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Good Morning China

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© China Insights Today

Issue 1, September-December 2007

China Insights Today Doulbe Inaugural Issue, September-December 2007, All rights reserved,

In this issue Editorial Patricia Ordonez de Pablos and Miltiadis Lytras, Editors in Chief of China Insights Today comment on the launch of the Magazine and the China‟ s Potential.

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Interviewing the leaders In this issue, we host eight interviews of Leaders and Opinion Makers on China Matters.

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News Briefs What is going on today in Mainland China, Hong Kong (SAR), Macao (SAR) and Taiwan province?

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Short Articles In this issue 40+ articles, with Interesting insights on China economy, EU-China, Social connections (“guanxi”) in China, Innovation and technology, Chinese culture and firms, Foreign companies in China and more topics.

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Book Review Know the new books on China

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Red Gate Corner Finding your partner (academia, business, governments, institutions) in Mainland China, Hong Kong (SAR), Macao (SAR) and Taiwan province

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Events Keep updated on events in Mainland China, Hong Kong (SAR), Macao (SAR) and Taiwan province

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China Directory Find the place where you can get what you need

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China Quiz Test your knowedge on China

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Issue 1, September-December 2007

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Issue 1, September-December 2007

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Issue 1, September-December 2007

China Insights Today

ON

BUSINESS, TECHNOLOGY CULTURE RESEARCH, INNOVATION TRADE FINANCE TOURISM SCIENCE

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Issue 1, September-December 2007

China Insights Today Doulbe Inaugural Issue, September-December 2007, All rights reserved.

In this issue:

42 Short Articles 6 Sections

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Issue 1, September-December 2007

China Insights Today Doulbe Inaugural Issue, September-December 2007, All rights reserved,

Table of Contents Editors’ Selections Bread, circuses and repression China prepares for the 2008 Olympics by Albrecht Rothacher China: A Player or Bystander in the Global E-economy by. Dan Ben-Canaan, Heilongjiang University, School of Western Studies Strategic use of e-commerce by SMEs in China: A Picture of Best practice from Shenzen Special Economic Zone by Guangqian Peng, Emiel Wubben, Harry Bremmers, Business Administration Department, Wageningen University and Research Centre and Yiming Yuan, Shenzhen University ―Pushing the String‖- Why the US strategy for improving China's IPR Enforcement can't work by Jihong Sanderson, Executive Director of Center for Research on Chinese and American Strategic Cooperation at UC Berkeley How Technology and Globalisation are driving China in the 21st Century by Andrew K P Leung, Andrew Leung International Consultants Limited Insights in China’s companies ―going Global by Cora Jungbluth, M. A., University of Heidelberg Moving from Open Door to the GLOBAL: China goes on the world stage by Paola Bellabona, Consultant on Internationalization Processes and Chinese Market and Francesca Spigarelli, University of Macerata Cooperative Initiatives and Democratic Development in Chinese Countryside by Yang Chen, The China and Transitional Economies Research Centre, University of Northampton The Plasticity of China’s Political and Economic Institutions and Implications for International Investors by Tailan Chi, University of Kansas The Historical and Cultural Contexts of Chinese Language by Wang Ping, The University of New South Wales

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Issue 1, September-December 2007

ON Europe-China A Joint EU-China Roadmap for Mobile and Digital Convergence by Xiaofeng Ma, CeTIM, Center for Technology and Innovation Management China-UK Business Idea Competition by Yu Xiong, Nottingham Trent University Defining EU FDI Deflection between China and the CEECs Dr. Xiaojun Wei, Grant MacEwan School of Business Introduction to China – UK: Connections through Culture (CtC) British Council Definition and Sources of Innovation in Europe and Asia – A Matter of Perspective? Alexander Brem, University of Erlangen-Nuremberg ON Guanxi What managers need to know about social connections and business in China by Prof. Patricia Ordoñez de Pablos, University of Oviedo, Spain and Miltiadis D. Lytras, Open Research Society, NGO. Getting To Dui: help and hindrance from commentators by G. D. Donleavy, University of Macau How ‖Guanxi‖ came into being by Xinxin Fang, College of International Education, Capital Normal University Guanxi and Information Technologies in the Chinese Inter-organizational System by Liang-Hung Lin, Department of International Business, National Kaohsiung University of Applied Sciences Does Guanxi really matter in the workplace in China? by Wei-ping WU, Department of Marketing, School of Business, Hong Kong Baptist University Top executives' directorate networks and business value creation in Taiwan by Chaur-Shiuh Young, National Cheng Kung University Chinese Guanxi: what is it? by Zhenzhong Ma, Odette School of Business, University of Windsor

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Issue 1, September-December 2007

ON Innovation/Technology High-tech industrial parks in China - Introduction to the China-Singapore Suzhou Industrial Park by Chih-Cheng Lin & Zheng Ma, Operations Management Division, Business School, The University of Nottingham Nanotechnology Development in China by Jun-You Lin, Department and Graduate Institute of Business Administration,National Taiwan University Longitudinal Innovation Development in China from 1979 to 2006 year by Chun-Yao Tseng, Department of Business Administration, Tunghai University Connections between Types of Innovation, Types of Organizational Change and Levels of Learning: A Study of Chinese Organizations by Ruth Alas and Wei Sun, Estonian Business School ON Chinese culture and firms Chinese Culture challenges to expatriates in Hotel Industry by Dr. Wei Chen and Mikhail Myasin, Sheffield Hallam University The influence of institutional framework and corporate culture on employees' work related goals: an exploratory study of china by Marjaana Gunkel and Birgitta Wolff, Otto-von-Guericke University, Magdeburg, Faculty of Economics and Management, Magdeburg, Germany and Edward J. Lusk, State University of New York (SUNY), College at Plattsburgh: School of Business and Economics, Plattsburgh, NY, USA & The Wharton School of the University of Pennsylvania The Nature of Chinese Collective Values: Formation and Evolution by MO Pak Hung, Hong Kong Baptist University, School of Business Dynamics of Work-related Values in Chinese Organizations by Ruth Alas, Wei Sun and Jaan Ennulo, Estonian Business School Decision making delegation: How effective is this practice among Chinese managers? by Therese A Joiner, School of Business, La Trobe University, Steve Bakalis, School of Applied Economics, Victoria University,Jerome Choy, School of Business, La Trobe University Intercultural Re-entry Experience of Chinese managers by Aidan Kelly and Yan Zhang, UCD Michael Smurfit School of Business, Ireland and Xiaojun Wei, School of International Studies, University of International Business and Economics

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ON Sector Analysis / Foreign Firms in China E-business integration and its antecedents: an empirical study of Taiwanese electronics and information technology manufacturers Kuang-Peng Hung and Yun-Hwa Chiang, MingChuan University Technology transfer in china — the recipient’s perspective by Jun Jin, Zhejiang University Automotive industry with end of vehicles life in china by Zheng Ma & Chih-Cheng Lin, The University of Nottingham Political, Economic, and Communicative Obstacles Facing Chinese Automotive Companies’ US Expansion by Hongmei Gao, Kevin Work and Bradford Sill, Kennesaw State University E-enabled vertically integrated organizations in the taiwanese electronics firms by Liang-Hung Lin, National Kaohsiung University of Applied Sciences Management of Software offshoring to China: Towards further globalization of IT work by by Donald Chand & Min Zhang, Bentley College Knowledge a critical factor in the internationalization of smes – the case of Portuguese SMEs in China by Fernanda Ilhéu, Camara Comércio e Indústria Luso Chinesa China Media by Gang Guo, The University of Mississippi Moon cakes, Bamboo Dumplings and Red Bean Paste: Exploring Starbuck’s Seasonal Menu with Chinese Flavors by Shiau, Hong-Chi, Shih-Hsin University The 2007 Chinese Pet Food Crisis in the U.S.: Analysis and Suggestions by Hongmei Gao Michelle Wagner, Erin Brown, Casey Metcalf, Maria Randazzo, Kennesaw State University Assessing the Impact of Foreign Banks’ Entry into China’s Banking by Xian Huang and Fuping Xiong, from School of Economics and Management, Wuhan University, Xiaoling Hu, Business School, University of Gloucestershire, Xialju Hu, School of English, Jili University Recent Development in Risk Management by Desheng Dash Wu and David R. Koenig, RiskChina Research Center, University of Toronto and PRMIA Institute – China

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Issue 1, September-December 2007

China Insights Today Doulbe Inaugural Issue, September-December 2007, All rights reserved,

Editors Selections

Bread, circuses and repression China prepares for the 2008 Olympics by Albrecht Rothacher China: A Player or Bystander in the Global E-economy by. Dan Ben-Canaan, Heilongjiang University, School of Western Studies Strategic use of e-commerce by SMEs in China: A Picture of Best practice from Shenzen Special Economic Zone by Guangqian Peng, Emiel Wubben, Harry Bremmers, Business Administration Department, Wageningen University and Research Centre and Yiming Yuan, Shenzhen University

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Issue 1, September-December 2007

China Insights Today Doulbe Inaugural Issue, September-December 2007, All rights reserved,

Editors Selections (continued) ―Pushing the String‖- Why the US strategy for improving China's IPR Enforcement can't work by Jihong Sanderson, Executive Director of Center for Research on Chinese and American Strategic Cooperation at UC Berkeley How Technology and Globalisation are driving China in the 21st Century by Andrew K P Leung, Andrew Leung International Consultants Limited Insights in China’s companies ―going Global by Cora Jungbluth, M. A., University of Heidelberg Moving from Open Door to the GLOBAL: China goes on the world stage by Paola Bellabona, Consultant on Internationalization Processes and Chinese Market and Francesca Spigarelli, University of Macerata Cooperative Initiatives and Democratic Development in Chinese Countryside by Yang Chen, The China and Transitional Economies Research Centre, University of Northampton The Plasticity of China’s Political and Economic Institutions and Implications for International Investors by Tailan Chi, University of Kansas The Historical and Cultural Contexts of Chinese Language by Wang Ping, The University of New South Wales

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Issue 1, September-December 2007

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Definition and Sources of Innovation in Europe and Asia – A Matter of Perspective? By Alexander Brem, University of Erlangen-Nuremberg , Lange Gasse 20, 90403 Nuremberg, Germany In 2004, Alexander Brem graduated from the Friedrich-Alexander-University of Erlangen-Nuremberg, Germany achieving the German equivalent of a Masters in Business Administration, and having specialized in Entrepreneurship. He is currently Senior Research and Teaching Assistant at the Chair of Industrial Management, Friedrich-Alexander-University of Erlangen-Nuremberg. His current research interest includes idea and innovation management as well as strategic entrepreneurship. He is author and presenter of numerous scientific articles; moreover he serves as Reviewer for the Academy of Management and is founder and Managing Director of a Nuremberg-based business consultancy company.

Abstract: Innovation is not just a very popular buzzword, but a very multi-faceted one as well. In this context, especially between different countries

and continents, there are essential differences in terms and definitions of innovation and innovative activities, especially between Europe and Asia. Hence, before the background of globalized economies, a common understanding is needed for successful future intercultural projects and appropriate management. Especially in scientific research, a first step should be made in this direction.

To date, there is still no common definition existing, especially within the continents let alone the different t present, innovation is one of the most popular countries. Facing the variety of branches, industries and buzzwords. There is no successful company that regions, in which companies are acting, not to mention the does not use this term in corporate different individual characteristics and needs of the enterprises, this statement is not very surprising. communications and marketing.

Background

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aking a closer look on innovation management literature, there are different streams, differing mainly by region, especially the European and Asian perspectives are partly contradictive. There are even differences within certain countries. For example, Hauschildt mentions 18 different definitions of innovation (Hauschildt, 2004). Due to the proceeding globalization of markets and companies, the current status needs to be updated, so that firms have a worldwide understanding of innovation and the activities that they can base their innovation management strategy on. People who are working together in international projects, especially within Research and Development, need to have the same wording for their lasting collaboration. Otherwise these projects are often doomed to failure.

Different views on the same issue

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he definition of innovation is commonly based on any kind of (technological) invention with the accordant transfer of a new idea into a commercial product. In a broader sense, any method which is differs from a traditional one can be called an innovation. The European understanding of innovation focuses almost solely on the invention aspect combined with the factor of a successful market introduction. The common Asian view often differs in terms of the origin of the innovation. It is based on taking another; already existing technology or product, modifying it and introducing it to the market as well in research and concurrently in practice. Therefore it is not essential, where the original source of the innovation lies, the focus hereby is mostly on the successful commercialization of an idea (independent of certain trademark or property rights). International conferences that deal with innovation, like ISMOT or ICMIT, often face views colliding with one another in topics such as open innovation or innovation process models. As a good example, Chinese researchers are talking about „indigenous innovation‟, which contains the following steps: (Zhen Xin-li, 2005; Li Guo-jie, 2005)  Adopting the original innovation

Issue 1, September-December 2007

207). Following this approach, innovation is not only based on an invention and the appropriate successful introduction into the market, but also on the adaptation of external technologies and their further development. This approach can `confuse` European researchers, without any valuation of the potential correctness of this way of thinking. Because this view of innovation implies - at least in technical way of thinking - that innovative activities can be completely based on external knowledge absorption, what is not within the scope of the common European terms of innovation. As Chen et al. (2006) are stating, indigenous innovation is for them not just the key success factor for their researched case example (which was on the company Haier, one of the world‟s largest consumer product manufacturers), but a main goal of the Chinese innovation policy as well. So maybe the definition of indigenous innovation is an important dimension of innovation, which is currently just not included in recent innovation literature. Surprisingly, up to now there are no real scientific debates taking place on these topics, at least not in public.

Future directions

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onsequently, to gain deeper insights into the various views of terms and definitions of innovation and innovative activities, a scientific debate is suggested where active talks and interdisciplinary discussions about theories, models and research results take place, especially before the background of different culture areas. Common definitions may not be a result of these first debates, but having a better understanding of the various views would be already a great benefit for all participating parties.

Bibliography Chen et al. (2006. Jin, He, Yao. TIM based indigenous innovation: experiences from Haier Group. 2006 IEEE International Conference on Management of Innovation and Technology Proceedings, pp. 207-210. Li Guo-jie (2005). Indigenous innovation capability is the key  Integration of the innovation into own innovative tache for national competence, Guangming Daily, Feb. 24. activities Hauschildt (2004). Innovationsmanagement. München:  Developing secondary innovation based on importing Vahlen. Zhen Xin-li, 2005. Enhancing indigenous innovation and absorbing foreign technologies Hence, indigenous innovation is seen as „a process to explore capability is the key tache for changing economic development ways, Science Time, May 18. potential market with in-house Research and Development activities and external knowledge acquisition‟. (Chen et al., 2006, p.

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