Index and Abstracts

Volume 12, Number 4
December 2007

The Impact of Entrepreneurial Orientation and Ownership Type on Firm Performance in the Emerging Region of China
Jintong Tang, Zhi Tang, Yuli Zhang and Qianwen Li

On the Financial Performance of Private Enterprises in China
Hung-Gay Fung, Xiaoqing Eleanor Xu and Qi-Zi Zhang

Institutional Changes Affecting Entrepreneurship in China
Nir Kshetri

Establishment, Survival, Sales Growth and Entry Strategies of Japanese MNCs Subsidiaries in India
Mehdi Rasouli Ghahroudi and Yasuo Hoshino

Ethnic Entrepreneurship: Studying Chinese and Indian Students in the United States
Wei Li

Learning About Women, Economic Development, Entrepreneurship, and the Environment in India: A Case Study
Nancy Bertaux and Elaine Crable

The Impact of Entrepreneurial Orientation and Ownership Type on Firm Performance in the Emerging Region of China

Jintong Tang, Zhi Tang, Yuli Zhang and Qianwen Li

Entrepreneurial orientation (EO) has been widely studied in the U.S. context, but its examination in emerging regions such as China has been very limited. In this study, we investigate the EO-performance relationship in China. Results based on a sample of 166 firms in Northern China confirm the positive influence of EO on performance. More importantly, the EO-performance relationship is more positive among state-owned enterprises (SOEs) than among privately-owned enterprises (POEs). Research and practical implications for EO in China are discussed.

On the Financial Performance of Private Enterprises in China

Hung-Gay Fung, Xiaoqing Eleanor Xu and Qi-Zi Zhang

Using the 2002 and 2000 c omprehensive survey s of Chinese entrepreneurs conducted by the National Association of Private Entrepreneurs and the Chinese Academy of Social Sciences, we examine the characteristics and financial performance of private enterprises in China. Entrepreneurs, on average, are 4 0 years old and many are well-educated; more than one-third of them have a college degree or higher. Their companies are young, with an average age of six to seven years. E ntrepreneurs contribute most of the equity capital to the private firms, which in general, are profitable with an average return on assets of 16 percent in 2002 and 11 percent in 2000 . Further empirical analysis demonstrates the important impact of social, financing and human capital on firms’ financial performance. We find that social capital (measured by charitable contributions), financing capital (measured by the equity-to-total capital ratio), and human capital have significant effects on firm profitability, and younger entrepreneurs tend to be more successful in the new Chinese market economy.

Institutional Changes Affecting Entrepreneurship in China

Nir Kshetri

Institutions influencing entrepreneurship are undergoing significant transformation in China. During the Mao era, private entrepreneurship was virtually eradicated and was a political taboo. As reflected in the macro-level economic data, there has been an evolution of entrepreneur-friendly institutions in the country. A constellation of factors linked to China’s global integration is pushing through fundamental changes in institutions related to Chinese entrepreneurship. The logics or governance structures and organizing principles related to entrepreneurship are rapidly changing in the country. This paper examines forces influencing the diffusion of instrumental values promoting entrepreneurship among Chinese institutional actors.

Establishment, Survival, Sales Growth and Entry Strategies of Japanese MNCs Subsidiaries in India

Mehdi Rasouli Ghahroudi and Yasuo Hoshino

This empirical study explores first the relationship between operating years and entry strategies based on wholly-owned and joint venture companies. Second, we examine the effects of equity ownership, size, entry strategy and subsidiary age on the sales growth ratio and the subsidiary’s survival. Our findings show that in recent periods, the multi-national companies (MNCs) prefer to acquire high levels of equity ownership, including full ownership subsidiaries, especially when the subsidiary is in the manufacturing industry. Our results imply that capital, the age of the venture, the number of employees and full equity ownership affect survival. Finally, we find that subsidiaries with a small number of employees are likely to have a superior sales growth ratio and are more likely to survive.

Ethnic Entrepreneurship: Studying Chinese and Indian Students in the United States

Wei Li

Current literature has not touched upon the topic of entrepreneurial intention among international students. Using the theory of planned behavior as a theoretical framework, this study addresses this gap by looking at the entrepreneurial intentions of Chinese and Indian students at a top university located in the Midwest United States. This study also explores their perceived barriers of being entrepreneurs in the United States and expected help from the university. Both survey and interviews are used for data collection and analysis. The research finding implications for educators are also provided.

Learning About Women, Economic Development, Entrepreneurship, and the Environment in India: A Case Study

Nancy Bertaux and Elaine Crable

On a recent semester-long stay in India, students from Xavier University ( Cincinnati, Ohio) learned about a variety of social and economic development issues, with an emphasis on the role and status of women. This study describes and assesses the impact and effectiveness of their learning with a particular focus on their exposure to Meerut Seva Samaj (MSS), one economic development initiative concentrating on rural women.

The Indian economy has recently witnessed an increase in entrepreneurship among women. Entrepreneurship often allows women to engage in home-based work so that they still can attend to their domestic duties, while also helping to financially support the family. Banks, companies, and NGOs (non-governmental organizations) are finding that offering micro-credit, or small loans, and other types of entrepreneurial assistance can help women start businesses. Meerut Seva Samaj provides a concrete example of how Indian women, especially in rural areas, can become successful entrepreneurs with the help of technology, training and other resources. MSS also assists local communities in the use of biogas, an environmentally friendly energy source that improves the environment and fertility of land in rural areas. The study places this service learning case study from India in the context of the literature on women, economic development, entrepreneurship and environmental issues.