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The success of public–private partnership (PPP) projects is highly correlated to the successful management of risks encountered during the operation phase. PPP projects are especially exposed to risk due to the long operation period over which revenues need to be generated to recoup substantial initial investment and operational running costs. Despite the critical impact of risk exposure, limited research has been specifically undertaken on the matter of operational risk management. This study seeks to address this oversight by identifying and evaluating operational risk management strategies for PPPs.

Vulnerability theory is the theoretical lens used, with context drawn from Chinese PPP projects. Based on the data collected from expert interviews and questionnaires, 28 operational risk management strategies are identified. A fuzzy synthetic method is employed to analyze the effectiveness of the 28 strategies.

The findings reveal that providing an exit mechanism clause into the contract, establishing a comprehensive performance evaluation mechanism and developing a clear compensation mechanism are the top three effective strategies. This study also reveals that risk mitigation approaches that reduce vulnerability prove more effective than attempts to reduce external threats. Specifically, strategies aimed at managing contract, political, technical and financial risk are the most effective.

The findings of this study extend current knowledge regarding the risk management of PPP projects. They also offer a reference by which practitioners may select effective operational risk management pathways and thereby, galvanize the sustainable development of PPPs.

The purpose of this paper is to provide a brief yet insightful survey of papers in the first issue of Chinese Management Studies. In the process, the founding Editor focuses on the key concepts and how scholars may further extend and build on the research undertaken.

The Editor provides a snapshot of the research undertaken in the papers selected for this issue. Instead of simply summarizing the work undertaken, the Editor, where it is highly appropriate, incorporates aspects of underlying Chinese culture. For instance, how the Confucian concept of the doctrine of mean – very broad as it is in scope – is supported in research reported here. Also, in contradiction to what authors may have argued on meaningfulness of work per se, to highlight an old Chinese adage: for example, 工字不出头 (gong-zhi-bu-chu-tuo). A literal translation into English will fail to render the true intent of the phrase. What it means is that the Chinese character for “work” implies a much deeper meaning: The horizontal line on top of the vertical limits the potential of future growth. Other concepts are visualized for ease of readers grasping the key concepts.

The series of papers here highlight the significance of research into managerial behaviors (negatively, tax aggression and abuse of power for self-enrichment), meaningfulness of work, reading of timeless Chinese novels, innovation (ZTE) and the knowledge organization, changing and transforming China and of Russian-Chinese (Taiwan) strategic alliances. The insights gained through these intensive research efforts ought to be shared with scholars globally.

The research in this issue has wide practical relevance as in highlighting the critical importance of a range of topics: Jiang Hu organizing theory, managerial behaviors, innovation and knowledge, Russo-Chinese strategic alliances, fit in strategic management and China-in-transition. This paper ties these together for the reader.

Through a review of these papers, the Editor provides insights for scholars on the possibilities for extending the frontiers of research on Chinese management. Where relevant the Editor highlights additionally, perspectives from deeply rooted Chinese beliefs, values and philosophy.

The purpose of this paper is to show that the environmental income drives economic growth of a large open country.

The authors detect that the relative environmental income has double effect of “conspicuous consumption” on the international renewable resource stock changes when a new social norm shapes to environmental-friendly behaviors by using normal macroeconomic approaches.

Every unit of extra demand for renewable resource consumption increases the net premium of domestic capital asset. Even if the technology spillovers are inefficient to the substitution of capital to labor force in a real business cycle, the relative income with scale effect increases drives savings to investment. In this case, the renewable resource consumption promotes both the reproduction to a higher level and saving the potential cost of environmental improvement. Even if without scale effects, the loss of technology inefficient can be compensated by net positive consumption externality for economic growth in a sustainable manner.

It implies how to earn the environment income determines the future pathway of China’s rural conversion to the era of eco-urbanization.

We test the tax incidence to demonstrate an experimental taxation for environmental improvement ultimately burdens on international consumption side.

How to enter and expand in a newly emerged foreign market is less understood. Should multinational enterprises move fast or slowly? In this study, the authors take China as the context to investigate what factors will lead to a fast expansion strategy in a foreign market. The purpose of this paper is to understand whether fast expansion benefits firms’ performance in a rapidly emerging market.

Based on insights from field interviews, the authors developed a theoretical framework. Then, the authors collected data from surveys of managers of multinational enterprises from Western countries to test their hypothesis. This research context is based on the experience of multinational enterprises in China which opened up to foreign direct investment in 1979.

This study shows that internally, strategic long-term investment goals, top management team commitment and externally switching costs and the growth in the demand market which will push firms to expand fast in the newly emerged China market. Faster pace of expansion benefits the performance of multinational enterprises in a newly emerged market.

Based on the onsite interviews followed by the survey of top managers of multinational enterprises located in China, this study provides a fine-grained analysis of the importance of pace and its key antecedents. Thus, the results provide new insights to decision-makers of multinational enterprises when considering expanding in an emerging market at its early stages of growth.

Public hospitals in China usually rely on revenues from medical services and medications to compensate for major costs given their nonprofit nature. The lack of government subsidies and unreasonable prices of medical services have led to high medical costs and unbalanced reimbursement system for public hospitals. There is a critical need of research on improvement of reimbursement system that will create positive effect on China’s health-care system. This paper aims to focus on four dimensions of stakeholders (government, patients, medical insurance agencies and social organization) and six major expenditures to explore reimbursement scheme for public hospitals in China with the purpose of relieving unbalanced income and expenditure of hospitals, avoiding medication markups and reducing medical expenses from patients.

In this paper, the authors study reimbursement scheme for public hospitals from the perspective of four dimensions of stakeholders and how stakeholders reimburse six major expenditures of hospitals. A total of 128 effective samples were collected from financial data of 32 public hospitals through 2009-2012. This paper analyzes the econometric models of the selected revenue and expenditure. This paper analyzes the econometric models of the selected revenue and expenditure using linear regression. The linear relationship between each cost and different types of incomes (i.e. reimbursements from government, patients, insurance agencies and social organization) is analyzed before and after cancelling the medication markups.

Results from empirical research verify that government reimbursement is insufficient, and using medication markups to compensate for medical service costs has become a serious problem for China’s public hospitals. To avoid the medication markups and improve the reimbursement scheme, government should reimburse labor cost, fixed assets cost and research cost; patients and medical insurance agencies should reimburse the costs of medical service, medication and administration/operations; and social organization should supplement the fixed assets cost.

In this study, the authors defined and classified stakeholders of reimbursement scheme for public hospitals in China, which help understand the roles and effects that different stakeholders can play in compensation. Along with the proposed reimbursement scheme framework, this study will help make effective implementation of new health-care reform program in China.

Known as the major capital providers in Belt and Road countries and the largest carbon emitter in the world, what role China's outward direct investment (ODI) plays in carbon neutralization has become a matter of concern. This study aims to measure the impact of China's ODI on the carbon emissions of Belt and Road countries.

Based on an econometric model and an inter-regional input–output model, a new model measuring the carbon emission effects of ODI is developed.

The empirical results show that (1) in general, China's ODI generates an emission-reduction effect in Belt and Road countries; (2) The relationship between the emission-reduction effect and income level of host countries shows an approximate inverted U-shaped trend; and (3) China's ODI generates stronger emission-reduction effects on capital-intensive industries.

This study quantitatively measures the scale of carbon emission-increase and reduction effect, which is relatively lacking in previous studies. This study explores the heterogeneity from the perspectives of regions, countries and industries. The authors have compiled an inter-regional input–output table for the Belt and Road countries for 2014 to provide a broad basis for the study of related issues.

The purpose of this paper is to investigate the role of cross-listing in overcoming liability of origin (LOO) facing emerging economy corporations (EECs).

This paper takes Chinese firms' cross-listing in Hong Kong and the firms' establishment of international joint ventures (IJVs) with foreign partners as the research setting. This is an empirical study using Heckman's self-selection model as the primary econometric technique and two-stage least square (2SLS) regressions as the supplementary estimation procedure.

Cross-listing in developed economies can serve as a signal for EECs to overcome the LOO. In addition, the regional institutional voids of emerging economies (EEs) and state ownership are prominent boundary conditions shaping this effect.

Only Chinese firms and the firms' cross-listing in Hong Kong are considered for the empirical context as a result of data availability.

This paper provides a practical solution for EECs whose internationalisation tends to be hindered by the LOO.

This study is of high importance in that it centres on a distinctive and challenging problem faced with EECs—the LOO. Besides, it ascribes this liability to a matter of information asymmetries and explores how cross-listing can serve as a signal to cope with this challenge.

Using Generation Z consumers from China as an example and focusing on the nostalgia-driven design of brand spokes-character, this study sought to update research on the causal relationship between nostalgia and brand attitude for younger consumers. Two types of nostalgic brand spokes-characters (i.e., eliciting personal nostalgia and historical nostalgia) were examined separately and compared to verify their contributions to more positive brand attitude, as well as related mechanisms, that is, whether consumer trust in the spokes-character mediated the relationship between nostalgic spokes-characters and brand attitude.

An experiment was first conducted to test the causal effects of brand spokes-characters designed to elicit two types of nostalgic feelings (i.e., personal nostalgia and historical nostalgia). Then, the authors investigated the influencing mechanism of nostalgic brand spokes-characters based on bootstrap mediation models.

The results revealed that for less familiar brand spokes-characters, either type of nostalgia-driven design would enhance consumers' brand attitude. Moreover, consumer trust in the spokes-character mediated the relationship between personal-nostalgic brand spokes-characters and brand attitude.

This study was the first to examine personal nostalgia and historical nostalgia separately regarding the effects of nostalgic spokes-characters and related mechanisms. By combining methods of experimental design and bootstrap mediation modeling, it provided a more robust evaluation of nostalgia-driven design, and supported using certain nostalgic styles for designing brand spokes-characters, which can help modern brands draw more interest from young consumers and promote more positive brand attitude.

This paper aims to study the attitude control problem with mutating orbital rate and actuator fading.

To avoid malicious physical attacks and hide itself, the spacecraft may irregularly switch its orbit altitude within a specific range, which will bring about variations in orbital rate, thereby causing mutations in the attitude dynamics model. The actuator faults will also cause changes in system dynamics. Both factors affect the control performance. First, this paper determines the potential switching orbits. Then under different conditions, design controllers that can accommodate actuator faults according to the statistical law of actuator fading.

This paper, to the best of the authors’ knowledge, for the first time, introduces the Markovian jump framework to model the possible unexpected mutating of orbital rate and actuator fading of spacecraft and then designs a novel control policy to solve the attitude control problem.

This paper also provides the algorithm design processes in detail. A comparative numerical simulation is given to verify the effectiveness of the proposed algorithm.

This is an early solution for spacecraft attitude control with dynamics model mutations.

While the normal wheel–rail contact model cannot be accurately used for light rail transit (LRT) wheel wear analysis with large wheelset lateral displacement and wheelset yaw angle, a modified semi-Hertzian contact model (MSHM) is proposed in the paper.

MSHM was first proposed to consider the wheelset motion with the lateral displacement and the yaw angle. Then, a dynamic model of an LRT was established and the influence of some key factors on wheel wear is analyzed. At last, after operating for a certain mileage, the predicted wheel wear is compared with the tested wheel wear.

Compared with the tested wheel wear, the predicted wheel wear shows a good agreement with the measured result, verifying the accuracy of MSHM.

Considering larger wheelset lateral displacement and yaw angle, MSHM can be used to calculate the wheel wear of the LRT with high accuracy.