Transformation Of State-owned Enterprises Research Articles

СТАН ТА ПЕРСПЕКТИВИ РОЗВИТКУ ПРОТЕЗНОЇ ГАЛУЗІ В УКРАЇНІ В КОНТЕКСТІ ВИКОНАННЯ ЗАВДАНЬ СОЦІАЛЬНОЇ ПОЛІТИКИ ВОЄННОГО ЧАСУ

The consequence of any war is the appearance of a large number of injured civilians and military personnel. In 2009, Ukraine signed the UN Convention "On the Rights of Persons with Disabilities" and confirmed guarantees regarding the provision of persons with disabilities with rehabilitation aids and their social inclusion. The purpose of the article is to highlight the results of the research, which are related to the state policy of development of the field of prosthetics in the context of ensuring the rights of people with disabilities, their rehabilitation and social inclusion. The relevance of the problem under consideration is determined by the fact that in 2022-2023, the number of injured civilians in Ukraine increased by 15%, the military - by five times, and the organization of the activities of prosthetic and orthopedic enterprises does not allow to fully satisfy the needs in prosthetics. The research methodology was based on the use of such methods as: content analysis (to identify the main content of legal acts on providing persons with disabilities with technical and other means of rehabilitation), abstraction - in order to highlight the most essential characteristics of the development of the prosthetics and orthopedics industry, systematization, which made it possible to organize and bring to a certain degree of coherence the state policy measures necessary to ensure the development of the field of prosthetics. The tasks of the state in the context of the implementation of social policy are measures aimed at the development of the prosthetic and orthopedic industry and the establishment of a system of rehabilitation of people affected by the war. In order to streamline the system of prosthetics for people with disabilities, improve the quality of prosthetics and rational use of budget funds, in 2014 the government liquidated "Ukrprotez" as an intermediary in the distribution of financial resources. The next stage of the reorganization of the network of prosthetic and orthopedic enterprises was the transformation of state-owned enterprises into state-owned commercial ones. The practical significance of the article lies in the substantiation of the set of measures necessary for the reorganization and development of enterprises in the prosthetics industry, including issues of a strategic nature that require the development of an appropriate Strategy. The industry development strategy, in turn, should include decisions on organizational, technological, personnel, and economic issues of ensuring the effective operation of prosthetic and orthopedic enterprises.

Reforming State-Owned Enterprises (SOES) to Facilitate the Economic Recovery of Sri Lanka

The economic downturn and escalating debt levels prompted Sri Lanka to seek assistance from the International Monetary Fund (IMF), resulting in the formulation of the 17th IMF program. This program, aimed at fiscal consolidation and restructuring, designates SOEs as a pivotal element in the nation's economic recovery strategy. This policy brief addresses the imperative need for reforming State-Owned Enterprises (SOEs) in Sri Lanka. A historical overview reveals the evolution of Sri Lanka's SOEs, from their establishment during World War II to a surge in numbers in the 1980s. Despite their vital role in the economy, SOEs have faced operational inefficiencies, financial struggles, and governance issues, leading to a privatization policy in 1988. The document explores international experiences in SOE reform, drawing insights from successful models in Singapore, China, and India. Current policy measures in Sri Lanka encompass various reform strategies, such as corporatization, restructuring, and commercialization, focusing on enhancing financial transparency and accountability. The establishment of the State-Owned Enterprise Restructuring Unit (SRU) reflects a commitment to effective implementation, with international support from entities like the International Finance Corporation (IFC). In conclusion, the path to economic recovery in Sri Lanka hinges on the successful transformation of SOEs, ensuring financial viability, transparency, and sustainable growth.

Can mixed-ownership reform boost the digital transformation of state-owned enterprises?

Under the background of the mixed-ownership reform of state-owned enterprises (SOEs), we investigate the involvement of non-SOEs shareholders in fostering the digital transformation of SOEs. We find that the active engagement of non-SOEs shareholders plays a pivotal role in expediting the digital transformation process of SOEs. Specifically, we identify two potential ways through which the reform promotes digital transformation in SOEs: the reduction of agency costs and the enhancement of executives’ risk-taking propensities. Our empirical findings substantiate the notion that mixed-ownership reform serves as a catalyst for digital transformation, which is a crucial driver of long-term sustainability and growth for SOEs. Our heterogeneity testing indicates that mixed-ownership reform has a more profound impact on advancing the digital transformation of local SOEs and those operating in competitive industries. Overall, we provide novel insights into the integration advantages of mixed-ownership reform by examining the determinants of digital transformation in SOEs from the perspective of ownership structure. These findings offer valuable guidance to policymakers and corporate leaders aiming to facilitate digital transformation in SOEs.

Transforming state-owned enterprises in Vietnam until 2030: orientations and solutions

In recent years of renovation, Vietnam has consistently implemented the policy of developing a multi-sector economy based on market mechanism and managed by the State. Vietnam has built a relatively complete system of policies and legislation on the transformation of state-owned enterprises (SOEs). With the equitization process, although the number of SOEs is gradually decreasing, accounting for a low proportion in terms of quantity in the entire enterprise sector, it still holds a large amount of resources in terms of capital and assets, generates revenue and has a significant contribution to the state budget. However, the results of the transformation of SOEs are still limited, including: The progress of equitization and divestment is still slow, development strategies of many SOEs are not clear, the choice of investment structure, resource mobilization is still confusing, financial capacity is limited, management efficiency, investment efficiency, production and business efficiency are still low... These inadequacies may originate from the content of the policy or in the organization of business activities of SOEs with low efficiency. The article focuses on assessing the overall process of SOEs transformation in the transition to a market economy, especially from 2011 to now. The article points out the successes and limitations, identifies the causes of the limitations in order to overcome and adjust the SOE transformation process in the coming period.

Employee perceptions of pay equity and compensation factors: a study of Vietnamese state-owned enterprises

ABSTRACT The transformation of state-owned enterprises (SOEs) has been a central point of Vietnam’s economic reforms commencing in the late 1980s. This transformation has led to significant changes in compensation policy and practices. The perception of pay equity among SOE employees has also shifted from a view of respecting harmony and collectivism towards greater individualism and performance based pay. This study investigates the relationships between compensation and employee perceptions of pay equity. We present a theoretical framework based on Compensation Theory and Equity Theory and employ a quantitative approach. The results confirm positive relationships between four main compensation components of: minimum wage, salary, benefits and relational returns, with perceptions of pay equity. The findings are significant and contribute to a theoretical understanding in the context of an Asian economy moving from a collectivist to a more individualist focus. They also provide guidance for practitioners to enable them to develop compensation policies and practices that improve employee perceptions of pay equity which in turn can boost efficiency and effectiveness.

Can Mixed-Ownership Reform Drive the Green Transformation of SOEs?

In the construction of ecological civilization, green innovation has become an important driving force for the sustainable development of state-owned enterprises (SOEs). This paper uses panel data of state-owned listed enterprises from 2008 to 2019 to explore mixed-ownership reform’s influence on the green transformation of SOEs and its specific mechanisms. The results show that the diversity of mixed shareholders, the depth of mixed equity, and the restriction of mixed equity significantly promote the SOEs’ green innovation. Moreover, there are distinctions in the impact of the shareholding ratio of heterogeneous shareholders on green innovation. Only the increase in the shareholding ratio of foreign shareholders has a positive correlation with green innovation. The mechanism tests indicate that the mixed-ownership reform plays a governance role in the green transformation of SOEs by optimizing the reasonable allocation of environmental protection subsidies and propelling environmental social responsibility’s active performance. Our study further subdivides the significant promotion effect of mixed-ownership reform on green innovation, finding that it only exists in the SOEs in heavily polluting industries and regions with a high degree of marketization. Finally, we find that the ownership structure adjustment caused by the mixed-ownership reform has improved SOEs’ environmental management system and facilitated its sustainable development capabilities.

Speed-up the privatization of state-owned enterprises – An urgent requirement

Privatization of state-owned enterprises and transformation of state-owned enterprises to joint stock ones not only help to mobilize more capital to expand and develop but also change the organizational model and manage enterprises in a more public, democratic, transparent and efficient manner. Therefore, privatization is the principal and most important way to innovate and enhance the efficiency of the state-owned enterprises. The total number of state-owned enterprises that have been privatized since 1992 to date is about 4000, or 181,5 enterprises per year on average. This average number, especially in the period of 2001 – 2006, is by no means low. The number of state-owned enterprises have declined dramatically, from more than 12,000 in 1990 to only 3,265 in the early 2012 in which the fastest decline is observed in the enterprises controlled by local governments. However, there are noticeable problems in terms of the speed. In order to meet the target of privatization of state-owned enterprises by 2020, it is necessary to: (i) Build a privatization plan for approval by authorities (ii) Build a progress plan on withdrawal of capital which was invested outside main business activities for approval by authorities.

Placing the Transformation of State-owned Enterprises in North-east China: The State, Region and Firm in a Transitional Economy

Hu F. Z. Y. and Lin G. C. S. Placing the transformation of state-owned enterprises in North-east China: the state, region and firm in a transitional economy, Regional Studies. This study examines the nature of firm–region nexus in the transformation of state-owned enterprises in the Chinese transitional economy. A case study of the machinery sector in the Shenyang city-region of north-east China reveals a close relationship between the organizational transformation of state-owned enterprises and a regionally specific institutional environment featured by a product–market orientation toward some large, key construction projects and political commitment to achieving key equipment indigenization with a heavy reliance upon the internal labour market. The study advocates a more contextualized analysis of the positionality, interests and motivations of China's state-owned enterprises grounded in different regional and institutional contexts. Hu F. Z. Y. and Lin G. C. S. 中国东北地区国有企业演变的地方性：转型经济中的政府、区域和企业，区域研究。本文探讨中国转型经济背景下国有企业组织演变的区域动力。基于对东北沈阳市机电工业的实证分析，揭示了当地国有企业的组织重构与服务大型国家重点建设项目需求的产品市场导向、实现核心技术装备国产化的政治使命以及以内部劳动力市场为主的人事关系等地方特定的制度氛围有着密切的关系。在此基础上，提倡企业-区域关联性研究应该更加重视具体时空和制度情景下不同企业个体的位置性、利益导向和动力机制。 区域制度氛围 发展型政府 国有企业 位置性 转型经济 中国 Hu F. Z. Y. et Lin G. C. S. Le positionnement de la transformation des entreprises publiques dans le nord-est de la Chine: l'Etat, la région, et l'entreprise dans une économie en transition, Regional Studies. Cette étude cherche à examiner la connexion entreprise-région dans la transformation des entreprises publiques dans l'économie chinoise en transition. Une étude de cas du secteur des machines situé dans la ville-région de Shenyang dans le nord-est de la Chine laisse voir un rapport étroit entre la transformation organisationnelle des entreprises publiques et un milieu institutionnel spécifique à la région caractérisé par une orientation produit-marché vers quelques grands chantiers clés et un engagement politique visant la réalisation de l'indigénisation de l'équipement essentiel, dont une dépendance importante du marché interne du travail. L'étude prône une analyse plus relativisée du postionnement, des intérêts, et des motivations des entreprises publiques chinoises fondée sur des contextes régionaux et institutionnels différents. Milieu institutionnel régional Etat de développement Entreprises publiques Positionnement Economies en transition Chine Hu F. Z. Y. und Lin G. C. S. Ansiedlung der Umgestaltung von Staatsbetrieben im Nordosten Chinas: Staat, Region und Firma in einer Übergangswirtschaft, Regional Studies. In dieser Studie untersuchen wir die Beschaffenheit der Verknüpfung zwischen Firmen und Regionen bei der Umgestaltung von Staatsbetrieben in der chinesischen Übergangswirtschaft. In einer Fallstudie des Maschinenbausektors in der Stadtregion Shenyang im Nordosten Chinas offenbart sich eine enge Beziehung zwischen der organisatorischen Umgestaltung von Staatsbetrieben und einer regionalspezifischen institutionellen Umgebung, die von einer Orientierung des Produktmarkts hin zu großen und wichtigen Bauprojekten sowie von einem politischen Engagement für die Inlandsbeschaffung von wichtiger Ausrüstung bei starker Abhängigkeit vom internen Arbeitsmarkt geprägt ist. In der Studie empfehlen wir eine kontextualisiertere Analyse der Positionalität, Interessen und Motivationen der chinesischen Staatsbetriebe, die auf den verschiedenen regionalen und institutionellen Kontexten aufbaut. Regionale institutionelle Umgebung Entwicklungsstaat Staatsbetriebe Positionalität Übergangswirtschaften China Hu F. Z. Y. y Lin G. C. S. Ubicar la transformación de las empresas estatales del noreste de China: el estado, la región y la empresa en una economía transicional, Regional Studies. En este estudio analizamos el tipo de nexo entre las empresas y regiones en lo que respecta a la transformación de las empresas estatales en la economía transicional de China. Un estudio monográfico sobre el sector de la maquinaria en la región metropolitana de Shenyang al noreste de China revela una estrecha relación entre la transformación organizativa de las empresas estatales y un marco institucional específico para las regiones caracterizado por una orientación del mercado de productos hacia importantes proyectos de construcción y el compromiso político para lograr la indigenización del equipo clave con una fuerte dependencia del mercado laboral interno. En este estudio recomendamos un análisis mas contextualizado de la posicionalidad, los intereses y las motivaciones de las empresas estatales chinas basado en diferentes contextos regionales e institucionales. Marco institucional regional Estado de desarrollo Empresas estatales Posicionalidad Economías transicionales China

Executives’ managerial work organisation and transformation of state-owned enterprises

Cet article s’interroge sur le rôle des cadres dans les transformations des entreprises publiques, et notamment dans leur mutation vers un modèle néolibéral. L’article souligne que l’évolution des modes et pratiques d’organisation repose en partie sur l’activité de certains cadres, menant un « travail d’organisation » conçu comme professionnel, à travers lequel ils légitiment leurs prétentions à prendre en charge les fonctions de direction et d’encadrement. Les résultats présentés s’appuient sur une enquête récente auprès d’un échantillon de cadres d’une grande entreprise publique française.

Transformation of State-owned Enterprises in China: A Strategic Action Model

AbstractTransformation is a vital challenge for Chinese state-owned enterprises (SOEs) and their top managers. To explore this increasingly important topic, we first summarize the institutional context of SOE transformation and the conflicting interests and interdependent relationships of six major actors as inside/outside stakeholders. Based on the strategic action view of institutional analysis, we emphasize the role of the change agent's level of aspiration and political skills in transforming an SOE. Then, through inductive case studies on the transformation of three SOEs, we address how top managers, acting as change agents, can initiate and engage in institutional change through strategic actions such as negotiation, manipulation, and coercion; we also illustrate how they adopt different actions to influence different actors. Based on the inductive results, we develop a theoretical model, which we refer to as the ‘strategic action model’ that shows how the aspiration level, political skills, strategic actions, and change outcomes interrelate and offer insights into the strategic action of top managers as change agents. Our most important contribution is revealing the interplay between the proactive role of inside actors as change agents and the enabling condition of institutional context.

Control Modes and Outcomes of Transformed State-Owned Enterprises in China: An Empirical Test

The transformation of state-owned enterprises (SOEs) into efficient entities has been an important approach in transition economies. However, the transition literature reveals little about how control structure affects firm performance of transformed SOEs. Drawing on agency theory, we distinguish three modes of control in transformed SOEs: state-controlled, dispersedly controlled, and privately controlled modes and argue that actual control after transformation plays a critical role in determining performance. Examining the impact of different control modes in China, we find that the key is who controls the transformed firm. Non-state-controlled (dispersedly controlled and privately controlled) firms are more likely to have enhanced post-transformation performance and reduced agency costs than state-controlled firms.

The transformation of human resource management in Indonesian state-owned enterprises since the Asian Crisis

Indonesia is facing a rapid institutional change arising from the 1997 Asian Crisis, and state-owned enterprises (SOEs) were forced to undertake a transformation to survive in the increasing market competition and to revive their roles as the engine of economic growth. This included measures to tackle the increasingly vital human-related issues, namely human resource management (HRM). This research focuses on the dynamic relationships between the SOEs and their internal and external stakeholders in the post-1997 Asian Crisis. It addresses three main issues. First is to investigate the change within the Indonesian institutions and the influence on the firms. Second is to examine the response of the firms as captured in their firms' transformation initiatives in the area of HRM. Third is to elaborate the implications for theory and practices regarding transitional economy in general and HRM changes in particular. The results indicate that the transformation of SOEs has been determined by the firms' relationships with both their internal and external stakeholders. Following the Asian Crisis, Indonesia witnesses a drastic change of the HR practices toward greater market orientation and the pervasiveness of ‘best practices’.

Institutional changes and organizational transformation in developing economies

Abstract An important component of globalization during the last two decades is the increased participation of developing economies in the global economy both as markets for goods and services as well as production sites. Institutional changes emanating from evolving political landscapes within individual countries and pressures from supra-national bodies have been instrumental in the liberalization of developing countries' economies and their integration into the global economy. A growing body of research has focused on the transformation of state-owned enterprises as they are privatized, with particular focus on the role of organizational and national heritages that enhance or constrain the evolution of these firms within a market-based institutional environment. In this introduction, we review this literature stream, introduce the papers in this special issue, and highlight the theoretical approaches that help explain how organizations in distinct national contexts overcome the pressure emanating from institutional changes in developing economies.

Transformation of state-owned enterprises in Estonia and India: An examination of the relative influences of cultural variations

The challenges confronted by state-owned enterprise (SOEs) in moving toward functioning in a market economy are first examined from a theoretical perspective. Four major transformational challenges–strategic reorientation, shifts in resource acquisition logic, workforce rationalization and renewal, and changing organizational configuration are identified and discussed. The relative influence of culture in meeting these SOE transformational challenges along with formulating and implementing policies for economic reforms are discussed.

From state-owned enterprises to world class competitors: China's competitive transformation

The impact of globalisation and worldwide competition has become glaringly apparent in China. This paper examines China's transformation of state-owned enterprises (SOEs) to competitive privatised entities. With China's move toward an open market society, the Chinese government saw the need to privatise some of the SOEs. Using Agency Theory and Ramamurti's three-tiered model of privatisation as a theoretical framework, we chronicle the transformation of six Chinese SOEs that have used advanced management systems to make themselves viable market contenders and competitive enterprises. Finally, we showcase one firm, Chongqing CHN & CHN Ceramics Co., Ltd. (C&C), a company well on its way to becoming a leader in the global ceramics market.

Another Side of Accountability: The Fiduciary Concept and Rent-seeking in Government Corporations

Corporatisation - the transformation of state-owned enterprises into incorporated businesses, owned by, but operating substantially independently of the state - has been an important part of the microeconomic reform of the delivery of public goods and the provision of public services in Australia and elsewhere. One of the premises of corporatisation is that it is desirable to assimilate the government enterprise with the governance and disciplines to which business corporations are subject. This essay considers this claim by examining how accountability translates from business to government corporations. In the business corporation, accountability is a simple, one-dimensional relation that runs from management to shareholders. The underlying moral hazard problems in this accountability relation are reflected in the use of a fiduciary duty. Although the fiduciary duty is still useful in dealing with potential overreaching problems, the basic premise of that relation - the mandated absence of duties or interests conflicting with those to the beneficiary - is distinctly ill at ease in the government corporation. This is because of the uncertain identification of a principal, incommensurability problems arising from the pervasion of non-efficiency objectives, and the proximity of rent-seeking. Accountability can be pulled in the direction of a representational accountability, which treats managers and shareholders as agents of a broad range of stakeholders, or pushed into an ethical accountability which seeks to immunise those agents from political conflicts of interest. I show how the fiduciary duty, in both its strict traditional, and more modest modern forms, does not serve either accountability form very well at all.