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By Jin Zhang

This publication examines the position of company constitution, together with the function of company headquarters, within the luck of enormous organizations in China.

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Additional resources for Catch-up and competitiveness in China : the case of large firms in the oil industry

Sample text

Easier access to capital, and [an] ability to attract and hold the confidence of consumers’ (Penrose, 1995: 260). Moreover, there exists competition among large firms. Their dominant market position is not stable as the market grows increasingly bigger and consumers’ taste changes to favour more innovative brands. The decline in large firms’ performance weakens the barrier to entry for potential competitors. On the other hand, the constant threat from the competitors and the effort to secure their market position encourages large firms to invest heavily in innovation and research.

This gives the Chinese 22 Function of corporate headquarters businesses the flexibility to respond quickly to changes in market demand (Chen, 1996: 84–94). However, as Redding points out, the vast majority of Chinese family businesses are small and they usually specialise in one field of expertise. The exception of the large corporation came into being only under two conditions – an extremely knowledgeable chief executive officer with acute business senses and a ‘soft’ environment usually under political patronage allowing the development of a monopolistic position.

Moreover, mentoring relationships are arranged to facilitate continual learning and growth. Systematic selection and placement processes are used to make the best use of people’s skills and abilities. For employees moving overseas, ongoing, open conversations about their future and plans for re-entry into their home country will be provided. When tensions between work and home life arise, employees are expected to discuss them with their manager, who is expected to help individuals obtain constructive support in handling such tensions.

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