International Business and the Entry of China into the Global Economy
New Horizons in International Business series
Edited by Robert Pearce
Chapter 6: Corporate Hybrids and the Co-evolution of Institutions and Enterprise in China
6. Corporate hybrids and the coevolution of institutions and enterprise in China Simon Collinson and Yanxue Sun INTRODUCTION There is a renewed interest, for obvious reasons, in exploring different forms of capitalism. Debates about the role of the state and optimum forms of regulatory intervention in the market follow the aftermath of the systemic problems affecting the neoliberal ‘US model’ leading to a search for alternatives to these forms of liberal market system (Whitley, 2009a, 2009b). Comparisons between those economies following the US model and emerging economies that are experiencing exceptional growth under the guidance of strong state agencies are part of this debate. Because of this renewed interest we are also finding clearer evidence of the wide variety of models that already exist in less well-researched parts of the world, where more interventionist states have the combined roles as owner, coordinator, regulator or entrepreneur in the market. The two most prominent models, China and India, illustrate this better than most, with very different parts played by central government (functioning and enabling in China, less so in India) and civil society (‘emasculated in China and vibrant in India’; Khanna, 2009). Differences in the levels and forms of government intervention in the market have resulted in the evolution of a wide variety of forms of enterprise, in terms of governance structures, incentive systems and resourceallocation mechanisms, than we have hitherto fully recognized. Despite the tendency, following Coasian or Williamsonian transactions cost approaches, to adopt a somewhat polarized view of markets and...