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Management Consultancy Adoption in Listed Chinese Companies
Huihua Chen, Cardiff University
Chee W Chow, San Diego State University
Rong - Ruey Duh, National Taiwan University
Jason Zezhong Xiao, Cardiff University
ABSTRACT. As China seriously lacks trained/experienced personnel at the current stage of development, it is likely that adoption of management consulting is driven by mimetic isomorphism factors rather than by performance considerations. Using data from a survey of 219 listed Chinese firms, our results suggest that adoption of management consultancy is mainly driven by two groups of factors: mimetic isomorphism factors and adoption of MAC and ICT. By contrast, there is no evidence to suggest that management consultancy relates to firm performance, either measured by accounting ratios or by growth opportunities. In addition, the results show that government control stifles adoption of management consulting.
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