Editorial
Article Type: Editorial From: Journal of Chinese Entrepreneurship, Volume 1, Issue 1
Society’s course will be changed only by a change in ideas […]Frederick Hayak (www.entrepreneurship.gov, accessed 10 August 2008).
The word entrepreneurship as literally translated from the French verb“entreprendre” means “to undertake” (Entrepreneur, 2008).
For many, the definition of entrepreneurship may be going through a new phase of development, as entrepreneurship in China represents a newer frontier –an opportunity for Chinese and foreigner to undertake new ventures –ventures that cover the entire spectrum of products and services available in today’s society. From space, to DNA, China appears to be accelerating its exploration of all aspects of our Universe opening up many opportunities for entrepreneurs to engage in their pursuit “organizing and managing a business”. With China’s seemingly rapid rise, it could seem that we are in a new epoch – a beginning if you will, of something new.
And yet, is it really a “new epoch” or is China in a renewed era of openness that is just now teaching us about new ways and perspectives on doing business? Although, this “openness” can be directly traced to reforms initiated in 1978 by Deng Xiaoping, part of the lessons being learned are that China is simply regaining the economic stature it once enjoyed centuries ago. When taken through the lens of time, China’s history is full of innovation, of change, of entrepreneurship – and of global economic leadership. From gunpowder, paper money, printing, and the compass to steel making, agriculture, and political systems, Chinese innovations and ideas and the success of their entrepreneurs have changed the course of society for thousands of year.
Innovations and ideas are only beneficial to society if those who are able to undertake the organization and management of new ventures can successfully manage the risk of establishing these ventures. Without the transformation of ideas into marketable value propositions – ideas become historical footnotes, and lost opportunities for change. Thus, the opportunity for “entrepreneurs”. In today’s modern definition – entrepreneurs are those who take on new ideas and make them into marketable products and services – while successfully managing the risk.
The Journal of Chinese Entrepreneurship comes from a curiosity about the transformation of Chinese society – through the lens of academics and practitioners … people involved in both the periphery of studying the re-emergence of one of our societies most developed cultures, as well as those who are deeply involved in helping to create new opportunities and new ventures. Founded under the direction of Dr Richard Li Hua, this initial effort offers several interesting perspectives about entrepreneurship in China.
As co-authors, we believe it is important to seek input from practitioners as well as academics. In our first article from practitioners, “Entrepreneurship and strategy in China: why “Porter’s five forces” may not be”,authors Wei Wang and Peter P. Chang invoke the timeless lessons of Sun Tzu to challenge Professor Michael Porters five forces model. Using Porters model as a framework, and supporting their premise through surveys, interviews, and analysis, they suggest a new model that is evolving within China, and which places heavy emphasis on leadership.
The other articles cover an interesting range of topics from corporate entrepreneurship, to new ventures, to channels – all offering valuable insights into the inner workings of this fascinating country.
In the “Operationalization of corporate entrepreneurship and its performance implications in China: an empirical study” Professors Wang and Zhang explore corporate entrepreneurship through the development and testing of a four dimensional measurement model that may have significant implications particularly for foreign firms seeking to develop or expand operations within China. Using data gathered from existing firms within China, the authors found that “not all dimensions of corporate entrepreneurship have significant impact on firm performance in China”.
Shifting gears, in their article “Channel performance in China: a study of distribution centers in Fujian Province”, Professors O’Neill,Scavarda, and Yang focus on logistics, specifically comparing distribution centers in China, with those in the UK. Many an idea has died because of the failure to get it to market properly. The authors’ research finds several significant gaps that represent significant opportunities for entrepreneurs involved in supply chain management.
Making a distinction between entrepreneurship and entrepreneurial orientation(EO), the article – “Acquisition of resources, formal organization and entrepreneurial orientation of new ventures” by Professors Fang Niu,Yuli Zhang, and Hongzhi Xue, focuses on the factors affecting the EO of new ventures that may be different than for existing firms, and how these differences may effect both the acquisition of resources, as well as the structure of the organization of the new venture. The tension between formal organizational structure and organizational flexibility of new ventures is discussed, with some interesting conclusions, and recommendations for future research.
Make no mistake, as our authors suggest, there is plenty of opportunity for further research. And the study of Chinese Entrepreneurship and those who undertake to do business in and with China will provide many new ideas that will forever alter our global society’s course. The ideas are not limited to technological innovations. Constant calls from the west for capital market reforms and a strengthening of intellectual property laws aimed at helping reduce and manage risk will inevitably lead to further innovations in the way our society is built and integrated, and over time, will potentially make China an even more attractive market and partner.
Internal issues that are not unique in China, but which standout as significant challenges for China, including pollution, population, and the increasing income gap between urban and rural peoples represent further opportunity for fresh ideas and innovation. And it is in the fertile areas of current challenges where opportunity may lie that will have the greatest impact on our global society.
The case study “The cashmere collection” in the entrepreneurship in practise section of the journal emphasizes the breadth of potential for Chinese entrepreneurs. What would have been extremely challenging just a couple of decades ago, is now virtually mainstream – partnerships between “western”and Chinese entrepreneurs leveraging respective strengths to develop new markets, new opportunities, new brands.
Our aim with the Journal of Chinese Entrepreneurship is to: give a broad international coverage of subjects relating to entrepreneurship in China. Emphasis will be placed on the publication of articles which critically analyse real situations in terms of Chinese entrepreneurship. The objective of the journal is to identify best practice in these areas and to address crucial issues of Chinese entrepreneurship in theory and in practice (http://info.emeraldinsight.com/products/journals/journals.htm?PHPSESSID = 2r2m3onb9ogc1kgskpqrd8gf20=jce, accessed 10 August 2008).
It is our hope that by focussing on entrepreneurship, this journal will help those who undertake to do business in and with China, generate new ideas that will help them become more successful in their endeavors, while having a positive impact on society as a whole.
We welcome all comments, criticisms, and suggestions.
Thank you,
William S. Lightfoot, Yonggui WangCo-Editors
