04 Individual Portfolio Assignment Sample
Here’s the best sample of 04 Individual Portfolio Assignment, Written by the expert.
Concept of the article
The article has focused on the business groups of Chinese state-owned enterprises. It has been argued that vertical interlocks of business groups that are Chinese state-owned are important processes for information exchange and coordination between affiliates and top companies. The article has discussed that the business groups in China usually have a multi-level pyramidal structure (Arnoldi et al. 2019). The main approach of interlocks in the literature based on the theory of resource dependence is that they are processes used by companies to reduce environmental uncertainties.
The concept of coordination, control, and resource dependence has been discussed effectively in this article. In the concept of state-owned groups, the top agencies are regulated through the government which exercises effective control over larger groups through the top agencies. By installing an interlock, an authorized firm can obtain protection against tunneling from apex firm. The impact of government levels has been defined in this article (Arnoldi et al. 2019). The research has an effective concern regarding whether there is a difference between government levels in establishing vertical interlock in the groups of state-owned Chinese businesses.
In terms of defining vertical interlocks in the groups of state-owned or controlled, the researcher has collected information from different sources for instance Wind databases, and annual reports. The dependent variable of this article focuses on vertical interlock between a business group’s top regulatory form and a listed organization at a lower level of the pyramid (Arnoldi et al. 2019). The concept of the study focuses on the systemic differences on the basis of the level of the pyramidal group, level of government, and potential agency problems. The main idea of this article relies on the vertical interlocks in the groups of Chinese state-owned businesses.
Contribution of the article
The article states the state capitalism of Chinese government-owned businesses with a parallel connected network. The article provides knowledge about the working procedures of government with the vertical interlocking approach for having coordination and information interchanging between the top organizations or firms. Vertical interlocking increases the chance of having higher-level government ownerships to businesses that would aid the capital to be more extensive (Arnoldi et al. 2019). The practitioners can easily be helped with providing information in this article about interlocking and its inner mechanism for the growing capitalism of Chinese businesses. This research also delivers data about the close alliances between local government officials and business leaders through a knot that increases the effect of interlocking.
The agency cost is a fact in this vertical interlocking pattern of government business setups where it varies according to the extent of governance. This research can help the idea of vertical interlocking to the business to be approached with fewer problems in governance (Arnoldi et al. 2019). The Chinese government is persistent in interfering with corporate life where the research lacked the data about governmental management to SOEs. This article has focused on the importance of interlocks for the government’s greater need for capitalism and increasing networking with business expansion. It offers information about the level and difference of complexity between state-owned and centralized governmental business setups.
References
Arnoldi, J., Villadsen, A.R., Chen, X. and Na, C., 2019. Multi-level state capitalism: Chinese state-owned buisness groups. Management and Organization Review, 15(1), pp.55-79. Available at: https://www.cambridge.org/core/journals/management-and-organization-review/article/multilevel-state-capitalism-chinese-stateowned-buisness-groups/B53DD10A6DAFF9C6F6A2C1D4CD2C6A53
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