Differences In Business Environment Research Articles

China’s agricultural trade networks and its influencing factors

ABSTRACT This study employs the Standard International Trade Classification (SITC rev.3) to categorize agricultural products and examines the overall and each type of agricultural trade networks in China. It utilizes Social Network Analysis and the Quadratic Assignment Procedure to explore pattern changes and identify influencing factors. The findings indicate that between 2000 and 2019, China’s agricultural trade networks experienced expansion in scale and density, with China positioned at the network’s centre. However, challenges exist, such as insufficient control and over-reliance on specific trading partners. Key factors influencing the networks include the business environment (BUE), regional trade agreements (RTA), and government governance capacity (GOC). Differences in BUE and GOC are negatively associated with the development of trade networks, while RTAs are positively associated with trade network connectivity. Economic and demographic differences are also positively associated with the closeness of trade networks. Based on these findings, policy recommendations are proposed to address the identified issues.

Role of logistics strategy, coordination and customer service commitment on Chinese manufacturing firm competitiveness

Purpose The purpose of this paper is to assess the robustness of the three (Bowersox and Daugherty, 1987) dimensions (process, market and information strategies) of logistics strategy in a Chinese manufacturing environment. In addition, the impact of the three dimensions, coordination and customer service on the organizational competitiveness of Chinese manufacturers firms is explored. Design/methodology/approach The authors conducted an online survey hosted at Sojump.com and disseminated to members of a manufacturing trade association. A total of 513 completed responses were generated. Confirmatory factor analysis (CFA) and structural equation model (SEM) were used to test the hypothesized relationships in the conceptual model. Findings The findings suggest that the three dimensions of the Bowersox and Daugherty (1987) were relevant to the Chinese manufacturing environment. The authors also found that the overall logistics strategy measured by the three dimensions as well as coordination and customer service effectiveness positively influenced Chinese manufacturing firms’ competiveness. Research limitations/implications Further research into logistics and supply chain management may benefit from expanding the understanding to include antecedents and moderating factors (e.g. competition, market turbulence and differences in business environment) into the model. Future studies on cross-cultural logistics/supply chain management logistics may benefit from the application of strategy-structure-process (SSP) approaches similar to those discussed in this manuscript. Practical implications This study attempted to provide a robust conceptual framework to increase the understanding of the role of logistics/supply chain management strategy and provide insights to managers seeking to improve firm competitiveness. An essential implication of the conceptual model presented in this manuscript is the dynamics of logistics strategy as a competitive tool. Social implications The findings provide an understanding of how business and manufacturing are operating in various locations in China with opportunities for employment and socio-economic gain among the population of these geographic locations. Having employment can provide a better quality of life and assist the community in developing its opportunities for other groups. Originality/value As the current Chinese administration seeks to achieve its goal of generating higher value-added production through its “Made in China 2025” initiative, the results the authors represent are quite timely and insightful. Examining manufacturing firms’ logistics strategies (i.e., OLS), coordination and customer service could provide state planners (SOEs) and/or privately owned Chinese manufacturers insights on how to move closer towards their aforementioned goal and achieve global competitiveness.

Empirical Studies on Corporate Capital Structure in Vietnam

The purpose of the study is to examine the influence of firm characteristics (profitability, investment opportunity “market-to-book ratio”, tangibility, size, growth) and industry effect to capital structure of stock companies in Vietnam. The study uses OLS regression method to analyze a data set consisting of 522 non-financial companies listed in the two stock exchanges Ho Chi Minh Stock Exchange (HSX) and Ha Noi Stock Exchange (HNX) during the period from 2008 to 2011. The aggregate market-based leverage ratio in Vietnam is about 0.29. Despite the differences in business environment and management, this ratio is consistent to the statement from Frank and Goyal (2007) “Over the past half century the aggregate market-based leverage ratio has been about 0.32”. The empirical results show that profitability, tangibility, and growth are the major three determinants to debt ratios. The strong negative correlation between profitability and all debt ratios supports the prediction of the pecking order theory and it is considered as a serious defect of the trade-off theory. Tangibility has a strong positive correlation with long-term debt ratio but it has a negative correlation with short-term debt ratio. This result is consistent with the maturity mismatch principle “Firms tend to use long-term debt to finance fixed assets to prevent maturity mismatch; consequently, firms with high fraction of tangibility are expected to have high long-term debt ratio but low short-term debt ratio”. The strong positive correlation between growth and all debt ratios is consistent to the statement of Jensen and Meckling, 1976 “Debt disciplines managers and mitigates agency problems to free cash flow since debt must be repaid to avoid bankruptcy”. However, the fact that firms that have cash on hand actually issue debts is considered a serious problem of the pecking order theory (Frank and Goyal, 2007). As per the empirical results the corporate capital structure of the whole data is dominated by short-term debt, but the corporate capital structure at industry level is sometimes dominated by long-term debt. It is consistent with the result of Gilson (1997) “Industry leverage is used as a proxy for target capital structure”. According to Hovakimian et al. (2001), firms actively adjust their debt ratios towards the industry average. And similar persistence at firm level is reported in Lemmon et al. (2007). The differences of corporate capital structure at industry level and the similar persistence of capital structure at firm level reflect the role of industry effect as the crucial determinant of the target debt ratios.

Disparities in the food environment surrounding US middle and high schools

Disparities in the type and density of food retail outlets have been hypothesized as a possible cause of differential obesity rates across racial/ethnic and income groups. Several local studies have documented differences in business environments by sociodemographic neighbourhood characteristics, but no data specific for youth have been published. This study analyses the food environment surrounding all public middle and high schools in the USA. Buffers were calculated with a radius of 400 and 800 m from the main entrance of public secondary schools in the USA (n=31,622), and business establishments within those buffers were identified using InfoUSA proprietary business listings. Indicators of any convenience store, limited-service restaurant, snack store or off-licences/liquor store and counts of businesses were regressed on the proportion of students eligible for free school meals, Title I eligibility of the school, racial/ethnic composition, location and student/teacher ratio. Hispanic youth are particularly likely to attend schools that are surrounded by convenience stores, restaurants, snack stores or off-licences. This effect is independent and in addition to poverty (i.e. students eligible for free school meals or schools that are Title I eligible) or location (urban core, suburban, town, rural). The association between other racial groups and nearby businesses is weaker, with the exception of off-licences, where a higher proportion of minority groups increases the probability of off-licences in close proximity to the school. Middle schools have fewer surrounding businesses than high schools, and larger schools have fewer surrounding businesses than smaller schools. Easy availability of snacks, sodas and fast food in the immediate vicinity of a school could easily negate school food policies, especially among students who can leave campus. Surrounding food outlets could also lower the effectiveness of health education in the classroom by setting a highly visible example that counters educational messages. There are several clear differences across sociodemographic groups with, arguably, the most pernicious being the location of off-licences. These disparities may represent an important type of environmental injustice for minorities and lower-income youth, with potential adverse consequences for dietary behaviours.

Do cross-country differences in bank efficiency support a policy of “national champions”?

As banking consolidation proceeds and Europe moves toward a single market, cross-country differences in banking efficiency can affect the future competitive position of a country’s financial market, helping to determine which European money centers may expand or contract. Looking at large banks across 10 countries, we find they are roughly equally efficient after controlling for differences in business environment, banking costs, and bank productivity. As no country seems to have a strong efficiency advantage, it seems likely that state efforts to promote “national champions” through favorable mergers which expand scale and market share may determine the outcome.

Are New Zealand Chief Financial Officers the Poor Cousins of Their American Counterparts?

The financial management tools and techniques used by financial officers to make investment decisions have emanated from North America. However, due to differences in business environment some of the techniques may not be suitable in New Zealand (NZ) without modification. The purpose of this research is twofold. First, we wish to determine whether NZ CFOs use similar financial management practices for project evaluation and cost of capital determination, as their North American counterparts. Secondly, we seek to identify whether sound reasons exist for any potential or apparent differences in NZ and US financial management practices. From a survey based upon a questionnaire developed by Graham and Harvey (2001) the responses of 26 NZ CFOs were analysed and compared to their American counterparts in similar-sized firms. The results show that in NZ, financial managers have adopted most of the financial management techniques that are currently used in the US. The variations in the use of these techniques are explainable by differences in firm size and the domestic environment. It is recommended that NZ CFOs consider the appropriateness of overseas financial practices before applying them.

A Chinese MBA? the problem of technology transfer

In this paper we question the transferrability of a Western style MBA curriculum to China in light of differences in business environment and pedagogy and differences in social norms. We conclude that, contrary to what common sense might suggest, transferring the science in management is a potentially greater problem than transferring the art in management because the cultural conditions underlying this science are often less apparent or less examined. Our analysis is undertaken from the vantage point of classroom instructors recently involved in a Canadian International Development Agency project with China.