Daniel Z. Ding

China's Labour-Management System Reforms: Breaking the ‘Three Old Irons’ (1978–1999)

This article systematically examines the fundamental changes that have taken place in Chinas labour-management system since China embarked on its economic reforms in 1978. The system was, from the 1950s onwards, characterized by what were called the ‘three old irons’, i.e. life-time employment (the ‘iron rice bowl’), centrally administered wages (the ‘iron wage’), and state-controlled appointment and promotion of managerial staff (the ‘iron chair’). This study reviews the degree to which the reform process is breaking these ‘three old irons’ and is arguably replacing them with a ‘hybrid’ human resource management model, albeit with ‘Chinese characteristics’, that reflects the influence of foreign multinational corporations (MNCs) that have invested in China.

The organizational choice of human resource management practices: a study of Chinese enterprises in three cities in the PRC

This study examined the effects of an organizations contextual variables on the choice of human resource management (HRM) practices to secure, nurture, reward and retain managerial employees. The contextual variables included organizational characteristics (ownership, age and size), on the one hand, and its competitive strategies (innovation, quality and cost) and the strategic role of the human resource function, on the other. Data were collected through a questionnaire survey of general managers and human resource directors from 326 joint ventures and state-owned enterprises located in Shanghai, Nanjing and Guangzhou, three major cities in China. Using structural equation analysis, we examined both the direct and indirect effects of the contextual variables on HRM practices. The indirect effects were measured through the strategic role of the human resource function. Results indicated that ownership and the strategic role of the human resource function were key variables in explaining an organizations choice of HRM practices. Age and size of the organization had limited effects. Compared with cost and quality strategies, the innovation strategy affected HRM practices, both directly and indirectly, indicating the increasing dynamism of the Chinese economy in its move towards a market orientation.

The impact of economic reform on the role of trade unions in Chinese enterprises

The movement of the Chinese economy towards a market orientation has been characterized by high levels of foreign direct investment, the diversification of forms of public ownership and the growing economic significance of the private sector as the PRC joins the global economy. These changes have clearly had a significant impact over time on the Chinese labour-force. This study, based on a geographically dispersed sample of sixty-two enterprises, both state-owned and joint venture, examines the effect of these economic reforms on industrial and labour relations, and in particular on the role of trade unions at plant level.

‘Re‐inventing’ China’s Industrial Relations at Enterprise‐Level: an Empirical Field‐Study in Four Major Cities

This article discusses the impact of China’s latest reforms on industrial relations at enterprise level in both state-owned firms (SOEs) and foreign-invested joint ventures (JVs) based on a sample of 24 industrial enterprises located in four cities. It concludes that the reforms of the early 1990s have ‘re-invented’ the IR system and have significantly influenced recruitment and selection, wage and reward systems, and social security programmes.

Market orientation, competitive strategy and firm performance: An empirical study of Chinese firms

Abstract In this paper, we investigate the mediating effects of a firms competitive strategy in the market orientation-performance relationship. Based on a sample of 371 manufacturing firms in China, evidence was found that the three dimensions of market orientation exert different effects on competitive strategy and performance. Among them, customer orientation has the strongest association with competitive strategy and market performance. This lends credence to a componentwise approach on the study of the relationship between market orientation and performance. The results of structural equation analyses indicate that the mediating effect of competitive strategy is mainly revealed in innovation strategy, the most vital factor in creating superior value for the company in the emerging market. Limitations of this study and implications for future studies are discussed.

Evolution of organizational governance and human resource management in China's township and village enterprises

This study reviews the evolution of organizational governance and human resource management practices in Chinas non-state sector, with a focus on Chinas township and village enterprises (TVEs). The empirical investigation on twenty TVEs located in Southern China provided the evidence that, as enterprises move towards a more formal corporate governance structure with clearer property rights relations, their human resource management practices tend to become more marketized, in order to meet the challenge of increased competition in the highly dynamic, transitional Chinese economy.

The effect of institutional isomorphic pressure on the internationalization of firms in an emerging economy: evidence from China

This study uses institutional theory to explore the driving force for internationalization of firms in emerging economies. It posits that the internationalization practices of firms are driven not only by efficiency consideration, but also by the desire to conform to institutional isomorphic pressures exerted by the social environment. The impact of three types of institutional isomorphic pressures – coercive pressure, mimetic pressure and normative pressure – on the intensity of internationalization is investigated. Analysis using survey data collected from 174 Chinese firms shows that all three institutional pressures have positive and significant effects on the intensity of internationalization. We also examine the interaction between institutional pressure and firm capability. Results suggest that firm capabilities enhance the effect of coercive pressure on internationalization, and weaken the effect of normative pressure on internationalization.

Effects of inter- and intra-hierarchy wage dispersions on firm performance in Chinese enterprises

This study examined the impact of inter- and intra-hierarchy wage dispersions on company performance based on a sample of 395 Chinese enterprises. It was hypothesized that (1) inter-hierarchy wage dispersion between managers and workers is positively related to firm performance and (2) intra-hierarchy wage dispersion within manager and worker groups is negatively related to firm performance. Results based on regression analysis confirmed the first hypothesis and showed partial support for the second. Practical and policy implications are discussed in the context of Chinas transitional economy.

The Effects of the Institutional Environment on the Internationalization of Chinese Firms

In the last three decades, China has proved to be one of the largest and fastest growing transitional economies in the world. China became the world largest recipient of foreign direct investment (FDI) for the first time in 2002 (OECD, 2003). A large number of studies have been conducted on inward FDI in China (e.g., Buckley, Clegg, & Wang, 2002; Chadee, Qiu, & Rose, 2003; Huang, 2003). Growing hand in hand with FDI inflow, China’s outward FDI has been steadily increasing. According to the Statistical Bulletin of China (China National Statistic Bureau, 2007), by the end of 2006, the cumulative total of China’s outward FDI reached US

Determinants of internationalisation strategies: a study of Chinese multinational enterprises

90.63 billion, which makes China the largest outward direct foreign investor among all developing countries.