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IJGMS (v4:n1)

Volume 4, Number 1


CONTENTS

The Efficacy of China's Corporate Governance operating within Contemporary Global Economy, John Saee,
Emergence Of 'Consumer Group Buying On The Web Firms In India: What Differentiates Them From the Failed Pioneers?, Shobith Balaram and Varinder M. Sharma.
The Automotive Industry In China: Cross Cultural Management of Managerial Practices In Sino-Foreign Joint Ventures, MeiYi Winnie Song


ABSTRACTS


The Efficacy of China's Corporate Governance operating within Contemporary Global Economy

John Saee, PhD
Professor of International Business Economics ESB - Reutlingen University - Germany john.saee@reutlingen-university.de

Abstract

In 2010, China's GDP growth was 10.456 percent, totalling US$ 5,745.13 billion. Forecasts for 2015 predict China's GDP to reach US$ 9,982.08 billion, growing 10-12 percent per year between 2010 and 2015 (The Economy Watch, 2010).
China is the largest and the most important manufacturing center in terms of economy of scale and economy of scope for enterprises world-wide. Further, China is currently ranked as the number one world champion accounting for the largest volumes of international trade.
It is predicted that China's economy could overtake the U.S. as the largest economy by 2019."Absent a total disaster in China, the transition will take place, and that right soon. Why? Well, China remains far behind the developed world in per capita terms, and because there is plenty of catch-up left to accomplish, there's plenty of room for rapid growth. And China's population is enormous. It has over four times as many people as America, and so its output per capita only needs to be about a fourth of America’s to match it in total size." [The Economist, 2011]
China is globally a preferred destination for foreign direct investment (FDI). For the purposes of illustration, FDI in China, rose to a record $105.7 billion in 2010 underscoring confidence that rising incomes will boost demand in the world's fastest-growing major economy (Bloomberg News, 2011).
Meanwhile, The Chinese stock market, which was officially established in the 1990, has since grown to become one of the largest in the world.
According to a recent data based on the China Securities Regulatory Commission (CSRC), there are already 70 million investor accounts opened across the country. Roughly 200- 300 million Chinese people, directly or indirectly, invest in and are also affected by the stock market. (Aharony et al , 2000).
Corporate China, especially the state owned enterprises (SOEs) has benefited greatly from rapid equity issuance growth and public enthusiasm for the equity market due to a lack of other attractive investment vehicles. China now boasts 1,400 listed companies, more than 130 securities firms, over 100,000 practitioners, and over 70 million investor accounts. (Baiet al, 2000).
Nonetheless, corporate governance has been subject to critical appraisals in China. At the heart of such scrutiny has been the notion that China's corporate governance practices are substantially problematic due to an absence of transparency. With this in mind, the purpose of this research article is to shed light on corporate governance in China while highlighting issues and challenges associated with current practices of corporate governance. Concurrently, it would be contextually appropriate here to focus first of all, on China's current position within contemporary global economy so as to demonstrate the critical importance of a sound corporate governance in terms of maintaining sustainably the confidence of domestic and international investors in Chinese capital market.

Keywords: Corporate Governance, China's GDP, Global Economy
Emotions in Emerging Technology Management
Malavika Sundararajan

Assistant Professor of Business Administration
School of Business G06 Willis Commerce Building
North Carolina Central University
Durham, North Carolina, 27707
Phone: 919-530- 6232
Fax: 919-530-6163
E-mail: msundara@nccu.edu

Abstract

The expanding knowledge base engendered by emerging technologies confronts managers with high risk and uncertainty in the strategic management of their firm's organizational and technological resources. Managing Emerging Technologies is often similar to the process of new venture creation. Thus it relies heavily on cognitive processes, like evaluation, problem solving, and decision making. These cognitive processes in turn elicit a range of emotions that result in different employee's behaviors which could impact the successful management of emerging technology based firms. In this study, various domains that face organizations engaged in managing emerging technologies along with their associated risks and uncertainties are outlined. Based on the appraisal theory of emotions, a model showing the role of emotions in emerging technology management is proposed. The propositions suggest how the firm can focus on specific combinations in the model that will elicit positive emotional responses that will lead to effective management practices.



Keywords: Emerging Technologies, Appraisal Process, Emotions, Decision-Making


The Automotive Industry In China:
Cross Cultural Management of Managerial Practices In Sino-Foreign Joint Ventures
MeiYi Winnie Song
Shih-Chien University
Department of Business Administration,
No 70, Dazhi Street, ZhongShan Dist.,
Taipei Taiwan
Tel: 886-2-2538-1111 ext 8053, Fax: 886-2-2533-6293.
w.m.song@mail.usc.edu.tw

Abstract

The paper describes degree of cross culture management influences on Sino-Foreign joint venture (JV) in the Chinese automotive sector that have planned and controlled under the government regulations to be one of pillar industries. The majority of Chinese vehicle manufacturers (VMs) are state owned enterprises, with strong power and culture influences, have raised tension on partnerships within the JVs. It is proposed that Sino-Foreign JVs is influenced by culture factors under Chinese context and it often elict actions on the venture management. To access the world's leading vehicle production centre and market, foreign VMs have participated in the Sino-Foreign JVs under Chinese own unique terms. The paper suggests that the regulatory factors continue to be the major driver to develop Chinese auto industry structure. New government cooperation model exist to extend from two domestic partners only to three parties involved. This has led to the introduction of Chinese style of cooperation practices to achieve technology transfer. With high degree of government and cultural influences, each partner has its own representative holding the same managerial position to communicate on the venture decisions. There is no doubt the Chinese style management remains within the Sino-Foreign JVs and these ventures are used as learning platforms for the domestic partners to relocation of well-trained local staff into Chinese assembly plants for technology transfer.

Keywords: Chinese automotive industry, Sino-Foreign JVs, cross cultural management