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1、departmentschool of managementchinese multinationals work & employment models: a review & research agendachris smith jos gamble and yu zhengschool of managementoutline question of transfer in mncs ssd framework china case diversity in transfer likely some potential forms of transfer limited

2、current research conclusions1transfer of “work organisation” & employment relations2 production and work best practice organisational field institutions and actors spreading ideas transfer theory in general forward and reverse diffusion recent developments internationalisation of labour markets

3、labour flows increasingly independent of firm mncs flexibilization/causalisation of labour mixed contracts international recruitment agencies national prefix for mncs action problematicrecent stories of transfer americanisation 50s, 60s, - europe, asia tied to assumed superiority of american ways -

4、build on practices going back to diffusion of scientific management, taylorism & fordism from us throughout 20th century europe stars sweden (anti-taylorist/fordist working methods short lived); german (superior training systems; stability within firms) japan 80s global japanization? long-term e

5、mployment, supplier relations, work regime, quality management etc. features - dominant home country practice is exported (dominance effect) widespread academic and research support for idea of national champions role of globalisation of management education national story is selective e.g. japaniza

6、tion = large firm story3ssd: an analytical framework(smith & meiksins, 1995; smith, 2005, 2008; smith and elger, 1994; 2005)work, employment, hrm management practices are shaped by three structural forces. but actors within workplaces must actively engage with these practices; not determinism, b

7、ut reflexivity and actor-centred action4 system effects political economy capitalism, state socialism, common structures and social relation forms voc framework capitalist forms developmental process inequality between developed and developing countries affect orientation towards transfer/learning/d

8、ominance society effects national institutional differences home and host societies dominance effects practices of dominant economies, dominant firms, become best practice corporate level effects relative autonomy of companies as political and institutional spaces to enact, facilitate and block proc

9、esses of learning and transfer - processual dynamics (gamble 2010)interplay of practices system, society & dominance the ssd frameworkstresses the interplay of different forces. a set of practices such as lean production, for example, may have begun as a dominant idea and then become more system

10、ic in nature, and understanding its nature and effects is assisted by considering the relevant linkages, as opposed to treating it either as a specifically japanese practice or simply as some context-free approach that will have the same meaning and effects anywhere (elger and smith 2005).” source e

11、dwards et al 2013: 6075the “china” story 6systems-transformation from state socialism to market capitalism; mixed system features, e.g. population controls formed in ss era remain in market era; movement towards neo-liberalism; but strong institutions and weak market relations (e.g. social networks,

12、 schools-firms linked in (smith and chan).society common heritage and great economic and geographical diversity of firm-level practicesdeveloping country learning markets, making capitalism, inwards fdi and outwards fdisoes decline, reform & revitalisationdominance unclearsoes strong in outward

13、fdilate appearance of large private firms- national champions?ssd and internationalisation of chinese mncs literature on chinese ofdi and internationalisation divides: - soes as only mncs; private firms perceived as always connected to the chinese state (e.g. huawei in us); chinese mncs as political

14、 actors; misconception that chinese workers in africa are convicts (hairong & sautman, 2012); large china in transition and 2 systems literature. culture and institutions obsession with guanxi and confucianism ; culturalist managerialism values, strategy, decision making, seen as unique. china i

15、n africa new imperialists narrative; china versus us narrative; china goes global; global reach; single company becomes archetypical china case - foxconn; huawei; lenovo.7researching chinese outward fdi ib litdeng (2013) analysis of 138 articles on chinese ofdi ib papers have to say about processes

16、within the firms, especially work and employment relations. in deng there are no references to workers, work or employment in the 138 papers on chinese ofdi 57 quantitative empirical studies; 24 use survey or questionnaire data mainly at the firm level; 33 use archival (primarily cross-sectional) da

17、tasets at a country or industry level using official chinese government aggregate data, thomson financial sdc database, or the cross-border m&as by listed firms in the shanghai and shenzhen stock exchanges) 21 qualitative empirical works, most use multiple cases or in-depth case studies and conc

18、entrate on prominent chinese companies such as haier, lenovo, tcl, and huawei.” 60 conceptual or perspective papers appear in cross-cultural and international journals. they tend to focus on the macroeconomic analysis of chinese ofdi trends and patterns and particularly in host countries such as the

19、 u.s. and african countries source: deng (2013: 515)8china case transfer & internationalisation there are theoretical problems with the integrated models of transfer, but empirically the china case challenges the idea of national integrated models that have been central to transfer debate see re

20、cent japanization literature. china does not present a single integrated business model, but several models state-owned enterprises, private business, village and townships enterprises, foreign-invested companies (joint ventures). zhang and peck (2013) from a regional economy perspective elaborate 5

21、 models of chinese capitalism (regional sub-national business models) guangdong, sunan (southern jiangsu province), wenzhou (zhejiang p.), zhongguancun (beijing silicon valley), and chongqing (city) business models. therefore in the chinese case we are dealing with an empirically more complicated st

22、ory. source: elger and smith, 2005; peck and theodore, 2007; zhang and peck 2012, 2013) 9china gdp by province (economist 2011)china exports by province (economist 2011)china case cont.12 we might therefore have multiple transfer stories or models and not a single sinification narrative of internati

23、onalisation or transfer. models are in contradiction and conflict with each other; some are rising, others being challenged; some internationalising guangdong model - flexible production, low regulation, low wages, dormitory labour regime (smith, 2003); others based around local resources, and polit

24、ical bargaining within ccp e.g. chongqing model; some have state as central actor, which may inhibit internationalisation but this has not been the case with investments in africa and other countries by chinese soe companies are resource seekers and have developed distinctive management systems base

25、d on a simple transfer of enclave casual labour regime (ck lee, 2009)chinese outward fdi chinese ofdi small in scale: growth is impressive; in 2011, chinese ofdi totalled with an average annual growth rate in the previous five years of 38.6% and the stock of chinese ofdi amounted to usd366 billion (

26、unctad, 2012). chinese ofdi is often compared to japanese ofdi in the 1980s and south korean ofdi in the 1990s, but china is much less developed than were japan and korea. chinas gdp per capita is about usd5,500, whereas japans gdp per capita reached usd12,000 in the 1980s and koreas was usd10,000 i

27、n the 1990s. chinas ofdi remains heavily focused on (but this changing); is , (but this is also changing) and unlike western fdi, it includes significant investment from , especially in africa and developing regions. europe and the us take around 25% each of annual chinese ofdi. in europe by number,

28、 in 2011 75% of investments are by private firms; but (hanemann and rosen 2012: 4)13chinas odi and cross-border acquisitions, 1982-2006 (nicolas & thomsen, 2008)14chinese ofdi in the eu-27 vs. the us, 2000-2012 (hkansson, 2013)15china whats inside goes outside? the outcome of some 30 years of th

29、eorising and empirical engagement with reform and transformation has been mixed. lee (2007) divides sunrise from sunset industries each with their own labour regimes, labour supply and working class politics. how does this divide affect internationalisation? some see in china a dominant form of bloo

30、dy taylorism, epitomised by one reading of the work regime enunciated by the taiwanese firm foxconn military discipline and ideology; task simplification; intensive work combining production and reproduction of labour power in huge industrial compounds that function like enclosed cities (pun and cha

31、n, 2010; pun et al 2013) huawei with longer-term relations between workers; limited use of agency workers; more innovation, more investment in skills and training and share ownership between workers and firm tells another story (rui, forthcoming) which represents the chinese labour process?16china -

32、 motivations & models of transfer go to know knowledge seeking identified as key motive of chinese outward foreign direct investment go to dodge investing overseas to get away from chinese practice at home or hide income (tax havens) go to prolong internationalisation to perpetuate home country

33、practices which are under pressure in the home territory go as the whole show - the state-owned investments go to return - repatriating or reversing assets from acquisitions back to china to capitalise on continued home country advantages (low cost production model/dormitory labour regime) - volvo c

34、ase17go to know knowledge seeking go to know knowledge seeking identified as key motive of chinese ofdi (child and rodrigues) early case studies on chinese firms in city of london (miao zhang, 2003) chinese managers learnt was how to enrich themselves as individuals; opportunistic investments withou

35、t organisational constraints around the managerial elite, allowed managers to learn and run away from the firms that all went bust. 18go to know knowledge seeking huawei case turkey subsidiary of huawei in istanbul, there were 1000 employees, but 200 of them were chinese - high expatriate rate (1 in

36、 5) has to be unique in internationalisation, even in a country like turkey were wage costs will not be as high as in western europe.huaweis domestic employees are greater than those working in the 140 overseas subsidiaries, but more revenue was generated overseas than in the prc since 2008. like ma

37、ny chinese mncs it has a competitive advantage in having a large pool of inexpensive workers in the home territory, and therefore one of the reasons for ofdi is not to escape the high costs of domestic labour, as is the case with many western mncs. they will not impose an ideological no union policy

38、; they are more pragmatic, and work within a countrys culture19go to prolong internationalisation is push factor - within and beyond china guangdong model in pearl river delta change upward pressure on wages; rising costs of materials; rise in the value of the yuan; labour legislation - 2008/2009 la

39、bour contract law; unprecedented external dynamics (e.g. the slackening global demand after the 2008 global financial crisis), have further increased pressure on model; guangdong local government desire to move up value chain (zhu and he, 2013) firms that did not close, moved within china to cheaper

40、 productions sites, and new entrants and not to the coast; there was also some internationalisation to other asian countries in order to maintain (cheap labour) active in vietnam and malaysia (zhang, 2012; miu, 2013) ; foxconn in czech republic (sacchetto and andrijasevic, 2013) (using migrant labou

41、r from romania and bulgaria in order to lower labour costs; employment through agencies; segmentation of workforce transferred; rigid labour controls20go as the whole show - the state-owned investments chinese capitalist peculiarities in africa (ck lee) chinese “special economic zones” in africa ano

42、ther employer or a new imperialism? outbid other firms for mining contracts by 30% on average due to: delayed payment - paid at end of contract (2years) 2 year posting migrant agency workers from surplus labour in china bonded management tied to firm; living at work; men on their own, reduced costs

43、of reproduction; constrained mobility; all management and professional jobs are chinese what we call dormitory labour regime (smith, 2003) is internationalised by chinese firms. state to state patronage between chinese soes and african states closed these can be an example of a space within a countr

44、y where practices from another national model can be implemented with less pressure from local institutional forces. some criticisms see mohan (2013)21go as the whole show cont. not just in africa singapore case chinese construction company (state-owned) in singapore where the majority of workforce

45、(5000) were contracted from china. scarcity of building labour in singapore, but politics, with reluctance to employ malaysians many of whom prefer to work in the service sector (rui). chinese workers were working away from home, not tied into local solidarities as internal-migrant workers and on 2

46、year contracts22go to return - reverse transfer zhang and edwards (2007) assumes rational transfer & learning based on chinese government policy (international borrowings (jiejian) 1980s and motivation of chinese expatriates to learn. action research? zhang trainer in some case study firms chine

47、se early arrivers actively adapt to uk environment localization cases were subsidiaries of soes in finance and trade in london reverse transfer limited nave managerialism - learning is good for all understates political process of transfer; sectional interests of managers; institutional fields of tr

48、ansfer. 23go to return continue access to labour surpluses at home jan knoerich (2012) argues chinese fdi is driven by a unique set of needs, namely to get resources that they do not have at home and as such internationalisation is not an expression of having dominated home markets the firms takes i

49、ts strengths into the international markets . knoerich suggests that a significant home advantage for chinese firms is the abundance of cheap labour at home. internationalisation can bring back production to china - reverse diffusion and vanguard role of subsidiaries: (edwards, 1998; ferner & ed

50、wards, 2000) mncs attempting to improve their international position by learning from more developed countries; (zhang & edwards, 2007) but chinese mncs home-country advantage being trained, disciplined and inexpensive labour can also mean they . 24some generic features of hr & work organisa

51、tion practices of chinese mncs observation that chinese firms when acquiring or investing seek efficiencies through changing the composition of the labour force: bringing in younger cheaper workers; students & trainees as full time; building institutional links to colleges & schools to get l

52、abour (motor bike case in italy; huawei case in africa; canadian pulp paper firm (zheng,2014). chinese mncs are dynamic, often heavy users of expatriates. shen and edwards (2006) state that chinese international firms are more ethnocentric in usage of expatriates ; use of home based nationals extend

53、s a long way down the organisation especially in resource-based fdi mnc acts as conduit for labour flow from china to overseas investment site and continuation of home based management-labour system.25generic features cont.despotic labour regimes are said to characterise employment relations in chin

54、ese firms bonded management - lee (2009) in work on chinese firms in zambia heavy use of employment agencies for dispatched workers; contract segregation within the firm agency and non-agency staff labour relations in chinese overseas subsidiaries. shen and edwards (2006) case studies of overseas ch

55、inese companies in different sectors conclude that they shared: an autocratic management style; low employee involvement; lack of openness in communications; absence of formal policies toward employee relations; preference for no trade union recognition in chinese overseas operations26generic featur

56、es cont. labour is not retained within the boundaries of the firm, and while labour supply may be channelled through firm-level networks, especially for labour capture, workers exercise mobility power by breaking free of these firms and establishing their own companies, or acting in concert with chi

57、nese family networks to establish such autonomous firms. spill-over in africa and europe (prato italy smes) johanson 200927how do we deal with prc & greater china cases? greater china mncs shaping the chinese economic growth, work and employment; pattern of fdi from hong kong, singapore and taiw

58、an into china and now internationally. (henderson et al 2013) often fdi is from prc but badged as fdi to gain benefits that go to fdi; papers on greater china mncs in middle east, se asia often in export processing sectors (textiles and toys and electronics assembly) and internationalising as labour

59、 costs, regulation and upgrading is being pursued in china by central and local authorities. how do we deal with prc and greater china cases?28conclusions - research questions29 key questions: hrm and expatriate management at chinese mncs: application of ssd framework to chinese case tensions betwee

60、n home and away practices, and different effects dynamics in ssd in chinese case are forms of controls in chinese mncs abroad a reflection of home practices; or adaptation to working abroad avoiding runaways - leaving the firm does the use of expatriates further down the organisation in chinese mncs apply in all sectors? how does chinese mncs heavy use of expatriates change current de

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