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Coordination Mechanisms: A Study of Chinese Rural Firms

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Abstract:

The literature on economic behavior and institutions has identified three coordinating mechanisms in firms: market, hierarchy, and network. However, quantitative research on the relative significance of the three mechanisms is lacking. Based on a study of 859 Chinese rural firms in 1996, this paper examines their relative effects. It has found that: 1) network, market, hierarchy and their combinations all are used in Chinese rural firms; 2) their relative effects differ from firms to firms and from operation to operation, depending on the conditions an organization or an operation has or faces. Hierarchy and market play a crucial role in collective firms while informal network plays a pivotal role in private firms. Information collection is primarily coordinated by market while other four business operations - finance, lease or purchase of equipment and workplace, and recruitment- are coordinated by informal network in private firms and by hierarchy and market in collective firms.

Most Common Document Word Stems:

network (94), mechan (87), use (85), market (82), coordin (71), firm (68), hierarchi (54), china (45), econom (36), 1 (33), level (32), studi (29), three (28), rural (27), tabl (24), oper (24), organ (23), relat (21), 000 (18), govern (18), may (17),

Author's Keywords:

coordination mechanisms, Chinese firms
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Name: American Sociological Association
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http://www.asanet.org


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MLA Citation:

Wang, Xun. and Jiang, Shanhe. "Coordination Mechanisms: A Study of Chinese Rural Firms" Paper presented at the annual meeting of the American Sociological Association, Hilton San Francisco & Renaissance Parc 55 Hotel, San Francisco, CA,, Aug 14, 2004 <Not Available>. 2009-05-26 <http://www.allacademic.com/meta/p109627_index.html>

APA Citation:

Wang, X. and Jiang, S. , 2004-08-14 "Coordination Mechanisms: A Study of Chinese Rural Firms" Paper presented at the annual meeting of the American Sociological Association, Hilton San Francisco & Renaissance Parc 55 Hotel, San Francisco, CA, Online <.PDF>. 2009-05-26 from http://www.allacademic.com/meta/p109627_index.html

Publication Type: Conference Paper/Unpublished Manuscript
Review Method: Peer Reviewed
Abstract: The literature on economic behavior and institutions has identified three coordinating mechanisms in firms: market, hierarchy, and network. However, quantitative research on the relative significance of the three mechanisms is lacking. Based on a study of 859 Chinese rural firms in 1996, this paper examines their relative effects. It has found that: 1) network, market, hierarchy and their combinations all are used in Chinese rural firms; 2) their relative effects differ from firms to firms and from operation to operation, depending on the conditions an organization or an operation has or faces. Hierarchy and market play a crucial role in collective firms while informal network plays a pivotal role in private firms. Information collection is primarily coordinated by market while other four business operations - finance, lease or purchase of equipment and workplace, and recruitment- are coordinated by informal network in private firms and by hierarchy and market in collective firms.

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Document Type: .PDF
Page count: 21
Word count: 4670
Text sample:
Coordination Mechanisms: A Study of Chinese Rural Firms Shenhe Jiang Ph. D1 Xun Wang Ph. D Department of Criminal Justice Department of Sociology/Anthropology Grambling State University University of Wisconsin-Parkside 100 Main Street 900 Wood Road Grambling LA 71245 Kenosha WI 53141 Phone: (318) 274-3101 Phone: (262) 595-2520 Fax: (318) 274-3309 Fax: (262) 595-2183 E-mail: yangstarr@yahoo.com E-mail: wang@uwp.edu Draft. Do not quote or cite! A paper submitted to the American Sociological Association 2004 Annual Meeting January 15 2004 1 Both
Mechanisms Variables Mechanism B Standard Error Constant -4.518 5.669 Individual Age .101 .067 Education 1.269* .506 Cadre Experience -.653 .537 Organizational Ownership 2.935*** .828 Firm Size .001 .010 Level of Competition 1.328 .769 Note : *P. <0.05 **P. <0.01 ***P. <0.001 20


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