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,
and as such this is 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.
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