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Why do Chinese state-owned enterprises routinely respond to central-level goals and policies in different ways, and why do their reform trajectories often vary significantly across firms and over time? This book introduces a leadership approach to studying the politics, process, and outcomes of economic reform in China's public sector. Using a series of in-depth case studies, Wendy Leutert analyses the exercise and effects of leadership in Chinese state-owned enterprises. She uncovers the 'intra-organizational politics of reform': the daily dynamics of cooperation and conflict between leaders and their subordinates inside public-sector organizations. She also identifies common tactics that Chinese state-owned enterprise leaders use to execute their agendas and ways their subordinates respond. Updating and expanding existing knowledge, this book highlights the growing global consequences of leadership in Chinese state-owned enterprises and why leadership remains vital for understanding China today.
Chapter 6 develops an integrated framework of leader–subordinate dynamics in Chinese SOEs. How do leaders interact with subordinates to execute their agendas, and how do subordinates respond? Grounded in reward, coercion, and legitimate bases of power, the chapter identifies SOE leader tactics such as leveraging position authority, conducting personnel ploys, emphasizing material and status gains, invoking external threats, underscoring superiors’ directives and policies, and appealing to subordinates’ personal duty and morality. Subordinates may react by praising and supporting the leader or by expressing alternative views, delaying or subverting implementation, shirking, engaging in critical expression, or quitting. Leader–subordinate interactions are iterative and evolve over time.
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