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, 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.
Dedication List of tables List of diagrams Endorsements Kenneth Lieberthal, Lord Roll of Ipsden, Susan L. Shirk and Barry Naughton Introduction Peter Nolan Foreword Wu Jinglian Preface Masahiko Aoki 1. Introduction 2. Overview of the Literature 3. The Establishment of 'Substitution Function Model' and the Study of the Relevant Variables 4. CITIC Story: case study 5. Conclusion Appendix References Index