable entities through CSE.
Advancements in technology are now allowing non-human actors in the form of robot-advisors, driverless cars, medical assistants to perform increasingly complex tasks. While technological change is as old as civilization, these non-human actors can do novel tasks. One such task is that they provide advice which is a credence service (Dulleck, & Kerschbamer, 2006). Using a financial services context this thesis studies the role trust plays in advice acceptance.
Robo-advisors are rapidly replacing human financial advisors as the agent-provider for portfolio investment services. For centuries, it was the banker (human financial advisor) who was responsible for providing his investors with advice on what assets to invest in. However, advice acceptance depends on trust and the global financial crisis of 2008 saw a major dip in trust in financial service providers. Financial Advice acceptance from non-human actors is hypothesised to be based on trustor’s beliefs on technology, risk aversion, and general trust propensity. It is also based on the Trust Worthiness of the Robo-advisor. Trust Intentions translate into Trust Behaviours.
The proposed model is validated using an online survey where the respondents are provided simulated exposure to a Robo-Advisory process. The study is expected to provide practitioners in the fintech world insights on how to increase adoption. It may potentially assist in the creation of a generalizable across industry model for advice-acceptance from non-human actors.
With the booming development of mobile Internet in China, social platforms have unlocked new channels for commodity supply chain and retailing and promoted business model innovation. Online social networking has fundamentally changed the way the entire society communicates. Social networking is no longer constrained by space, social platforms have become a stage for many ordinary people to showcase themselves, and the popularity of mobile payment has made mobile phones the wallets of Chinese residents as well. The innovative contents and interaction styles delivered by social software have triggered a qualitative change in the efficiency of everyone's communication and interaction, making it the main portal of traffic, opening up China's immense markets in lower-tier cities and enabling the evolution from retail business model toward online socialization. Relying on China's efficient supply chain system, the communication capability of social platforms has been commercialized, thus facilitating the development of social new retailing business model.
Social new retailing business model is the object of this research. This paper is structured as follows: Firstly, through theoretical analysis and case analysis, this paper defines social new retail as a new retail business model that realizes diversified and multi-level sales of goods or services through the matrix communication method of social platforms and the innovative application of multi-level direct sales. Secondly, the role of social new retailing in improving the welfare of practitioners is investigated through questionnaire survey and empirical analysis. The results indicate that the extremely low barrier to entry has created employment opportunities for more people with low academic qualification and low income, and that it is beneficial for improving the skills of practitioners, etc. Thirdly, this study focuses on the regulatory pattern applicable to social new retailing. We've found through case analysis, questionnaire, and interviews with social new retailing business owners, legal experts and regulatory experts that the current applicable Chinese regulations are lagging so behind that they are impeding the innovative development of social new retailing business model, which must be adjusted in various aspects, such as legislation and regulatory procedures. Fourthly, corresponding policy recommendations are proposed for the regulators based on the findings of this paper, including revising current regulations and specifying regulatory responsibilities and procedures.
Digitalization has accelerated the growth and creation of new business models. There are more unicorn companies (a non-public company valued at more than US$1B) in the last 10 years than the decades before it. The use of digital technologies presents new opportunities for digitally active firms to capture growth in a new market. This paper studies how digitalization influences the internationalization process of the firm and its mode of entry into a foreign market. Drawing on existing literature on digitalization, this paper creates a novel approach to study the effect of digitalization by classifying firms based on their market business model (B2B, B2B2C and B2C) and its inherent operation characteristics (such as process-oriented vs information-driven business). This creates a finer granular approach to investigate the effect of digitalization and its variation across different industries. This study examines the effect of digitalization on internationalization through the managerial perception of competition based on the Integration-Responsiveness framework. It uses the adoption of technology and diffusion of digital innovation as observable factors to provide the empirical data to study the effect of digitalization and its impact on the choice of mode of entry. The hypotheses on the effect of digitalization on international expansion are tested with technological and digitalization adoption data, in a sample of 535 organizations based in Singapore. The findings show that by not considering the effect of digitalization, the classical Integration – Responsiveness (IR) framework is not sufficient to describe the decision of firms, choosing greenfield venture as its preferred mode of entry, in today digital context. These findings create a new perspective on the Integration – Responsiveness (IR) framework and contribute to management research by identifying the firm-level characteristics, that amplify the effect of digitalization, which can be used to calibrate the expansion strategies for modern enterprises.
Dual Agenda Innovation: How Firms Pursue Economic and Environmental Goals Simultaneously
With the increasing prevalence of UN SDG (Sustainable Development Goals) and ESG movement, more and more companies have started to include environmental performance as part of their strategic goals. From both risk management and value creation perspectives, not only is the positive environmental performance socially desirable, but it also can affect the economic performance. Companies strive to achieve superior environmental and economic performance (i.e.E2 performance), but few have succeeded.
In this dissertation research, the author proposed that firms are more likely to achieve superior E2 performance by engaging in dual agenda innovation that integrates environmental goal and economic goal in the innovation process. Based on extensive interviews of sixteen large companies in different industries, this study identified common challenges that companies are facing, how these challenges could be overcome by dual-agenda innovation in those companies with successful E2 performance, and what the key capabilities are that can lead to such success. The research also explored the role of digital transformation in the dual agenda innovation to achieve E2 performance.
The in-depth examination of the interview data reveals four themes in the key capabilities that require to be embedded in dual-agenda innovation: Value Identification & Quantification, Stakeholder Management, Cross-boundary Collaboration and Digital Transformation. Based on these findings, the author developed an evaluation scheme to assess the performance of dual-agenda innovation in the sixteen companies. Next, the author applied fuzzy-set qualitative comparative analysis (fsQCA) method to analyze how different combinations of these key capabilities may contribute to the E2 performance of the sample companies. The analysis indicated that not all key capabilities contribute equally to the superior E2 performance, and some combinations of the key capabilities can have a stronger effect on E2 performance than other combinations. Thus, the qualitative and quantitative analysis in this study supported the proposed dual-agenda innovation hypotheses. The dissertation concluded by discussing the theoretical and managerial implications of the empirical findings for companies to find win-win solutions in achieving superior E2 performance.
As secondary stock markets often overestimate corporate value, many Chinese entrepreneurs seek to achieve their wealth targets by going public. However, some companies in China do not want to go public. This paper utilises multi-case research methods to develop theories about which factors lead to corporate reluctance to go public. Case studies show that compared with entrepreneurs with lower shareholdings, entrepreneurs with higher shareholdings have stronger long-term orientations and a greater desire for control and are more reluctant to go public. Industry characteristics affect entrepreneurs’ long-term orientation, desire for control, and early listing experience, thus influencing their listing decision-making. Empirical tests were also performed on data from the Seventh China Private Enterprise Survey, which was conducted in 2006. The results show that there are differences between industries regarding enterprises’ decisions not to list, and that entrepreneurs with higher shareholding ratios are more reluctant to go public than entrepreneurs with lower shareholding ratios. However, the results also show that the current shareholding ratio of entrepreneurs does not have a significant impact on their listing decision. This study expands theory on why entrepreneurs are unwilling to list and has significant practical value. The securities market has the task of discovering high-quality enterprises. However, the entrepreneurs of some excellent enterprises may decide not to go public for fear of losing control or developing a short-term orientation after listing. To this end, China’s securities market policymakers should optimise institutional links, reduce the possibility of short-term behaviour in the securities market, and reduce entrepreneurs’ concerns about listing by reforming the ‘same rights for same shares’ system.
Impact of Geographical Diversification and Limited Attention on Private Equity Fund Returns
This study analyzes the effect of geographical diversification on global private equity (PE) fund returns. I find that there is a negative correlation between geographical diversification and PE fund returns. To establish the causality between geographical diversification and PE fund returns, I employ an instrument variable analysis where the instrument used is the stock market capitalization value of the host country where the PE fund is based. My results apply to Net IRR, multiple and DPI as dependent variables used to proxy for PE fund returns in the main regression model. A one standard deviation increase in geographical diversification results in a 18.8 percent reduction in PE fund returns from a Net IRR perspective in the main regression model. Fund age and industry diversification helps mitigate the negative correlation between geographical diversification and returns. Evidence indicates that the relationship between geographical diversification and PE fund returns follows an inverted U shape function. Endogeneity treatments further validates the instruments in the model and reinforces study findings.
The AI-based robot industry is a product of AI technology combined with traditional robotics. From the literature review on innovation management and AI-based robots, few scholars have studied the development path and internal mechanism of the AI-based robot industry. Focusing on the current specific micro-enterprises, meso-phenomena, and macro-systems, this paper studies the innovation management paths of enterprises in detail using research methods including literature review, case analysis, and questionnaire interview.
This paper focuses on the TO C/B application product enterprises in the downstream of the industry chain, and the following conclusions are drawn:1) The first principle of innovation management of AI-based robot enterprises is the “effective” transformation from technological innovation to product innovation. 2) To promote "effective" transformation from technological innovation to product innovation is essentially is a set of innovation management combinations focused on technological innovation management, product innovation management, and resource innovation. 3) During the explosive and enthusiastic phases of paradigm innovation, AI-based robot enterprises must follow the three principles of product innovation, namely "pain points", "cross-border", and "standing on the shoulders of giants", and five principles of "pain points" and "rigid demand". 4) The "hard" + "soft" DNA of AI-based robots includes a genetic conflict that must be solved in technological innovation management. 5) The internal technological innovation path of the organization generally shows a trend of “unity-division-combination”, while external technological innovation needs a right window of opportunity which could be modular integration emerging from internal technological innovation or the collaborative stage of technological paradigm innovation when external resource innovation can be selected for external engineering technology innovation. 6) The maturity of the AI-based robots industry is fundamentally marked by the competition of “soft” power. “More intelligent than human” will replace “dominant design” to be a symbol of maturity of AI-based robot industry segmentation, and it is also the ultimate goal of enterprise innovation management. 7) Once AI technology has completed the “breakthrough" transformation from a given industry segment to the public and the answer to the ultimate question that “Do you think robot products/services will replace human in the XX scenario” is yes, the “inflection point” of industrial maturity is realistic.
This research is likely to make the following theoretical contributions: Firstly, it will establish an innovation management research perspective that takes the paradigm innovation cycle framework as the starting point. Secondly, it emphasizes that the first principle of innovation management is the “effectiveness” of transformation to product innovation. Thirdly, it is the first research to propose global thinking in AI-based robot innovation management. Fourthly, it indicates the “inflection point” of technological innovation, product innovation, and even development path of the AI-based robot industry - efficiency.
With the development of African economy and the increasing Chinese MNCs operating in Africa, there is a need to have a better understanding of the trust relationships between Chinese expatriates and African HCNs in the organizational environment. We adopt both qualitative and quantitative approaches to understand the trust relationships between Chinese supervisors, Guinea supervisors and Guinea subordinates in a Chinese MNC’s subsidiary in Guinea, compare the difference within culture and across culture, and examine how the interpersonal trust and the trust in the organization affect employees’ job performance. In study 1, semi-structured interviews were conducted with 19 Chinese supervisors, 20 Guinea supervisors and 19 Guinea subordinates working in the two main sectors of the Chinese MNC. We found that the importance of the various trust antecedents is different for Chinese expatriates and Guinea workers. Chinese expatriates put more weightage on ability and integrity while Guinea workers care more about benevolence. We also compared the interpersonal trust and trust in the organization, and observed different antecedents and outcomes. Drawing on the insights of study 1, we proposed a model of interpersonal trust within and across cultures, trust in the organization and the employees’ performance. In study 2, 182 Guinea subordinates and their direct Chinese/Guinea supervisors completed the survey of interpersonal trust and the trust in the organization to test the model. Regressions and SEM were used to examine the proposed hypothesis. The results showed that Guinea subordinate’s trust in the organization increases their performance; Guinea subordinate’s trust in the organization plays a mediating role between their trust in Guinea supervisors and their performance; Guinea supervisor’s trust in Chinese supervisor positively affects Guinea subordinate’s trust in the organization, and moderates the positive relationship between Guinea subordinate’s trust in the organization and their performance.
The real estate industry is an important aspect of China's social development and plays a pivotal role in economic growth. With the development of urbanization in my country, the supply relationship in the real estate industry has changed, consumer demand has become more rational, and the real estate industry’s financial and investment attributes have been superimposed on the influence of the real estate industry. The competition among small and medium real estate companies with relatively weak resource endowments has become increasingly fierce. Some land expansion models can no longer adapt to the development of the new situation. How to survive and develop under the severe policy and economic situation has become a difficult problem that many small and medium real estate companies have to face. Exploring new growth models and finding new growth engines for enterprise development has become an urgent task for small and medium real estate companies.
Faced with many challenges from changes in policies and market demands, small and medium real estate companies can only get a breakthrough opportunity if they break through the shackles of the original development model and actively develop new businesses and build their own core competitiveness. In order to achieve business innovation and development, small and medium real estate companies have to face the following questions: (1) Can the concept of value co-creation be applicable to the business development and innovation needs of small and medium real estate companies? (2) Under what environmental situation, small and medium real estate companies need to innovate in business development? (3) What successful experience can we learn from the use of value co-creation for business development and innovation? (4) What benefits can be obtained by using value co-creation for business development and innovation?
The value co-creation theory emphasizes that multiple participants can solve problems through resource integration and multi-party interaction. This theory can enhance the participation of consumers, which is consistent with the inherent needs of China's real estate enterprises for business development and innovation. Therefore, this study selects typical successful companies, refines their business development innovation models from the perspective of value co-creation, and answers the above four questions, hoping to provide useful experience for the business innovation of small and medium-sized real estate companies in China. The main research ideas are as follows: First, the second chapter of this article uses the method of reviewing the literature to demonstrate whether the concept of value co-creation can be applied to the development needs of small and medium-sized real estate companies; Conduct an in-depth and systematic analysis of the external and internal environment of the company to clarify the necessity and feasibility of business development and innovation for enterprises; again, Chapter 5 of this article conducts business development and innovation practices using value co-creation from three perspectives Analyze and summarize the typical experience of small and medium-sized real estate companies in business innovation. Finally, Chapter 6 of this article discusses whether the core competitiveness of the company has been established, the effectiveness of corporate brand value enhancement, and customer relationship management. The effect is evaluated.
This study selects Yunnan Strength Group to carry out case studies. Taking the “Dali Small Yard” project as the entry point, it proposes to establish a conceptual model of business innovation in the real estate industry based on the concept of value co-creation, and studies Yunnan Strength’s business innovation practices based on the concept of value co-creation. The reason, process and effect of
(1) Analyze the internal and external environment of Yunnan Strength Group's business innovation. The analysis of the external environment shows that China's real estate industry has shifted from a stage of rapid development to a stage of steady growth. The concentration of China's real estate industry continues to increase, and the living space of small and medium-sized real estate companies is getting smaller and smaller. The internal environment analysis shows that the asset scale and sales of Yunnan Strengthful companies are at the middle level in the industry, and the ability to resist market risks is poor. However, the company focuses on the cultural and tourism real estate sector, deeply cultivates the Yunnan market, and has mature cultural and tourism real estate operating capabilities and brands. Operating capabilities, as well as a variety of supporting cultural and tourism real estate projects. Therefore, China's small and medium-sized real estate companies must focus on a single business to innovate through value co-creation, avoid horizontal diversification, and develop vertical diversification around their core businesses. At the same time, companies also need certain brand management capabilities.
(2) Analyze the specific practice of Yunnan Strength Group's business innovation. Based on the value co-creation of China's real estate industry business innovation conceptual model constructed in this article, from the value co-creation activities between Yunnan Strength and the three major stakeholders of consumers, construction companies and property companies, the concept of value co-creation based on Yunnan Strength Company is refined. The typical experience of business innovation has proved the effectiveness of the company's business innovation activities with the concept of value co-creation. Specifically: First, according to the typical experience of the value co-creation of enterprises and consumers, the most important thing for real estate projects is to accurately locate target customers; to recognize the shortcomings of traditional research methods, and to use various effective methods to understand The real needs of customers; actively respond to customer needs after understanding the needs of customers, and service levels that exceed customer expectations can quickly improve customer satisfaction. Second, according to the typical experience of enterprises and construction companies in value co-creation, we can know that the work of construction companies can be forwarded, the design can be more in line with customer needs and cost-saving; the innovative small-step fast running mode can achieve rapid products Iterative upgrade; choosing like-minded partners is very important. Third, according to the typical experience of enterprises and property companies in value co-creation, it can be seen that providing diversified services can improve customer satisfaction; the market-oriented cooperation between the project development team and the property can help improve the efficiency of community services; and continuously adjust the income The sharing model can maximize the interests of all parties involved.
(3) Analyze the effects of business innovation of Yunnan Strength Group. Research has shown that value co-creation can significantly enhance the core competence, brand value and customer experience of an enterprise. The improvement of corporate core capabilities is mainly manifested in the improvement of marketing capabilities, product innovation capabilities, and internal operation and management capabilities; the improvement of brand value is mainly manifested in the improvement of corporate brand influence and brand management capabilities; corporate customer relationships The performance of the improvement is to drive the growth of overall sales performance, improve the level of corporate customer service, and improve customer satisfaction.
Research on the Impact of Social Responsibility of Chinese Real Estate Enterprises on their Competitiveness
The real estate industry has become the pillar industry of China's national economy and should perform more social responsibilities. Then how to guide enterprises to perform relevant social responsibilities, how to make full use of social responsibilities to enhance enterprise competitiveness, and how to measure the aspects in which corporate social responsibility promotes the development of competitiveness have aroused the discussion and research of the government and relevant academic circles.Therefore, this paper first puts forward a series of assumptions from the perspective of stakeholders.Secondly, establish the evaluation index system of social responsibility and social competitiveness of real estate enterprises through questionnaire survey, and objectively analyze the relationship between social responsibility and corporate competitiveness of Chinese real estate enterprises by using the data of 53 domestic listed companies,Through factor analysis, correlation analysis and regression analysis, this paper verifies how the performance of social responsibility of real estate listed companies affects the competitiveness of enterprises, and then provides effective countermeasures and suggestions for improving the competitiveness of enterprises and perfecting the market economic environment.
This dissertation aims to investigate the relationship between managerial cultural intelligence, marketing agility and innovation capability of foreign subsidiaries. Based on upper echelons theory (UET), I argue that managerial cultural intelligence facilitates marketing agility. Moreover, marketing agility is positively associated with innovation capability of foreign subsidiaries. Using two-wave survey data of 110 foreign subsidiaries in China, this study verified the theoretical model. It is found that managerial cultural intelligence is positively associated with marketing agility, and marketing agility is positively related to innovation capability of foreign subsidiaries. Organizational learning climate, market competition, market turbulence, and market complexity have positive moderating effects on the relationship between managerial cultural intelligence and marketing agility. This dissertation aims to enrich the research on the upper echelons theory, cultural intelligence, marketing agility and innovation capability, and provide references for foreign subsidiaries to improve marketing agility and innovation capability.
In recent years, the global economy has been sluggish, especially affected by the Sino-USA trade war and the COVID-19, the harsh market environment and increased business uncertainty. In addition, China’s manufacturing industry is facing the impact of disappearance of the demographic dividend and strict environmental protection policies, so they are facing tremendous pressure for survival. At the same time, a new generation of science and technology continues to sprout and gradually penetrates in to production and life. Therefore, under these conditions, the innovation activities of manufacturing enterprises are more important and urgent. How to construct systematic innovation activities for manufacturing enterprises is a basic problem that cannot be avoided. Therefore, the research in this dissertation focuses on how core firms build enterprise innovation ecosystems based on technological and non-technological innovation and other multi-dimensional innovation management elements.
Based on the micro perspective of the core firm in the enterprise innovation ecosystem, this dissertation first sorts out the definition of the core enterprise concepts in the enterprise innovation ecosystem. On this basis, from the different dimensions of enterprise innovation management, it carries out an
exploratory single-case study of the corporate innovation ecosystem constructed by the famous domestic enterprise 3nod Group.
Through the coding and analysis of the qualitative materials of realization nodes for the five innovative ecological unit of the unique OPM model of 3nod, this dissertation summarizes as follows: (1) Based on the external macro innovation environment, the core firm takes the user as the core, builds an innovation platform, and uses the technology synergy connection mechanism to establish different levels of cooperation relationship with technical resources parties and build an enterprise technology innovation ecosystem; at the same time, relying on the non-technical innovation peripheral support system with strategic innovation as the blueprint, cultural innovation as the guide, management innovation as the foundation, organizational innovation as the guarantee ,institutional innovation as the driving force and market innovation as the pathway, the core firm and related partners jointly establish an enterprise innovation ecosystem. (2) The core firm must effectively integrate the innovation management elements of technology, strategy, management, culture, organization, system, and market, so as to form a dynamic relationship with each other, and realize the continuous interaction between enterprises and users; and through build an innovation platforming, a fast and effective cooperation mechanism can be built between core enterprises and technical resource parties, the allocation of innovation resources within the system can be optimized , and mutual promotion and co-evolution among members in system can be realized .
The research conclusions of this dissertation supplement and expand the existing theories of enterprise innovation ecosystems, and provide references
for innovation enterprises that are exploring the practice of constructing enterprise innovation ecosystems with themselves as the core.
B2C sharing economy is now a major part of the economic system in China and the essence of it is the value co-creation of the users and platforms. However, the means to effectively stimulate users into value co-creation in B2C sharing economy are not well-understood. While gamification marketing is a low cost means to enhance user participation, empirical research of high granularity is lacking. This dissertation seeks to fill the gap by exploring how gamification narrative quality affects users’ value co-creation behavior in the B2C sharing economy model and the underlying mechanism.
Using the bike sharing industry in China as the setting, this dissertation begins with the quality of gamification narratives and explores how gamification marketing may facilitate the continuous user value co-creation in the B2C sharing economy model. First, I build a model of the mechanism through which gamification narrative quality influences users’ value co-creation behavior based on flow theory, the self-determination theory and the self-construal theory. Secondly, I construct gamification narrative quality (GNQ) scale. Finally, I use the questionnaire method to test the model of mechanism.
The main research findings are as follows: (1) gamification narrative quality consists of five dimensions: sense of reality, resonation, acceptance, fun, and interaction; (2) the gamification narrative quality has a significant positive effect on users’ value co-creation behavior; (3) the gamification narrative quality has a significant positive effect on the flow experience, which in turn has a significant positive effect on users’ value co-creation behavior; (4) the gamification narrative quality has a significant positive effect on perceived autonomy, which in turn has a significant positive effect on users’ value co-creation behavior; (5) self-construal moderates the relationships between gamification narrative quality and both flow experience and perceived autonomy, such that the positive relationship is weaker for interdependent self-construal than independent self-construal.
https://ink.library.smu.edu.sg/etd_coll/310/
The role and effectiveness of Board of directors in fostering innovation is an area of keen interest for both academics and professionals. Heterogeneity research suggests that diverse groups consider a broader range of perspectives and hence are able to foster creativity and drive innovation. The focus of most prior research on board diversity has largely been on gender, and the outcomes have been generally inconclusive. In addition, previous research efforts have focused on the RBV (Resource-based view) in terms of the board role and also in explaining the diversity relationship with innovation. This study extends the diversity, governance and innovation literature , beyond generic gender diversity, and beyond the RBV view by examining the relationship of organisational innovation with newly introduced experience based diversity constructs like “Dynamic Capability Diversity”, “Information diversity”, and “Governance diversity” at the board level. The longitudinal study, used a sample of data consisting of 209 unique and global firms, spanning over an eight-year period, and the results demonstrate that the innovation outcomes of an organisation have a curvilinear relationship with Dynamic capability diversity and Information diversity. The study results also indicate support for the “contingency view” by showing that the influence of the diversity elements is contingent upon the firm’s board size. This study also brings forth the importance of understanding the interactions between the different diversities. This study extends the understanding of the challenges around board composition, board diversity and board governance with respect to innovation as we discuss the implications for both practice and academic research.
Companies must be prepared to manage uncontrollable events that will disrupt their supply chain and add uncertainty to their inventory models.
This thesis first studies the effect of different types of supply disruption risks on the ordering performance of profit-maximizing decision makers in a newsvendor setting.
Then, this thesis aims at extending the literature on the newsvendor model in studying the effect of a Decision Support System and the effect of a Secondary Task on the ordering performance of profit-maximizing decision makers who face supply uncertainties in a newsvendor setting.
Finally, implications for scholars and practitioners are discussed.
Digital Exploration Alliances
Digital disruption has impacted every industry and the spending on digital transformation technologies and services worldwide is estimated to reach USD 2.3 trillion by 2023 (Statista, 2021). Reflecting the increasing importance of digital transformation, many firms are entering into strategic alliances that feature traditional industry leaders and digital technology leaders. Little research, however, examines these digital exploration alliances in a systematic way. Accordingly, this dissertation synthesizes extant literature with a theories-in-use approach to conduct depth interviews with 26 managers, with a collective 797 years of experience, to offer a parsimonious definition of digital exploration alliances (DEA) and outlines the similarities and differences with related concepts. In addition, this dissertation articulates DEA performance criteria and develops seven propositions that bring to fore critical ex-ante factors that are likely to determine DEA performance. The dissertation concludes by discussing implications for both theory and practice, and developing directions for future research in this nascent domain.
Resilience as an Organisational Capability: A Study of How Firms Survive and Outperform in Disruptive Times
An environment, in which volatility and deep uncertainty represent the leading paradigm, pressures firms to focus their attention on adapting to disruptive environmental conditions. Although scholarly attention in the firm-level resilience construct has increased over the years, a number of important issues remain underexplored. To advance progress in the field, research is needed on the dimensions of resilient response formulation and enactment, the dimensions of the disruptive environment and situational factors as well as resilience as a latent outcome variable. Based on an in-depth, systematic review of the received literature, this thesis aims to extend the firm-level resilience literature by offering two distinct views of how firms develop, nurture and sustain firm-level resilience: One, the conceptual model of resilience capacity proposes a dynamic capability view of the dimensions and capabilities that underpin resilience capacity, thereby informing the capability literature on the capabilities essential to firm-level resilience. Two, the empirical study yields an inductive-contingency-based model of resilience that informs literature on the processes, dynamics and behaviours that underpin resilience response formulation and enactment contingent upon situational factors as well as characteristics of disruptiveness by detailing the dynamic, recursive and reciprocal nature of the relationships within the inductive model. In combination, these two views may provide useful insights to inform scholarship and managerial practise.
Changes in Decision-making Authority when Chaebol Firms Grow: From the Perspective of Non-family Managers
What changes do non-family managers in large family firms such as chaebols (Korean conglomerates) observe in their decision-making authority when their organisations grow? The intuitive expectation is that non-family managers' decision-making authority will grow in conjunction with the successful expansion of the business and growth of the firm.
Based on 45 in-depth semi-structured interviews with non-family managers from a wide range of chaebol firms, this study analyses how non-family managers perceive the change in their decision-making authority and the cause of this change.
The findings indicate that respondents perceive that their decision-making authority does not increase with the growth of the firm due to risk hedging, social acceptance, and socioemotional wealth preservation. As a firm grows and expands its business geographically and within the same or different business domains, top management often needs to delegate decision-making authority, as it becomes increasingly difficult to process all the information and make appropriate decisions at different levels and in various fields. However, the objectives of family-controlled firms usually concern socioemotional wealth; family control and the transfer of management rights within the family are the most important of these objectives. This fact suggests that family-controlled firms may find it challenging to delegate decision-making authority, even as they grow their organisations. Vacant promotion, or promotion without the corresponding authority, is used instead of genuine promotion or monetary rewards, which contributes to job title inflation, decreased decision-making authority, and eventually non-family managers' perception that they all will become field managers. Conversely, respondents perceive family managers' decision-making authority as becoming fortified with the growth of the firm. Even with the misdeeds and unequal practices of family managers, non-family managers prefer family managers over non-family managers because of the benefit of family management's long-term perspective, which enables more stable business practices and job stability.
As world’s second largest economy, China has seen tremendous changes since its 1978 “open door and reform” policy. Different reformations in form of policies were planned and rolled out to release the potential of productivity. At the same time, social development also seen a huge progress. How the reformation been transformed to social development and in what degree? This is the question was answered in this dissertation. I studied four major reformations covering: State-owned Enterprises (SoE), land, financial liberalisation, and science and technology, and their impacts on the social development. At macro level, I identified mediation effects of entrepreneurship activities and innovation activities. Entrepreneurship activities show mediation effect for SoE and financial reformation, on social development; while for land reformation, a partial mediation effect is identified under longer lagging period. Innovation activities shows mediation effect for science and technology reformation, on social development. I did comprehensive robustness checking to test hypothesis under different settings, which including different DVs, IVs, mediator, as well as different lagging periods. At micro-level I did a secondary analysis on China’s Fintech unicorn company Ant Financial. Both macro and micro level studies suggest that entrepreneurship activities and innovation activities play important role in transforming policies’ impact to social development.
Regional Economic Impacts of China's High-speed Rail Development and its Institutional Challenges
This article studies the impact of connecting to high-speed rail (HSR) network on regional development and the replication and sustainability of China’s GIUR system, aiming to summarize the experience of China’s HSR, which can provide several policy references for developing countries. This article conducts two research: (1) explore the impact of connecting to HSR network on the urban industrial structure, urban creativity and urban-rural income gap of cities in different regions and cities with heterogeneous locations along the HSR lines in the long and short term; (2) explore the advantages and disadvantages of the Government-Industry-University-Research (GIUR) system in the process of introducing, absorbing and innovating technologies of HSR, as well as its adjustment in the technology-pioneering stage.
For the first research, HSR and urban development, I conduct the empirical research and descriptive statistics based on urban development theory, and the results indicate following conclusions. Firstly, connecting to HSR network can significantly increase the proportion of tertiary industry in eastern cities of China. Secondly, it can promote the creativity of urban primary and tertiary industries, and more developed cities and non-eastern cities benefit more. In addition, it has also significantly improved the creativity of the tertiary industry in major hub cities, the better accessibility (with more HSR lines passing through) major hub cities possess, the more improvement in creativity of tertiary industry they can benefit compared to those minor node or non-node cities. Thirdly, connecting to the HSR network will only widen the urban-rural income gap in economically underdeveloped regions, and this expansion effect is more significant in economically underdeveloped minor node cities.
For the second study, combining the existing research and case study, I find that in the early stage of technological development in which international advanced technology can be brought in, the government-dominated GIUR system is more conducive to promoting HSR technology accumulation and development. But in the technological pioneering stage, the system needs to transform into a market-oriented Industry-University-Research system. In addition, based on above research, I argue that the government GIUR system has a good sustainability for promoting scientific research innovation but has a high threshold when applied to other industry. This study increases people’s awareness for reformation system of China’s HSR research and development (R&D) and helps to propel the rapid development of similar emerging industries. Finally, I discuss the policy implications.
Studies on Data-driven Management of Extended Warranty Services for Household Appliances
Extended warranty is an important part of after-sales service for household appliances. However, due to management reasons and moral hazard, there are various risks in the extended warranty service for household appliances. It is urgent to make a systematic and in-depth study and provide suggestions for improvement of corresponding management measures.
In order to improve the current strategy of extended warranty service, this paper systematically and deeply studies the compensation scenario, profit and loss, and pricing of extended warranty service of a household appliance retailer, G-Company. This paper firstly analyzes the data of G-Company's extended warranty service, including the time interval distribution of repair and warranty purchase, the repair characteristics and distribution by region/product/time, then proposes some hypotheses to identify the potential repair frauds. Furthermore, this paper analyzes the relationship between the number of insured and premium, and identifies the optimal pricing scheme under different conditions. Based on the above data analysis, a revenue optimization model and algorithm suitable of extended warranty service for household appliances are proposed to optimize the profit.
Finally, based on the data analysis, this paper discusses the relevant management implications, and puts forward the corresponding management countermeasures and implementation approaches. These management approaches are mainly divided into product management in the extended warranty service and overall enterprise management. For example, adjusting the validity period and adding some restrictions at the design stage of warranty products can reduce moral hazard. At the same time, this paper also discusses how to combine the blockchain technology to manage and optimize the business process, so as to avoid the issues such as frauds and false reports in the current process. Furthermore, the evolution and innovation of technology-enabled service model are also discussed. This paper also explores the application scenarios and future research directions, including the application in the field of health insurance and hospital management.
CEO Curiosity and Firm Innovation
As an important personality trait, CEO curiosity is emphasized in practice but obtains little attention in theory. This dissertation aims to investigate the impact of CEO curiosity on firm innovation and the mediating role of external search. I argue that both diversive and specific curiosity of CEOs are positively correlated to firm innovation based on upper echelons theory (UET). Furthermore, search breadth mediates the positive connection between CEO diversive curiosity and firm innovation, while search depth mediates the positive connection between CEO specific curiosity and firm innovation. Besides, I explore the moderating effects of firm performance and market competition on the correlation between CEO curiosity and external search. Using survey data, I obtain strong empirical support for the theoretical model. This dissertation strives to investigate the connection between CEO curiosity and firm innovation, tackle the mechanism behind the relationship, and enrich the research of the upper echelons theory.
On the Influence of Incentive Mechanisms for China’s Current Mixed Ownership Reform on Corporate Performance
Since the Central Economic Work Conference set the mixed ownership reform as where China’s state-owned enterprises (SOE) can make breakthroughs on reforms in early 2017, enterprises at all levels, from central to local state-owned, have continuously introduced new measures and new deployments involving the reform. The mixed ownership reform (hereinafter referred to as the “mixed reform”) introduces flexible market response mechanisms and innovative management systems from private enterprises into state-owned enterprises to enhance the market awareness of state-owned enterprises, to increase their own competitiveness, vitality and creativity. It aims to build a system that conforms to modern corporate governance and better responds to market changes. At present, the mixed reform of state-owned enterprises has achieved initial results. In spite of a gradual increase in the number of enterprises, quite a few are still in a wait-and-see situation. Only a few have actually completed the mixed reform. In addition, although government departments have announced the top-level design plan for the mixed ownership reform, there is no ready-made operating system to borrow experience from. Therefore, it is necessary to conduct research on the mixed-ownership reform from practical cases and explore its feasible paths to provide reference for other enterprises.
The mixed ownership reform is a comprehensive reform involving property rights, rooted in not only changes to the ownership structure, but also system and mechanism revolutions. In the course of reform, enterprises take different paths and design various incentive mechanisms to suit different markets and governance objectives, which in turn will have an impact on corporate performance. The configuration of incentive mechanisms after the reform comes as the key to assessing whether the reform achieves expected results. On this basis, the paper focuses on the relationship between innovating incentive mechanisms and enterprise performance in the context of the mixed ownership reform of state-owned enterprises and sets the goal of research at incentive mechanisms for mixed-reform enterprises. In the case study of Yunnan Baiyao and Greenland Holdings Corp., Ltd., the paper starts with the internal and external environment of enterprises to analyze the causes and paths of their mixed reforms, examines the relationship between incentive mechanism adjustments and corporate performance in the two companies, reveals the problems existing in incentive mechanisms in the course of practicing the reform, and puts forward suggestions for improvement.
On the basis of the property rights theory, the principal-agent theory and the incentive mechanism theory, the author builds the basic theoretical and practical framework for incentives through analyzing the needs of senior managers, human nature assumptions and behaviors, expounds the impact of the problems occurring in the current mixed ownership reform of state-owned enterprises on incentive elements, and carries out empirical examination and case analysis of incentive mechanisms. For the analysis of core elements, this paper sees the optimal salary system as an entry point and compares such key points as salary incentives, equity incentives, and spiritual incentives. It also tries to construct a complete and practice-oriented incentive system against the background of the mixed property rights reform, supplemented by management systems with Chinese characteristics, including the governance structure of “three meetings and one layer”, the disciplinary mechanism of party organization supervision, and the market-oriented recruitment of managers.
Our work has led us to four conclusions as follows. Firstly, increasing capital and shares should be a new breakthrough in the mixed ownership reform of state-owned enterprises, by which corporate capital can be expanded (to make a larger company) and corporate vitality strengthened (to make a stronger company). In particular, it can effectively promote the governance efficiency of state-owned enterprises during the mixed ownership and formulate a win-win situation. Secondly, equity incentives have become a common model to drive company performance. Under the incentive model of virtual equity, senior managers can enjoy certain dividends and the rights of share price appreciation without weakening the state-owned holding status or impairing the equity structure. Meanwhile, immediate right to earnings will work as an effective incentive for managers and in turn affect current corporate profits. Thirdly, status conversion to private enterprises is an effective channel for job transfer and a more appealing incentive than retention in state-owned enterprises. The channels for executive transfer for the mixed ownership reform of state-owned enterprises include the tenure transfer of former state-owned enterprise managers appointed by administration, the market-based recruitment and hiring of external professional managers, and the identity transfer of private entrepreneurs. Fourthly, building a business partner sharing mechanism is a more productive incentive than performance distribution. The mixed ownership reform of state-owned enterprises must bring creative changes to talent management, redefine the relationship between managers and enterprises, treat employees as the “partners of human capital” to break away from the original employment relationship, and turn the management into the owner of an enterprise and professional managers into the masters, thus enabling employees to share the wealth brought by corporate development.
The highlight of this paper rests on the study of problems related to the mixed ownership reform of state-owned enterprises from the perspective of corporate governance through multiple cases. At present, most domestic literature discusses the reform paths from the level of a single equity or case. Few researchers have addressed incentive mechanisms in a systematic way. In the course of analysis, the author fans out from point to area, analyzes the obstacles to the mixed ownership reform of China’s state-owned enterprises in a comprehensive, clear pattern, and proposes applicable solutions to paint a reasonable roadmap for the reform. Therefore, the value of our contribution lies in two aspects. In terms of theory, it explores the internal mechanism that explains how the property rights reform contributes to corporate performance from the angle of incentive mechanisms and enriches multidimensional theoretical research on incentive mechanisms. Supported by the analysis of the principal-agent system in the mixed ownership reform, this paper connects the system with the incentive mechanisms of the property rights reform, deduces the internal mechanism of the property rights reform that works on corporate performance improvement, studies the relationship between incentive mechanisms and the improvement of corporate performance, and investigates the key mechanism that enhances corporate performance via deconstruction analysis. With respect to practice, our research aims to provide Chinese state-owned enterprises with theoretical guidance on the paths of the mixed ownership reform and offer insights into the formulation of policies for the mixed reform.
Decoupling strategies have been the main focus of supply chain and resource management studies. Increasingly, due to the shift in geopolitical dynamics, the term ‘decoupling’ is now used in finance, accounting, political, and strategic management fields to describe the effect from the fallout of tense international relations. Existing research on this topic includes modeling strategic retaliation theories and evaluating firm effects from an accounting and finance perspective. Yet, there still is little research published on meso-level analysis of the relationship between macro and micro factors that affect organizational decoupling strategies. This study hopes to add to this new body of research by exploring the real costs of a forced decoupling from one supply chain location to another. The author explains the various costs using three novel approaches: Industry Structure; Governmental Policy, and Leadership Succession.
The Industry Structure study investigates and proposes based on grounded theory how firms in China’s manufacturing supply chains are formed. A novel index is used to categorize the focal firms’ innovation strategies and corporate governance choices. The results show that some firms can withstand a forced decoupling better than others.
The Governmental Policy approach looks into the history of mobile phone manufacturing in China and the specific roles the Chinese State-Owned Enterprises (SOEs) play in shaping the nation’s sustained competitive advantage. A unique event study of foreign social media attacks is performed to understand the effects of exogenous threats to the state, and its subsequent reactions are observed and analyzed.
Finally, the Leadership Succession approach looks into the conduciveness of the proposed alternative sites to China. From a cultural similarity perspective, the study chose Taiwan but finds significant succession challenges with the next generation of leaders in family-owned firms. The findings suggest that weak leadership succession is occurring either because the successor does not have the intention of carrying on the business or if external political forces create adverse shocks to the supply chain, which can put the focal firms at a disadvantage. This leadership void and the firm’s poor performance trend may cause it to be vulnerable to acquisitions, hostile or otherwise. This study concludes by presenting a case study of a large Taiwanese manufacturer that faced a non-family succession and was acquired by a Chinese SOE. As the global environment undergoes seismic shifts post Trump and pre-COVID vaccination, many scientific research fields are joining hands to recalibrate their datasets and research boundaries. This thesis emphasizes the need to conduct meso-level studies when exploring the topic of decoupling to give a richer context of understanding, which is vital for researchers in the pursuit of causal validity.
As Singapore transitioned from economy that was primarily dependent on foreign direct investments (FDI) to a knowledge-based economy driven by indigenously developed science, technology and innovations, it became critical for the local firms to grow and internationalize. The government has thus invested heavily (of $19 billion from 2016 to 2020, and $25 billion from 2021 to 2015) in science and technology research and development. The Committee of Future Economy (CFE) concluded that in an era of rapid technological change where innovation cycles have shortened, one of economic strategy is to support our “high growth” enterprises to “scale up”. However, the inherent constraints and geographical limitations of Singapore means that domestic market will not be able to support “large enterprises” compared to larger economies. To do so, firms need to innovate. The Singapore government has encouraged technology-based small and medium-sized enterprises (SMEs) to enter overseas market through innovative products and services. However, little is known about the factors that these SMEs should inculcate in order to be innovative; what is needed for innovation orientation that has been found to be essential for innovations in SMEs. Innovation Orientation is a theoretical concept that describes the various factors of an innovative organizations that resulted in pro-active growth. Current literature and research in Innovation Orientation is largely based on established organisation and from the perspective of USA and Europe. There is a research gap for countries with small domestic market and based in Asia. This research aims to fill this gap for Singapore technology-based SMEs. Using the case-study approach, 7 selected companies with high growth and global mindset were selected through semi-structured interviews. Such purposive criteria allow the identification of critical factors that contributed to the successful entry of Singapore Technology SMEs into overseas markets. Through this research, we contribute to existing literature where the internal factors leading to a firms’ Innovation Orientation are clearly delineated and applied through the Innovation Culture and Innovation Constructs. We also discovered that, in addition to the internal factors that make for innovation orientation, there are external factors driven by government policy that featured in the cases. These findings provide pointers for policy makers on the various programmes, initiatives and instruments that are desired to successfully facilitate the Innovation Orientation of SMEs.
With increasing adoption of smartphone for mobile-commerce and increasing incidents of cyber breaches, it is timely to investigate how the weakest link in this security chain, human, can be strengthened. To date, there has been a gap in research examining the impact of culture on protection motivation. Most extant research focus on technological, organizational and behavioral factors affecting protection motivation. In this study, I develop a model integrating Theory of Cultural Tightness-Looseness and Protective Motivation Theory to investigate how cultural norms, define as shared expectations and rules that guide behavior of people within social groups, affect a person’s intentions to adopt protective measures on their devices. Using the Cultural Tightness-Looseness theory, I hypothesize that cultural norms provide important indications to an individual’s evaluations of threat and coping strategies. My study weaves extant research adopting Protection Motivation Theory to investigate information security behaviors, to determine how social influences of the environment (as explained by theory of Cultural Tightness-Looseness) and psychology of the individual (as explained by Protection Motivation Theory) interact and determine the eventual individual security behavior. The study is conducted over 31 provinces of China, and expands extant research beyond desktop computers to smartphones, and organization setting to the personal phone user, where it is up to the individual motivation and cultural environment to be aware of cyber threats, understand cyber risk, and take protective actions against cyber breaches. The findings of this study contributes towards developing more comprehensive and systematic measures and messaging to motivate individual to adopt protective measures on their devices.
Entrepreneurial Intention amongst Scientists and their Transition to Roles in Research Based Startups
The involvement of scientists and their transition to Research-based Startup’s (RBSU’s) has been identified as a key factor in their success. This study was undertaken to better understand this transition of the scientists into the RBSU. It followed a two-step process of interviewing 28 researchers, researcher - entrepreneurs and researcher - startup employees followed by a survey with 104 individuals with similar backgrounds in research, entrepreneurship and as startup employees. the survey sought to understand the effects of entrepreneurial training/internships, access to entrepreneurs (network) and the role of events on these individuals and the likelihood of their participation in a spin off.
The study identified that researchers transition to a RBSU is influenced by their orientations, researchers were found to have an entrepreneurial, impact or career orientation. Entrepreneurially-oriented researchers typically have a breadth of early experiences and exposure to entrepreneurial activities and are more likely create or join a RBSU, career-oriented are inclined to stay in their career of choice as a scientist researcher, they seem to be negatively influenced in making their transition as they have increasing exposure to events and networking opportunities related to entrepreneurship. However, they may join an RBSU if a trusted team exists at the RBSU. Impact-oriented researchers see RBSU’s as a means of creating impact for their research. They constantly seek to gain more information on how to manage RBSU and exposure to events and networking opportunities related to entrepreneurship result in a positive impact towards the creation of an RBSU, as they seek to identify partners to collaborate, bringing complimentary skills to the creation of a RBSU’s.
Design Thinking Intervention in Healthcare
The healthcare industry is currently experiencing numerous challenges. Lack of skilled and innovative practitioners in healthcare organisations disrupts operational functions, administration, and service delivery. Dentistry is full of complex problems. There is currently a significant gap between the desired solutions dental providers offer to solve these problems and the actual outcomes. So, dental providers must rethink their approach to solving healthcare problems. One of the desirable approaches is design thinking.
Application of design thinking in business and healthcare has demonstrated improved results. In this research, the objective was to investigate the application of design thinking in dentistry and its effects on patient experiences from staff and patient perspectives. Through design thinking, dental practitioners can develop new solutions to address the existing problems patients normally face, thus improving patient experiences.
The research adopted a mixed method consisting of semi-structured interviews and surveys as well as an intervention. A design thinking workshop was carried out as an intervention to test the responses of the participants before and after the intervention. The workshop was administered in seven sessions. Staff responses were evaluated before and after the training sessions. Moreover, three days of training were conducted to educate the participants on using scripts and checklists in the workplace. The participant targeted in this research comprised of the staff and patients. The staff included dentists, dental assistants, receptionists, and administrators. The primary data collection tools included survey questionnaires and one-on-one semi-structured interview sessions. The main ethical issues for consideration are privacy, confidentiality, and informed consent.
Design thinking was applied to solve complex dentistry problems, improve the outcomes for the staff, and improve patient experiences. The staff re-examined their dental practices and came up with new ways to handle dentistry problems and improve patient experiences. The findings indicated that there is no significant impact of design thinking methodology on empathy, and there is a significant impact of design thinking methodology on the other variables. We accepted the hypotheses that have a significant difference to improve the patient experience by design thinking intervention as well as staff attributes, physical facilities, and dentist initiative significantly increase patient satisfaction by design thinking intervention. Moreover, there were changes in staff responses before and after the workshop training sessions.
The study is significant in providing insights into dental care practice improvements and advances the literature on design thinking and patient improvement in dental clinics.
The Role of Employee Proactive Behaviors in Influencing Supervisors' Trust in Employees
In organisations, proactive employees make things happen. They anticipate, initiate, and drive meaningful changes for a better future. Such proactive behaviors can be manifested in different forms. Initiating work improvements and voicing for changes are examples of the different proactive behaviors commonly demonstrated by employees.
Empirical studies have associated proactive behaviors at work with a range of positive workplace outcomes. However, only limited research has examined how proactive behaviors might be related to one particularly important outcome, trust, i.e., whether an employee’s proactive behaviors will influence the supervisor’s trust toward the employee. Accordingly, in this present research, I conducted two cross-sectional field studies, a pre-test, and the main study. The pre-test examined the psychometric properties of the measures and validated a measurement model in preparation for the main study. The main study examined the role of employee proactive behaviors in influencing the supervisor’s trust toward an employee in established supervisor-subordinate dyads. I hypothesized that such employee proactive behaviors are positively correlated to supervisor’s trust in employee.
This research also explored psychological mechanisms and contextual factors that are likely to influence the effects of employee proactive behaviors on supervisor-to-employee trust. Here, I examined the potential mediating and moderating effects of variables inherent in the dyadic relationships between employees and supervisors. Specifically, I examined the potential mediating effects of perceived trustworthiness, and the potential moderating effects of leader-member-exchange (LMX) quality, the employee’s political skills, perceived constructiveness, and perceived prosocial motives, and the supervisor’s power distance and proactive personality. Additionally, I examined the contextual variable climate for initiative for its potential moderating role.
This research found that employees who demonstrated proactive behaviors benefiting teams or work units were seen as having higher levels of perceived ability by their supervisors, ultimately influencing their supervisors’ trust in them positively. Additionally, this research found supervisors’ perceptions of employees’ ability in response to employees’ proactive behaviors (specifically prohibitive voice) were strengthened in high-quality LMX dyads and in environments where the climate for initiative was strong.
Intellectual Capital (IC) resources such as relational capital, structural capital, and human capital are important factors for success in institutions. Evidence indicates that IC is significant in obtaining a competitive advantage. Current universities are slow to promote and encourage innovation despite the IC resources at their disposal. In Saudi Arabia, no study has investigated the impact of IC on the innovation level in the education context. The purpose of this study was to investigate the main influential factor of intellectual capital that leads to more innovation among faculty members in universities operating in Saudi Arabia. The study used a descriptive research design. A mixed-method was adopted in the research. This included qualitative and quantitative methods. The study population comprised of the faculty members in Saudi Arabia universities. Primary data was collected via survey questionnaires and semi-structured interviews. Quantitative research data was used to measure the opinions in the responses provided by respondents surveyed. The independent variables were human capital, structural capital, and social/relational capital. The moderator variables were government Intellectual Capital policies and financial support. The dependent variable was innovation level. Responses from interviews were analysed qualitatively to help derive key patterns and themes regarding IC and innovation. The quantitative data collected was analysed using Stata software. The statistical methods employed in the analysis were descriptive statistics and regression analysis. Qualitative data were analysed using Nvivo 12. Based on the quantitative analysis, the study found that the level of intellectual capital affects the innovation level among faculty members. The government policies toward relational capital and the government policies toward structural capital are the most influential components. Additionally, the results from the qualitative analysis revealed that structural capital is the main factor of the Intellectual capital components that has a dominating influence in intellectual capital support. This study contributes to the IC literature, establishing a clear relationship between IC and university innovation level. The findings will help provide recommendations to decision-makers and research stakeholders to support intellectual capital efforts in universities.
Succession has been a major concern for family business. Although past research studies how to make successful family business succession from factors related to both incumbents and successors, most studies assume incumbents as the key driver of the succession process. Based on the literature about factors contributing to family business succession, the current research adopts a more comprehensive approach by combining qualitative and quantitative research methods to examine what factors lead to succession success and how to manage the succession process. Viewing succession as the process of mutual role adjustments of incumbents and successors, the qualitative research examines the interactions between incumbents and successors and discovers that value succession plays an essential role in the process. Drawing from the insights about value succession and value fit in the qualitative study, I designed a field survey to examine the effect of value fit between successors and incumbents, and successors and the organisation, on succession success. Study 2 found that successors who have a higher value fit with incumbents and the organization are more willing to take over the business, and hence are more likely to succeed in family business succession. Thus, the current research provides a deeper understanding of how to manage family business succession and heightens the role of value fit during succession. Lastly, the findings in the current research have important practical implications to family firms, particularly those in China.
Universities and other higher education institutions are viewed as social organisations which play a crucial role in developing the economy, politic, culture, talent, and society of the country. Society expects the universities to well-fulfill their mission in education, academic research, public engagement for the economic development and sustainability of the country and the government is also accountable for supporting the universities to accomplish their missions.
In the context of the increasingly dynamic education industry, between a) internationalisation with foreign schools establishing new ventures abroad or local schools recruiting students worldwide, b) the rapid development of information technology as digitization is expanding not just reach but the content and delivery capabilities of faculty, and c) the pace of change and increasing demand for knowledge and specialisation in national development and global industries, it can be summarised that the higher education institutions have many opportunities, otherwise they are also facing numerous challenges in their activities. In these circumstances, the governing and strategic issues of the higher education institutions have to be considered with both a local and a global perspective in mind. A good university governance model has become more important than ever before. Many universities in the world have changed the governance structure, process, and procedures at the State and University level towards distributing autonomy for universities to better implement the roles and responsibilities of the universities to industry demands and society development.
In Vietnam, in the process of switching the economic landscape from a state-controlled model to a market-centric model, the higher education system gains remarkable achievements. However, the quality of education is facing difficulties and shortcomings. Educational degree programs and courses are out of date and behind market demands and modern businesses. Training quality in Vietnamese universities is still considered low compared to the prevailing international standards. As a result, many students find difficulties looking for jobs after graduation or need to be re-trained when they begin to work for enterprises, high unemployment rates among graduates, and questions about the need or effectiveness of university education. Numerous commentators have questioned if it is a waste of money and time. Meanwhile, public trust and confidence in the current Vietnamese universities are decreasing over time.
While all administrators of public universities in the Western and Asian countries would claim that there are opportunities to innovate governance, developing many new degree programs to adapt to market demands, in Vietnam the critical question is whether the current government governance on the university is the problem for the reluctance of universities to submit the new programme proposals when this is desired by the Vietnamese government. It examines the question through the lens of agency theory, exploring the reason the agents (the universities) might have for not acting upon the principal’s (the Vietnamese government’s) instructions. The research examines the governance and new programme development processes for explanations for the agency problem (inaction or lack of motivation in new programme development).
Through the research methods including document review, semi-structured interview, and survey, the research provided critical findings regards with the problems of the new degree program governance in areas of approval authority, process requirements, process procedures, and policies. Recommendations were suggested to solve the fallings of the new degree program governance.
This research is very importantly significant for the Vietnamese public university system and stakeholders such as the Government, leaders, policy-makers, scientists, and educators. Outcomes of this research provide scientific knowledge course and experiences of the university governance which serve as the foundation and guidelines for the Vietnamese Government and Universities to innovate university, especially the governance of new degree programs to respond to industry demands as well as enhance the performance and reputation of the universities.
The digital transformation strategy has a profound impact on the commercial real estate industry in China. However, so far, research on digital innovation strategies in the business field predominantly surrounds the retailing and systematic research identifying the effect of digital strategies on HOPSCA and commercial operational service provider has yet to be conducted. On the issue of digital transformation strategies of HOPSCA, there is currently a lack of relevant empirical evidence in the fields of management and economics to quantitatively analyze its effects, and there is not readily available and reliable experience for reference in the business practices.
Based on real-world business scenarios deployed by digital tools jointly developed by IT Corporation Y, Property Corporation B, and Tencent Holdings Ltd., this dissertation regards specific HOPSCA (shopping malls) as the analysis unit and takes advantages of unique first-hand business data and statistical causal identification methods, striving to make up for this research gap. This dissertation highlights three dimensions of the HOPSCA digital strategies, namely Digitalization, Networkization, and Intelligentized. Based on
the technical attributes of different digital tools, it proposes a taxonomy of technologies under the above-mentioned three dimensions and the conceptual framework of “Accuracy-Prediction-Quality-Linkage”(准-预-质-连).
Based on business practice, literature summary and theory, this dissertation puts forward a set of hypotheses that can be tested quantitatively and empirically. By combining the first-hand business data with the Difference-in-Differences method, we examine the effect of digital tools on the competitiveness of HOPSCA. The result suggests that the deployment of PMS/AMP can effectively reduce the cost of labor and management, improve operation efficiency, and increase NOI. When the scale of assets under management gets larger, the marginal benefits become more significant. The Precise Customer- flow Statistics System can greatly improve the accuracy and reliability of customer-flow statistics data, distinguish customer segments, and provide direct and powerful customer preference data for targeted marketing and leasing strategies. When it is connected to the Membership management system, it can make marketing more efficient and increase the input-output ratio for marketing and operation. The interrelation and combination of various digital tools can produce synergistic and interactive effects.
On the mechanism, digital tools have multiple channels that sharpen the competitiveness of HOPSCA. First, digital tools can increase the customer-flow, the total number of members, and the number of stores that customers visit. By
improving these direct factors, digital tools will then have an impact on the performance of HOPSCA. Secondly, digital tools can have an impact on consumer behavior preferences, thereby improving the fitness between consumer preferences and HOPSCA’s tenant and brand mix, thereby enhancing the competitiveness of HOPSCA. Finally, digital tools can also affect the competitiveness of HOPSCA by changing the strategies and practices of HOPSCA operations (for example, digital tools can improve the efficiency of operation management, optimize business format portfolio or traffic flow settings through digital transformation).
Based on the above conclusions, we have put forward a few of feasible industry recommendations, the significance of which lies in guiding the application of digital technologies in HOPSCA, laying the foundation for studying how digital technologies can create effective added value for business, and providing a theoretical basis for Chinese commercial real estate operators’ new digital strategies. These recommendations also focus on bringing about industry technology innovation and introduce feasible technology roadmaps to other HOPSCA in China and the world.
Equity crowdfunding is a new type of public financing activity realised by Internet technology with small single investments funds, which is different from traditional venture capital. It greatly solves the equity investment problem of middle-class people and the difficulties of small and medium-sized enterprises and start-ups in financing. It is also conducive to the construction of multi-level capital market, and the healthy development of national financial system. Due to the advantages of equity crowdfunding, the global equity crowdfunding market has developed rapidly in recent years. Unfortunately, China's formal legislation on equity crowdfunding has not been introduced yet. Each platform can only exist in the form of a crowdfunding-alike equity investment platform, and most of them have been developing savagely with no effective risk control system established at all. Investment failure occurs frequently and investors suffer huge losses. The risk control system in this paper targets at the investment loss risk faced by equity crowdfunding investors due to non-systematic causes. The construction of the risk control system proposed here include not only the narrow-scale risk control at the project level, but also the various aspects of the overall business process of the platform.
This paper first reviews the literature and regulatory practices in the field of equity crowdfunding. Scholars have conducted researches on equity crowdfunding mainly from the perspectives of the participating parties’ behavior motivation, factors affecting the success of financing, risks of equity crowdfunding and countermeasures to deal with the risks. In terms of risk countermeasures, most scholars hope to reduce the risks by improving relevant laws and regulations at the national level and strengthening supervision by relevant national departments. At present, global regulatory practices of equity crowdfunding reflect the considerations of promoting capital formation, improving financing efficiency and balancing investor protection. In general, one way is to protect investors through the investor suitability and the investment cap; the second way is to ensure equity crowdfunding platforms to play the role of credit intermediary to prevent risks.
After that, this paper focuses on the analysis of causes of equity crowdfunding risks in China, which include the characteristics of the financing parties, the characteristics of investors, information asymmetry, principal-agent conflicts, and the platforms’ excessive pursuit of short-term interests.
In view of the causes of equity crowdfunding risks, this paper analyses and compares the similarities and differences between equity crowdfunding and traditional venture capital. Focusing on the significant differences between the two in terms of business model, positioning, investor endowment, and investor diversification abilities, this paper then proposes corresponding risk control measures and the overall construction of risk control system of China’s equity crowdfunding platforms dividing into five aspects including risk control before the launch of the project, risk control in fundraising, risk control of post-investment, investor management and education, and platform team building and incentives.
To make the risk control system operable, this paper proposes specific models to illustrate how to evaluate project risk and investor risk preference and tolerance. In terms of project risk assessment and classification, this paper proposes the method of combining Analytic Hierarchy Process and Fuzzy Comprehensive Evaluation to make the assessment process more accurate and scientific. In terms of investor risk preference and tolerance evaluation, a questionnaire is used to better understand investors, and the optimal scale method is used to regress the questionnaire data. It is found that age, education level, family annual disposable income is significantly related to investors' risk preference and tolerance.
Subsequently, a case study of the risk control system is conducted with real investment cases on one domestic platform. It is found that the risk control measures proposed in this paper better reveal the project risks, and are more advantageous for making judgment regarding the project and protecting the interest of investors.
Finally, on the basis of summary, the prospect of future research is proposed, hoping to better verify the effectiveness of the risk control system through continuous follow-up research and investigation.
Study on the Ideas for Developing of M&A Funds in China in the Context of Economic Transformation
M & A fund is one category of private equity investment fund. In the past 25 years, private equity fund has grown into a considerable asset section. Since 2008, China's economy has experienced the pounding pain of structural transformation multiplied with other challenges, e.g. international economy’s lack of growth momentum, increased trade friction, aging population and so on. The trade friction between China and the United States has further exacerbated. Against this backdrop, from September 2018, there was a significant shift in the domestic central government’s economic policy, particularly the capital market policy, has undergone major changes with the repressed capital market elevated to an unprecedented strategic level. M & A, as a crucial means to optimize the social resources allocation and enhance the efficiency of social capital utility, has been given great expectations by the government.
This study mainly discusses the role of M & A fund in China's economic transformation, and a medium-term development road-map of M & A fund under the new capital market policies today. After thorough research, data statistics and analysis, a potentially feasible M & A fund domestic development strategy is proposed to meet the needs of current economy and development.
Analysis of China's Real Estate Follow-up Investment Operation Effect and Mechanism
Follow-up investment system has become a fundamental system for the development of most real estate development enterprises. In the upward cycle of real estate, follow-up investment based incentive mechanism is of great importance for performance growth of real estate development enterprise. However, real estate development enterprises lack a relatively mature model to effectively build a follow-up investment system. While building a follow-up investment system, most real estate development enterprises find a benchmark object and copy it mechanically.
The author explored the basic implementation status of follow-up investment system of Chinese real estate enterprises through 310 questionnaires survey, interview and literature research on 101 among China’s top 500 real estate enterprises, comprehensively analyzed and optimized follow-up investment system through case study and tried to provide a referable basic system model for the real estate industry. To be specific:
(1) Entrance mechanism for follow-up investment of real estate enterprises includes selection of follow-up investor, follow-up investment amount and follow-up investment operation platform: Mandatory follow-up investor mainly includes top management of enterprise headquarter, city enterprise and project company; follow-up investment amount (including leverage limit) is often limited to 10% of maximum project fund; the higher level is the larger follow-up investment amount is. Low-income employees have a low follow-up investment amount and most follows up the investment voluntarily. Follow-up investment is realized through business partnership shareholding platform architecture. In the downward cycle of real estate, we should try to reduce mandatory follow-up investment amount and relieve pressure on core employees.
(2) Return mechanism for follow-up investment of real estate enterprises: Return frequency, amount and ratio are the key to design the return mechanism. The principal is mainly returned 2-4 times on the condition that the project company has positive operational cash flow and returns 50% of the principal to the follow-up investment company within 30 days with operating expenditure of the coming 6 months reserved.
(3) Profit sharing mechanism for follow-up investment of real estate enterprises mainly includes profit sharing condition, time node and frequency. Profit sharing condition: Profit should be shared 2-4 times in advance and formally. Conditions for sharing profits in advance: First, operational cash flow of project is positive; second, net profit is positive; third, sales rate of project reaches up to 90%. Then, profit should be shared formally by two steps according to project yield upon settlement.
(4) Leverage and bottoming mechanism for follow-up investment of real estate enterprises: There is a big difference in bottoming and leverage of real estate enterprises. However, the basic logic is: Level should often be 2-4 times. In the upward cycle of the real estate market, follow-up investment should be provided with beverage. However, high turnover does not exist and the principal can hardly be returned in the downward cycle, so beverage is unnecessary. Bottoming is necessary in the upward cycle but unnecessary in the downward cycle of real estate.
The primary purpose of follow-up investment is to achieve high turnover of project development. For this reason, the author found from case analysis that the precondition was to standardize operation, product and service and the fundamental guarantee was to optimize and improve evaluation, compensation and incentive systems, which were closely connected to the implementation of follow-up investment system.
(1) The essence of quick turnover is to improve capital usage efficiency, which requires quick land acquisition, quick construction, quick sale and quick return.
(2) To realize “quick land acquisition, quick construction, quick sale and quick return”, standardization is needed: Including operation standardization, product standardization and service standardization. That is, standardize land acquisition, orientation, product, cost, purchase, implementation, marketing, handover and property service and accelerate green fast channel of project development.
(3) In the meantime of operation standardization, investment risk and operation cost of project should be controlled, which relies on team, especially team leader’s ability and work efficiency. Therefore, the core of realizing quick turnover and implementing the follow-up investment system is to maximize the value of people, improve talent competition, evaluation and incentive systems, build a collaborative, efficient and competitive team, improve efficiency and achieve organizational goals and individual goals.
Venture capital can not only realise its own capital appreciation, but also promote the development of startups and boost the development of high-tech industries; therefore, it has obvious positive externalities. With the development of venture capital in China, the impact of venture capital on the operating performance of startups gradually attracts widespread attention.
This paper investigates the impact of venture capital on the operating performance of startups and conducts an in-depth discussion on the problem formulation, empirical relationship, cause and effect analysis, and countermeasure suggestions. The main research contents include the following.
The first part is the introduction, which analyses the research background, purpose and significance, research methodology, technical routes, etc., reviews the relevant theories of research objects, the impact of venture capital on operating performance of startups, and relevant literature at home and abroad, and compares and analyses the development processes of venture capital at home and abroad, in order to lead to the research problems of this paper.
The second part is the empirical analysis, which uses the public data of Chinese GEM listed companies to conduct an empirical analysis of the impact of venture capital on the operating performance of startups and draw relevant conclusions, pointing out that adverse selection is the main reason for the formation of these impact relationships and conducting an in-depth discussion.
The third part is the cause and effect analysis, which mainly elaborates the causes of the market-based selection of risk appetite, information asymmetry, and principal-agent mechanism for adverse selection, and analyses the adverse selection effects of the possibility of increasing venture capital for startups, lemon market, and valuation bubble by making use of adverse selection.
The fourth part is the counter-measure analysis, which puts forward counter-measures and recommendations for venture capital, startups, and other participants in the capital market based on the mutual impact between venture capital and operating performance of startups in order to deepen the application value of this paper.
The empirical analysis of this paper demonstrates that the venture capital is negatively correlated with the operating performance of startups due to the adverse selection. This conclusion has positive practical guidance value for the venture capital, startups and other participants in the capital market to strengthen their strategic responses.
In recent years in China, with the rapid development of China’s economy, the acceleration of urbanization, the extension of city size and the rapid growth of urban population, living conditions, traffic and environment in the cities are getting worse and worse. Under this background, urban complex integrating a series of functions like “living, business, office, tourism, culture and entertainment etc” has become popular with the urban administrators and developers in many cities. According to relevant statistics, by the end of 2015, there had been more than 2000 urban complexes (including the ones which have been completed, the ones which are being constructed and the ones which are to be completed) in 50 major cities. Normally, each complex has the common features like super-big size, locating at the downtown, superior traffic resources and large amounts of investment. Generally, no matter how the urban complex develops, it will greatly affect the market, urban development and social development.
In the meantime, urbanization in China greatly benefits the rapid development of real estate industry. In less than 30 years, there have been many enterprise giants with an annual sales volume of more than 100 billion. However, it is difficult for these enterprises to go further if they still follow the traditional mode - progressive development. Especially for those giants who majorly depend on land banking, they are being trapped by the business development modes. Under this background, they are keeping a close eye on the great profits provided by superior urban complex.
In some cities in Mainland China, urban complex is facing severe problems - the development speed and quality. That is risks are being raised. Of course, superior urban complexes can play a role as an engine to drive the urban development but there are still urban complexes which fail their functions.
Therefore, it is quite necessary for us to re-tease the value or urban complex and figure out the key factors affecting urban value, try to get urban complex developed rationally. This is really useful and meaningful for both the developers and urban administrators.
In this paper, the management and practice of China Central Place - one of the largest urban complexes, which is responsible for its own planning, development, construction, management and operation, is used as an example, as well as some other urban complexes in China, this paper teases the true value of urban complexes by using principles related to urban planning, architectural design, management, economics and sociology. Also, this paper teases the key factors determining the urban complex value, by which logic and mechanism used by urban complex are figured out. What is studied in this paper helps to widen new eyesight for the academicians, real estate developers and urban administrators, and then they can better know about and master the development laws of urban complex. Accordingly, urban complex in China can be developed in a healthy and high quality way.