This study empirically examines the dynamics and conditions of relationship conflict between supervisors and employees in Chinese State-Owned Enterprises. It proposes that relationship conflict has significant effects on leadership in Chinese SOEs, specifically, it threatens leader-member relationships, lowers the possibility of open-minded discussion, influences leadership effectiveness and prevents future collaboration. This study uses Deutsch’s (1973) theory of goal interdependence to understand relationship conflict between supervisors and employees. Specifically, it proposes that three types of goal interdependence affect the experience of relationship conflict and its outcomes. Cooperative goals compare to competitive and independent goals can help reduce relationship conflict between supervisors and employees and in turn lead to quality relationships, open-minded discussions, leader effectiveness, and confidence in future collaboration. A total of 103 face-to-face interviews were conducted in Nanjing and Guangzhou in mainland China, with all the participants from Chinese State-Owned Enterprises. Participants were asked to describe a specific incident in which they engaged in relationship conflict with their supervisors. Details of the incidents including the setting, what occurred, the reasons, and the consequences were also recorded during the interview. Participants also rated specific questions on 7-point Likert-type scale based on the recalled incidents. Results of structural equation modeling and other analyses support the hypotheses and provide statistical evidence to the proposed theoretical model that goal interdependence affects relationship conflict that influence several leadership constructs, named leader-member relationship, open-minded discussion, leadership effectiveness, and future collaboration. The model and the findings also help to broaden understanding of dynamics of relationship conflict and suggest ways it can be alleviated in order to strengthen organizational leadership.

This thesis examines the rising phenomenon of the internationalisation of Chinese firms, and aims to shed new light on our understanding of the emergence of firms from emerging economies in the global market. It consists of two parts: the country level study and the firm level. The former identifies the domestic and locational determinants of Chinese outward foreign direct investment (OFDI), while the latter examines the influence of dynamic capabilities and institutions on the post-internationalisation performance of Chinese firms, with a focus on state-owned enterprises (SOEs). To explore the domestic and locational determinants of Chinese OFDI, the thesis integrates network theory with the traditional explanations of OFDI, the investment development path and the eclectic paradigm. By doing so, a new factor, human mobility, is identified as one of the important domestic and locational determinants of Chinese OFDI. Drawing upon a time series data analysis for the period 1979-2007, this study confirms that Chinese OFDI is driven by its domestic economic development, human mobility and knowledge development and accumulation, and it has a substitute relationship with exports. By examining Chinese OFDI flows to 13 OECD countries over the period 1999-2007, it is shown that human mobility, the strategic assets of the host country, foreign direct investment to China and cultural distance have a positive impact on the locational choice of Chinese OFDI to OECD countries. To investigate the influence of dynamic capabilities and institutions on the post-internationalisation performance of Chinese firms, this study integrates the dynamic capability framework and the institution-based view, and embeds the analysis in a multi-perspective conceptual framework. It draws on four case studies of Chinese SOEs. The analysis shows the importance of internal dynamic capabilities in achieving overseas success when dealing with changing environments. The managerial mindset has a moderate effect on the impact of dynamic capabilities on post-internationalisation performance. The case analysis also shows how the external institutional environment of both host and home countries influence the performance of Chinese SOEs. ii Support from both host and home country governments, unsurprisingly, has a positive influence on performance. However, too much intervention from the home country government imposes constraints on the firms and reduces their willingness to commit to internationalisation. This thesis makes a number of contributions to the existing literature. First, it provides a better understanding of the overall picture of Chinese OFDI from the macro perspective. The findings also contribute to our understanding of the rise of OFDI from emerging economies in general and from China in particular. Second, a new factor, human mobility, is identified and proved to be significant in determining Chinese OFDI. In this era of globalisation, human mobility has become the driving force of OFDI from emerging economies. Third, a first step is taken towards exploring the influence of both internal and external factors on the post-internationalisation performance of Chinese firms. In order to achieve overseas success, not only do Chinese firms need to improve their internal dynamic capabilities, but also attention needs to be paid to the external institutional environment, which has a significant impact on the performance of Chinese firms pursuing overseas success.

This dissertation deals with the nature of the Chinese economic system. The first chapter focuses on the global economy and seeks to define the main economic systems prevailing in it, ie. Anglo-Saxon, Continental and Asian-developmental. Compared to these systems defined as market economies, the dissertation consequently analyses and defines a system of state capitalism and the main elements of it. The following part of the dissertation is focused on the historical Chinese approaches to economic governance of the country and attempts to identify those historical approaches that are still relevant and influential in modern Chinese economy. The third chapter analyses the Chinese economic system and the role of the state in it; it also examines the government's approach to the ownership of state enterprises and the overall extent of state ownership in the Chinese economy. The final chapter examines the different types of state subsidies to domestic, often state, enterprises in China. As an example of the various subsidies a case study on the automotive industry is used.