Shanghai Highly (Group) Co., Ltd. is a developer and manufacturer of home air conditioning compressors and other related products. In 2013, the annual production capacity for its main products (home air conditioning compressors) made impressive advances globally. However, intense competition among air-conditioning manufacturers has led to a reshuffle among manufacturers of home air conditioning compressors. As a company focusing on manufacturing home air conditioning compressors, Highly has lost its dominant position in the market, and its return on investment has hovered around 6% for years. To achieve better performance, Highly must address multiple challenges and questions. Should the company begin producing complete air conditioners? Should it expand production capacity for its home air conditioning compressors? How can Highly solve problems like high labor costs and fluctuations in raw material prices? After returning from a visit to Japan, Highly’s chairman, Mr. Shen Jianfang, must now consider these very issues.
Rongsheng Group was founded in 2005. Within two years of construction, its shipbuilding base in Rugao, Jiangsu, had been mostly set up and put into operation. Yet Shanghai Waigaoqiao Shipbuilding Co., Ltd., Hudong-Zhonghua Shipbuilding Group, and Jiangnan Shipyard Group had set up their production lines at Shanghai Changxing Shipbuilding Base, which would immediately change the competitive situation in the international shipbuilding industry. Meanwhile, the sub-prime loan crisis would slow down the development pace of the world economy, thus leading to asurplus of world shipping and shipbuilding capacity in the near future. The CEO of Rongsheng Group, Chen Qiang, was wondering the following questions: As the world economic situation and the competition patterns of the shipbuilding industry were changing, how could Rongsheng Group work out the detailed strategies and implementation plans based on the goals of the board of directors? Which industry should the Group be positioned in and find opportunities from for its further development (manufacturing, finance, energy or real estate)? How could it realize its targets in a shorter time?
This study examines how Chinese firms began responding to worsening environmental concerns in the late 1990s. Combining predictions from control theory, escalation of commitment, and goal theory, we seek to explain how leaders' cognitions shape the formation of novel responses to the value-laden issue of corporate greening. We propose an iterative model that links leaders' principles with corporate actions and test it using survey data gathered from 360 firms. The model views strategy organically, as a set of adaptive goals and behaviors, and highlights the role of systemic and local feedback loops in strategy formation. We find that top executives who champion new strategic initiatives monitor early success or failure, and adjust their efforts to match early performance feedback. Perceptions of satisfactory performance strengthen leaders' efforts towards their initial target, while perceptions of unsatisfactory performance diminish them. This feedback relationship is invariant throughout favorable or unfavorable expectancies of success, contrary to the contingent prediction of control theory. The model also examines how top-down and bottom-up strategic initiatives combine to help firms maintain a positive momentum of change when champions' efforts decline in the face of premature failure signals.
DECISION-PROCESSES; ORGANIZATIONAL PERFORMANCE; EMPIRICAL EXPLORATION; ESCALATING COMMITMENT; PLANNED BEHAVIOR; MAKING PROCESSES; ISSUE DIAGNOSIS; SELF-EFFICACY; MANAGERIAL; MANAGEMENT
escalation of commitment
Journal of Advertising Research
The Chinese advertising market expanded in the past decade at an average annual rate of above 40 percent. The sustainability of such a rapid growth depends in part on the general attitudes of the public toward advertising. This paper reports the results of a telephone survey of 825 consumers in five major cities in China. The survey focused on general beliefs about the institution of advertising, personal experiences, and general attitudes toward advertising. The relationships among beliefs, personal experiences, and general attitudes are modeled. The paper also investigates the relationships among demographic variables and experiences, beliefs, and attitudes. The study shows that urban Chinese have similar or more positive attitudes toward advertising than their U.S. counterparts and that these positive attitudes demonstrate resilience over time. As in the United States, younger consumers have more positive beliefs and attitudes toward advertising. But in contrast to the United States, those with higher levels of education tend to have more positive attitudes and beliefs.
International Journal of Cross Cultural Management
This study explores the influence of national culture upon leaders' interpretations of corporate environmentalism. The first part of the paper reviews the theoretical and empirical premises for a common interpretation of corporate environmentalism across countries. Three dimensions of corporate environmental performance are distilled from the qualitative literature developed in North America: organizational embeddedness, capacity to undertake environmental actions, and responsibility for protecting nature. We develop a survey instrument to measure corporate environmentalism and collect data from two random samples of Chinese (Shanghai-based) and Japanese executives. Exploratory factor analyses suggest that North American, Chinese, and Japanese executives employ three similar dimensions to interpret the corporate environmental performance of their companies. Using these dimensions, the second part of the study compares the overall degree of corporate environmental performance reported on the average by Chinese and Japanese executives. The study also investigates the influence of national culture, environmental values and socioeconomic contexts upon firm-level greening in both countries.
cross cultural environmental management