Chinese Manufacturing Industry Research Articles

Do takeover premiums hurt post-acquisition performance? – Marketing capabilities matter!

PurposeThe primary aim of this study is to resolve a longstanding debate concerning the impact of takeover premiums on post-acquisition performance. Specifically, we aim to examine how acquirers' marketing capabilities and payment methods moderate the relationship between takeover premiums and post-acquisition performance.Design/methodology/approachThis study employs linear regression to examine the relationship between acquirers' marketing capabilities, payment methods, takeover premiums and post-acquisition performance in the Chinese manufacturing industry. Data for the analysis were collected from both mergers and acquisition (M&A) announcements and the China Stock Market & Accounting Research Database (CSMAR), covering 1,169 acquisitions from 2012 to 2021.FindingsThe results indicate that acquirers' marketing capabilities moderate the impact of takeover premiums on post-acquisition performance. When acquirers possess strong marketing capabilities, takeover premiums increase post-acquisition performance. Conversely, when acquirers lack strong marketing capabilities, takeover premiums are not significantly related to post-acquisition performance. Additionally, it is noteworthy that takeover premiums show a positive correlation with post-acquisition performance, irrespective of the payment methods employed by acquirers for target firms.Originality/valueGiven that takeover premiums are essential for acquiring resources from target firms, it is crucial to maximize the value of these acquired resources. Our findings suggest that acquirers with weaker marketing capabilities before the deal should consider a more conservative approach to pricing target firms.

The Impact of Anti-Dumping Measures on the Export of Intermediate Goods in Chinese Manufacturing Industry - Based on the perspective of ownership of importing firms

Abstract This paper links the OECD-ICIOMNE database with the OECD analytical AMNE database. Based on the ownership of importing countries' enterprises, it dissects the scale of intermediate product exports in the Chinese manufacturing industry. Furthermore, it combines this analysis with the Temporary Trade Barriers Database to explore the heterogeneous effects of anti-dumping measures on the scale of intermediate product exports. The study finds that: (1) The scale of intermediate product exports from the Chinese manufacturing industry to domestically owned enterprises in importing countries is higher than that to the third-country multinational corporations within the importing country, with the lowest scale observed for exports to Chinese multinational corporations located within importing countries' borders. (2) Under the impact of anti-dumping measures, the negative effect on the scale of intermediate product exports to domestically owned enterprises in importing country is greater than that on exports to the third-country multinational corporations within the importing country. However, exports to Chinese multinational corporations within importing countries' borders don’t experience a significant impact. (3) The endowment of factors in Chinese manufacturing industries and the regions to which importing countries belong will lead to heterogeneous impacts on the relationship between anti-dumping measures and the scale of intermediate product exports. Keywords: Scale of Intermediate Product Export, Importing Country, Domestically Owned Enterprise, Chinese Multinational Corporation, Third-country Multinational Corporation.

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

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

Modern slavery supply chain capabilities: the effects of Blockchain technology and employees’ digital dexterity

PurposeThis study aims to address a significant and previously unanswered question for both academics and practitioners: how do organizations learn to apply Blockchain technology to support modern slavery (MS) supply chain capabilities? Specifically, this study examines whether employees’ digital dexterity (EDD) and strategic investment in Blockchain technology (SIBT) can support three MS supply chain capabilities: internal MS capability (IMSC), MS capability with customers (MSCC) and MS capability with suppliers (MSCS).Design/methodology/approachThis study uses resource accumulation and deployment perspective to explain how EDD promotes SIBT, which then drives the development of MS supply chain capabilities. Survey data collected from the Chinese manufacturing industry were used to test the proposed theoretical framework and hypotheses through structural equation modelling and moderated regression analysis.FindingsEDD has a positive relationship with SIBT. SIBT has a positive relationship with IMSC. IMSC fully mediates the relationships between SIBT and MS capability with customers and suppliers.Originality/valueBy conceptualizing MS supply chain capabilities as a multi-dimensional construct for the first time, this study discovers the significant mediating roles of IMSC. The empirical findings also clarify digital dexterity of employees that drives investment in Blockchain technology to foster MS supply chain capabilities as resource accumulation and deployment processes.

Influence of Underperformance Duration on Firms’ Responses to Performance Feedback: Evidence from the Chinese Manufacturing Industry

AbstractThe management literature has extensively explored how firms respond to underperformance through innovation, with prior studies based on the behavioral theory of the firm and the threat-rigidity thesis producing inconsistent results. The shifting focus of attention model provides crucial insights to reconcile this contradiction. We extend this model by highlighting the temporal dimension of performance shortfall. Specifically, we argue that underperformance duration flattens the inverted U-shaped relationship by attenuating both the problemistic search and threat rigidity mechanisms. The empirical results from a sample of Chinese listed manufacturing firms between 2010 and 2019 support our predicted inverted U-relationship between underperformance intensity and research and development (R&D) investment, and the moderating effect of underperformance duration. Interestingly, the inverted U-shape flips to a U-shape if underperformance extends into the long term. We contribute to the literature on performance feedback by considering both underperformance intensity and duration, which conceptualizes their interaction and reconciles extant contradictory findings from a new perspective. We also add new insights into innovation research by theorizing and examining the overlooked boundary condition for the curvilinear relationship between performance shortfalls and R&D investments, which calls for future research to explore the dynamics of the relationship and account for temporal effects.

Fear of Being Replaced by Robots and Turnover Intention: Evidence from the Chinese Manufacturing Industry

Fear of Being Replaced by Robots and Turnover Intention: Evidence from the Chinese Manufacturing Industry

Determinants of lean manufacturing adoption by Chinese manufacturers

Purpose This study aims to analyze the determinants influencing Chinese manufacturing companies in implementing lean manufacturing (LM). Design/methodology/approach The determinants to be explored in this study consist of technological, organizational and environmental (TOE) dimensions. A questionnaire survey was conducted on Chinese manufacturing companies, and 208 samples were analyzed. Findings The findings show that the relative advantage of LM and organizational support have significantly positive effects on Chinese manufacturing firms’ adoption of LM. The complexity of LM, quality of human resources, organizational readiness, customer pressure, international situation, governmental support and environmental uncertainty do not have significant effects. Originality/value This paper contributes to the literature by using the TOE model to explore the factors influencing LM adoption in the Chinese manufacturing industry.

Research on the Brand Mechanism of the Chinese Manufacturing Industry Upgrading Under the Constraints of Energy and Environment

Research on the Brand Mechanism of the Chinese Manufacturing Industry Upgrading Under the Constraints of Energy and Environment

The Role of Digital Transformation, Corporate Culture, and Leadership in Enhancing Corporate Sustainable Performance in the Manufacturing Sector of China

The Chinese manufacturing industry faces many challenges to sustainable development. This study examines how transformational leadership, corporate culture, and digital transformation affect Chinese manufacturing organizations’ sustainability. It will also examine the moderating role of environmental dynamism and the mediating effect of innovation capabilities. A self-administered survey was distributed to 350 manufacturing companies’ owners, managers, leaders, and employees, etc. Participants were selected via convenient sampling. This data collection effort validated findings and empirically tested theories. Smart PLS structural equation modelling (PLS-SEM), quantitative research, and cross-research are used in this study. The findings suggest that corporate culture, transformational leadership, and digital transformation significantly affect organizations’ sustainability. Innovation capability does not affect the relationship between corporate culture and sustainability. However, it mediates the relationship between transformational leadership, digital transformation, and business sustainability. Innovation capabilities and business sustainability performance are moderated by environmental dynamism. This study contributes to sustainable corporate performance theory by showing managers how transformational leadership, digital transformation, and corporate culture can help manufacturing companies grow indefinitely. The findings have major implications for China, a highly industrialized nation. This study could benefit regulatory authorities, academic institutions, industry, government agencies, and researchers.

Three-way interaction effect of specialist CEOs, structural inertia, and environmental uncertainty on firm performance: evidence from Chinese manufacturing industry

ABSTRACT This research aims to further demystify the impact of specialist CEOs on firm performance. Drawing on the perspective of substitutes for leadership and organizational inertia theory, this research examines the three-way interaction effect of specialist CEOs, structural inertia and environmental uncertainty on firm performance. In study 1, panel data of Chinese A-share listed manufacturing firms from 2011 to 2022 are used to examine our hypotheses. In study 2, a conducted survey from 196 manufacturing firms further corroborates the obtained results. Our findings show that specialist CEOs are positively related to firm performance, but structural inertia plays a substitute role in negatively moderating such relationships. Furthermore, environmental uncertainty is verified as a critical boundary condition to weaken the moderation effect. The implications of our findings for theory and practice are discussed.

Geographic Proximity And Firm Innovation: Evidence From The Chinese Manufacturing Industry

Innovation, competitive advantage, and firm performance are all positively affected by knowledge-sharing techniques. We consider the geographic proximity to research institutes as a proxy of the efficiency of knowledge sharing. We examine how and to what degree the practice of knowledge-sharing influences businesses' innovation using a sample of Chinese manufacturing companies chosen between 2009 and 2021. Thus, the relationship between corporate innovation and closeness to research institutions is investigated experimentally in this study. The decisive findings indicate that a company's ability to innovate is strongly impacted by its proximity to research institutions, which suggests that proximity may also lower coordination costs and enhance information flow efficiency. Additionally, this research reveals that institutions with a STEM (science, technology, engineering, and mathematics) concentration have a stronger correlation with information sharing and entrepreneurial innovation in the manufacturing sector. Furthermore, under similar conditions, the positive effect for non-SOEs and firms with lower R&D expenditures is more critical for firms close to research institutions. We find consistent evidence for a battery of robustness checks. Overall, the study provides insightful implications that university and research center clustering is advantageous for generating and exchanging necessary knowledge.

What types of business environment fosters the emergence of more specialized and sophisticated “little giant” enterprises?—An empirical study based on the TOE framework and configuration adaptation theory

AbstractNurturing specialized and sophisticated enterprises is a vital strategic initiative to mitigate the dependency on crucial technologies and to promote the competitiveness of Chinese manufacturing industry. Basing on a technology, organization, and environment (TOE) framework, combined with geographic concentration, qualitative comparative analysis (QCA), and data envelopment analysis (DEA) methods, this article analyzes the conducive business environment for the growth of specialized and sophisticated “little giant” enterprises (LGEs) from configurational perspective. It takes the quantity and density of LGEs in different regions of China as the consequence event. The findings show that: (1) the spatial distribution of LGEs is highly uneven with a geographic concentration index (CR5) of 0.436 and a Herfindahl–Hirschman Index of 0.0599. (2) The presence of numerous technology‐oriented SMEs and a “favorable” business environment are not necessarily the regions where a larger number of LGEs are fostered. Indeed, the harmonious interplay of TOE is more important for achieving optimal outcomes. The differential configurations contributing to the regional output variations of LGEs can be classified with three patterns: technology‐organization‐environment synergistic promotion type (H1), innovation stimulation through effective financial support type (H2a), and compensatory type for inadequate innovation resources (H2b). While these configurations may lead to similar outcomes, they do not yield the same effectiveness. (3) The DEA reveals a tendency for “over‐optimization” in improving regional business environment under the TOE framework, indicating the presence of “input redundancy” and corresponding “output loss” issues in TOE factors. Local governments must adhere to the “barrel principle” and optimize the business environment that aligns with development of LGEs through the concept of dynamic adaptation. Adopting an organizational mindset of “stringing beads into chains” can help construct regional industrial chains with distinctive features.

Developing a Green Supplier Evaluation System for the Chinese Electric Vehicle Battery Manufacturing Industry Based on Supplier Willingness to Participate in Green Collaboration

To control the carbon emission problem arising from the manufacturing process of electric vehicle batteries, green collaboration with raw material and equipment suppliers is critical. However, Chinese electric vehicle battery manufacturers are still unsure how to measure suppliers’ green collaboration willingness, and existing studies have also failed to develop an evaluation system for such measurement. Therefore, this article aims to build a supplier evaluation system based on the green collaboration willingness for Chinese electric vehicle battery manufacturers. Based on the above, this article designs an analysis process based on the case study method concept and combines it with the decision-making trial and evaluation laboratory, analytic network process, and best-worst method to develop a methodology. The research results show the following. 1) The evaluation system involves four criteria, including the ability to meet buyer needs, the relationship between manufacturers and suppliers, responsibility and commitment, and the implementation of environmental management, of which the ability to meet buyer needs is the most important criterion. 2) The relationships between manufacturers and suppliers are a critical criterion for measuring suppliers’ willingness to collaborate in green supply chain improvement. 3) Based on the abovementioned factors, we also identify a causal relationship between the critical criterion and other criteria. In contribution, in addition to filling the gap in the literature, the evaluation system proposed in this article can also help battery manufacturers select suppliers with high collaboration willingness to promote the decarbonization of battery production.

Exploring How and When Environmental Corporate Social Responsibility Impacts Employees’ Green Innovative Work Behavior: The Mediating Role of Creative Self-Efficacy and Environmental Commitment

While prior research has recognized the significance of employees’ green innovative work behavior (GIWB) for organizational sustainability, few studies have explored how to effectively promote such behavior. Following the stimulus-organism-response (S-O-R) framework, we investigate how and when environmental corporate social responsibility (ECSR) drives employees’ GIWB. We conducted a two-wave lagged data analysis with 300 Chinese manufacturing employees. Our results reveal that creative self-efficacy and environmental commitment mediate the relationship between ECSR and employees’ GIWB. Additionally, we observe that person-organization (P-O) fit strengthens the indirect influence of ECSR on employees’ GIWB through creative self-efficacy. Conversely, P-O fit weakens the impact of ECSR on environmental commitment; however, it does not moderate the indirect influence of ECSR on employees’ GIWB through environmental commitment. These findings indicate that ECSR can effectively promote employees’ GIWB through multiple psychological mechanisms, and its impact varies depending on different levels of P-O fit. Our study offers novel theoretical insights and practical evidence to enhance employees’ GIWB, thereby contributing to sustainability in the Chinese manufacturing industry.

Digital Economy Empowering the Development Level of Chinese Manufacturing Industry

Digital Economy Empowering the Development Level of Chinese Manufacturing Industry

The role of the state and the intensification of R&D in China: evidence from large and medium-sized Chinese manufacturing firms

ABSTRACT We investigate the role of the state in the R&D intensification of China’s manufacturing industries. Using a data set that spans the population of large and medium-sized Chinese manufacturing firms from 2007 to 2016, we find evidence of two distinct models of technological innovation in China: state-owned enterprises that invest heavily in R&D and actively seek patents, which are not related to their economic performance; non-state-owned enterprises have been narrowing the gap with the state-owned enterprises in R&D spending, which boosts their economic performance, but these enterprises lag behind state-owned enterprises in patenting. The non-state model has seen its share of China’s R&D spending increasing at the expense of the state model, and government grants for firm R&D are partial to obtaining patents. All of this has taken place as Chinese manufacturing industries are becoming more competitive and less export-oriented.

Digital technology and manufacturing industrial change: Evidence from the Chinese manufacturing industry

This study utilized data from 2011 to 2020 across 29 manufacturing industries in China to comprehensively analyze the macro-level impact of digital technology applications on industrial transformation. The main findings are as follows: Firstly, a significant positive correlation between digital technology application and industrial change was observed, with an average effect of 1.2128 and statistical significance (α = 1 %). In specific sectors such as textile manufacturing, resource processing, and machinery equipment manufacturing, the positive influence of digital technology on industrial transformation is evident, with respective effects of 1.2088, 1.0934, and 1.1737-all statistically significant (α = 1 %). Secondly, examining heterogeneity among different manufacturing industries revealed that process manufacturing and labor-intensive sectors exhibited more pronounced responses to digital technology, with impact coefficients of 1.2189 and 1.2784, both significant (α = 1 %). Robustness tests confirmed the reliability of these results, demonstrating that the positive relationship between digital technology application and industrial change remained robust even after addressing endogeneity concerns. Lastly, a mechanism analysis uncovered the pivotal roles of innovation mechanisms, talent effects, and government institutional arrangements in the digital technology-driven industrial transformation. Notably, the machinery and equipment manufacturing industry displayed a significant positive correlation with the innovation mechanism, with a coefficient of 3.8344. The resource processing industry showed a positive impact associated with the talent effect, with a coefficient of 0.0002. However, in the textile manufacturing and machinery and equipment manufacturing sectors, government institutional arrangements were negatively correlated with industry performance, with coefficients of −0.0056 and −0.0096, respectively. Overall, these findings offer valuable insights into how digital technology shapes the transformation of the manufacturing industry, holding great theoretical and practical significance for guiding the industry's digital transformation efforts.

Digital platform capability, environmental innovation quality, and firms’ competitive advantage: The moderating role of environmental uncertainty

In the context of the “Internet plus” era, exploring whether digital platforms can enhance firms' competitive advantage, and the internal mechanism of this potential relationship, is of great significance. Based on the theory of dynamic capabilities, this study examines the impact of digital platform's capability on firms' competitive advantage, as well as the mediating effect of environmental innovation quality and the moderating effect of environmental uncertainty. We selected 242 firms in the Chinese manufacturing industry as the sample and tested the model using multiple regression methods. The results show that digital platform capability has a significant positive impact on firms' competitive advantage, environmental innovation quality plays a partial mediating role between digital platform capability and firms' competitive advantage, and the effect of digital platform capability on firms' environmental innovation quality is negatively moderated by environmental uncertainty. The research reveals the mechanism of interaction between digital platform capability and competitive advantage, which can aid firms in building digital platforms, and improve the quality of their environmental innovation and their competitive advantage.

Has the consistency evaluation policy of generic drugs promoted the innovation quality of Chinese pharmaceutical manufacturing industry? An empirical study based on the difference-in-differences model.

In March 2016, the Chinese government officially launched a nationwide consistency evaluation of the quality and efficacy of generic drugs. This paper conducted an empirical study using the Difference-in-Differences method to explore the effect of this policy on the innovation quality of China's pharmaceutical manufacturing industry and further analyzed the underlying mechanism of action. The results of the study show that the generic consistency evaluation policy has a significant promotion effect on the innovation quality of China's pharmaceutical manufacturing industry, and the promotion effect is the largest for non-state-owned enterprises and enterprises in the central region; in addition, the intensity of R&D capital investment and R&D personnel investment which play a mediating role. Therefore, we should fully recognize the positive effect of generic drug consistency evaluation policy on improving the innovation quality of the pharmaceutical manufacturing industry and pay attention to the necessity of regional coordination and unification in policy implementation and the formulation of supporting policy tools. This study provides empirical evidence for the implementation effect of the generic drug consistency evaluation policy, which can provide an essential reference for the further improvement of the procedure and the R&D decision-making of pharmaceutical enterprises.

Analysis and Optimization Plan of Supply Chain Management in Chinese Electric Vehicle Manufacturing Industry

Supply chain management is the treatment of the entire production process of goods or services to maximize quality, delivery, customer experience, and profitability. Although the theoretical research on supply chain management in China's manufacturing industry has achieved certain results, how to properly utilize supply chain management in such a rapidly developing society is still an urgent issue. In addition, in China, electric vehicles have gradually replaced traditional fuel vehicles to gradually increase the market share and become the first choice of consumers to buy cars. Thus, the purpose of this paper is to explore the problems in the construction of supply chain management systems for Chinese electric vehicle enterprises through theoretical analysis, put forward suggestions for improvement, and choose Guangzhou Automobile Group as a case study. The difficulty of supply chain and supplier management caused by the multi-level supply chain, as well as the product problems of the enterprise, also exacerbate the exposure of its problems in supply chain management. Therefore, it is necessary to optimize the management system to balance the customer's demand and the company's supply capacity, as well as to strengthen the logistics supervision system.