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Unit of Analysis

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Book cover Managerial Discretion and Performance in China

Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

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Abstract

This chapter specifies, profiles, and evaluates the unit of analysis chosen for the present study, i.e. the manager for whom the impact of discretion on performance is being investigated. As there is a particular need to clarify the performance impact of discretion at the middle management level in China, the unit of analysis is the plant manager of small and medium-sized enterprises in the manufacturing sector throughout mainland China, which covers both domestic Chinese firms and foreign multinationals. A demographic profile is inferred from a representative sample of 467 plant managers, including age, gender, education, work experience, organisational structure, and span of control. Furthermore, the plant manager’s context in China is discussed with respect to position, firm size, industry, region, and time-related aspects. Finally, this chapter meticulously evaluates the unit of analysis in terms of statistical conclusion validity, reliability, construct validity, internal validity, and external validity.

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Notes

  1. 1.

    As explained in Sect. 3.1, there are tens of thousands of plant managers in China alone (Guojia tongji ju [National Bureau of Statistics] 2007, 14–1, 14–2, 14–18). With plant managers being but one example of middle managers, this translates into an even larger number of middle managers in organisations worldwide.

  2. 2.

    The empirical data on the unit of analysis in the present study (McKinsey & Company—London School of Economics—Stanford University, 2008; see Sect. 1.3) is a statistically representative sample of 467 Chinese firms and multinationals in China (see Sect. 5.5), which was collected using a standardised scoring system during 467 detailed ‘double-blind’ interviews with plant managers of approximately 45 minutes each by specially-trained native Chinese graduate students from top business schools (see Sect. 5.2).

  3. 3.

    Hong Kong, Macao, and Taiwan are excluded from this study in line with most statistics in the China Statistical Yearbook 2007 (Guojia tongji ju [National Bureau of Statistics] 2007: Bianzhe shuoming [Editor’s notes]).

  4. 4.

    As shown in Figure 3.3 in Sect. 3.2.2, nearly 30,000 firms with 300 to 2,000 employees are recorded in official government statistics in the manufacturing sector in China. As the sample of the present study applies to manufacturing firms with 150–5,000 employees, the number of comparable firms in the theoretical population is expected to be even larger. Moreover, with generally one or more plant managers per firm, the number of plant managers is expected to be yet larger, and is therefore here expressed as ‘tens of thousands’.

  5. 5.

    Table 3.2 uses sample means to calculate 95 % confidence intervals for population means, which are expected to contain the true population parameters with a 95 % probability. As described above, the required assumption of the sample’s representativeness is satisfied (see Sect. 5.5). Provided that a given characteristic of the plant manager (e.g. age) is an independent and identically-distributed random variable with finite mean and variance, its sample mean will follow a normal distribution in the limit as the sample size approaches infinity (the central limit theorem: CLT; see e.g. Shao 2003, pp. 67–70). While sample sizes are far from infinity in practice, sample sizes of at least 30 cases have often been deemed sufficient for applying the CLT, although some scholars have argued that 250 cases are required since the underlying population may exhibit strong distortion from normality (see Yu and Behrens 1995, pp. 5–6). Even this conservative threshold is easily met by the present study’s sample of 467 firms, and the distribution of the sample means of the plant manager’s characteristics can thus be approximated by normal distributions. As sample variances are used to proxy the unknown population variances, the Student’s t-distribution is applied for constructing the confidence intervals, which adjusts the normal distribution for the uncertainty of estimating the population variance and approaches the normal distribution as the sample size tends to infinity.

  6. 6.

    Section 2.2.3 has demonstrated that units of analysis (i.e. managers whose discretion is analysed) have varied in terms of these characteristics across studies in the literature on the impact of discretion on performance. Moreover, as shown below, according to these five characteristics, the study’s unit of analysis is specified as (1) the plant manager (i.e. the most senior manager at a plant below the firm’s CEO in mainland China) (2) of small and medium-sized enterprises (i.e. firms with 150–5,000 employees in total in mainland China) (3) in the manufacturing sector (i.e. primary US SIC code from 20 to 39) (4) throughout mainland China (i.e. all of China excluding Hong Kong, Macao, and Taiwan) (5) in the latter half of 2007 (i.e. July to December 2007). This covers plant managers in both domestic Chinese firms and foreign multinationals.

  7. 7.

    This section builds on Bloom et al.’s (2005, 2007, 2008, 2009a) discussion of the unit of analysis in the data-base (McKinsey and Company—London School of Economics—Stanford University 2008; see Sect. 1.3).

  8. 8.

    See Sect. 5.1 on statistical conclusion validity (e.g. Albers and Hildebrandt 2006, pp. 2–33; Arteaga et al. 2010, p. 164; Backhaus et al. 2006, p. 97; Barroso et al. 2010, p. 437; Baumgartner and Homburg 1996; Bentler and Chou 1987; Bentler and Weeks 1980; Betzin and Henseler 2005, p. 50; Bliemel et al. 2005, pp. 10–11; Bollen 1989, pp. 1–9; Bollen and Davis 1994; Boßow-Thies and Albers 2010, pp. 595–596; Carte and Russell 2003, pp. 480–495; Chin 1995, pp. 315–319, 1998, pp. 318–320, 2000, pp. 1–2, 2001, 2002, p. 94, 2010, p. 670; Chin and Newsted 1999, pp. 309–314; Chow 1960, pp. 595–604; Cohen 1988, pp. 410–413; Coheris Spad 2007; Cortina et al. 2001, pp. 334–359; Diamantopoulos and Schlegelmilch 2006, p. 217; Diamantopoulos and Siguaw 2006, p. 271; Duarte and Raposo 2010, p. 463; Efron and Gong 1983, pp. 40–46; Efron and Tibshirani 1993, pp. 145–147; Eggert et al. 2005, pp. 102–108; Esposito Vinzi et al. 2010, pp. 48–66; Falk and Miller 1992, p. 5; Fassott 2005, pp. 24–29; Fassott and Eggert 2005, pp. 26–32; Finkelstein and Boyd 1998, p. 186; Fornell 1987; Fornell and Bookstein 1982a, pp. 289–302, 1982b, pp. 440–451; Fornell and Larcker 1981, pp. 45–46; Fu 2006; Gallese and Prugent 2007; Garson 2002, p. 144; Götz and Liehr-Gobbers 2004, pp. 727–731; Henseler and Fassott 2010, p. 721; Herrmann et al. 2006, p. 61; Homburg and Baumgartner 1995b; Homburg and Dobratz 1998, p. 450; Hsieh et al. 2008, p. 108; Irwin and McClelland 2001, p. 105; James et al. 1982, pp. 110–112; Jöreskog 1970, 1981; Jöreskog and Sörbom 1982, 1988; Kaplan 2000, pp. 1–12; Krafft et al. 2005, pp. 73–83; Krzanowski 2003, p. xv; Yuan Li 2005; Lohmöller 1987, 1988, p. 126, 1989; MacCallum and Browne 1993, pp. 533–540; Ping 2005, p. 2; Qureshi and Compeau 2009, p. 199; Ringle 2009; Ringle et al. 2005, 2010, p. 205; Rodgers and Pavlou 2003, p. 25; Sánchez 2009, p. 3; Satorra and Bentler 2001; Schepers et al. 2005, p. 504; Scholderer and Balderjahn 2005, pp. 88–94; Temme and Kreis 2005, p. 195; Temme et al. 2006, pp. 1–2; Tenenhaus et al. 2004, pp. 739–742; Tenenhaus et al. 2005, pp. 173–190; van Oppen et al. 2005, p. 19; Wold 1966, 1973, 1975, p. 351, 1980, pp. 70–71, 1982, 1985, 1989).

  9. 9.

    See Sect. 5.2 on reliability (e.g. Albers 2010, p. 411; Albright and Malloy 2000, p. 349; Babbie 1990, p. 187; Bagozzi 1980; Bagozzi and Yi 1988, p. 82; Beyth-Marom 1982; Blalock 1964; Bloom and Van Reenen 2007, pp. 1365–1366; Bollen and Lennox 1991; Carmines and Zeller 1979, pp. 29–62; Chin 1998, p. 320; Churchill 1987; Coltman et al. 2008; Crocker and Algina 1986; Cronbach 1951, p. 297; Diamantopoulos 1999, pp. 447–453; Diamantopoulos and Siguaw 2006, pp. 270–271; Dillman 1978, p. 56; Esposito Vinzi et al. 2010, pp. 50–51; Fornell and Larcker 1981, p. 45; Garson 2002, p. 199; Gliner and Morgan 2000, pp. 312–316; Groves 1990, pp. 226–233; Herrmann et al. 2006, p. 30; Holbrook et al. 2003, pp. 81–86, 109–110; Krafft 1999, p. 124; Krafft et al. 2005, pp. 73–75; Krafft et al. 2003, p. 102; Lavrakas 2008, p. 250; Lichtenstein and Newman 1967; Manski 2004, p. 10; March and Simon 1958, pp. 140–141; Novick and Lewis 1967, pp. 1–13; Nunnally 1978, p. 245; Ping 2005, p. 2; Rossiter 2002, pp. 307–315; Sánchez 2009, p. 3; Scholderer and Balderjahn 2005, pp. 88–89; Schwester 2007, pp. 270–272; Spearman 1904; Tenenhaus et al. 2005, p. 164; Wallsten et al. 1986; Werts et al. 1974).

  10. 10.

    See Sect. 5.3 on construct validity (e.g. Ahuja and Thatcher 2005, p. 446; Albers 2010, p. 411; Albright and Malloy 2000, p. 349; Arnold 1982; Arteaga et al. 2010, p. 164; Bagozzi and Yi 1988, p. 82; Balderjahn 1986, p. 236; Barroso et al. 2010, p. 437; Baumgartner and Homburg 1996; Bido 2007; Blalock 1964; Bohrnstedt 1970, p. 92; Bollen and Lennox 1991, p. 308; Boßow-Thies and Albers 2010, p. 596; Bromley 2002, p. 35; Campbell and Fiske 1959, p. 81; Carmines and Zeller 1979, p. 53; Carte and Russell 2003, pp. 493–494; Caza 2007, p. 40; Chin 1998, p. 318, Chin 2000, pp. 1–2, Chin 2010, p. 670; Chin et al. 2003, p. 194; Churchill 1979, 1987; Coltman et al. 2008; Cronbach and Meehl 1955; Diamantopoulos 1999, pp. 447–453; Diamantopoulos and Siguaw 2006, p. 271; Diamantopoulos and Winklhofer 2001, p. 272; Donsbach and Traugott 2008, p. 364; Duarte and Raposo 2010, p. 463; Eggert and Fassott 2003, pp. 5–9; Esposito Vinzi et al. 2010, pp. 50–51; Esposito Vinzi et al. 2003, p. 5; Fassott and Eggert 2005, p. 32; Fornell and Cha 1994, pp. 71–73; Fornell and Larcker 1981, pp. 45–46; Fornell et al. 1990, p. 1252; Fritz 1995, p. 136; Garson 2002, pp. 195–196; Geisser 1975, pp. 320–328; Gliner and Morgan 2000, pp. 321–322; Götz and Liehr-Gobbers 2004, p. 727; Hahn 2002, p. 104; Helm 2005, pp. 249–252; Henseler and Fassott 2010, pp. 719–721; Herrmann et al. 2006, pp. 24–30; Hinkel 2001, p. 291; Homburg and Baumgartner 1995b, p. 1093; Homburg and Dobratz 1998, p. 450; Homburg and Giering 1996, p. 12; Hsieh et al. 2008, p. 109; Hu and Olshfski 2007, p. 207; Hulland 1999, pp. 198–199; Jarvis et al. 2003, p. 202; Jöreskog and Wold 1982, p. 270; Keil et al. 2000, pp. 312–315; Krafft 1999, p. 124; Krafft et al. 2005, pp. 73–75; Krafft et al. 2003, p. 102; Lohmöller 1989, p. 36; Mosier 1947; Nunnally 1978, p. 111; Ping 2005, p. 1; Qureshi and Compeau 2009, pp. 197–199; Reinartz et al. 2004, p. 298; Rigdon et al. 1998, p. 1; Ringle et al. 2005; Rodgers and Pavlou 2003, p. 25; Rossiter 2002, p. 315; Ruiz et al. 2010, pp. 546–548; Sambamurthy and Chin 1994, pp. 231–232; Sánchez 2009, p. 3; Schepers et al. 2005, p. 504; Seltin and Keeves 1994, p. 4356; Stone 1974; Tenenhaus et al. 2005, pp. 163–174; van Oppen et al. 2005, p. 19; Venkatesh and Morris 2000, p. 126; Venkatraman 1989, p. 426; Wold 1982, p. 10; Zhu et al. 2006, pp. 529–530).

  11. 11.

    See Sect. 5.4 on internal validity (e.g. Abraham et al. 2007, pp. 10–21; Albors et al. 2008; Ang and Straub 1998, p. 544; Ang 2008; Arafat et al. 1999, p. 90; Arnold 1982; Bachman and Schutt 2010, p. 170; Backhaus et al. 2006; Baum 1996; Bloom and Van Reenen 2007, pp. 1375–1381; Bound et al. 1984; Campbell and Fiske 1959, p. 81; Caza 2007, p. 46; Corcoran 2001, p. 154; Davis 1985, pp. 63–64; Diamantopoulos and Siguaw 2006, p. 270; Diamantopoulos and Winklhofer 2001, p. 272; Dibbern and Chin 2005, p. 144; Donsbach and Traugott 2008, p. 364; Eckey et al. 2004, p. 92; Efron and Gong 1983, pp. 37–38; Esposito Vinzi et al. 2010, p. 56; Evans 1987, p. 659; Finkelstein and Boyd 1998, p. 187; Finkelstein and Hambrick 1990, p. 500; Fornell and Bookstein 1982a; Fornell and Cha 1994, pp. 71–73; Galavan 2005, p. 174; Geisser 1975, pp. 320–328; Götz and Liehr-Gobbers 2004, pp. 727–731; Granger 1969; Grant and Rice 2007, p. 367; Greene 2003, pp. 57–58; Griliches and Mairesse 1990; Gujarati 2004, pp. 342–363; Hair et al. 1998, p. 208; Hannan and Freeman 1977; Hanssens et al. 2003, p. 298; Hatzichronoglou 1997, pp. 12–13; Hausman et al. 1984; Hellevik 1988, p. 38; Helm 2005, pp. 248–249; Henseler and Fassott 2010, pp. 719–721; Herrmann et al. 2006, pp. 55–61; Hu and Olshfski 2007, p. 207; Jaccard and Turrisi 2003, pp. 1–2; Jackman 1975, p. 182; Keuzenkamp 2000, p. 261; Kleinbaum et al. 1998, p. 214; Krafft et al. 2005, pp. 72–80; Kutner et al. 2004; Loschky 2008, pp. 3–7; Motulsky 2003, p. 106; OECD 2005, pp. 167–172; Oliinik 2008, p. 19; Onkelinx and Sleuwaegen 2010; Poncet et al. 2008, pp. 10–12; Rigdon et al. 1998, p. 1; Ringle et al. 2005; Rosenbaum 1989, p. 341; Sánchez 2008, p. 5; Sarkar et al. 2006; Shaughnessy et al. 2005, p. 367; Simon 1954, pp. 471–478; Singh and Lumsden 1990; Stone 1974; Taube 2005, pp. 4–13; Taube and Ögütçü 2002, pp. 18–23; Temme et al. 2006, p. 18; Tenenhaus et al. 2005, pp. 174–177; Venkatraman 1989, p. 426; Wagner 2002, pp. 287–292; Wald et al. 1988, p. 72; Wooldridge 2002, p. 95).

  12. 12.

    See Sect. 5.5 on external validity (e.g. Abraham et al. 2007; Bureau van Dijk 2005, p. 2, 2006/2007, p. 2; Fogiel 2000, pp. 158–160; Garson 2002, pp. 139–196; Gliner and Morgan 2000, p. 148; Groves 1990, p. 233; Groves et al. 2009, pp. 54–56; Groves and Lyberg 2001, p. 195; Guojia tongji ju [National Bureau of Statistics] 2003, 2007, 14–1, 14–2, 14–18; McCarty 2003, p. 397; ISIC Rev.3.1; National Bureau of Statistics 2002; Northrop and Arsenault 2007, pp. 235–236; Oliinik 2008; Poncet et al. 2008, p. 8; Ringle et al. 2005; Schofield 2006, pp. 28–29; Schwester 2007, pp. 272–273; Stuart 1984; Temme et al. 2006, pp. 7–8; The American Association for Public Opinion Research 2008, pp. 34–35; United Nations 2007, p. 63; Whyte 2000, p. 62; Wooldridge 2002, pp. 298–299).

  13. 13.

    Although the unit of analysis is an individual (i.e. the plant manager), the present study often equivalently refers to the number of interviews or firms, as in the discussion of sampling in Sect. 5.5. This is appropriate given that sampling confines itself to one interview per plant manager and one plant manager per firm.

  14. 14.

    For industrial enterprises, a granular size division standard has been formulated by the National Bureau of Statistics and other institutions in China (National Bureau of Statistics 1992). The institutions that developed the ‘Division Standard for Large/Medium/Small Sized Industrial Enterprises’ in 1988 (it was supplemented in 1992) are the State Economic Commission, the State Development Planning Commission (now the National Development and Reform Commission, NDRC), the National Bureau of Statistics, the Ministry of Finance, the Ministry of Labor and Personnel, and the State Industrial Census Office. Enterprises are classified as oversized, large (large I and large II), medium (medium I and medium II), and small. The categorisation is based on production capacity and the value of productive fixed assets with thresholds varying according to a detailed breakdown by industry branch. For a broader range of industries including services, there is a less granular size division standard (Guojia tongji ju [National Bureau of Statistics], 2003). The standard was developed based on the ‘Notification on Printing and Distributing the Preliminary Standard of Small and Medium-Sized Enterprises’ (State Commission for Economics and Trade: SMEs, 2003, No. 143; ‘Guanyu yinfa zhongxiaoqiye biaozhun zanxing guiding de tongzhi’, ‘guojingmao zhongxiaoqi, 2003, 143 hao’; translated by the author) by the State Commission for Economics and Trade (‘guojia jingmaowei’), the State Planning Commission (‘guojia jiwei’, now the National Development and Reform Commission, NDRC), the Ministry of Finance (‘caizhengbu’), and the National Bureau of Statistics (‘guojia tongjiju’). Enterprises are classified as large (‘daxing’), medium-sized (‘zhongxing’) and small (‘xiaoxing’). Firms must simultaneously satisfy three size thresholds (number of people employed, sales volume, and total assets) in order to be allocated to a particular size class. In the manufacturing industry, for example, a necessary (but not sufficient) condition is having 2,000 or more employees for being classified as large, 300 to less than 2,000 employees for medium-sized, and less than 300 employees for small enterprises.

  15. 15.

    Details on the measurement of firm size in the present study are presented in Sect. 4.2.4. Moreover, section 5.5 establishes that the present study’s sample is representative of theoretical population in terms of firm size, with a nearly equal maximum, minimum, and average number of employees in the sample and population.

  16. 16.

    There are various alternative industrial classification systems available, such as the North American Industry Classification System (NAICS), which has a more granular classification code (up to six digits) than SIC (up to four digits) and the International Standard Industrial Classification (ISIC), on which the data published by the National Bureau of Statistics of China is based. SIC was chosen due to its availability in the dataset used to draw up the sampling frame (see Sect. 5.5.1). As the six digit granularity of NAICS codes is not required in the present study and SIC codes can be translated into ISIC codes by means of correspondence tables (see Sect. 5.5.4), the SIC is as suitable as the alternative classification systems in the context of this research. An overview of the SIC division structure is available at http://www.osha.gov/pls/imis/sic_manual.html.

  17. 17.

    Section 5.5.4 tabulates the distribution of the present study’s sample and population by industry branches within the manufacturing sector. Strong statistical representativeness is established, with Pearson’s r = 0.99 for the correlation of industry branch proportions between the study’s sample and the theoretical population.

  18. 18.

    Section 5.5.4 provides the regional distribution of the present study’s sample and population, whereby mainland China is divided into the six regions featured in the China Statistical Yearbook 2007 (Guojia tongji ju [National Bureau of Statistics] 2007, pp. 3–13). These six regions are North China (‘huabei’), Northeast China (‘dongbei’), East China (‘huadong’), Central South China (‘zhongnan’), Southwest China (‘xinan’), and Northwest China (‘xibei’). Again, strong statistical representativeness is demonstrated, with Pearson’s r = 0.99 for the correlation of regional proportions between the study’s sample and the theoretical population.

  19. 19.

    The following statistics are based on market exchange rates rather than purchasing power parity.

  20. 20.

    (Goldman Sachs 2005, p. 7; Guojia tongji ju [National Bureau of Statistics] 2011; Zhonghua renmin gongheguo zhongyang renmin zhengfu [The Central People’s Government of the People’s Republic of China] 2008a). In 2003 Goldman Sachs predicted that China could become the second largest economy in the world (overtaking Japan) as early as 2016 and the largest economy (leapfrogging the United States) by 2041 (Goldman Sachs 2003, p. 3). During 2005 Goldman Sachs revised the estimated year in which China could ascend to the world’s biggest economy to 2040 (Goldman Sachs 2005, p. 7) and subsequently to 2035 (as cited by Macartney and Duncan 2005). In addition to economic power increasingly shifting towards China—a phenomenon whose scale has been argued to often be underestimated (see Moody 2011)—China’s political and military power have been mounting over the past decades and, although scepticism remains, some observers believe that China’s ascent to a superpower is now finally becoming a reality (see Miller 2005).

  21. 21.

    As described in Chap. 5, in terms of the nomenclature defined by the utos system (Cronbach 1982), in experimental research designs experimenters give experimental stimuli or treatments (t) to the unit of analysis (u) in a given setting (s) and make observations (o) on input and output measures in order to infer causality.

  22. 22.

    Granger (1969, p. 428) defines that ‘Y t is causing X t if we are better able to predict X t using all available information than if the information apart from Y t had been used.’ Granger shared the Nobel Prize in Economics in 2003 with Robert F. Engle III for their work on methods of analysing economic time series.

  23. 23.

    It should be noted that the accuracy of GDP growth statistics published by the National Bureau of Statistics (NBS) has been questioned and some private institutions have put forward alternative measures of economic activity that exhibit more volatile growth rates. For example, according to the Goldman Sachs China Activity Index (GSCAI, which includes industrial production, transportation and electricity consumption) growth in real economic activity fell to 5.4 % in 1998 (vs. NBS: 7.8 %) and reached 13.1 % in 2004 (vs. NBS: 10.1 %). Although this would imply that China followed a less smooth development path than the NBS statistics suggest, the growth in real economic activity in China remains undeniably strong. From 2002 to 2007 the growth rates of the GSCAI have even exceeded the growth rates published by the NBS in every year (Gaosheng jituan quanqiu touzi yanjiu [Goldman Sachs Group Global Investment Research] 2008, p. 4).

  24. 24.

    The eight major events for 2007 are (1) passing the ‘Property Right Law of the People’s Republic of China’ (‘wuquanfa’), (2) issuing the ‘Provisions of the People’s Republic of China on the Disclosure of Government Information’ (‘xinxi gongkai’), (3) making advances on saving energy and reducing emissions (‘jieneng jianpai’), (4) piloting basic medical insurance for the residents of cities and towns (‘chengzhen jumin jiben yiliao baoxian shidian’), (5) providing a minimum standard of living in rural areas (‘nongcun zuidi shenghuo baozhang’), (6) restraining the overheating of the economy (‘ezhi jingji guore’), (7) holding the 17th National Congress of the Communist Party of China (‘shiqi da’), and (8) launching the satellite ‘Chang’e No. 1’ (‘Chang’e yi hao’) (Jingji guancha wang [The Economic Observer Online] 2007; translated by the author).

  25. 25.

    Returning to the speeches of President Hu Jintao and Premier Wen Jiabao at China’s Central Economic Work Conference in December 2008: ‘2008 was a very unusual and uncommon year in the development of the Communist Party and the country. In this year, we experienced several important challenges that were difficult to anticipate and rare in the history [of China]. Faced with these severe circumstances, our Communist Party united and led the entire nation to be of one heart and mind and join forces to achieve a common cause. In this way, we succeeded in fighting against the severe snow and frost disaster in the South and the exceptionally large disaster of the earthquake in Sichuan (Wenchuan). We held the Beijing Olympics and Paralympics successfully and our astronauts travelled to outer space in the space shuttle “Shenzhou No. 7”. We successfully hosted the Seventh Asia-Europe Meeting and calmly faced the spill-over effects of the international financial crisis […]’ (Zhonghua renmin gongheguo zhongyang renmin zhengfu [The Central People’s Government of the People’s Republic of China] 2008c; translated by the author).

  26. 26.

    As explained in Sect. 5.2, there are as few as four interviewers in the present study and interrater validity, i.e. the reliability between multiple interviewers (Garson 2002, p. 199), is indeed achieved.

  27. 27.

    Formally, according to these five characteristics, the unit of analysis has been specified as being (1) the plant manager (i.e. the most senior manager at a plant below the firm’s CEO in mainland China) (2) of small and medium-sized enterprises (i.e. firms with 150–5,000 employees in total in mainland China) (3) in the manufacturing sector (i.e. primary US SIC code from 20 to 39) (4) throughout mainland China (i.e. all of China excluding Hong Kong, Macao, and Taiwan) (5) in the latter half of 2007 (i.e. July to December 2007).

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Wülferth, H. (2013). Unit of Analysis. In: Managerial Discretion and Performance in China. Contributions to Management Science. Physica, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-35837-1_3

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