Chinese Culture, Organizational Behavior, and International Business Management

By Ilan Alon | Go to book overview

should study potential partners more carefully. While absorbed slack such as excess capacity may be undesirable, unabsorbed slack such as a discretionary fund may be highly attractive. Instead of just focusing on reported levels of efficiency and performance, foreign investors should also attempt to evaluate their prospective partners' resources not reflected in their revealed capacities, because such unreported slack may be indicative of a better potential.


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Kornai, Janos. 1992. The Socialist System. Princeton, New Jersey: Princeton University Press.

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