Y2: ASIAN ECONOMIC ORGANISATION & COMPETITIVENESS Fall 2013

Course size: 7.5 ECTS-points

Course content:
The overall aim of the course is to provide a comprehensive outline of the social organization and
competitiveness of Japanese and Chinese business organizations, in the context of contemporary Asian
society, the international environment and the global production networks.

The course will start with an overview of Japans and Chinas role in the global economy, followed by a
series of lectures on the nature of Japanese/Chinese economic organizations. In addition the competitiveness
of the two countries will be discussed in overall terms as well as from the perspective of selected industries
and branches. Against this background the course then explores issues related to Japans/Chinas approach to
market economy and examines in detail Japanese/Chinese business networks, the form and structure of the
Japanese/Chinese firm, the institutional, economic and political environment as well as the development of
alliance/network capitalism.

Learning objectives: At the end of the course the students should be able to:

Identify the East Asian Challenge in terms of economic growth, foreign trade, foreign direct
investment and role in global production chains.
Discuss competing theories on national and global competitiveness, such as Porters Diamond and
Nolans Big Business Revolution, in the context of contemporary Asian society with particular
reference to China or Japan.
Compare business networks and/or corporate governance models in China and Japan and evaluate
the importance of recent reform.
Define similarities and differences in the industrial structures and in enterprise management
practices in China and Japan.
Write a social science term paper that applies relevant material from the compendium and the
obligatory literature, showing a clear delimitation of the research question, and demonstrating an
ability to apply standard rules for quoting and referencing the applied literature and sources.


Teaching methods: Classes are lecture/discussion format. There will also be student presentations. 4 hours
per week for 7 weeks.

Integration: This course is part of the overall Year 2 theme, "Economic and Cultural Context of Business
Enterprises and Organisations". The course is intended for students of Asian language and economy and
serves as an essential intellectual preparation for the 3
rd
year courses Asian Economics and Business
Practices, Global Strategic Management, and Organizing International Business.

Examination: The examination is based on a term paper derived from course material, based on a topic that
the instructor approves. For detailed information, please check the ASP Programme Regulations available at
http://frontpage.cbs.dk/sar/docs?id=268 and at the ASP Office.

Additional information:

Discipline: International Business Economics

Course coordinator/lecturers: Xin Li/various
XL: Xin Li
PN: Peter Nolan
CT: Charles Tackney
TO: Toshiya Ozaki

Secretary: ASP Office
http://uk.cbs.dk/uddannelser/bachelor/bachelorudd/oekonomi/asian_studies_programme/menu/gruppe__3/contact__1


Teaching: 2x2 hours a week for 8 weeks (weeks 36-41, 43-45), examination in week 49.

Pre-requisites (exchange and/or Open University students): None.

Literature:

1. Nolan, P. (2001). Is China Buying the World. Cambridge: Polity Press.
2. Gerlach, M.L. (1992). Alliance Capitalism: The Social Organization of Japanese Business. Berkeley:
University of California Press.
3. A compendium of additional readings will be available in the school bookstore. Further readings will be
available to students via SiteScape.



Study plan:

Week: Readings: Teacher:
General topics
36B

Fri 6/9
p.5
1. Introduction and Overview: The Global Perspective
Dicken, P. (2011). The Global Shift: Mapping the Changing Contours of the
World Economy. London: Sage Publications (Chapter 2 Global Shift, pp.
13-48).
o Nolan Peter (2012). Is China Buying the World? Cambridge: Polity Press
(Introduction, pp. 1-10).
XL
37A

Mon 9/9
p.25
2. Introduction to International Economics and Competitiveness
Paul Krugman (1995) Real Men Don't Eat Quiche, World Link, sept/oct.,
pp. 47-49
Jeffrey Sachs (1995) Keep the Baby in the Bath Water, World Link,
Sept./Oct. pp. 49-50
World Economic Forum (2013) Global Competitiveness Report 2020-2013 ,
Chapter 1.1 The Global Competitiveness Index 20122013: Strengthening
recovery by raising productivity(pp. 3-13; 44-48) & Chapter 1.2
Assessing the Sustainable Competitiveness of Nations (pp. 49-63)
Oral, M. and Chabchoub, H. (1997) An estimation model for replicating
the rankings of the world competitiveness report, International Journal of
Forecasting, 13(4): 527-530 (the first four pages only)
XL

37B

Fri 13/9
p.49
3. Factors Creating Competitiveness Porters Diamond Model
Porter, Michael (1990) The Competitive Advantage of Nations. London:
Macmillan (Chapters 3, pp. 69-128).
(optional) Porter, Michael, et al. (2000). Can Japan Compete? London:
MacMillan Press (Chapter 4, pp. 100-118).
XL
38A

Mon16/9
p.78
4. Critics of Porters Diamond Model
Nolan, Peter (2001).China and the Global Economy: National Champions,
Industrial Policy and the Big Business Revolution. New York: Palgrave
(Part 1, Chinas Ambitions: Building the National Team, pp. 1-20).
Dunning J.H. (1993). Internationalizing Porters Diamond, Management
International Review, Vol. 33, No. 2, pp.7-15.
XL
China-topics
38B

Fri 20/9
p.93
5. Introduction to the Chinese Economy
Morrison, Wayne M. (2013). Chinas Economic Rise: History, Trends,
Challenges, and Implications for the United States, CSR Report for
Congress, July 23 (pp. 1-38).
XL

39A

Mon23/9
p.115
6. The Reform of Chinese SOEs
OECD (2009) State Owned Enterprises in China: Reviewing the
Evidence, OECD Working Group on Privatisation and Corporate
Governance of State Owned Assets
Chang, Ha-Joon (2005) State-owned enterprise reform, pp. 1-27
XL
39B

Fri 27/9
p.140
7. Chinas Collective-Owned Enterprises (COE) & Township-Village
Enterprise (TVE)
Xia, J., Li, S., & Long, C. (2009) The Transformation of
Collectively Owned Enterprises and its Outcomes in China, 2001
05, World Development, 37(10): 1651-1662.
Xu, C. & Zhang, X. (2009) The evolution of Chinese entrepreneurial
firms: Township-Village Enterprises Revisited, IFPRI Discussion
Paper 00856. International Food Policy Research Institute:
Washington, DC.
XL
40A

Mon30/9
p.159

8. The challenges facing Chinese private enterprises
He, X. (2009) The Development of Entrepreneurship and private
enterprise in the peoples republic of china and its relevance to
transitional economies. Journal of Developmental Entrepreneurship,
14(01): 39-58.
Li, H. et al. (2008) Political connections, financing and firm
performance: Evidence from Chinese private firms, Journal of
development economics, 87(2): 283-299.
XL
40B

Fri 4/10
p.179

9. The Big Business Revolution Is the Playing Field Really Level?
o Nolan, Peter (2012). Is China Buying the World. Cambridge: Polity Press,
pp. 15-95.
PN

Japan-topics
41A

Mon7/10
p.180
10. Japanese economic miracle
o Gerlach, M.L. (1992). Chapter 1: Overview. Chapter 2: Rethinking
Market Capitalism. Pp. 1- 38; 39 62. Alliance Capitalism: The
Social Organization of Japanese Business. Berkeley: University of
California Press.
Tackney, C.T. (2009). Yes, the U.S: auto industry can if the U.S:
Congress and Obama Administration learn a lesson from Japan.
Journal of Employee Rights and Responsibilities. 21: 163 164.
CT


41B

Fri 11/10
p. 182
11. Japanese Business Networks / Keiretsu 1
o Gerlach, M.L. (1992). Chapter 3: The Organization of Japanese
Business Networks. Chapter 4: The Basic Form and Structure of the
Keiretsu. Pp. 63 102; 103 - 160. Alliance Capitalism: The Social
Organization of Japanese Business. Berkeley: University of
California Press.
Kettler, D.; Tackney, C.T. (1997). Light from a dead sun: the
Japanese lifetime employment system and Weimar labor law.
Comparative labor law and policy journal. 19:1. 101-141.
CT

43A

Mon21/10
p.199
12. Japanese Business Networks / Keiretsus 2
o Gerlach, M.L. (1992). Chapter 5: Patterns of Alliance Formation.
Chapter 6: New Venture Development and Technological Innovation
in Japan. Pp. 160 201; 202 - 220. Alliance Capitalism: The Social
Organization of Japanese Business. Berkeley: University of
California Press.
Tackney, Charles T. (2001). The Modes of Social Relation in
Japanese Management Practice. Chapter 16 in Cary L. Cooper, Sue
Cartwright, and P. Christopher Earley (Eds.). The International
Handbook of Organizational Culture and Climate (pp. 377- 390).
London: John Wiley & Sons.
CT

43B

Fri 25/10
p.208
13. Japanese economy since Asian Financial crisis of 1997
Vollmer, U; Bebenroth, R. (June 2012). The Financial Crisis in
Japan: Causes and Policy Reactions by the Bank of Japan. The
CT

European Journal of Comparative Economics. 9:12.
Tackney, Charles T. and Toyoko Sato (August 2012). Japans
Supreme Court Discourse and Lifetime Employment: Cultural
Cognition and U.S. Labor Relations. Social Issues in Management
Division, Academy of Management 2012 Conference. Boston.
(optional) Gerlach, M.L. (1992). Chapter 3: The Organization of
Japanese Business Networks. Chapter 4: The Basic Form and
Structure of the Keiretsu. Pp. 63 102; 103 - 160. Alliance
Capitalism: The Social Organization of Japanese Business. Berkeley:
University of California Press.
44A

Mon28/10
p.234
14. Competitiveness of key Japanese industries the success stories
Fujimoto, Takahiro (2007), Architecture-Based Comparative Advantage -
A Design Information View of Manufacturing, Evolutionary and
Institutional Economics Review, Vol.4, No.1, p.55-112.
Hall, Peter and David Soskice (2001), Varieties of Capitalism: The
Institutional Foundations of Comparative Advantage, Oxford: Oxford
University Press (Chapter 1, pp 1 68).
Nonaka, I. (1994). A dynamic theory of organizational knowledge
creation. Organization science, 5(1), 14-37
TO

44B

Fri 01/11
p.310
15. Competitiveness of key Japanese industries the less successful
Sturgeon, Timothy (2002), Modular Production Networks: American
Model of Industrial Organization, Industrial and Corporate Change,
Vol.11, No.3, pp 451 496.
Teece, David (2007), Explicating Dynamic Capabilities: The Nature and
Microfoundations of (Sustainable) Enterprise Performance, Strategic
Management Journal, Vol. 28, Issue 13, pp. 1319 1350.
TO

Conclusion
45A

Mon04/11
16. Conclusion XL


Notes:
In above list of literature,
indicates it is included in the compendium;
indicates this is a book chapter in the textbooks you are supposed to buy;
indicates it is an optional reading.