Restructuring Domestic Enterprises in China
Project Director - Stephen Nicholas
Dr Brendan Boyle - Newcastle
Dr Rebecca Mitchell
Vice President Peng Long, BFSU
Ms Jin Hua, BFSU
This project analyses how domestic private and state-owned enterprises have restructured their activities in China over the past decade. There have been significant changes to the Chinese domestic economy since 2000, including the rise in foreign direct investment, which has increased the competition and interaction of domestic Chinese firms with foreign JV and wholly-owned companies. Second, the Chinese economy has witnessed significant changes in its property rights system, including the transition of state-owned to private-owned enterprises. Finally, the Chinese economy has experienced rapid economic growth, which has created opportunities for new firm development, which has challenged existing enterprises.
This project seeks to understand the internal organisational changes in Chinese domestic enterprises. Second, the project studies the composition and experiences of the top management team (TMT) responsible for decision-making and restructuring decisions in Chinese enterprises, including the positions of TMT members, their tenure and previous experience.
The project maps the types of restructuring undertaken by domestic Chinese firms, including spin-offs and sell-offs; merger and acquisitions; changes in geographical location; changes in technology, product lines and supply chains; changes in market segments; and changes in internal management practices (including HRM and accounting).
The process of restructuring, especially whether the changes in domestic Chinese firms is gradual or a planned restructuring are inveestigated, as well as the role of the current global economic crisis in domestic firm restructuring.
The research project also investigates changes in the strategic orientation of domestic firms, especially changes to reduce costs and procure cheap raw inputs; product-service innovations; new approaches to advertising, marketing and branding; and changes in R and D.
One significant contribution of the project will be to related types of restructuring to specific changes in China's domestic and the global economy.
The project aims to provide new insights for Chinese policy-makers into the types of restructuring by domestic enterprises as well as to contribute to our understanding of the evolution and transformation of business enterprises.