How large entrepreneurial-oriented companies breed innovation: the roles of interdepartmental collaboration and organizational culture

Purpose This study aims to provide a better understanding into how large-scale companies overcome their rigidity and bureaucracy, and transform entrepreneurial orientation (EO) into organizational responsiveness (e.g. interdepartmental collaboration [IDC]). It also clarifies the double-edged role of organizational culture in shaping IDC, specifically within the Chinese economy that is deeply influenced by Confucianism. Design/methodology/approach Datas were randomly collected from companies that reside in the Yangtze River Delta region. With a sample of 115 large-scale EO Chinese firms, consisting of 402 department managers and 115 executives. The study aggregates the scores to create an overall measurement for EO, collectivism, power distance and IDC in the analysis. Further, confirmatory factor analyses were used to measure the structural model fitness, and multiple regression analysis was used to assess the hypotheses. Findings The results show that in competitive environments, IDC, as a strategic response to EO and a risk aversion of inertia and bureaucracy, fully mediates the positive relationship between EO and organizational creativity. Furthermore, the positive association is more pronounced under high cultural collectivism or low power distance in large-scale firms. Research limitations/implications This paper contributes to the understanding of EO approach at the organizational level. The results posit that when large companies adopt EO, they are proactive rather than passive and would exhibit IDC as an important strategic responsiveness. Moreover, different organizational cultural orientations (i.e. high collectivism and low power distance) help to build IDC before cultivating innovation. Practical implications The results in this study suggest that large companies should focus on developing IDC to overcome knowledge fragmentation, bureaucracy and inertia. Also, large firms should develop Human Resource Management practices, such as creating job rotation and workflow, as well as cultural trust and common beliefs. In contrast, they should be on guard against status differences and workplace hierarchy’s cultural context. Originality/value To the best of the authors’ knowledge, this is the first study that considers the roles of IDC and organizational culture and examines how large-scale entrepreneurial-oriented companies breed innovation.

Factors Affecting Construction Sector Safety Performance: Exploratory Factor Analysis Evidence from China

Construction industry is a significant contributor to the Chinese economy. The industry has more than 12 million employers with over 250 million employees and creates almost $1.9 trillion worth of structures yearly. Civil construction remains the main driver of growth in China. Basically, a task is developed to meet market demands or demands in a timely fashion. Different possibilities may be thought about in the conceptual drawing board, and also the technical and also financial feasibility of each alternative will be assessed and compared in order to select the very best feasible job. The construction industry in China is forecast to grow by 7.7% in 2021, driven by strong Y-o-Y growth in the first quarter, reflecting the comparison to the previous year's period when construction work was halted across most of the country. Thereafter, the construction industry is expected to record an average annual growth of 4.2% between 2022 and 2025. The industry's growth over the forecast period is expected to be driven by investments on new infrastructure, including investment in the areas of 5G networks, Artificial Intelligence, the Internet of Things, and data centers. According to the government-backed think tank, the China Electronic Information Industry Development, the country is expected to spend CNY10 trillion (US$1.4 trillion) on new infrastructure projects between 2020 and 2025. This study evaluated factors affecting construction sector performance: explanatory factor analysis evidence from China. From the literature reviewed, it was established that entering the Chinese construction market is still seen as exciting but difficult by many foreign contractors and consultants. The study found out that rising material and labor costs, labor woes, increased competition and shrinking profit margins were some of the challenges construction firms in Chin face. The study concludes that the implementation of construction safety laws and the rate of subcontracting are relevant factors affecting construction sector in China, while neither the extent of using temporary workers, nor the availability of resources, nor the level of per capita GDP has any effects. Keywords. Construction sector, safety performance, construction sector, labor costs, increased competition, shrinking profit margins

Bilateral Relations Between Indonesia and China in The Era of President SBY's Administration

This study discusses the effect of China's economic revival on Indonesia's foreign policy orientation. Historically, the relationship between China and Indonesia, which had been severed in 1965 due to ideological conflicts and Indonesia's suspicion of China's support for the Indonesian communist party (PKI), has now been re-establish since the 1990s, which began with China's economic growth. Foreign policy is often caused by a combination of unexpected external forces with unfavorable structural factors. The continued stalemate in China-Indonesia bilateral relations has equally serious consequences for China. China's diplomatic failure against Indonesia has cost China, and that loss cannot be offset by the diplomatic gains generated by the opening of new relations with other ASEAN countries. This study tries to discuss this situation in depth using several approaches to find two variables that become the topic of this thesis: the rise of the Chinese economy and its influence on Indonesia's foreign policy. This research found that Indonesia's bilateral relations with China under the leadership of President Susilo Bambang Yudhoyono ran normatively and without significant fluctuations.

The Impacts of Population Aging on China’s Economy

The Chinese economy had an extraordinary average GDP growth rate of 8.50 percent from 1980 to 2018. However, the implementation of one-child policy in the late 1970s has depressed the total fertility rate to below the replacement rate since 1992. China thus experienced an increasing composition of older populations in the past three decades, which puts pressure on Chinese economic growth and makes its eye-catching economic growth potentially unsustainable. This study develops an overlapping generations (OLG) model to investigate the impacts of this demographic transition in the Chinese economy. This study conducts six policy reform exercises to examine measures that could improve the sustainability of fiscal and pension systems. The simulation results indicate that a mild tax increase on either wage income or consumption does not improve the fiscal stance but creates distortionary effects on saving and consumption behaviors. Of the pension reform measures considered, the combination of extending the mandatory retirement age and cutting the replacement ratio offers the most significant improvement to pension sustainability. However, increasing the contribution rate of the working-age population has the least effect on pension sustainability and a noticeable distortionary effect on the consumption ratio and saving rate.

Motif dan Kepentingan China dalam Pembentukan Regional Comprehensive Economic Partnership (RCEP)

The establishment of the Regional Comprehensive Economic Partnership (RCEP) began because of the conflict between China and Japan. The establishment of RCEP is to create the largest trade agreement in the world because this cooperation unites regional countries with large economies. China as a country that has the largest economic level among RCEP member countries makes China control most of the market in the region. This RCEP helps China in dealing with the trade war between China and the United States, although it has not yet had a big impact. This paper uses a qualitative method and focuses on China's motives in determining the RCEP. The results of this study confirm that China's motive in determining the RCEP is to counter-balance with the TPP and China's good image to Southeast Asian countries. In addition, RCEP has a significant impact on the Chinese economy.

THE IMPACT OF COVID-19 OUTBREAK ON CHINA SECTORAL INDICES IN SHORT AND MEDIUM RUN

The novel coronavirus COVID-19 has severe consequences for countries around the globe. The purpose of this study to find out the impact of COVID-19 on China’s sectoral indices in the short and medium run. This research investigates the impact of COVID-19 on stock exchange index, exchange rates, money lending, and oil prices in the Chinese economy in the short and medium run by using secondary data of different sectoral sectors. The outcomes show that COVID-19 has strongly influenced these sectors. The Shanghai stock exchange is showing a decline in transactions due to this pandemic in the short run. But in the medium run, the outcome shown that Shanghai stock exchange has upward trend. The pandemic has reduced exchange rate of Chinese RMB to US dollar in short-run, but in medium run, Chinese RMB has gained appreciation against US dollar. The money lending for medium enterprises is showing downward curve. Result shows that money lending rate has reduced from 3.25% to 3.10% in the short-run and 2.95% in medium run. Overall, pandemic has had significant influence on the Chinese economy and development.

The economic situation of the Arctic in the Chinese energy market

Over the past decade, the Chinese economy has grown at a faster pace (up to 8 % per year), which is a consequence of the unprecedented expansion of China in world markets. Such a competitive position presupposes the same significant (up to 15 %) growth in energy consumption, which is ensured by both an increase in domestic production (to a lesser extent) and imports of energy resources — oil, pipeline and liquefied natural gas and coal. In the context of aggravated competition between the leading economies of the world (China and the United States), the security of transporting energy resources from the Persian Gulf and other regions through the narrows of the Strait of Hormuz and Malacca, as well as through the regions of the South China Sea and the Taiwan Strait controlled by the United States, acquires a new sound for China. To solve this problem, China is building up its naval presence in the direction of the Southern Silk Road, but mainly in the waters of the Pacific Ocean seas — the Yellow, East China and South China, that is, in the operational zones of the three fleets of the Chinese Navy — the North, East and South, from the exits to the operational zone of the Russian Pacific Fleet in the waters of the Sea of Japan and the Sea of Okhotsk. Demonstration of strength and flag during joint sailing of the two fleets is carried out within the framework of the exercises of the “Maritime Interaction” format from 2012 to 2021 inclusive, except for 2020 due to the aggravation of the epidemiological situation in connection with COVID-19. The latent goal of these exercises is to practice coastal defense missions in the zone where China's strategic oil reserve is located.

Has the Digital Economy Changed the Urban Network Structure in China?—Based on the Analysis of China’s Top 500 New Economy Enterprises in 2020

The rapid development of the new generation of information technology makes digital enterprises and the digital economy important forces in promoting the sustainable growth of the world economy. Under the influence of the digital economy, the original urban network may undergo drastic changes. There have been studies that have arrived at conflicting conclusions. This paper primarily illustrates whether or not the digital economy has changed the urban network structure. China's digital economy is developing rapidly, becoming a new engine for the high-quality development of the Chinese economy. Therefore, this paper demonstrates the impact of China's digital economy on the urban network structure by using data from China's Top 500 New Economy Enterprises in 2020 and the headquarter–subsidiary ownership method. The results show that 1) China's urban network has changed significantly. Compared with APS enterprises and listed companies, the urban network of the digital economy has become more polarized, and Beijing has become the absolute control center. 2) Chinese cities have been reshuffled in the era of the digital economy. Beijing, Hangzhou, and Chengdu, with their industrial foundations in the digital economy, have performed better within the network. Simultaneously, some heavily industrialized cities, such as Wuhan, Shenyang, and Chongqing, have been declining due to the difficulties associated with transformation. 3) Although the digital economy has reshaped China's urban network structure to a certain extent, the original urban pattern still plays a dominant role in the new system. The network spatial pattern of dense east and sparse west still exists, and provincial capitals and subprovincial cities still play a more significant role in the network than ordinary cities. 4) Network diffusion is typically a hierarchical diffusion between core nodes. Geographical proximity has a low constraint on network diffusion, and subsidiaries expand outward through hierarchical diffusion.

Research on the Effect of an Environmental Protection Tax Policy on Haze Control in China—Empirical Analysis Based on Provincial Panel Data

This paper describes the construction of a model to explore the effectiveness of environmental protection taxes on haze emission reduction in China. The model is based on panel data from 30 provinces and cities in China, from 2003–2019. It is found that the current environmental protection tax has a significant inhibitory effect on haze. In addition, an upfront pollutant discharge fee can guide enterprises to significantly reduce the emission of haze-causing pollutants. A robustness test is conducted, using the variable substitution method of taking sulfur dioxide (SO2) as haze, and the research conclusions are consistent. We then put forward three specific suggestions: (1) Expand the scope of the environmental protection tax, gradually increase the tax rate, or adopt an excessive progressive tax rate. For example, China could consider including mobile pollution sources into the scope of taxation. (2) Increase the supervision and collection of the environmental protection tax. (3) Strengthen the multiple linkages between regional taxation departments and environmental protection departments, in order to form a collaboration between the departments in an effort to control haze and promote the sustainable development of the Chinese economy and the environment.