- Research Article
- Published:
Leadership capability and the effectiveness of state-owned enterprise
Frontiers of Business Research in China volume 2, pages 219–239 (2008)
Abstract
In this paper, a conceptual model of state-owned enterprises(SOEs) is built up based on several different perspectives, such as property right approach, management approach, and leadership capability approach. Using the data of World Bank’s survey on 1500 Chinese firms from five cities in 2001, the authors conclude that differences in leadership capabilities represented by leaders’ demographic characteristics exert influences on enterprise efficiency. Specifically, the degree of such influences in the SOEs is much higher than that of in the non-state-owned enterprise(NSOE) due to reasons of property right problems and insufficient incentive mechanisms in SOEs. Furthermore, the authors argue that empowering reforms will lead to phenomenon of differentiation in SOEs, causing huge differences in enterprise performances in the long run.
摘要
基于产权学派、 맜理学派及领导者能力学派的观点建立概念模型, 利用世界银行 2001 年对我国 5 个城市 1500 家企业的调查数据, 采用计量统计方法对数据进行分析, 得出由领导者传记性特征所代表的能力差异会影响企业效率的结论。 同时, 由于产权和激励机制方面的不足, 这种影响程度在国有企业内部会远大于非国有企业。 放权式改革政策会导致国有企业间的分化现象, 最终导致企业间的经营业绩现很大差异。
References
Amason A C(1984). Distinguishing the effects of functional and dysfunctional conflict on strategic decision making: Resolving a paradox for top management teams. Academy of Management Journal, (9): 3–148
Compell J P(1977). On The Nature Of Organizational Effectiveness. New perspectives on Organizational Effectivenes: 13–25
Demsetz H K L(1985). The structure of corporate ownership: Causes and consequences. Journal of Political Economy, (93): 1155–1177
Elron E, Haleblian J, Finkelstein S(1997). Top management teams within multinational corporations: Effects of cultural heterogeneity. Leadership Quarterly, (8): 393–412
Finkelstein S, Hambrick D C(1984). Strategic Leadership: Top Executives and Their Effects on Organizations. St. Paul, MN: West Publishing, 145–157
Frydman R, Cheryl G, Marek H, Rapaczynski A(1999). When does privatization work? The impact of private ownership on corporate performance in the transition economies. Quarterly Journal of economics, (114): 1153–1191
Groves T, Hong Y, McMillan J, Naughton B(1994). Autonomy and incentives in Chinese state enterprises. Quarterly Journal of Economics, 109: 183–209
Groves T, Hong Y, McMillan J, Naughton B(1995). China’s evolving managerial labor market. Journal of Political Economy, 103: 873–892
Hambrick D C, Cho T S, Chen M(1996). The influence of top management team heterogeneity on firms’ competitive moves. Administrative Science Quarterly, 41: 659–684
Hambrick D C, Fukutomi G D S(1991). The seasons of a CEO’s tenure. The Academy of Management Review, (16): 719–742
Hambrick D C, Mason P A(1984). Upper echelons: Top organization as a reflection of its top managers. Academy of Management Review, (9): 193–206
Hambrick D C, Snow C C(1977). A contextual model of strategic decision making in organizations. Academy of Management Proceedings, 109–112
Hu Yifan, Song Min, Zheng Hongliang(2002). The impact of ownership structural reform on the performance of China’s enterprises. In: Djankov, Simeon, M. Peter, (eds.), Enterprise restructuring: a quantitative survey. Journal of Economic Literature, (40): 739–792
Huang Y(2003). Selling China: Foreign Direct Investment During the Reform Era. Cambridge: Cambridge University Press
Jefferson G H, Rawski T, Zheng Y(1999). Automation and reform in China’s industrial enterprises. In: Enterprise Reform in China: Ownership, Transition, and Performance. New York: Oxford University Press
Jensen M. C, William H M(1976). Theory of the firm: Managerial behavior agency costs and ownership structure. Journal of Financial Economics, (3): 305–360
Kahn L M(1993). Managerial quality, team success, and individual player performance in major league baseball. Industrial and Labor Relations Review, (46): 531–548
King A W, Zeithaml C P(2001). Competencies and firm performance: Examining the causal ambiguity paradox. Strategic Management Journal, (22): 75–99
Lee C, Lee K, Pennings J M(2001). Internal capabilities, external networks, and performance: A study on technology-based ventures. Strategic Management Journal, (22): 615–640
Li Daokui, Wu Changqi(2004). SOE reform: Ownership diversification or management improvement? In: Anne S Tsui, Chung-Ming Lau(eds.), The management of enterprises in the P.R.C. Beijing: Peking University Press: 75–94(in Chinese)
Lieberman M B, Lao L J, Williams M D(1990). Firm-level productivity and management influence: A comparison of U.S. and Japanese automobile producers. Management Science, (6): 1193–1216
Liu Xiaoxuan, Li Liying(2005). An analysis on enterprise ownership reformation: From the perspective of efficiency. Social Sciences in China, (2): 4–16(in Chinese)
Long C X, Hale G(2006). Do FDI Inflows Increase Productivity? The Case of China. Working Paper Presented on the AEA Annual Meeting
Marshall W M, Lü Yuan, Lan Hailin Lü Xiaohui(2004). Empowering reform in enterprises: Viewpoints on SOE reforms. In: Anne S. Tsui, Chung-Ming Lau. (eds), The Management of Enterprises in the P. R. C. Beijing: Peking University Press, 219–247(in Chinese)
Megginson W L, Jeffry M N(2001). From state to market: A survey of empirical studies on privatization. Journal of Economic Literature, 39: 321–189
Nee V(1991). Social inequalities in reforming state socialism: Between redistribution and markets in China. American Sociological Review, (56): 267–282
Nkomo S M(1987). Human resource planning and organization performance: An exploratory analysis. Strategic Management Journal, (8): 387–392
Porter M E(1997). Competitive Strategy. Beijing: Huaxia Press(Trans. by Chen Xiaoyue)
Ruekert R W, Walker O C, Roering K J(1985). The organization of marketing activities: Contingency theory of structure and performance. Journal of Marketing, (49):13–25
Shleifer A, Vishny R(1994). Politicians and firms. Quarterly Journal of Economics, (109): 995–1025
Smart J C, Ernes L T(1986). Self-concept development and educational degree attainment. Higher Education, (15): 3–15
Smith K G, Smith K A, Olian J D(1996). Top management team demography and process: The role of social integration and communication. Administrative Science Quarterly, 41:658–684
Song Ligang, Yao Yang (2005). Impacts of restructuring on firm performance in China. Social Sciences in China, (2): 17–31(in Chinese)
Stoghill R M(1974). Handbook of Leadership: A Survey of the Literature, New York: Free Press: 13–216
Venkatraman N, Ramanujam V(1986). Measurement of business performance in strategy research: A comparison of approaches. Academy of Management, 71–78
Walder A G(1989). Factory and manager in an era of reform. China Quarterly, (118): 242–264
Wei Gang(2000). Incentives for top-management and performance of listed companies. Economic Research Journal, (3) (in Chinese)
Weiner M(1981). A model of corporate performance as a function of environmental, organizational and leadership influences. Academy of Management Journal, (24): 453–470
Wernerfelt B, Montgomery C A(1988). Tobin’s Q and the importance of focus in firm performance. American Economic Review, (78): 246–251
Wicrscana M F, Bantel K A(1992). Top management team demography and corporate strategic change. Academy of Management Journal, 35: 91–121
Wu ShuKun (2002). Ownership structure and firm performance: An empirical research on Chinese public companies. China Industrial Economy, (1) (in Chinese)
Yuan Guoliang, Wang Huaifang, Liu Ming (2000). An empirical study on the stock incentive mechanisms of Chinese listed companies and other problems. In: Liu Shucheng, Shen Pei (eds), A collection of frontier theory theses of China’s capital market. Beijing: Social Science Academy Press, 211–236(in Chinese)
Zhou Jianbo, Sun Jusheng (2003). Study on the governance effect of manager stock incentives. Economic Research Journal, (5): 74–82(in Chinese)
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Jing, R., Liu, Y. & Liu, P. Leadership capability and the effectiveness of state-owned enterprise. Front. Bus. Res. China 2, 219–239 (2008). https://doi.org/10.1007/s11782-008-0013-8
Received:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11782-008-0013-8