Chinese Companies Research Articles

The role of big data and IoT in logistics supply chain management of e-commerce

With the rapid development of social mode virtualization and electronic component technology, the application of data science and Internet of Things (IoT) technology in the field of e-commerce is gradually increasing. This study aims to explore how these emerging technologies can enhance the advantage of Chinese e-commerce companies in international competition. By comprehensively analyzing the massive data generated by online social networking and the application of IoT sensor technology in logistics and enterprise management, this paper proposes a decision support model based on data analysis. Research methods include data collection, data analysis and case studies. The results of the study show that data analytics and IoT technologies can effectively improve the efficiency of e-commerce operations and customer experience. The conclusion is that these technologies not only contribute to the domestic development of e-commerce enterprises, but also play a non-negligible role in international competition. This research has important implications for understanding the practical applications and potential of new technologies in the field of e-commerce.

Local Gambling Culture and Enterprise Bribery: A Social Norms Theory Perspective

Abstract Based on social norms theory, we examine the impact of local gambling culture, an unexpected result of government-permitted lotteries, on enterprise bribery. We propose that local gambling cultures can promote active enterprise involvement in bribery activities by reinforcing the speculative psychology of enterprise decision-makers. In addition, we argue that local gambling culture is less likely to lead female (returnee) chairpersons to develop speculative psychology than male (nonreturnee) chairpersons. This, in turn, allows female (returnee) chairpersons to undermine the positive impact of local gambling culture on involvement in enterprise bribery. Based on 11 years of empirical data obtained from privately listed Chinese companies (including 2,637 listed companies with 15,036 firm-year data points), we obtain empirical evidence to support most of these views. This study is the first to explore the relationship between local gambling culture and enterprise bribery, and important insights are provided for shareholders and policy-makers to better curb enterprise bribery.

An Investigative Study on the Development Strategies for Electric Vehicle Enterprises

With the continuous development of science and technology, cars have become an indispensable means of transportation for human beings in daily travel. More and more cars appear in our life. In recent years, as consumer awareness of energy conservation and environmental protection has increased, global demand for sustainable development has increased, and many new energy vehicles. Because the non-renewable resources such as oil and natural gas needed by traditional fuel cars are consumed faster and faster, the exhaust emissions of traditional cars are polluting the environment increases, so new energy vehicles are the future development trend of the automobile industry. With the international context of the rapid development of new energy trams, the sales volume of electric vehicles in China's automobile market is not good. Through data analysis and industry research, the key factors and reasons affecting the development of electric vehicles are found, make certain suggestions to Chinese new energy electric vehicle companies, in order to change the current situation of low sales of new energy vehicles, the report objectively and truly analyses the future planning of the development of Chinese electric vehicle enterprises and the change of the development trend, as well as the moderate fine-tuning of the sales pricing.

Environmental, social, and governance performance and corporate debt maturity in China

The prevalence of over-holding short-term debt is widespread among Chinese companies. This study aims to explore the intricate association between environmental, social, and governance (ESG) involvement and corporate debt maturity. Utilizing data from samples of publicly listed Chinese firms from 2011 to 2021, we observe a positive correlation between ESG performance and the long-term debt ratio of enterprises. Importantly, the marginal effect of ESG on debt maturity is obvious for enterprises exhibiting higher levels of ESG performance. Rigorous robustness checks, meticulous treatment of endogeneity, and the application of random forest prediction techniques substantiate the aforementioned conclusions. Heterogeneity analysis unveils that state-owned enterprises, enterprises with low investor attention, high-polluting enterprises, and those subject to stringent government environmental governance derive greater benefits from ESG enhancement. Mechanism analysis further elucidates that the causal relationship between ESG performance and debt maturity may be attributed to the ameliorating effects of ESG on information asymmetry, default risk, and innovation activities. Finally, our study discerns that the improved debt maturity resulting from the ESG effect signifies a noteworthy mitigation in firms' maturity mismatch. This investigation contributes novel empirical evidence to comprehending the implications of ESG and alleviating the debt maturity mismatch in enterprises characterized by an over-reliance on short-term debt.

How do environmental, social and governance initiatives and controversies explain the firm efficiency of Chinese energy companies?

PurposeThis study investigates how the initiatives and controversies related to environmental, social and governance (ESG) explain firm efficiency.Design/methodology/approachFirstly, this study applies data envelopment analysis with the epsilon-based measure to estimate the firm efficiency of 80 companies in the Chinese energy sector in 2022. This approach accounts for the diversity and relative importance of inputs and outputs from a multidimensional perspective. Secondly, this study regresses the variables of ESG initiatives and controversies on the estimated firm efficiency scores through a generalised additive model, which can capture nonlinear patterns.FindingsThis study finds that a) the samples have i) about 49% room for improvement in efficiently optimising their resources and business outcomes and ii) the highest scores in governance initiatives, followed by social initiative. b) 69% of them have controversy scores that are greater than the average value. c) A cluster analysis indicates that companies with higher social initiatives have higher firm efficiency than their counterparts. d) ESG initiatives and controversies are nonlinearly related to firm efficiency.Research limitations/implicationsThe findings have practical implications for policy makers and managers who prioritise ESG, particularly regarding (i) the need to examine firm performance from a multidimensional perspective, that is, to measure multiple inputs and outputs simultaneously, (ii) the nonlinearity of the nexus between ESG and efficiency in graphical forms, and (iii) the need to balance ESG initiatives and address ESG controversies.Originality/valueThis study integrates statistical approaches in examining and ensuring sustainable growth and efficiency within the Chinese energy sector and beyond.

Do Cross-Border Mergers and Acquisitions by Emerging Market Enterprises Enhance Long-Term Productivity? The Host Country Market Size Effect Moderated by Technological Absorption Efforts

The purpose of this study was to establish a spatial structural framework to explore how cross-border mergers and acquisitions (M&As) in emerging markets can enhance long-term productivity and select the appropriate host country market structures. Utilizing cross-border M&A data from Chinese companies from 2008 to 2016, we developed a moderated U-shaped mediation model. Employing Two-Stage Least Squares and the Generalized Method of Moments for endogeneity analysis, we offer robust empirical insights. Our findings illustrate that enterprise productivity progression from cross-border M&As is significantly influenced by a U-shaped mediation of the host country’s market size effect, which is further moderated by the technological distance between the home and host countries. A high technological distance intensifies the U-shaped mediation of market size effects on enterprise productivity, while low technological distances result in an inverted U-shaped curve, indicating that such markets may boost short-term productivity but limit long-term growth. Conversely, larger markets with greater technological distances better support sustained productivity increases, even requiring persistent technological absorption efforts. This study underscores the necessity of selecting appropriate host country market structures and effectively managing the acquisition timeline to positively impact both short- and long-term productivity. By conceptualizing firm-level technological absorption efforts as the technological gap between the home and host countries, this study highlights the crucial moderating role that the technological gap plays in influencing long-term productivity at the macro level, providing new insights into the economic geographic strategic decisions and spatial planning for emerging market enterprises in cross-border acquisitions.

What Is Necessary for Digital Transformation of Large Manufacturing Companies? A Necessary Condition Analysis

Digital transformation is of significant importance to the sustainable development of manufacturing companies and the construction of the digital economy. However, this major change is often hindered by numerous complex antecedents. What are the key factors in the digital transformation of manufacturing companies, and what is their relative importance? Accordingly, this paper identifies the key factors for digital transformation in large manufacturing companies from the “Ability–Motivation–Opportunity” (AMO) perspective. This study uses a necessary condition analysis (NCA) to conduct a necessity causality study on data collected from 67 listed Chinese manufacturing companies between 2016 and 2020. The results show that the digital transformation of large manufacturing companies is influenced by four necessary conditions: managerial myopia, industry concentration (very large effect), dynamic capabilities, and industrial digitalization (large effect). Managerial myopia and industry concentration have a negative necessary impact on digital transformation. The types of conditions and the level of bottlenecks required at different stages of digital transformation vary significantly. This study reveals the necessary causal relationships between organizational abilities, motivation, external opportunities, and digital transformation, providing empirical evidence to promote the digital transformation practices of manufacturing companies.

Meeting Stakeholder Needs: Who Should Managers Pay Close Attention To? Evidence from Listed Chinese Manufacturing Companies

Meeting the needs of stakeholders, as an element of CSR, requires a delicate balance of meeting these needs and ensuring profitability. Guided by the legitimacy theory and the stakeholder theory, this paper assesses the significance of meeting stakeholder needs and examines the types of stakeholders that managers pay close attention to. Using a fixed-effects model on 859 Chinese manufacturing firms and a regression analysis, the results show a positive link between corporate social responsibility (CSR) activities and organisational financial performance via both accounting and market measures in the Chinese manufacturing market. Furthermore, the primary objective of companies is to maximise shareholder returns while also meeting societal needs. The results also indicate that responsibility to shareholders and employees and growth potential have significant positive impacts on a company’s market value. This research demonstrates the need for companies to engage in CSR activities, as this can establish an elevated level of financial performance. Furthermore, attention needs to be paid to other stakeholders in corporate CSR activities to engage them and sustain their commitments towards an organisation’s productivity, growth, and sustainability. This is the first study to examine the power of influence from different stakeholders using legitimacy theory. Secondly, it is the first study to evaluate this influence using the Chinese manufacturing industry, which is, arguably, one of the largest in its field.

Role of Market Segmentation and the Impact on Alibaba Company Online Business

This study investigates the influence of market segmentation on Chinese internet companies, focusing on measurability, market demand, and entry barriers. It aims to fill a gap in the existing literature by analyzing how these factors affect segmentation methods, particularly in enterprises like Alibaba. Employing a quantitative approach, the research used surveys distributed to employees and senior managers from twenty randomly selected Chinese enterprises. The survey, developed with input from literature review and expert consultation, covered various aspects including measurement methodologies, market demand, entry barriers, and market segmentation. Data analysis involved statistical techniques such as Cronbach alpha, factor loading analysis, Pearson correlation analysis, and multiple linear regression analysis. Results indicated that market demand significantly influences segmentation strategies and decision-making, emphasizing the importance of understanding consumer preferences. Entry barriers were found to shape market segments and strategies, underscoring the need for firms to align their strategies with market demands to deliver tailored products. The study sheds light on the complexities of China's market dynamics and entry barriers, emphasizing the strategic importance of addressing these challenges and the impact of market demand on segmentation. These findings offer practical insights for navigating the Chinese market and contribute to academic understanding of the relationship between market segmentation, consumer behavior, and business strategy in Chinese online companies.

Abandoning good and following evil: a study on the dark side effect of self-sacrificial leadership—from the perspective of moral licensing

Purpose Based on the moral licensing theory, this study aims to reveal the mechanism of self-sacrificial leadership inducing abusive supervision from two paths of leader moral credit and leader moral credential. At the same time, it also discusses the moderating effect of leader behavioral integrity on the two paths. Design/methodology/approach In this study, 434 employees and their direct leaders from six Chinese companies were investigated in a paired survey at three time points, and the empirical data was analyzed using Mplus 7.4 software. Findings Self-sacrificial leadership has a positive effect on leader abusive supervision through the mediating role of leader moral credit and leader moral credential. In addition, this study also finds that leader behavioral integrity is the “gate” for self-sacrificial leadership to promote abusive supervision, and the leader behavioral integrity has a moderating effect on the process of self-sacrificial leadership influencing on leader moral credit and leader moral credential. Originality/value This study explores the evolution of self-sacrificial leadership from “good” to “bad” from the perspective of moral licensing and broadens the research on the mechanism and boundary conditions of self-sacrificial leadership. At the same time, it also provides important reference value for preventing the negative effects of self-sacrificial leadership in organizations.

The Benefits and Costs of Employee Stock Ownership Plans in China

ABSTRACTResearch IssueWe investigate the deliberations of controlling shareholders in assessing the trade‐offs between costs and benefits preceding the adoption of an Employee Stock Ownership Plan (ESOP). Furthermore, we explore the market responses to ESOP announcements and their associations with the private benefits of control. Moreover, our study delves into the modifications in private benefits of control, changes in employment dynamics, and subsequent operating performance subsequent to the implementation of ESOPs.Research InsightsWe conduct our research employing a comprehensive dataset encompassing the adoptions of ESOPs within publicly listed Chinese companies during the period spanning from 2014 to 2020. Our empirical findings reveal that firms characterized by diminished private benefits of control, as indicated by a reduced wedge between control rights and cash flow rights, as well as a lower frequency of related party transactions, are more inclined to consider the adoption of ESOPs, especially when the potential for productivity gains is substantial. These firms also elicit more positive market reactions upon the announcement of their ESOP initiatives. While ESOPs do lead to heightened productivity, the overall enhancement in operating performance remains relatively modest due to the significant cost burden imposed on shareholders by the large unearned employee compensation. Our results suggest that controlling shareholders who partake in fewer private benefits of control are more inclined to forego these entitlements in favor of embracing ESOPs as a strategic mechanism for realizing productivity gains. However, it is imperative to acknowledge that such gains may be considerably offset by substantial increases in employee compensation expenses. Despite the prevalence of short‐lived features in Chinese practice, we lack substantial evidence supporting their inhibitory effects on the increased monitoring and productivity following ESOP adoption.Academic ImplicationsThis study provides a comprehensive examination of recent ESOPs in the Chinese context, offering insights into the regulatory complexities within the largest emerging market. The research contributes to the existing literature by unveiling the intricate relationship between private benefits of control and the decision to adopt ESOPs, as well as their subsequent implications. Notably, our findings, particularly the observed neutral impact on operating performance, augment the ongoing discourse surrounding the efficacy of ESOPs in augmenting shareholder value.Policy ImplicationsThis research introduces ESOPs as an innovative mechanism for mitigating private benefits of control, particularly in the context of emerging markets where controlling shareholders tend to accrue significant private benefits of control. The incorporation of performance‐related criteria within the ESOP framework serves as a means to effectively manage the additional compensation associated with these plans, thereby enhancing their overall efficacy.

The Green Chain: A Carbon Neutral Path from Climate Risk to Environmental, Social and Governance Performance

Global climate change is increasingly recognized as a critical factor influencing economic performance, thereby making the Environmental, Social, and Governance (ESG) performance of businesses a vital indicator of sustainability.  In the context of China's "dual-carbon" objective, this study examines the relationship between climate transition risk and the ESG performance of listed Chinese companies. Utilizing text analysis techniques, this research quantifies the Management Discussion and Analysis (MD&A) sections of annual reports from 2014 to 2019 to extract information on climate transition risks.  A multiple regression analysis is then applied to assess the impact of these risks on companies' ESG performance.  The findings indicate that climate transition risk has a measurable effect on the ESG performance of enterprises, suggesting its role as an incentive for achieving carbon neutrality.  Specifically, the analysis shows that climate transition risk is associated with improvements in certain aspects of ESG performance, including environmental stewardship, social responsibility, and governance quality.  Additionally, the study reveals that non-state-owned enterprises, those with diversified business strategies, decentralized management structures, and audits conducted by Big 4 firms, tend to exhibit better ESG performance in the face of climate transition risks.  These results demonstrate the nuanced impact of climate transition risk on ESG performance, particularly within the framework of China's carbon reduction goals, and highlight the importance of firm characteristics in moderating this relationship.  This evidence provides a foundation for stakeholders, including enterprises, policymakers, and investors, to consider climate transition risks in their efforts to enhance ESG performance.

ANALYZING THE IMPACT OF THE INNOVATION PERFORMANCE ON HIGH-TECH ENTERPRISES: A CASE STUDY OF THE CHINESE SEMICONDUCTOR INDUSTRY

This study, which focuses on Chinese semiconductor companies, explores the relationship between government support (GS), proactive market orientation (PMO), science and technology (S&T) employees input (STEI), S&T employees management (STEM), and innovation performance (IP). In addition, existing studies examine the moderating effect of S&T employees management (STEM) on the relationship between S&T employees input (STEI) and innovation performance (IP). We obtained 324 valid samples through an email survey and utilized structural equation modeling (SEM) path analysis for hypothesis testing. The results of the analysis indicated that government support (GS), proactive market orientation (PMO), S&T employees input (STEI), and S&T employees management (STEM) exerted a positively significant effect on innovation performance. However, the moderating effect of S&T employees management on S&T employees input and innovation performance was not validated. Based on these findings, it can be concluded that Chinese semiconductor companies should utilize preferential policies of government offer. By adopting a proactive market orientation, companies can enhance communication with customers and can gain competitive advantage. In addition, enterprises should increase the number of S&T employees, and salaries and training costs. Finally, enterprises should implement the human resources strategy which can retain outstanding S&T employees.

How do executive excess compensation affect enterprise technological innovation: Evidence from a panel threshold model of chinese biopharmaceutical companies

This study examines the levels of executive excess compensation (EEC) that stimulate the quality and efficiency of enterprise technology innovation (ETI). Using a behavioral agency perspective, we investigate how companies achieve superior ETI by providing sufficient incentives to motivate executives to perform to the best of their abilities. We use a panel threshold model based on a sample of Chinese-listed biopharmaceutical companies and find that: (1) providing an EEC between 0.0592 and 0.1907 significantly affects the promotion of ETI quality; (2) regarding ETI efficiency, executives generally do not receive the compensation that they deserve; and (3) the existing EEC has a weak negative impact on ETI efficiency, gradually disappearing as compensation increases. Heterogeneity analysis reveals that restricting EEC to the eastern area and strengthening the supervision of EEC in state-owned enterprises are effective measures for stimulating ETI. We advance the literature by providing guidance on compensation plans to companies in different regions.

The Construction of Two-tier Equity Structure of Joint Stock Companies in China from the Perspective of Green Finance

In this modern era business and changing landscapes, the construction of a two-tier equity structure within Chinese joint stock companies has proved to be a very innovative and augmented strategy. This paper scrutinizes the unorthodox integration of financial architecture and ecological sustainability by evaluation of this structure through the lens of green finance. The interlacing of the principles of environmental responsibility with mainframes of corporate governance enlightens the unique dynamics and outcomes of the two-tier equity model. This study comprehensively analyses and elucidates how this mainframe facilitates the shareholder interests as they align with long-term ecological objectives. This in turn cultivates a promising environment for sustainable development. As we draw onto the theoretical calculations and perspective supplemented with empirical evidences, this research study gives birth to amenable perspectives that the green finance has the potential to transform the Chinese context by shaping the future trajectory of corporate structures. Using a dataset consisting of Chinese publicly traded companies from 2001-2017, this study investigates how a lack of funding has led to a scarcity of environmentally friendly technologies in China. We also investigate how green finance laws help businesses overcome financial hurdles on the road to eco-friendly innovation. It has been observed that a company's capacity for green innovation decreases as its financial constraints grow, and that privately held businesses are at greater danger of this happening than government-owned ones.

How AI Impacts Companies’ Dynamic Capabilities

Overview: Artificial intelligence (AI) is rapidly transforming the business landscape, but limited research is available regarding how companies are responding and adapting to AI. Using dynamic capability theory, we hypothesized that companies would develop new dynamic capabilities to seize AI opportunities. Our analysis of qualitative data from six major Chinese construction companies revealed that these companies’ existing dynamic capabilities are key to adopting and adapting AI technology for business model innovation. We developed a dynamic capability model that describes how companies use their existing dynamic capabilities for sensing AI, seizing AI, and transforming to leverage AI for business model innovation. Our research bridges the gap in understanding the relationship between AI adoption, existing dynamic capabilities, and AI adaptation. Integrating AI is not as daunting as it may seem. Companies, practitioners, and other stakeholders can transition into AI, starting with their existing capabilities.

Group ethical voice and ethical behaviors: The mediating role of group moral transitive motivation and moderating role of group faultlines

AbstractEthical voice involves individuals’ perceptions of what is right and what is wrong. Although prior research has investigated the impacts of individual‐level prohibitive ethical expression on personal outcomes, there has been limited examination of ethical voice at the group level. Our study examines how and when different types of ethical voice influence group outcomes. Using data gathered from 363 participants from 61 groups in two Chinese companies, the results reveal that promotive and prohibitive ethical voices at the group level exert opposing influences on group moral transitive motivation. Group moral transitive motivation serves as a mediating factor in the association between the two types of ethical voice and group ethical behaviors (GEB). In addition, group faultlines moderate the impact of promotive ethical voice and prohibitive ethical voice on group moral transitive motivation and on GEB (via group moral transitive motivation). Our study extends the focus of research from a single type of ethical voice at the individual level to multiple types at the group level. The findings contribute to the body of knowledge regarding group ethical voice (GEV) by articulating its mediating mechanism as well as its boundary condition. This research provides valuable insights for researchers and managers by offering a comprehensive understanding about the role of different types of GEV and how to reform GEV.

Analysis of the Motives and Risk Countermeasures for Cross-Border Mergers and Acquisitions of Agrochemical Companies Based on OLI Model

Nowadays, agrochemical companies are facing challenges such as fluctuations in supply and demand, intense market competition, and declining product prices, which have led to varying degrees of performance decline. At the same time, high-quality undervalued companies in the international market are attracting more and more Chinese companies to step into the global market in search of new growth opportunities through cross-border mergers and acquisitions. This paper, based on the OLI model, analyzes the motives of mergers and acquisitions from three aspects: ownership advantages, location advantages, and internalization advantages. It discusses the potential risks in the merger and acquisition process and preventive measures, and proposes relevant conclusions based on this.

Emerging market multinationals’ embeddedness in Global South countries: an empirical study of Chinese MNEs in Peru

Purpose This paper aims to investigate how emerging market multinational enterprises (EMNEs) are integrating and expanding into other emerging market host countries, focusing on Chinese mining companies in Peru. Design/methodology/approach Adopting a qualitative approach, an in-depth analysis of two Chinese state-owned enterprises’ strategies was conducted, building on stakeholder theory and the business ecosystem perspective. Findings This study reveals a reliance on high-level political lobbying rather than localized engagement strategies. However, findings point to increasing grassroots resistance among local stakeholders, undermining EMNEs’ bargaining power. Originality/value This paper argues for a paradigm shift toward inclusive, cooperative “translocal governance” approaches as empowered communities gain voice. Key contributions include advancing theoretical understanding of changing stakeholder relationships and power configurations in emerging countries, underscoring the rising significance of microlevel sociocultural embeddedness for MNE success and highlighting practical imperatives for EMNEs to embark on rapid localization strategies in Latin America. By elucidating multilayered integration realities in Peru, this interdisciplinary study yields contextualized insights and enriches perspective on the conditions and pathways for EMNEs to build sustainability in Global South emerging market environments.

A novel semisupervised learning method with textual information for financial distress prediction

AbstractFinancial distress prediction (FDP) has attracted high attention from many financial institutions. Utilizing supervised learning‐based methods in FDP, however, is time consuming and labor intensive. Therefore, in this paper, we exploit active‐pSVM method, which combines potential data distribution information and existing expert experience to solve FDP problem. Moreover, with the increasingly popular textual information, we construct several features on our protocol that are based on the Management Discussion and Analysis (MD&A) text information. Using datasets that are collected in different time windows from the listed Chinese companies, we conducted an extensive experiment and were able to confirm a better efficiency of our active‐pSVM, when compared with some common supervised learning‐based methods. Our study also covers the application of MD&A text information on weakly supervised learning model in FDP.