Chinese Companies Research Articles

Pathways to Achieving Sustainable Development and Green Governance in Chinese Companies

ABSTRACTUnder the objectives of “carbon peaking and carbon neutrality”, green and low‐carbon development has become a guiding principle for social and economic process. The new Company Law explicitly stipulates the company's obligation to protect the ecological environment, which is also the legislative embodiment of the green principle enshrined in the Civil Code. The construction of an ecological civilization with harmonious development of man and nature requires that the corporate operations consider environmental protection as a crucial factor, which is specifically manifested in green governance by companies. In the context of sustainable development, the stakeholder theory deepens the duty of diligence for directors. The pathway to achieving green governance in Chinese companies involves, on the premise of adhering to “director‐centric governance”, establishing green governance provisions in company charters through corporate autonomy, strengthening the directors' duty of environmental care, integrating this duty into fiduciary obligations, granting directors discretion in implementing green governance within business decisions, and protecting such decisions under the business judgment rule. In pursuing ESG performance, directors need to balance shareholders' interests and environmental public interests in corporate governance, resolve dilemmas in environmental decision‐making, enhance obligation for ESG information disclosure, and promote the incorporation of social and environmental objectives into business decisions to realize corporate green governance.

The influence of corporate social responsibility on business model innovation: mediating roles of organisational legitimacy and entrepreneurial bricolage

ABSTRACT Management scholars have argued and demonstrated that business model innovation is a significant factor for firms to establish a competitive advantage, yet we know relatively little about how corporate social responsibility (CSR) will influence firms’ business model innovation. This study examines how CSR affects firms’ business model innovation. We posit that there is a positive relationship between CSR and business model innovation. Moreover, we argue that organisational legitimacy and entrepreneurial bricolage serve as the mediators between CSR and business model innovation. Based on survey data of 171 Chinese companies, we find strong evidence to support our arguments. This study enriches the discipline’s knowledge on CSR, organisational legitimacy, entrepreneurial bricolage, and their implications for business model innovation, while also providing great significance to firms and policymakers.

DOES DIGITAL TRANSFORMATION MATTER TO EFFICIENCY IMPROVEMENT OF RETAIL ENTERPRISES IN CHINA?

This study aims to explore how digital transformation enhances efficiency in Chinese retail enterprises. Using unbalanced panel data from 78 listed Chinese retail companies from 2010 to 2023, this study conducts an empirical analysis of the impact of digital transformation on the efficiency of retail enterprises. The study employs various total factor productivity (TFP) measurement methods to assess efficiency and uses textual analysis to construct a digital transformation index tailored to the retail industry. The primary finding shows that digital transformation significantly improves the efficiency of retail enterprises. This finding is robust, as confirmed through various robustness tests. In addition, digital transformation benefits enterprises of all scales, but large-scale enterprises experience a significantly greater efficiency improvement than small-scale ones. In regions with low service industry openness, the effect of digital transformation on retail enterprise efficiency is notably higher than in regions with high openness.

Global data empires: Analysing artificial intelligence data annotation in China and the USA

As the two leading countries in the development of artificial intelligence (AI) systems, China and the United States largely rely on separate AI infrastructure and data annotation ecosystems. Studies have focussed almost exclusively on data annotation associated with American and European companies, limiting our understanding of how this contrasts with the Chinese development of AI. This article provides a comparative analysis of the political economy of the Chinese and American/European AI data annotation ecosystems, focusing on the role of the state and the practice of outsourcing to data annotation institutions. It finds that while the US state plays a protectionist role concerning AI infrastructure such as semiconductors and data centres, it adopts a laissez-faire approach to data annotation. The Chinese state, however, understands it has a comparative advantage in data and invests heavily in its own data ecosystem while maintaining stringent regulations for Chinese tech companies. Secondly, many US companies outsource data annotation work to business process outsourcing centres and digital platforms, whereas Chinese companies maintain these activities in-house or, through a process of ‘inland-sourcing’, send this work to ‘third-tier’ cities in Chinese provinces to data labelling bases, often jointly managed by local government and private companies.

Validation of facial attributions in leadership: Trustworthiness and age in Chinese mid-level management.

The attributions made to faces are well described by two dimensions of apparent trustworthiness (valence or warmth) and apparent competence (dominance and power) (Todorov A, Mende-Siedlecki P, Dotsch R. Curr Opin Neurobiol, 2013, 23, 373-80). This model has been extended to include a third dimension of apparent age and attractiveness (Sutherland CAM, Oldmeadow JA, Santos IM, Towler J, Michael Burt D, Young AW. Cognition, 2013, 127, 105-18). Previous research has tested the association between appearance and leadership attainment for high-level leaders such as elite politicians and chief executive officers of top performing organisations in the US and Western Europe. Here we focus on a Chinese organisational context and explore how facial attributions are associated with appointment at mid-level managerial positions. Participants rated leadership, competence, trustworthiness, attractiveness and age of faces of male employees of a Chinese Real Estate company. Our findings reveal that apparent trustworthiness and age are more critical predictors of leadership attainment than competence or attractiveness in the context of mid-level management in China. The study supports the three-dimensional attribution framework and reaffirms the importance of facial cues in leadership selection across diverse cultural settings.

Китайские инвестиции в российскую экономику в условиях санкций

This article provides a chronological and structural analysis of Chinese direct investments in Russia from 1992 to 2024, with a particular focus on changes following 2022. Based on official statistics and case studies, the research identifies four distinct stages of development: from initial cooperation to the dominance of the energy sector, and subsequently to a phase of cautious engagement. The study examines key factors influencing in-vestor behavior, including increased political and geopolitical uncertainty, economic barriers such as the shift to national currency settlements, and institutional incentives arising from the Belt and Road Initiative. The article concludes that Chinese companies are increasingly adopting a pragmatic and selective investment model aimed at risk mitigation and strategic adaptation to the evolving conditions of Sino-Russian investment cooper-ation.

ESG’s path to value: the role of total factor productivity and R&D innovation investment

ABSTRACT This study examines the effect of environmental, social, and governance (ESG) performance on company value, focusing on the mediating role of total factor productivity (TFP) and the moderating role of R&D innovation investment. Using data from Chinese A-share companies (2012–2022) and a moderated mediation model, the study found that ESG performance enhances company value both directly and indirectly through TFP. R&D innovation investment strengthens both effects, highlighting the synergy between ESG and innovation strategies in maximizing value creation. This effect is most pronounced in the high-tech and manufacturing sectors, underscoring the importance of integrating ESG initiatives with innovation to foster sustainable growth.

A configurational exploration of how organization ownership influences their substantive innovation: evidence from Chinese high-tech companies

ABSTRACT The substantial innovation and performance disparity between state-owned and private enterprises have garnered significant attention from researchers and the general public. This study aims to integrate these topics and explore the intricate interdependencies between government subsidies, innovation outputs, and their differential impacts on state-owned and private Chinese high-tech companies. Drawing upon configuration theory and prior innovation research, we adopt a configurational approach to identify the various combinations of influences, driven by company characteristics, organisational conditions, and the macro environment, that lead to high levels of substantial innovation. Utilising fuzzy set qualitative comparative analysis with a matched pair sample of state-owned and private enterprises, we discover multiple configurations of influence conditions that contribute to high levels of substantial innovation in both types of enterprises. Through inductive analysis, we uncover four distinct influence mechanisms: government-led, information-driven, subsidy-driven, and property rights-driven. These mechanisms shed light on how the conditions for influence in state-owned and private firms synergize or strengthen each other in different ways. Furthermore, we discuss the theoretical and research implications concerning equitable opportunities and high levels of innovation for state-owned and private firms.

Institutional Positioning of the Legal Representative of a Company: A Perspective on the Revision of the Chinese Company Law

The legal representative system of Chinese companies originated from the reform of state-owned enterprises in the planned economy, and it has inherent flaws at both the practical and theoretical levels. In practice, the system has a strong administrative color, centralizes administrative management and company operation, ignores the balance of rights of the internal members of the company, and may lead to arbitrariness and abuse of the legal representative's authority. Theoretically, the traditional civil law perspective positions the legal representative as the external expression organ of the company, but ignores its functionality as the node of the company's business operation at the level of organizational law. The legal representative should be regarded as an intentional agent based on the support of the company's registration system, and its external effect should be gradually absorbed by the functional agent. In terms of the internal relationship of the company, the legal representative, as an important node of the company's organization and operation, should be changed in full respect of the company's internal governance order and the company's interests. Comparing with the relevant systems in Germany and Japan, the company laws of these countries do not consider that there is an essential difference between the right of representation and the right of agency, and the right of representation usually originates from the collective decision-making and authorization of the board of directors. The legal representative system should return to its functional position in corporate governance, i.e. a kind of special agent in the field of company, whose speciality lies in the credibility generated by the company registration, and at the same time, the exercise of its power and authority should safeguard the interests of the company's internal governance.

Transformation of the Belt and Road Initiative Under the New Guidelines for China’s Internal Development

The Belt and Road Initiative is one of the most consequential international projects of the People’s Republic of China; it is intended to ensure its economic development and align with its foreign policy interests. Over the last seven or eight years, the Chinese leadership has adjusted the country’s socio-economic development guidelines in response to new internal and external challenges, and these modified guidelines have changed the environment in which the Belt and Road is being implemented. The article analyzes official party and government materials together with publications by Chinese researchers in order to assess how the implementation of the Belt and Road has changed as the Chinese economy makes the transition from rapid to “high-quality” growth, is exposed to increased internal and external risks, and follows its “dual circulation” strategy and “new quality productive forces” model. What follows from examining those sources is that this new developmental stage will emphasize applying transparent standards for China’s trade and economic cooperation with other countries and for improving coordination between Chinese enterprises taking part in the initiative. The article notes the development of a more cautious approach to investing in large-scale infrastructure projects and the urging by the People’s Republic of China leadership that Chinese companies keep track of the costs of their economic activity abroad. The importance of the Belt and Road for implementation of the dual circulation strategy becomes clear in light of China’s lagging transition to an economic model based on domestic consumption. The Belt and Road’s role in forming chains of production and technology that are linked to China as well as in testing and building upon advancements in Chinese science is also discussed. China’s economic partners may in the medium term face a more cautious approach from Chinese enterprises toward expanding cooperation within the Belt and Road Initiative, a factor which Russia should also take into account when building trade and economic cooperation with the People’s Republic of China.

Exploring the Relationships Among AI, Agri-food Supply Chain Management Practices, Resilience, and Performance

This study investigates the impact of artificial intelligence (AI) on agri-food supply chain resilience (ASCR) and performance in China's agricultural sector. Using data collected from 194 senior executives of Chinese agri-food companies during August-September 2024, the research examines how organizational factors-top management support (TMS), supplier integration (SI), internal management (IM), customer integration (CI), and supply chain collaboration (SCC)-influence ASCR, and how AI moderates these relationships. Employing partial least squares structural equation modeling (PLS-SEM), the findings reveal that TMS, IM, and CI significantly enhance ASCR, with AI demonstrating a significant moderating effect specifically on the IM-ASCR relationship. The study contributes to understanding how digital transformation through AI can enhance supply chain resilience and performance in the agri-food sector. These findings provide practical insights for agri-food executives in developing effective strategies to improve supply chain resilience and performance through AI integration, particularly in the context of emerging markets.

Changes in Clinical Trials of Dermatological Drugs in Mainland China Between 2016 and 2022: A Narrative Review.

Policy reforms in drug regulation and reimbursement have encouraged drug research and development in China. However, there is a lack of insights on industry trends for dermatology research. We aim to describe trends and features of clinical trials for dermatology drugs in China, understand recent achievements, and forecast development trends. Clinical trial records posted on the Registration and Information Disclosure Platform of Center for Drug Evaluation (CDE) were screened. All trials for dermatological drugs, posted on platform between 2016 and 2022 were included. A total of 1172 trial records were identified, among which studies for skin infection, immune-mediated and inflammatory skin disease (IMIDs) and skin malignancy accounted for 48.9% (n = 573), 42.0% (n = 492) and 9.1% (n = 107), respectively. Most trials focused on generic drugs (n = 728, 62.1%). Multi-regional clinical trials (MRCTs) accounted for less than 6% of all trials. The number of trials on dermatology drugs increased sharply from 2016 to 2018 followed by a decline, which is mainly driven by the drop in bioequivalence evaluation (BE) studies for generic drugs indicated for skin infection. A growing trend in the number of trials for innovative drugs was observed. After removing duplicated drugs based on generic name, a total of 607 tested dermatology drugs were identified among which 51.9% were indicated for IMIDs. The number of innovative drugs exceeded generic drugs from 2020 to 2022. The geographic distribution of lead sites (the site where the principal investigator being employed) was uneven, with most of them located in east China. Of 1,068 trials sponsored by Chinese firms, most were BE (n = 692, 64.8%) and generic drugs (n = 722, 67.6%), while among 104 trials sponsored by multinational corporations (MNC), a majority were phase III (n = 53, 51.0%) trials and focused on innovative drugs (n = 94, 90.4%). Findings demonstrated positive consequences of reforms in the healthcare industry in China. Nevertheless, long-term policies are expected to enhance the innovative capabilities of Chinese pharmaceutical companies while ensuring accessible and affordable drug supply with generics, encourage early participation in global drug R&D activities to shorten "drug lag", and promote investment in innovative drugs.

Associations Between Health Literacy and Chronic Disease Prevalence Among Employees in Chinese Petroleum Companies: A Cross-Sectional Study.

Employees in the petrochemical industry are exposed to numerous occupational hazards, contributing to a higher prevalence of chronic diseases. Health literacy, which reflects an individual's ability to access, understand, and use health information, is a critical factor in managing chronic diseases. However, its specific role in this workforce is not well understood. This study investigates the associations between health literacy and the prevalence and number of chronic diseases among employees in a Chinese petrochemical company. In March 2022, a cross-sectional survey collected 39,491 valid responses from employees of a large petrochemical company in Shandong Province, China. Health literacy was measured using the National Health Literacy Monitoring Questionnaire, while chronic disease prevalence and number were self-reported. Logistic and linear regression were used to examine associations between health literacy and chronic disease prevalence and count, respectively. Among respondents, 72.1% reported at least one chronic disease, and 53.9% were classified as having adequate health literacy. The domain of Health-Related Skills had the lowest qualification rate (46.4%), and the dimension of Chronic Disease Prevention and Control was the lowest-scoring dimension (33.0%). Overall health literacy was not significantly associated with chronic disease prevalence but was negatively associated with the number of chronic diseases (B = -0.05, 95% CI: -0.08 - -0.02, p < 0.001). Notably, higher literacy in Chronic Disease Prevention and Control was significantly associated with both reduced prevalence (OR = 0.95, 95% CI: 0.90-1.00, p = 0.034) and fewer chronic diseases (B = -0.01, 95% CI: -0.02-0.00, p = 0.004). While overall health literacy was not significantly associated with chronic disease prevalence, it was negatively associated with the number of chronic diseases. Moreover, health literacy in Chronic Disease Prevention and Control showed significant associations with both lower prevalence and fewer chronic diseases.

Does the ESG disclosure quality affect financial performance: Empirical evidence from Chinese energy-listed companies

Does the ESG disclosure quality affect financial performance: Empirical evidence from Chinese energy-listed companies

A Study on the Logo Design of Chinese Medical Companies

A Study on the Logo Design of Chinese Medical Companies

Psychological Distress Among Chinese Manufacturing Employees: Prevalence and a Symptom Network Analysis.

The psychological distress among manufacturing workers is an increasingly important issue and has attracted extensive attention. However, the mental health of this subgroup of the Chinese population is underexplored. This study aimed to evaluate the prevalence of psychological distress in Chinese manufacturing employees and identify central symptoms, important bridge symptoms, and associations between symptoms using network analysis. The participants were 4934 employees recruited from a Chinese manufacturing company. The Maslach Burnout Inventory-General Survey (MBI-GS), the Self-Rating Anxiety Scale (SAS), the Self-Rating Depression Scale (SDS), and the Symptom Checklist 90 (SCL-90) were used to assess job burnout, anxiety, depression, compulsive symptom, somatization, psychoticism, paranoid, phobic, hostility, and interpersonal sensitivity, respectively. In total, 29.77%, 21.14%, and 26.53% of all participants experienced burnout, anxiety, and depression, respectively. Compared to normative data of the Chinese population, the seven symptoms of the SCL-90 among participants were significantly higher. The network analysis revealed that interpersonal sensitivity had the greatest strength and somatization had the greatest betweenness and closeness. Anxiety had the highest bridge expected influence. These results demonstrate that the mental health of Chinese manufacturing employees is a cause for concern. Interpersonal sensitivity and somatization emerged as the core symptoms, and anxiety was an important bridge symptom. Interventions aimed at these conditions may promote and enhance the overall mental health of Chinese manufacturing employees.

Green Transition and Climate Adaptation: Empirical Evidence of Corporate Resilience in the Low-Carbon Economy

&lt;p&gt;As global climate change and management challenges grow, the low-carbon transition has become crucial for the sustainable development of enterprises. This study investigates the economic impact of corporate low-carbon behavior on operational performance using panel data from 2008 to 2022 for publicly listed Chinese companies. We find that the environmental cost-to-revenue ratio (ECRR) is negatively correlated with performance, indicating that higher environmental expenses short-term crowd out productive capital. In contrast, the green investment-to-assets ratio (GIA) exhibits an "inverted U-shaped" relationship with performance, with moderate investment enhancing performance through innovation, while excessive investment leads to resource misallocation and cost increases. Heterogeneity analysis shows that state-owned enterprises are more resilient to environmental costs, while non-state-owned enterprises (NSOEs) face greater cost pressures and performance risks. Additionally, green investment has a more significant positive impact on manufacturing firms due to their higher resource consumption and carbon intensity. This study also explores the transmission mechanisms through which green investment and environmental expenses affect performance via green technology R&amp;amp;D and green finance, respectively. These findings provide valuable insights for enterprises to balance environmental protection with economic benefits in their low-carbon transition.&lt;/p&gt;

The Impact of Employee Welfare Programs on Organizational Performance -A period of economic downturn from the perspective of Sustainable Development Goals

In early 2024, a several-page investigation report on disputes between customers and employees of the company "DONGLAI QUALITY" went viral on the Internet. Under the current trend of Chinese companies squeezing employees and making unreasonable demands, Donglai's attitude towards employees and customers surprised the public. It seems that it has become the norm for Chinese companies that employees should sacrifice themselves in order to get their expected salary. The salary and benefits systems of most Chinese companies still cannot fully satisfy the majority of workers. We seem to have reached a consensus that "only by overloading employees can we improve the operational efficiency of the company." As a result, a less than saturated salary package has become the norm. But is this really the case? The popularity of the Donglai investigation was followed by the revelation of employee satisfaction surveys and some details of this company. People are surprised to find that employees working here are generally happy and satisfied with their wages. The relationship between corporate management and employees is surprisingly harmonious. Through comparative analysis of Chinese and foreign companies such as Google, Tesla, and BYD. We can come up with a basic measure relating to the impact of employee welfare programs on organizational performance. On this basis, this study will further explore the balance point between employee welfare programs and organizational performance. The experimental methods of this study include comparative studies, such as Tesla and BYD, Donglai and Sam. Variables and data lookups were obtained from CSMAR and Google Scholar data lookups. The designed questionnaire information is strictly confidential from the questionnaire survey personnel, but necessary data information analysis will be given. Key words; employee welfare programs, organizational performance, economic downturns, Tesla and BYD, Donglai and Sam, PEMRA, financial comparation, questionnaire, Sustainable Development Goals

Network embedding for bipartite networks with applications in interlocking directorates in Chinese companies

Network embedding for bipartite networks with applications in interlocking directorates in Chinese companies

Fragmenting China: a relational approach to analyzing Chinese private companies in Africa

Many International Relations (IR) debates seeking to situate China either as ‘revisionist’ or a ‘status-quo’ power miss an important point. China’s global behavior – wherever it may fall on the spectrum of cooperation to resistance – occurs within a complex network of relations involving host government industrial policies, multilateral institutions, and a mix of state-owned and private enterprises. To redress this shortcoming, this article makes three interventions. First, it shows how Global South states actively shape and contribute to the making of Chinese enterprises into the big global players they have become. Second, it demonstrates the limitations of the causal approach to influence when it comes to the agency of Global South actors and China’s engagements in the global economy and argues in favor of a relational approach to influence. Third, it stresses the importance of looking at private companies provides a necessary corrective government- and institution-focused analyses. By studying the case of Chinese private company Sunmaker and its entry in Uganda’s oil and gas industry, we offer a necessary in-depth analytical approach to understanding how China’s views on global economic governance are shaped by Global South actors.