Book proposal and book review

263

INDEX

Note: Page numbers followed by “f” and “t” refer to figures and tables, respectively.

A Advanced economies, 231–232

GDP share, 231f return on assets, 242t

Alibaba Group, 197 All-China Environment Federation

(ACEF), 83–84

B Back-alley banking, 180–181 Banking system, China, 8–10, 235–237,

257–258 bank internationalization, 178 bankruptcy law, 176 Big Four, 174, 177 nonperforming loans, 178–179 Peoples Bank of China (PBoC), 174,

177–178 Baotuan, 187 Brazil, 229 BRICS, 42, 45, 47, 247, 247t Business ethics, 60–61 Business-government guanxi, 33–34 Business guanxi, 34–39, 38t. See also Guanxi

culture direct influence, 35–37 indirect influence, 37–39

C Chen Yun, 50–51 China, 1–2, 43–45

as an emerging (or industrializing) market, 44–45

as Australia’s top trading partner, 4 banking system, 8–10 capital market imperfections, 6 Cultural Revolution, 50–51 currency, 2, 228 demographics, 219–221

employable population, 221–222

“One Child Policy”, 219–221 population trend and forecast

(1950–2100), 220f working age (15–64) population

(1950–2100), 220f doing business and environment

challenges, 247–248 economic arrangements, 50 economic developments and social

conditions, 2–6 economic output in 2014, 5 economic transition, 4–5 economic view, 223–229

agriculture sector, 225–227 changing sectorial composition, 226f Deng Xiaoping reforms, 224 GDP growth rate, 224f, 225, 227, 256 manufacturing and construction, 225,

227 projections for the year 2020, 229 12th Five-Year Plan (2011–15), 227

economy, 44 Environment Performance Index (EPI)

ranking, 248–249, 250t family income distribution, 4 FDI in, 5, 47, 199, 234 financial intermediaries in, 236t financial markets, 10 financial sector reforms, 244 financial stability indicators for, 238–242

capital adequacy ratio (CAR), 239–240, 240f

comparison of lending and deposits rates for banks, 240–242, 241f

nonperforming loans (NPLs), 238–239, 239f, 243–244, 243f

real interest rates, 241–242, 241f return on assets, 242, 242t

global competitiveness, 244–246, 245t gross domestic product (GDP), 2–3, 3f, 44

Index264

income gap between developed, 222–223 vs India, 14. See also India investment climate, 232–234 literacy rate, 222 macroeconomic stability, 246 monetary policy and bank loan supply, 9 one-party-state system, 49–50 political reform and anticorruption

reform, 49–50 political regimes, 50–52 population, 44

age distribution, 3f factors explaining well-being of, 4f

PPP growth rate, 229 as a relational society, 22–23 service sector, 5 as a “shareholding state”, 45–46 social infrastructure, 222t Standard and Poor’s rating of, 9 trade agreements, 4 Trans-Pacific Partnership (TPP) trade

agreement, 44 China Banking and Regulatory

Commission (CBRC), 179, 234–235

China business model, 2, 12, 41–42, 253–254

bank–corporate relationships, 1 business relations and trust, 1 corporate ownership, 7–8 corporate social responsibility (CSR),

1, 7 credit allocation, 6 dimensions of business motives and

behavior, 52–62 corporate philanthropy, 62 corruption, 53–55 CSR and business ethics, 60–61 ethical leadership, 60–61 favoritism, 55–58 reliability, 58–59 responsibility, 60

financing policy and performance of Chinese firms, 8

“good managerial practices”, 8 guanxi, role of, 8

human resource management (HRM), 1 implications and lessons, 258–259 interpretive framework for evaluating,

45–52 key considerations in interpreting, 48f labor and management, 1 lottery administration, 90 manufacturing costs, 46 reforms of SOEs, 1–2 small- and medium-sized enterprises

(SMEs), 1–2, 5, 99–100, 172–173 lending, 179–181 obstacles to obtaining finance for,

182t state-owned enterprises (SOE), 1–2, 42,

45–46, 71 top 15 Chinese companies, 88t “varieties of capitalism” interpretation,

43–44, 46–47 “wedge” between the cost of internal

and external finance, 5 China Insurance Regulatory Commission

(CIRC), 234–235 China Mobile Communications, 89 China National Petroleum Corporation

(CNPC), 83–84, 88 China New Technology Venture Capital

Corporation (CNTVC), 106–107 China Securities Regulatory Commission

(CSRC), 234–235 China Stock Market and Accounting

Research (CSMAR), 85 Chinese entrepreneurship, 197–198 Chinese financial intermediation

Four Modernizations program, 171 maturation in, monitoring of, 171–179

options of exit, voice, and loyalty, 191–192

monitoring problems arising under folk-lending, 185–187, 185t

peer-to-peer online lending platforms (P2P), 188–191

problems with, 189–190, 189t private monitoring in, 171–173 SME lending, 179–181 social capital and folk-lending, 187f, 188f steps in modernization of, 175t

China (Continued)

Index 265

Chinese services market, 197–199 aversion to law vs respect for legal

practices, 210–211 dialectical approach to communication,

212–213 dialectical Yin Yan approach to, 206–207,

212 guanxi vs professionalism, 211–212 presence of contradictory value,

209–212 traditional creeds vs modern approaches,

209–210 Western service adaptation, 206–213

Chinese stock market, 7–8 Commonality guanxi bases, 24–26 Communication with the Chinese service

clients, 212–213 Confucianism, 21, 200–201

clan system, 21–22 relationships, 21–22 Ren, 21

Constitutional democracy, 45–46 Cooperation, 36–37 Coordination, 37 Corporate philanthropy, 62 Corporate social responsibility (CSR), 1, 7,

12, 41–42, 60–61, 71, 254 activities of Chinese firms, 86–90 consumer responses, 90 in EU enterprises, 76–77 historical perspective, 72–75 international standards, 79–82 perceived benefits of, 90–91 reporting, 82–86

role of government, 85–86 sustainability and, 76 theoretical framework, 77–79 as a voluntary business initiative, 76

Corporate sustainability (CS) practices, 12, 71, 75–77

activities of Chinese firms, 86–90 CSC9000T standard, 87 international standards, 79–82 perceived benefits of, 90–91 performance influences, 90–91 reporting, 82–86 SA8000 standard, 87, 89

stakeholder management, 89–90 theoretical framework, 77–79

Corruption, 53–55 COSCO, 83–84 Cost savings, 35–36 CSD reporting initiative, 12 Cultural Revolution, 22–23, 253

D Decision making trial and evaluation

laboratory (DEMATEL), 82–83 Delegated monitoring, 171–172, 191–192 Deng Xiaoping, 45–46, 50–51, 224

Persist in the Four Cardinal Principles, 51–52 Developed countries in East Asia and

Europe, 222–223 Dow Jones Sustainability Index (DJSI),

81–82, 89

E Economies by GDP, top largest, 230t Education system in China, 207, 210 Empathy rule, 29 Environment Performance Index (EPI),

248–249, 250t Ethnic entrepreneurship, 198

F Favoritism, 55–58 Financial performance, 37 Flexibility, 36 Folk-lending arrangements, 13, 184–185

lianbao, 187 monitoring problems arising under folk-

lending, 185–187 Fonterra-Sanlu IJV milk scandal, 44–45 Foreign direct investment (FDI), 5, 47, 199,

218 promising investor economies of, 233f

Free Trade Agreement, 4

G Gang of Four, 50–51 G4-Global Reporting Initiative (G4-GRI),

12, 71–72, 81–82, 86–87 Global Financial Crisis, 2008, 2–3, 5 Global financial crisis of 2008–09, 231

Index266

Globalization of Chinese MNEs, 178 Gongsi shehui zeren. See Corporate social

responsibility (CSR) Government-backed venture capital (GVC)

schemes, 103–105 impact, 109–113 objectives of, 110–111

Guanxi bases, 20, 24–26 commonalities, 24–26

neighbors, 25 same hometown, 25 same school, 25 same workplaces, 25–26

kinship, 24 between persons, 26

Guanxi culture, 8, 10–12, 19, 49, 55–57, 254, 261

background of, 21–24 in business circumstances, 32–39

to break bureaucratic barrier, 34 to get protection, 34 with government, 33–34 information access, 33 resource acquirement, 33

Chinese regulatory systems and, 23 closeness of, 25–26 definition of, 19–20 in East Asian cultures, 22 at firm level, 20 link with Confucianism, 21–22 as a “magic weapon” to access Chinese,

34 markets, 20

main characteristics emotional aspect, 31 utilitarian aspect, 30–31

in modern social context, 22–23 social relationships, 21–22 vs professionalism, 211–212

Guanxi exchange mechanism, 20–21 mianzi (face), 29–30 renqing (favor), 27–28, 28t

rule, 29 xinyong (trustworthy), 29–30

Guanxi practices, 20, 26–27 in the cultivation and maintenance

phase, 27

during initiation phase, 26–27 as a series of social activities or social

rituals, 27 Guanxi states, 20

H HDFC Bank, 237 Health Action International (HAI), 123 Horizontal foreign direct investment

(HFDI), 199 HRM practices, 13 Hua Guofeng, 50–51

I ICICI Bank, 237 IDBI Bank, 237 IFCI Bank, 237 India

banking system in, 234–238 currency, 228 demographics, 219–221

employable population, 221–222 population trend and forecast (1950–

2100), 220f working age (15–64) population

(1950–2100), 219–221, 220f doing business and environment

challenges, 247–248 economic view, 218, 223–229

agriculture sector, 225–227 beneficial reforms, 1990s, 224 changing sectorial composition, 225f GDP growth rate, 224f, 225 manufacturing and construction, 225,

227 service sector, 227

Environment Performance Index (EPI) ranking, 248–249, 250t

FDI plans, 234 financial intermediaries in, 238t financial sector, 218

reforms, 244 financial stability indicators for, 238–242

capital adequacy ratio (CAR), 239– 240, 240f

comparison of lending and deposits rates for banks, 240–242, 241f

Index 267

nonperforming loans (NPLs), 238–239, 239f, 243–244, 243f

real interest rates, 241–242, 241f return on assets, 242, 242t

global competitiveness, 244–246, 245t income gap between developed,

222–223 investment climate, 232–234 literacy rate, 222 macroeconomic stability, 246 nonbanking financial companies

(NBFCs), 237 outsourcing and Information Technology

hub, 217 social infrastructure, 222t

Industrial models, 9 Information-sharing behaviors, 35 Innovation Fund for Small Technology

firms (InnoFund), 106–107 Interdependence, 36 International entrepreneurship, 198 International Monetary Fund, 218–219 ISO 26000, 82

J Jack Ma, 197 Jiang Jianqing, 178 Joint-stock commercial banks (JSCBs),

236–237

K Kankei, 22 Kinship guanxi bases, 24 Kwankye, 22

L Lianbao, 187 Li Keqiang, 43 Long-term orientation, 37

M Manager-Employee-Heterophily (MEH),

147 influence on facets of organizational

culture, 147, 162–166 employer–employee relationship, 152 job tenure, 153–154

psychological acceptance at work, 152–153

related stress and manager preference, 152–154

in workplace, 151–152, 162 study

common method variance (CMV) bias, 156–158

conceptual framework, 154, 154f confirmatory factor analyses (CFAs),

158, 159t limitations and recommendations,

165–166 management style preference, 158–162 measurements, 155–156, 157t moderating effect of job tenure, 161f moderating effect of psychological

acceptance, 161f research findings, implications, 164 sample and procedure, 154–155 summary of moderating analysis,

160t in Taiwan, 148–151, 165–166

Market performance, 38 Marxist–Leninist–Maoist ideology, 49 Medical system of China, 13

accessibility and availability of essential medicines, 121–122. See also Pharmaceutical supply chain, China’s

in different rural medical institutions, 130t, 133t

empirical data analysis, 129–134 factors influencing, 134–138 hypertension treatment, 130 international reference prices and,

131 literature review, 128–129

China’s Communist Party and, 120–121 Drug Addition Rate (DAR), 131 formulation of essential medicine list and

standard treatment guidelines, 120 future research, 142–143 government policy on, 139–142 idea of “Pooling Funds for Serious

Illnesses”, 138 medicine distribution costs, 136t

Index268

National Essential Drugs Clinical Guide and Chinese National Formulary, 142

national medicines policy (NMP), 122– 123, 129, 134–137

preference for excessive prescription of drugs (“Big Prescription” syndrome), 131–134, 142

“Two Networks” approach, 120–121 Medium and Long-Term National Plan

for Science and Technology Development (2006–20) (MLNP), 100

Mianzi (face), 29–30 Millennium Development Goals (MDG),

119–120

N National Bureau of Statistics of China,

218–219 National Endowment for Science,

Technology and the Arts (NESTA), 103–104

Negotiation, 36 North Korea, 47

O “One-size-fits-all” policy, 104–105 Organisation for Economic Co-operation

and Development (OECD), 43–44

P Pearl River Delta Model, 9 Peer-to-peer online lending platforms

(P2P), 13, 188–191 problems with, 189–190, 189t

People’s Action Party (PAP), 47–48 People’s Bank of China (PBOC), 174,

177–178, 234–235 Pharmaceutical supply chain, China’s, 13

literature review, 128–129 research and improvement of, 127t

assessment of affordability, 126–128, 132t

data analysis, 126–128 data collection, 124–126, 126t

hypotheses, 122–123 medicines surveyed, 124–128 methodology, 123–124 representative regions, 123–124 research design, 123

Private venture capital funds, 102–103

R Reebok, 87 Relationship marketing, 31 Reliability, 58–59 Renqing (favor), 27–30, 28t

anticipatory communication, 29 renqing resources vs common social

exchange resources, 28, 28t rule, 29

empathy, 29 Reserve Bank of India (RBI), 218–219 Resource acquirement, 35 Responsibility, 60 RobecoSAM, 81–82 Rui Hui International Logistics, 44–45 Russia, 47, 229

S Satisfaction, 36 SEBI Act of 1992, 235 Securities and Exchange Board of India

(SEBI), 235 Shanghai Stock Exchange (SSE), 42, 85,

218 Shenzhen Stock Exchange (SZSE), 42,

107–108, 218 Singapore, 48, 247t Small- and medium-sized enterprises

(SMEs), 1–2, 5, 99–100, 172–173, 253–254, 257

lending, 179–181 obstacles to obtaining finance for,

182t Small Business Investment Companies

(SBICs), 102–103 Small Business Investment Research

(SBIR) programme, 102–103 SME Promotion Law, 5 Soft budget constraints, 180, 191–192 South Africa, 47

Medical system of China (Continued)

Index 269

Soviet-style mono-bank system (PBOC), 235 State Bank of India, 237 State capitalism, 46–47 State funded ventures, 101–103 State-owned commercial banks (SOCBs),

236 State-owned enterprises (SOE), 1–2, 42,

45–46, 71, 253–254, 257 Strategic Transfer–Adapt–Scale framework,

13–14 Suman Model, 9 Supply chain performance, 38

T Taiwanese culture. See also Manager-

Employee-Heterophily (MEH) difference with US, 151–152 employer–employee relationship, 152 management style preference, 158–164 Manager-Employee-Heterophily (MEH),

165–166 Technology-based entrepreneurs, 12–13 Technology-based small firms (TBSFs), 99–

100. See also Venture capital funds; Venture Guiding Fund (VCGF)

equity gap for high-tech firms, 106–107 literature review, 101–105

The 20th Century Capitalist Revolution, 176–177

The Theory of Moral Sentiments, 61 Tokuchi, Ted, 177–178 Transactional banking, 179–180 Transfer-adapt-scale (TAS) framework, 198,

202–204, 203f Transnational Corporations (TNCs),

232–234 Transnational entrepreneurs (TEs), 13–14,

197–198 challenges, 204–206 cultural dimensions and, 200 study

research methodology, 201–202 transfer-adapt-scale framework, 202–

204, 203f theoretical framework, 199–201

Transparency index, 259t Trust, 35

U UK equity gap, 103–104 UN Global Compact (UNGC), 12, 71–72,

80–81 United Nations, 218–219 United Nations Conference on Trade

and Development (UNCTAD), 218–219

V “Varieties of capitalism” theory, 43–44,

46–47 Venture Capital Action Plan (VCAP),

104–105 Venture capital funds, 101–102

evaluation in China, 105–108 government-backed venture capital

(GVC) schemes, 103–104, 109–113 private venture capital funds, 102–103 public venture capital, 106–109 spatial distribution of, 112–113, 113f state funded ventures, 101–103 for “sunrise” industries, 106–107

Venture Guiding Fund (VCGF), 100, 106–109

distinctive geography of, 112–113, 113f models

coinvestment model, 108–109 financing guarantee model, 108–109 funds-of-funds model, 108–109 investment guarantee model, 108–109

performance of, 110–111 support for, 111–112 to support start-ups in the high-

technology industries, 111 Vertical foreign direct investment (VFDI),

199 Vietnam, 47–48

W Wenzhou model, 9, 183

credit contraction in, 184 financial innovation in, 187 folk-lending arrangements, 184–185

monitoring problems arising under folk-lending, 185–187

history of financial innovation, 184–185

Index270

imports and exports’ portion of Wenzhou real GDP, 184f

peer-to-peer online lending platforms (P2P), 188–191

problems with, 189–190, 189t SMEs and individuals, 183–184 unique monitoring problems, 183–191

Western and Eastern business approaches, 260t, 261t

Western educational systems, 207, 207f, 208f

WHO essential medicines policy, 119–120, 131–134

accessibility of essential medicines, 121–122

World Bank Data, 218–219 World Bank’s 2015 “Ease of Doing

Business” report, 248 World Economic Forum, 218–219 World Factbook of Central Intelligence

Agency, 218–219 Wuzhou Ship Repairing & Building and

Sainty Marine, 176

X Xiaolian Hu, 178 Xinyong (trustworthy), 29–30

Y Yale Center for Environmental Law &

Policy (YCELP), 218–219

Wenzhou model (Continued)