The Theory of the Firm and Chinese Enterprise Reform: The Case of China International Trust and Investment Corporation

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Psychology Press, 2004 - 178 pages
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Changes to corporate structure, including the role of the corporate headquarters, have been key factors in bringing about economic reform in China. In this penetrating and insightful book, Xiao questions the conventional theory of the firm, arguing that the ultimate goal of the headquarters of modern large corporations is to function as a substitute for the market, and introducing a new explanation for the nature of the firm - the 'substitution function model'. He provides an insider's account of the reforms in CITIC, and as such this is a rare narrative that should be essential reading for scholars and practitioners who care about the theory and practice of the firm, in particular in the context of Chinese enterprise reform.


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The establishment of the substitution function model
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Page 166 - G. and Schneider, D. 2000. Meta-Capitalism: The E-Business Revolution and the Design of 21st-century Companies and Markets. New York: John Wiley & Sons, Inc.

About the author (2004)

Dr Qin Xiao is Chairman of China Merchant Group Limited and China Merchants Bank since 2001. Before that, he was Vice Chairman and President of China International Trust and Investment Corporation (CITIC), and Chairman of CITIC Industrial Bank. He is a member of the APEC Business Advisory Council (ABAC) and was Chair of ABAC in 2001. Dr Qin Xiao is also a member of Toyota's International Advisory Board. He holds a Ph.D. in economics from University of Cambridge, and serves as an Honorary Professor at the Business School of Tsinghua University and the Graduate School of the People's Bank of China. He is the author of several papers and books in the fields of economics and management, and a keynote speaker at various international fora, such as APEC.

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