More entrepreneur innovation and less labor conflicts – empirical evidence from China employer–employee survey

Purpose Labor conflict has become a serious problem in recent China. From the perspective of entrepreneur innovation, this paper aims to find an effective path to eliminate this conflict. On the basis of theoretical analyses and regression analyses, this paper finds that, with legal environment and other conditions identical, entrepreneur innovation will significantly facilitate elimination of labor conflicts. Design/methodology/approach Using theoretical analyses based on entrepreneurship theory, this paper puts forward a series of hypotheses about the effects of entrepreneur innovation on labor conflicts. With panel data during 2013-2015 from China Employer–Employee Survey, this paper examines the effects of entrepreneur innovation on labor conflicts. Using interaction term regressions, this paper examines heterogeneous effects of entrepreneur innovation on labor conflicts by ownership, market power and export behavior. With mediating effect model, this paper examine whether workers’ participation in corporation governance is an important channel in which entrepreneurial innovation can impact on labor conflicts. Findings First, using benchmark regressions and robustness checks, this paper finds that there exist significantly positive effects of entrepreneur innovation on workers’ job satisfaction, incentive, social security, job development and job stability, which will reduce potential risks of labor conflict effectively. Second, using interaction term regressions, this paper finds that there exist heterogeneous effects of entrepreneur innovation on labor conflicts by ownership, market power and export behaviors. The study finds that the effects of entrepreneur innovation are more concentrated in private firms, firms with stronger market power and non-exporters. Third, using a mediating effect model, the study finds that workers’ participation in corporation governance is an important channel in which entrepreneur innovation can have impacts on labor conflicts. Originality/value The paper enriches the existing research about how to eliminate labor conflicts in China. On the basis of China Employer–Employee Survey data, this paper finds the importance of entrepreneur innovation on Chinese transition, which not only has positive impacts on firm performance, but also has impacts on eliminating labor conflicts and establishing better labor relationship. Therefore, stimulating entrepreneur innovation is very important for solving conflicts during Chinese transition.

The political economy of reforms and the present Chinese transition

ABSTRACT The main aim of this paper is to demonstrate, through a review of China’s economic reforms, that the emergence of a large private sector and the increased sophistication and diversification of industry has required the continual reorganization of activities between the state and private sectors of the economy. We argue in this paper that the state began to play a major role in important industries and in big finance, as well as in the coordination and socialization of investment, such as economic policy (monetary and fiscal), foreign trade and, especially, the launch of new and higher forms of economic planning.

Institutional influence, cognition and competence of top managers and innovative firms

Purpose – This paper aims to explore the relationship between the role of entrepreneurs and the innovation investment propensity of Chinese firms. This study is expected to enhance our understanding about the competence building of top management team for innovative development. Design/methodology/approach – The analytical framework draws upon the recent theoretical progress about innovative firms, cognition and competence building of top managers. A horizontal data comparison and four longitudinal case studies of representative firms in the Chinese power equipment industry are implemented. Findings – The cognitive backgrounds of top managers, which have a significant role in directing strategic resource allocation, are found to be influenced by institutional environments. Because the institutional environments which are under the Chinese transition impact different groups of firms in different ways, the relevant practices of these firms lead to dissimilar competence building of top managers. Originality/value – This paper establishes a nexus of “institutional influence–cognition–resource allocation”. Such a nexus highlights the role of cognition of top managers in influencing the strategy-making of firms. So it helps in explaining the conditions for competence building in firms.

Neoclassical Economics as the New Social Engineering

This chapter compares the role of neoclassical economics in trying to socially engineer the shock therapy post-socialist transition in the former Soviet Union with the robust pragmatism and incrementalism of the Chinese transition to a market economy. The Chinese transition was a success and the Russian transition a debacle—in both cases, of historic proportions. The problem lies not only in the lack of accountability of the elite Western advisors and advisory institutions such as the World Bank and International Monetary Fund, but in the whole orientation of neoclassical economics as the new “scientific” basis for social engineering on a vast scale.

The Cultural Politics of Eating in Shenzhen

Throughout the 1980s and early 1990s, construction in Shenzhen symbolized both the transformation of Chinese socialism and the concomitant integration of Chinese society into global capitalist networks. This article tells the story of Shenzhen from the perspective of this first generation of immigrants, the so-called Old Shenzheners, who use nostalgia about food to define, debate, and ultimately retreat from conversations about what Shenzhen culture was and what it ought to be. Their food nostalgia is part of a larger cultural tradition of Chinese alimentary politics and has allowed Shenzheners to indigenize capitalist globalization to make the city their own. Old Shenzheners' food nostalgia represents an important moment in the Chinese transition to a post socialist political economy, redefining what it means to be both Chinese and global in a post––cold war world order.