Business Strategy and Corporate Governance in the Chinese Consumer Electronics Sector

219 Pages·2011·2.174 MB·English

by  Hailan Yang and Stephen Morgan (Auth.)

Business Strategy and Corporate
Governance in the Chinese Consumer
Electronics Sector
CHANDOS
ASIAN STUDIES SERIES:
CONTEMPORARY ISSUES AND TRENDS
Series Editor: Professor Chris Rowley,
Centre for Research on Asian Management, Cass Business School,
City University, UK; HEAD Foundation, Singapore
(e-mail: [email protected])
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Chandos Publishing Cass Business School, City University
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is Subject Group leader and the inaugural Professor of Human Resource Management at
Cass Business School, City University, London, UK, and Director of Research and Publications
for the HEAD Foundation, Singapore. He is the founding Director of the multi-disciplinary
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Business Strategy and
Corporate Governance in
the Chinese Consumer
Electronics Sector
H Y S L. M
AILAN ANG AND TEPHEN ORGAN
Chandos Publishing
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First published in 2011
ISBN:
978 1 84334 656 2
(Chandos Publishing)
ISBN:
978 0 85709 152 9
(Woodhead Publishing)
© H. Yang and S. Morgan, 2011
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List of fi gures
1.1 Structures of China’s corporate governance system 8
2.1 Theoretical model 43
3.1 China’s GDP growth, 1979–2005 49
3.2 Categories of fi rms in China 59
3.3 Employees by enterprise ownership (%), 1978–2007 63
3.4 Number of registered private fi rms in China,
1989–2007 65
3.5 Number of fi rms listed on the Shanghai and Shenzhen
Stock Exchanges, 1990–2007 66
4.1 Percentages of the three kinds of patents in
Hisense, 2005 94
4.2 Yankon’s overseas and domestic sales revenue,
2001–2005 106
4.3 The institution–strategy–performance framework in
the Chinese CE sector 110
5.1 The pre-reform relationship between SOEs and
Government 119
5.2 The listing process for SOEs 121
5.3 The ownership structure of Panda – Form 1 122
5.4 The ownership structure of Hisense and Huadong –
Form 2 123
5.5 A comparison of state shares in the listed fi rms
of Hisense, Huadong and Panda, 2000–2008 125
5.6 The relationship between listed fi rms and ultimate
controller in COEs 127
5.7 The relationship between actual controllers and
the listed fi rm, Yankon 134
5.8 The ownership structure of Silan 135
xi
Business Strategy and Corporate Governance in the Chinese Sector
5.9 The relationship between actual controllers and the
listed fi rm, Tiantong 135
5.10 The transformation of ownership structure and
board characteristics of the cases at different stages 151
6.1 The interrelationship between institutional factors,
business strategies and corporate governance 159
6.2 Contributions of the study 168
xii
List of tables
1.1 Profi le of interviewees from companies 17
1.2 Profi le of non-company interviewees 18
3.1 Priorities of government motives for their
choice of industrial projects 56
3.2 Brief introduction of the eight fi rms, 2006 75
4.1 Leading brands in China’s CTV market (1996, 2007) 95
4.2 R&D spending as a percentage of sales, 1998–2006:
A comparison between Haier, General Electric (GE)
and Sony 102
4.3 The fi rms’ domestic market share, 1995–2007 109
4.4 The growth rate of the main business revenue
of fi rms, 2007 109
4.5 The stages of fi rms’ pursuit of business strategies 114
5.1 The relation-based positions in DPOEs, 2006 132
5.2 A comparison of shares in case fi rms at different stages (%) 138
5.3 Personnel composition of the supervisory board, 2008 145
5.4 A comparison of boards in case fi rms at different stages 146
5.5 Percentage of independent directors from different
areas, 2007 147
5.6 Percentage of affi liated directors in case fi rms at
different stages (%) 149
xiii
Abbreviations and acronyms
AMC Asset management company
BoD Board of directors
BS Business strategy
CCP Chinese Communist Party
CE Consumer electronics
CG Corporate governance
CMRS Contract management responsibility system
COE Collectively-owned enterprise
CSRC China Securities Regulatory Commission
CTV Colour TV
DPOE Domestic privately-owned enterprise
FDI Foreign direct investment
GDP Gross domestic product
IC Integrated circuit
IPO Initial Public Offering
IT Institutional theory
JV Joint venture
LP Legal person
M&A Merger and acquisition
MNC Multi-national corporation
NPL Nonperforming loan
NSB National Statistics Bureau
OEM Original Equipment Manufacturing
R&D Research and development
RBV Resource-based view
SAIC State Administration for Industry and Commerce of China
xv
Business Strategy and Corporate Governance in the Chinese Sector
SASAC State-owned Assets Supervision and Administration Commission
SB Supervisory board
SOE State-owned enterprise
SSE Shanghai Stock Exchange
SZSE Shenzhen Stock Exchange
TCE Transaction cost economics
TVE Township and village enterprise
WTO World Trade Organization
xvi