Kyle Chan has a very good blog post where he discusses the landscape of Chinese state-owned enterprises (SOEs) and their incentive system. This post will discuss the relevance of such models and structures in the Indian context. Contrary to perceptions of lumbering and inefficient giants, thanks to several rounds of mergers, restructurings, and rationalisations, the larger central government SOEs are today highly profitable. Further, instead of profit maximisation, the priority of these enterprises is to serve as instruments of industrial policy and national economic priorities.
Chinese PSU management and lessons for India
Chinese PSU management and lessons for India
Chinese PSU management and lessons for India
Kyle Chan has a very good blog post where he discusses the landscape of Chinese state-owned enterprises (SOEs) and their incentive system. This post will discuss the relevance of such models and structures in the Indian context. Contrary to perceptions of lumbering and inefficient giants, thanks to several rounds of mergers, restructurings, and rationalisations, the larger central government SOEs are today highly profitable. Further, instead of profit maximisation, the priority of these enterprises is to serve as instruments of industrial policy and national economic priorities.