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China's Leap into the Information AgeInnovation and Organization in the Computer Industry$
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Qiwen Lu

Print publication date: 2000

Print ISBN-13: 9780198295372

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780198295372.001.0001

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The China Great Wall Computer Company: Transforming the State-Run Computer Industry

The China Great Wall Computer Company: Transforming the State-Run Computer Industry

(p.150) 5 The China Great Wall Computer Company: Transforming the State-Run Computer Industry
China's Leap into the Information Age

Qiwen Lu

Oxford University Press

This chapter discusses how China Great Wall Computer Company (CGC) transformed China's state-run computer industry as a result of exploring new organizational forms and adapting to a new business environment at the highest level of the industrial administrative hierarchy. The CGC is a fully integrated high-tech enterprise group engaging in a wide range of IT related businesses, including R&D, manufacturing, distribution, services, systems integration, foreign trade and finance. The foundations for the success of the CGC were laid by the indigenous product innovations that met specific local needs from the very beginning and the corresponding adoption of a market-oriented organizational structure. The Great Wall Model, with its four basic ingredients — market orientation, independent product development, OEM production arrangement, and dealership distribution system — proved that it was possible to build a competitive enterprise without relinquishing state ownership altogether.

Keywords:   China Great Wall Computer Company, CGC, computer industry, product innovations, Great Wall Model

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