Corporate entrepreneurship of the international joint ventures in Beijing, the People's Republic of China

Pao Yue-kong Library Electronic Theses Database

Corporate entrepreneurship of the international joint ventures in Beijing, the People's Republic of China

 

Author: Cheng, Lan-fong Miranda
Title: Corporate entrepreneurship of the international joint ventures in Beijing, the People's Republic of China
Degree: D.B.A.
Year: 2001
Subject: Hong Kong Polytechnic University -- Dissertations
Entrepreneurship -- China
Joint ventures -- China
Department: Dept. of Management
Pages: viii, 153 leaves : ill. ; 30 cm
Language: English
InnoPac Record: http://library.polyu.edu.hk/record=b1615460
URI: http://theses.lib.polyu.edu.hk/handle/200/758
Abstract: Corporate entrepreneurship had been a focal point of study in the United States of America and it has been established that innovative, proactive and risk-taking organisations would generate higher than average financial performance. China has been a Marxist bureaucracy since 1949 and in order to achieve rapid economic growth, she initiated the Open Door Policy in 1978 to attract foreign investments. Since then many international firms established their presence in the form of international joint ventures (IJVs) in China. It is therefore interesting to investigate if corporate entrepreneurship that had been well established in the western societies did exist in the international joint ventures in China. It is also believed that corporate entrepreneurship study in a transitional economy would add knowledge to the topic. This study focused in Beijing, the capital city of China. Survey questionnaires were sent to 800 IJVs, the findings suggested that corporate entrepreneurship in terms of innovation and proactivity existed in I.JVs. Moreover, there were two strong factors affecting corporate entrepreneurship. Firstly, operation delegation which means that if the organization delegates operational issues such as the marketing and pricing of products or services to the employees of the organization, corporate entrepreneurship will be fostered. The reason being that employee might exercise their innovative ideas and could be proactive to respond to the market needs. However, to facilitate employees to make appropriate decisions, a control system should be available in the company to provide timely information and serve as a platform of information sharing. Secondly, It was also found that organizations adopting the growth strategy to expand. market share and profitability also enhance corporate entrepreneurship. This finding is important as China is still under a transitional economy. In line with her grand strategy to develop the north west region of the country and her entering into the World Trade Organization in November 2001, there exists huge market potentials for business development and new venture establishment. Corporate entrepreneurship in the western societies have helped organizations to gain competitive advantage, its existence in IJVs in Beijing is supported in this study. Therefore, new and established joint ventures in China are encouraged to enhance the extent of corporate entrepereneurship to revitalize their organizations.

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