An exploratory study on the Hong Kong based manufacturing management contracts in Shenzhen Special Economic Zone

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An exploratory study on the Hong Kong based manufacturing management contracts in Shenzhen Special Economic Zone


Author: Yim, Fong-hing
Title: An exploratory study on the Hong Kong based manufacturing management contracts in Shenzhen Special Economic Zone
Degree: M.B.A.
Year: 1993
Subject: Management contracts -- China
International management
Shenzhen Jingji Tequ (Shenzhen, Guangdong Sheng, China)
Hong Kong Polytechnic -- Dissertations
Department: Dept. of Management
Pages: x, 111, 3 leaves : ill. ; 30 cm
Language: English
Abstract: Following the implementation of open door policy in Mainland China since late 1970's and the proliferation of special economic zones and open cities along China's coastline, Hong Kong has witnessed in the past decade the trend of local manufacturers relocating their production units northwards into China. This project is to study this phenomenon with a view to identifying the attributing factors, its magnitude, implications and prospective development. The target group of Hong Kong invested manufacturing management contracts in Shenzhen Special Economic Zone forms the core of the study because Shenzhen SEZ has been the favourite destination of relocation exercises, and management contract arrangement the most popular mode of operation. Chapter 1 is a general outline of the project. Chapter 2 introduces academic theories on international management. The ensuing three Chapters describe the macro- and micro-environments in Hong Kong, China and the Shenzhen SEZ affecting operations, management and strategies of the manufacturing firms with production units in Shenzhen. Chapter 6 introduces the fourteen manufacturing firms engaged in management contracts in Shenzhen Special Economic Zone, experience and knowledge of which form the contents of case studies in this project. From the data gathered, special patterns of organizational and management systems are identified, different from usual international practices. In Chapter 7 the academic theories are applied to explain these patterns, rationalize the tactics employed and analyse the problems encountered. Chapter 8 is the future projection on the continual attractiveness of the Shenzhen SEZ, the strategies, opportunities and risks of Hong Kong manufacturing operations in the SEZ, and impacts of possible changes in the political and legal environment on their organizational and management systems. In the conclusion in Chapter 9, it is suggested that with China opening its market to external world and modernizing its legal and monetary systems, the firms currently engaged in manufacturing management contracts in Shenzhen, advantaged by established business connections, can explore new opportunities in Chinese market through the change of business modes. They may also find opportunities by capturing in their location strategies the comparative advantages offered by other SEZs and nearby open cities. Chapter 10 details the limitations of the study.

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