Title: Growing Chinese organisations in the global arena: developing a performance measurement system in a state-owned enterprise

Authors: Artie W. Ng, Charles K.S. Lau, Geoff Southern

Addresses: School of Professional Education and Executive Development, QR802, 8/F Core R, The Hong Kong Polytechnic University, Hung Hom, Hong Kong. ' Newcastle Graduate School of Business, 3rd Floor University House, University of New Castle, Newcastle, NSW 2300, Australia. ' Department of Management, Gilbert Scott Building, University of Glasgow, Glasgow G12 8QQ, Scotland, UK

Abstract: This case study aims to explore the challenges faced when developing a performance measurement system for an internationally expanding Chinese state-owned enterprise (SOE). In recent years, Chinese SOEs have gradually emerged as players in the global marketplace, making direct investments in overseas territories despite having a limited track record in multinational management. Using innovative action research, this study attempts to unveil the dilemmas in adopting a contemporary performance measurement system within an SOE. In particular, it articulates the challenges resulting from the power-centric characteristics of such an SOE when attempting to attain alignment with the diverse interests of stakeholders. We argue that the process of developing a decision facilitating and interactive performance measurement system was problematic owing to inherent factors inside the SOE. Global development of such an organisation under a transitional economy could be hindered by its tendency to remain inwardly focused and potentially misaligned interests with external stakeholders.

Keywords: performance measurement systems; management control; power; culture; state-owned enterprises; SOEs; China.

DOI: 10.1504/JGBA.2009.023096

Journal for Global Business Advancement, 2009 Vol.2 No.1/2, pp.100 - 111

Published online: 09 Feb 2009 *

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