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A Comparative Study of the Government-Enterprise Relationship in China and the United States

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A Comparative Study of the Government-Enterprise Relationship in China and the United States BETWEEN THE STATE AND THE MARKET A Comparative Study of the Government-Enterprise Relationship in China and the United States SIXIN SHENG A THESIS IN FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY SCHOOL OF MANAGEMENT AUSTRALIAN SCHOOL OF BUSINESS UNIVERSITY OF NEW SOUTH WALES FEBRUARY 2013 PLEASE TYPE THE UNIVERSITY OF NEW SOUTH WALES Thesis/Dissertation Sheet Surname or Famtly name· SHENG Ftrst name Sixln Other nameis Abbrevtalion for degree as gtven tn the Untverstty calendar PHD School: School of Management Faculty Australian School of Business Hto· 8.,,..,, tho Stot. '"'tho Morl<ot A Compo"tt" Study of tho Go,.mmo"'·E"'"'"" Rolotlo,ohip'" Ch'"• '"' "" """'' S"'*' l Abstract 350 words maximum: (PLEASE TYPE) Corporate managers nowadays have to carefully cons1der the tnteractton between bus1ness and governments in both domestic and overseas operations, with the main challenge be1ng posed by the persistent conflict between the state and the market. In the context of unprecedented development in China and recent challenges in western economtes, largely attributed to the way governments regulate the business enwonments in these countries, thts d1ssertat1on comparatively examines China's and Untied States' development models with focus on the government-enterprise (G-E) relattonshlp The aim of this comparlson ts to provide a solid theoretical foundation for evaluattng the compet1ng claims of superiority of one model over the other, and to formulate 1nsights for an improved understanding of the G-E relationship In general. Based on an interdisciplinary comparattve study of the two countries' G-E relationship systems, thts dtssertallon demonstrates that the G-E relationship is an historically path-dependent phenomenon both tn Ch1na and the United States, with institutional and ideological factors playing an essential role in the G-E relationship in both countries. The analysis of the two systems leads to the conclusion that China and the Untied States each have certam advantages and diSadvantages with regard to their G-E relationship models, making it impossible to clatm the superionty of one model over the other However. the analysts presented 1n this d1ssertat1on reveals that the G-E relationship in general I can be improved through a contingent approach aimed at achieving a dynamic balance between the state and the market. The specific theoretical contnbut1on consists tn showing how the historical context of a country. including particular institutional pressures and ideological tradlttons may shape the G-E relationship, while also being the source of potentialtmbalances that must be correctly assessed before recommendtng any adaptive measures. While analysing the G-E relationship In China and the United States. this thesis moves the conversatton from 1 contrasting country models to acknowledging the value of both market forces and state control when thetr use ts · consistent with the specific htstorical. Jnstltuttonal. and ideological context of a country Declaration relating to disposition or project thesis/dissertation I hereby grant to the University of New Soutt'l Wales or its agents the rig hi lo archive and to make avatlable my thests or dissertation in whole or tn part in the University libraries tn all forms of medta. now or here alter known, subject to the provisions of the Copynght Act 1968 I retain all property rights, such as patent nghts I also retatn the nght louse In future works (such as arttcles or books) all or part of thts thests or dtssertalton I also authortse Untverstty Mtcrofitms to use the 350 word abstract of my tttests tn Dtssertatton Abstracts lntemattonal (this 1s applicable to doctoral '"(-,"'/. "(} /!;j.,'i\., Jlllfi#7J /) rJ ~~ . ~ . ·.. JA?f~ . ), '8- Stgnature V ~ .fvrtness Date The University recogntses that there may be excepttonal ctrcumstances requtrtng restricttons on copying or condittons on use. Requests for restnctton for a penod of up to 2 years must be made tn writing. Requests tor a longer pertod of restriCtion may be considered in exceptional ctrcumstances and re ulre the a roval of the Dean of Graduate Research r:·USEONLV Date of completion of reqwements for Aware! THIS SliEET IS TO BE GLUED TO THE INSIDE FRONT COVER OF THE THESIS COPYRIGHT STATEMENT 'I hereby grant the University of New South Wales or its agents the right to archive and to make available my thesis or dissertation in whole or part in the University libraries in all forms of media, now or here after known, subject to the provisions of the Copyright Act 1968. I retain all proprietary rights, such as patent rights. I also retain the right to use in future works (such as articles or books) all or part of this thesis or dissertation. I also authorise University Microfilms to use the 350 word abstract of my thesis in Dissertation Abstract International (this is applicable to doctoral theses only). I have either used no substantial portions of copyright material in my thesis or I have obtained permission to use copyright material; where permission has not been granted I have applied/will apply for a partial restriction of the digital copy of ::~:~;·~~~ Date . ~.i.) .: .... k.:..t.%..... ................................... .... AUTHENTICITY STATEMENT 'I certify that the Library deposit digital copy is a direct equivalent of the final officially approved version of my thesis. No emendation of content has occurred and if there are any minor variations in formatting, they are the result of the conversion to digital format.' Signed Date .."J::f?.l 7.. .' ..... ~ . .·.. .( .8........................................... .. ORIGINALITY STATEMENT 'I hereby declare that this submission is my own work and to the best of my knowledge it contains no materials previously published or written by another person, or substantial proportions of material which have been accepted for the award of any other degree or diploma at UNSW or any other educational institution, except where due acknowledgement is made in the thesis. Any contribution made to the research by others, with whom I have worked at UNSW or elsewhere, is explicitly acknowledged in the thesis. I also declare that the intellectual content of this thesis is the product of my own work, except to the extent that assistance from others in the project's design and conception or in style, presentation and linguistic expression is acknowledged.' /A iliA /}~,x.,~v Signed .. 7-.~ .W..~~ .. / ........... ................ ........ .. 1-<J(Z · ? ·/ 'if Date ............../. ........ .................. ······················· Acknowledgements Numerous people have given me invaluable help with this dissertation. Without their assistance, especially their knowledge and academic insights, I could not have completed it. Now that the end of my doctoral study is within view, it is time to express my appreciation to my supporters. First of all, I want to express the highest appreciation to my supervisor, Dr. Dan V. Caprar. He showed faith in my academic potential and capacity and provided strong support for obtaining a full scholarship, which was essential to my ability to complete my studies in Australia. As a supervisor, Dr. Caprar not only imparted important academic knowledge and taught me critical research skills, with great patience, but also offered me considerable substantial and emotional support when I faced challenges and difficulties for various reasons. He spent a great deal of time on this dissertation, giving me very detailed and practical guidance and comments. Certainly, I could not have finished this dissertation without his seemingly endless patience, guidance, help and support. In the University of New South Wales, several other persons have been important for finishing this research. My co-supervisor, Professor Lex Donaldson, encouraged me to pursue the theoretical research, and discussions with him were always inspiring and helpful. His diligence and reputation have also encouraged me to be a good scholar, and will continue to influence me in my future career. Professor Christopher Jackson, formerly Postgraduate Research Coordinator and now Head of School, gave his very i powerful support to my scholarship application and also to the extension of the scholarship, although he did not know me very well and (I regret) we seldom had the opportunity to speak together. Associate Professor Markus Groth and Dr. Sunghoon Kim, members of my annual review committee, were both very kind, and showed much concern about my progress. In particular, Dr. Kim made some valuable suggestions for research. Over the past four years, I have come to owe a great deal to some real friends who gave me their generous help and support. I received powerful academic support from Ms. Tianyue Ma. She spent a lot of time reading and commenting on my drafts. In particular, her knowledge and training in sociology helped me enormously. Dr. Nanfeng Luo has always been reliable whenever I needed his help with various aspects of my research. Specifically, he read through the early drafts of this dissertation, and provided a host of useful and critical comments for the revisions. In addition, I often discussed academic questions with Associate Professor Feng Tao, and he provided me with insightful comments on some of my research papers related to this dissertation. I am truly indebted to Ms. Sailuan Fan and her husband Mr. Kongjun Wang. They have supported me consistently in both financial and emotional ways since my undergraduate days. Special thanks must go to Ms. Yingkai Li who always encouraged and consoled me through the difficult final stage of the writing. I am also very grateful to many family members for their unconditional love and help in my life. My late grandfather Mr. Zaiming Sheng loved me very much, and always encouraged me to study hard. Unfortunately, he passed away when I was in primary ii school, but I think he would be very happy if he knew of my academic progress. I spent most of my childhood with my maternal grand-mother Ms. Juxiu Zhang. She took great care of me, and also taught me many invaluable life lessons through her varied, interesting and meaningful stories.
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