US companies in China face more challenges

Significance Together with the Personal Information Protection Law passed last month, it imposes significant data protection compliance requirements on the corporate sector. These will impact data flows between China and the outside world, adding to the challenges that US companies now face when doing business in China. Impacts China's drive for technological self-sufficiency will increasingly limit market opportunities for US companies. State media's negative coverage of US businesses in China is an indication of growing protectionist sentiment. Instances of US firms moving supply-chain operations out of China are rare and are driven primarily by rising costs. An upcoming US Treasury review of the impact of sanctions could see other tactics used against China, with business implications.

Significance It creates a comprehensive framework for protection of all data with implications for national security. Alongside a forthcoming Personal Information Protection Law, it will have a significant impact on data protection compliance requirements for businesses, as well as on data flows between China and the outside world. Impacts Particular kinds of data might be categorised differently by different localities, creating compliance confusion. Multinational companies must prepare for more demanding data localisation requirements. Demand for the auditing and inspection services the law requires will drive expansion of China's domestic cybersecurity industry.


2017 ◽  
Vol 29 (1) ◽  
pp. 82-100
Author(s):  
Svetoslav Georgiev ◽  
Emil Georgiev

Purpose The purpose of this paper is to analyse the evolution of top management’s understanding of product quality in Bulgaria since the end of communism. The study examines three specific areas: top management’s understanding of the term “quality”; top management’s understanding of the relationship between quality and business performance; and top management’s understanding of the impact of job position on quality. Design/methodology/approach The paper relies on a quantitative research approach by using data from a survey of 186 companies in Bulgaria. Findings The paper suggests that senior managers in Bulgaria continue to base their understanding of “quality” on a single approach (*a characteristic of the communist era), with the product-based and the user-based approaches currently being the two most common ones. At the same time, surprisingly enough, this study claims that senior management in Bulgaria is currently well aware of the importance of quality as a dimension of firm’s competitiveness, and is also highly conscious of its roles’ impact on product quality. Research limitations/implications The results of this study are exclusively based on the case of Bulgaria and must be treated with caution in the case of other former communist states from the Central and Eastern Europe (CEE) region. Practical implications This paper has relevance for both managers and companies doing business in Eastern Europe. Originality/value This is the first paper to provide detailed analysis of the evolution of the understanding of “product quality” in CEE since the end of communism. Moreover, this paper applies, for the first time, Garvin’s five approaches to defining quality within a practical context.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lester Ross ◽  
Kenneth Zhou

Purpose To describe and analyze the implications of the new Measures (the “Measures”) for Cybersecurity Review jointly promulgated on April 27, 2020 by twelve Chinese government departments led by the Cyberspace Administration of China (CAC). Design/methodology/approach Defines the scope of the Measures, explains the functions and obligations of critical information infrastructure operators (each, a CIIO), outlines the self-assessment and cybersecurity review process and discusses the implications of the Measures for foreign companies doing business in China. Findings The Measures impose an obligation on CII operators to apply for a cybersecurity review when they intend to procure network products and services that present or may present a national security concern. Such review will focus not only on national security and data leakage concerns, but also on supply-chain security concerns. The cybersecurity review will likely further the decoupling between China and the US. Practical implications While the Measures are not formally intended to discriminate against foreign products and services, the promulgation of the Measures will have a significant impact on foreign companies that supply network products or services to CII operators in China. Originality/value Practical guidance from lawyers with extensive experience in advising Chinese, US, European and other companies on laws and regulations related to competition, cross-border investments, joint ventures, strategic alliances and international trade matters.


2017 ◽  
Vol 10 (4) ◽  
pp. 256-276 ◽  
Author(s):  
Vladimir Hlasny

Purpose The purpose of this paper is to evaluate opportunities for early childhood development (ECD) regarding children’s prenatal care, access to nutrition, health, parental care and cognitive-developmental activities, in 33 surveys from 13 countries. A total of 15 indicators for children’s opportunities are assessed including their typical level, inequality across demographic groups, and factors responsible. Design/methodology/approach Probability regressions estimate the effects of various household circumstances on children’s engagement in development opportunities. Dissimilarity indexes and human opportunity indexes are computed for each ECD dimension. To understand the impact of each household characteristic, Shorrocks-Shapley decomposition is performed. Findings ECD opportunities are poor but improving and becoming more equal across many countries. Progress is uneven. As may be expected, household wealth affects inequality for ECD opportunities facilitated by markets or governments, but not non-market opportunities. For preventive healthcare and preschool enrollment, access is deteriorating, reflecting low priority given to them in public policy. Children’s height falls behind in the first two years of children’s life, suggesting the need for targeted institutional interventions. Surprisingly, countries experiencing uprisings see conditions improving, while other Arab countries see them stagnating or deteriorating. Originality/value Local and national policy should tackle the identified opportunity gaps. Policymakers should allocate proper investment in medical and educational infrastructure and better coordinate support for disadvantaged families to ensure proper prenatal and ECD. International organizations should provide assistance with these programs.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jie Tang ◽  
Umair Akram ◽  
Wenjing Shi

PurposeMobile Applications (App) privacy has become a prominent social problem. Compared with privacy concerns, this study examines a relatively novel concept of privacy fatigue and explores its effect on the users’ intention to disclose their personal information via mobile Apps. In addition, the personality traits are proposed as antecedents that will induce the personal perception of privacy fatigue and privacy concerns differently.Design/methodology/approachData were collected from 426 respondents. Structure equation modeling was used to test the hypotheses.FindingsThe findings describe that App users’ intention toward personal information disclosure is determined by privacy fatigue and privacy concerns, but the former has a greater impact. With minor exceptions, the two factors are also influenced by different personality traits. Specifically, neuroticism has positive effects on privacy fatigue, but agreeableness and extraversion have presented the opposite results on the two variables.Practical implicationsThis research is very scarce to examine the joint effects of privacy fatigue, privacy concerns and personality traits on App users’ disclosing intention. In doing so, these results will be of benefit to App providers and platform managers and can be the basis for a variety of follow-up studies.Originality/valueWhile previous research just focuses on privacy concerns, this study explores the critical roles of privacy fatigue and opens up a new avenue of emotion-attitude analysis that can further increase the specificity and richness of users’ privacy research. Additionally, implications for personality traits as antecedents in the impact of App users’ privacy emotions and attitudes are discussed.


Subject Reforms and appointments announced at the National People's Congress. Significance A massive restructuring of China's bureaucracy was announced at the annual meeting of China's rubber-stamp parliament this month, where a new cohort of leaders was also promoted to key cabinet positions. Impacts Several new cabinet appointees have international experience, which may improve China's ability to engage effectively with the world. Consolidating foreign aid under a new agency could result in more joined-up policy, with more powerful advocates. Doing business in China could become easier with a reduction in the number of agencies firms to deal with. Consolidating ministries into larger units could create more powerful interest groups able to assert their own agendas. If consolidated government organs can better tackle pollution and food and drug safety, this would help ameliorate major public grievances.


2020 ◽  
Vol 37 (6) ◽  
pp. 675-686
Author(s):  
Maria Petrescu ◽  
Anjala Krishen ◽  
My Bui

Purpose The purpose of this paper is to evaluate the impact of internet of everything (IoE) on marketing analytics, the benefits and challenges it presents and the implications of its policy and legal framework. Design/methodology/approach Qualitative research methods are used across privacy statements and consumer social media data to determine factors of concern for business and consumers. Findings The qualitative analysis of privacy statements and consumer social media data unveils factors of concern that are common for businesses and consumers, such as user consent and data security, as well as problems specific to the IoE, including the use of mobile devices and various service providers. The study also shows a differentiation in the levels of information privacy concerns for marketing practice, the use of personal information, sharing information with third parties and consumer consent and agreement to critical terms. Practical implications Recommendations for policymakers, practitioners and researchers, especially concerning the need for more studies related to the issues of data security, information privacy and personal information are addressed. Originality/value There is a need to assess the potential implications that the use of marketing analytics in the IoE can have for marketing policy, governmental regulations and industry self-regulation. The purpose of this research is to perform an exploratory evaluation of the impact of IoE on marketing analytics, the benefits and challenges it presents and the implications of its policy and legal framework.


2013 ◽  
Vol 21 (1) ◽  
pp. 66-83
Author(s):  
Paul Gordon Dickinson

Purpose – The aim of the paper is to identify key areas of criminality that affects SMEs and assess and link academic literature on criminality in relation to those areas with the empirical research. In effect to explore the business reality of the criminality environment and its significant aspects that have an impact on SME organisations and their managers and assist their decision making. Additionally, to consider the impact of Estonia's Soviet historical background and her EU membership criminal law obligations within such an evaluation. Design/methodology/approach – This exploratory paper makes use of World, European and domestic surveys and primary criminal and business law sources as well as interviews from a business within the country assessed and a former Estonian police inspector. Together this gives an academic and grass-roots perspective for an assessment of the criminality reality for SMEs. Findings – The investigation reaffirms the importance of SMEs within former economies from a Soviet background such as Estonia. It also emphasises the correlation between economic growth, business regulation and criminality and identifies the significance and “key” aspects of criminality for an SME. Furthermore, that Estonia's criminal law that affects SMEs is generally as it is written and that Estonia has a positive compliance with EU directives and regulations. It emphasises that overall a very positive progression has been made by Estonia within its criminal law environment which is considered stable and encouraging for SME activity. The recording of crime is relatively low by EU standards and has an effect, albeit small, on the reality for SMEs. Practical implications – This research demonstrates the reality of the extent of criminality in Estonia and its positive progression in dealing with it. Corruption, a legacy from the Soviet period, is relatively small within the Estonian system as well as protection costs for an SME. There is, however, an acceptance of the existence of organized crime in Estonia although it is an under researched area. Some of the gaps within the World, European and domestic surveys are filled by the interviews although further evaluation is needed from other academics. Originality/value – The research highlights the importance of the criminal law environment for SMEs within a relatively new EU member state. It provides an original grass-roots perspective on top of an academic assessment providing fuller information on the reality for SME activity. This is helpful for SME's operating or thinking of doing business in Estonia as well as providing indicators for countries from similar Soviet backgrounds as to their criminality reality.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jose Alemany ◽  
Elena Del Val ◽  
Ana María García-Fornes

PurposeOnline social networks (OSNs) provide users with mechanisms such as social circles and individual selection to define the audiences (i.e., privacy policy) of the shared information. This privacy decision-making process is a hard and tedious task for users because they have to assess the cost-benefit in a complex environment. Moreover, little is known about how users assess the cost-benefit of matching the elements of online communication and their interests. Therefore, the purpose of this paper is to develop and test a research model to understand the impact that the types of receivers and the sensitivity of messages have on privacy decisions.Design/methodology/approachA study was conducted to understand how users evaluate the cost-benefit of the disclosure action in online social networks for the different types of receivers identified and the sensitivity of the message. Data from 400 respondents was collected and analyzed using partial least squares modeling.FindingsThe findings of this study demonstrated a trade-off variance between the perceived cost-benefit and the disclosure of sensitive information with different receiver types. Disclosing personal information with trusted receivers, influencer receivers and receivers from the circle of coworkers had a positive significant effect on social capital building. Conversely, disclosing personal information with receivers from the circle of family or unknown receivers had a significant negative effect on social capital building and even a significant positive effect on privacy concerns.Originality/valueRecent literature has documented the increasing interest of the research community in understanding users' concerns and interests in making the most suitable privacy decisions. However, most researchers have worked on understanding the disclosure action from a user-centered perspective and have not considered all of the elements of online communication. This study puts the focus on all of the elements of communication during disclosure actions, taking into account the properties of the message and receivers and the impact on users' cost benefit value.


2016 ◽  
Vol 36 (2) ◽  
pp. 135-163 ◽  
Author(s):  
Lawrence D. Fredendall ◽  
Peter Letmathe ◽  
Nadine Uebe-Emden

Purpose – The purpose of this paper is to investigate the strategy used by German Mittelstand companies to achieve a profitable business in China. It explores how those firms seek to reduce their risk of entry into this market. Design/methodology/approach – Survey data were gathered over the phone from individuals in the companies who were identified as knowledgeable contacts. Their responses were then analyzed using descriptive statistics and structural equation modeling. Findings – German Mittelstand firms that hire Chinese nationals in China obtain market knowledge and a higher return on investment than others. German managers’ efforts to understand the Chinese cultural norms increased the firm’s unwillingness to share information with others. This was probably because their concern about protecting their competitive secrets increased, so they shared less information with suppliers, which decreased their return on investment. Research limitations/implications – First, the small sample size limited the analysis. Second, there was low inter-rater reliability on multiple items, so these responses could not be analyzed. There is a need to further validate the survey, and obtain a larger sample to analyze alternative models. Practical implications – This suggests to the practitioner that while it may be relatively easy to start a manufacturing business in China, it requires great effort to manage their risk of losing corporate secrets to their competitors in China. Originality/value – This paper provides a unique set of data from practicing managers about the risks and gains from doing business in China. This data can be of use to both researchers and to practitioners and it provides a foundation to examine how the risk of losing proprietary knowledge to Chinese competitors affects business.


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