1 - Reform and Leadership

Summary

Chapter 1 introduces the book’s core argument: that leadership in China’s public sector helps to explain variation in reform outcomes at the organization level. Focusing on Chinese state-owned enterprises (SOEs), it introduces the book’s analysis of the effects of leader decisions about strategy and structure and their execution on two types of reform outcomes: (1) the degree to which SOE market expansion is decentralized and (2) changes in the balance of influence among intra-firm actors – who gains and who loses during reform. This chapter also provides an overview of Chinese SOEs’ domestic economic presence and their strategic functions for the state. It distinguishes between SOEs owned by central and local governments and situates them in China’s administrative hierarchy. Next, the chapter takes a closer look at central SOE leaders: their demographics, integration in China’s political system, and attributes relative to other Chinese officials. It concludes by previewing the content of the remaining chapters.