Business Commons^™

Technology Transfer Into China: Preparing For A New Era, Arnoud De Meyer

Arnoud DE MEYER

Currently, there are three forces creating a more favourable background for western multinational companies to do new business in China by transferring new technology. First, growing overcapacity means China requires not traditional turnkey factories, but instead, technology which leads to innovation and improvement. Second, a changing attitude by all levels of Chinese government to demanding state-of-the-art technology including software instead of previous generation technology, and to technology management and commercial implementation more. Third, intellectual property rights are becoming better respected. The author makes suggestions to best manage technology transfer into China, with this changed background. Based on six case studies …

Technology Strategy And China's Technology Capacity Building, Arnoud De Meyer

Arnoud DE MEYER

China has the potential to become a major source of innovation for the world. The scientific investment is in place and rapidly growing. But in order to reap the benefits of this investment its organisations will have to become better at managing innovation. One of the key elements of innovation management is the determination and implementation of a sound technology strategy. The purpose of this paper is to offer a framework and a detailed overview of what it entails to develop and implement a technology strategy. The paper emphasizes the alignment of the strategy with the organisational competencies and the …

Effects Of Cultural Ethnicity, Firm Size, And Firm Age On Senior Executives’ Trust In Their Overseas Business Partners: Evidence From China, Crystal X. Jiang, Roy Y. J. Chua, Masaaki Kotabe, Janet Y. Murray

Roy Chua

We investigate trust relationships between senior business executives and their overseas partners. Drawing on the similarity-attraction paradigm, social categorization theory, and the distinction between cognition- and affect-based trust, we argue that executives trust their overseas partners differently, depending on the partners’ cultural ethnicity. In a field survey of 108 Chinese senior executives, we found that these executives have higher affect-based trust in overseas partners of the same cultural ethnicity as themselves; cognition-based trust is associated with affect-based trust differently when overseas partners are of the same or different cultural ethnicity. We also examine the role of relative firm size and …

Multinational R&D In China: Differentiation And Integration Of Global R&D Networks, Jian Wang, Zheng Liang, Lan Xue

Jian Wang

Venture Capital And Executive Incentives In China, Jerry Cao, Qigui Liu, Gary Tian

Qigui Liu

This paper examines the effect that venture capital (VC) has on the pay-performancerelationship in listed Chinese firms. We find that VC has a significantly positive effect onCEO compensation and the pay-performance relationship, such effect particularly stronger infirms needing more managerial efforts and discretions (higher growth opportunity or higherlevels of capital expenditure). In addition, we show that VC-backed firms with moremanagerial discretions are more likely to use stock options. The evidence suggests thatventure capital investors use more sensitive compensation contract for top executives inChinese when the need for managerial discretion is greater. Such compensation schemes byVCs enhance firm performance subsequently.

The Local Corporatist State And Ngo Relations In China, Jennifer Yj Hsu, Reza Hasmath

Reza Hasmath