Fea t ure - G raduation Se a s o n
November 3, 2014 marked a momentous day for the HKU
Faculty of Business and Economics as this year’s graduates
gathered for the graduation ceremony held at the Hong
Kong Convention and Exhibition Centre. Over 1,400 FBE
graduates from the 192nd HKU Congregation were joined
by their families, friends and professors as they were
conferred their degrees and entered a new chapter of their
lives.
The inspiring ceremony was officiated by Provost and
Deputy Vice-Chancellor, Professor Roland Chin, who
shared some wise parting words of support and advice.
Addressing the group, Professor Chin urged the Class of
2014 forward in celebrating their achievements. He shared
his pride and joy in their academic successes and reminded
the class to appreciate the support of their families and
friends in all their accomplishments. In particular he
commended the FBE professors for their hard work,
innovation and creative thinking – which instilled
confidence and determination in this newest group of
graduates.
The theme of Professor Chin’s address reminded attendees
of the responsibilities that come with education: academic
achievement and advancement represent great freedom and
responsibility, which graduates should be mindful of every
day.
“An HKU education provides great freedom and choices
for our students,” explained Professor Chin, reminding
graduates that lessons learnt in their university classes – as
well as the freedoms and choices that come with education
– would be tested every day. These freedoms ranged from
simple choices, such as whom to meet for lunch or what
time to go to bed, to life changing decisions such as
choosing career paths or whom to marry.
Professor Chin added that throughout their university
Graduates with smiling faces
“An HKU education provides
great freedom and choices for
our students”
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careers, students are taught and trusted with the freedom to
express their opinions and thoughts, and learn to share
them with their peers and in a supportive environment.
However, the freedom to champion and express one’s own
opinions and thoughts also comes with the responsibility to
defend them.
words to the graduating class, he urged HKU’s newest and
youngest alumni to treasure these freedoms and take on
their new responsibilities with vigour, dignity and integrity.
More importantly, he emphasised, graduates must also be
aware of their responsibilities to defend the rights of others’
freedoms as well. The university fosters a free
environment for debate and exchange of opinions, and it is
this mind-set that has been imparted to our students and
graduates to take forward and apply in their daily lives.
Professor Chin’s closing remarks challenged students to
step up to their responsibilities as HKU alumni and to
defend the freedoms and rights of others who may not be as
fortunate – protecting the diversity of thoughts and
opinions outside of the university environment. In his final
Jan
2015
Fea t ure - G raduation Se a s o n
Thank you to The University of Hong Kong and all our
professors for giving us the once-in-a-lifetime experience. Being
enriched and empowered by knowledge, I stand here today being
a different and stronger person. It is with passion, conviction
and a strong life force, that we will be able to tackle all the
challenges we will face in the next stage in life to become
leaders of business world! Wish you all the best in your future
endeavours! We did it!
Miss Alice Ming
BBA (Law), 2014
On October 19, some 300 IMBA graduates were conferred an
IMBA degree by The University of Hong Kong in the IMBA
Graduation Ceremony. The ceremony, held at the Shanghai
International Convention Centre, was opened by Professor Peter
Mathieson, President and Vice-Chancellor of The University of
Hong Kong. Graduates in HKU academic dress mounted the stage
to be capped by Professor Mathieson and presented with a study
certification by Professor Lu Fang, President of Fudan University.
Professor Mathieson gave the Ceremony’s keynote speech, followed
by a few words of insight from Professor Xiongwen Lu, Dean of the
School of Management of Fudan University.
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Prize Presentation Ceremony 2014
Held at Grand Hall of The University of Hong Kong on
November 4, the Faculty recognised over 340 outstanding
students who were awarded scholarships and prizes, or
added to the Dean’s Honours List, at the 2014 Prize
Presentation Ceremony. More than 400 other guests from
several countries and regions also joined this happy
occasion.
Three teachers received Faculty
Outstanding Teacher Awards in
recognition of their excellence
in various aspects of teaching
and learning. Director of
School of Economics and
Finance Professor Keith
Wong was recognised for his
postgraduate teaching, and
Assistant Professor in Finance
Dr. Matthias Buehlmaier and
Mr. Philip Tso
Adjunct Assistant Professor in
Marketing Mr. Baniel Cheung were
recognised for excellence in undergraduate
teaching. Dr. Buehlmaier also received the Outstanding
Teacher Award for undergraduate teaching last year.
From left to right: Mr. Baniel Cheung, Professor Kevin Zhou,
Dean Eric Chang, Professor Keith Wong and Dr. Matthias Buehlmaier
Professor Kevin Zhou was
awarded the Outstanding
Researcher Award for his
exceptional
accomplishments in
research of international
merit and his important
contributions through
creative and innovative
research. He is among the
Dean Eric Chang
global top 1% of cited scholars
based on ISI’s Essential Science
Indicators from 2011 to 2013.
Professor Zhou’s research focuses on strategic orientation
and product innovation, trust and relational ties, and strategic
issues in international business and emerging economies.
Mr. Philip Tso, Director of Investment Services at Towers
Watson for Hong Kong, was the Guest of Honour at the
ceremony. In his keynote speech, Mr. Tso shared his views
on what students must learn to equip themselves in a highly
competitive world.
Mr. Tso told the audience that learning is a lifetime process.
He urged the audience to learn to be hungry for knowledge,
advancement and experience, to be positive, and to have a
long-term mindset. He shared his experience as an
interviewer and encouraged the audience to think about
learning as a career but not a job. He also inspired the
audience to find their competitive advantages, get out of their
comfort zones and think independently in order to learn how
to make changes. “Do not take things for granted,” he
reminded the listeners, “your opportunities for enhancing and
advancing yourself will diminish.” Finally, he encouraged
attendees to give back to society and help those in need.
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Fea t ur e - G raduation Se a s o n
The first Alumni Welcome Party of the Faculty was held on June
5 at Loke Yew Hall. More than 190 students of the Class of
2014, professors and alumni attended the party and enjoyed a
wonderful evening.
Miss Alice Ming, BBA (Law), sang a fantastic rendition of "Time
To Say Goodbye" and Miss Louisa Xia, BBA (Acc&Fin), gave a
heartwarming graduate’s remark. Other students said farewell to
their dear professors and classmates by taking photos together.
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Ev e n t s
Co-organised by the Faculty of Business and Economics and
the Institute for China and Global Development, “The World
Bank Group Twin Goals and Implications for Policy-making”
was the title of a public lecture delivered by Senior Vice
President for Development Economics and Chief Economist
of the World Bank Professor Kaushik Basu on June 30, 2014.
Professor Basu talked about The World Bank Group’s recent
adoption of two development goals: the end of chronic poverty in
the world by 2030 and the promotion of shared prosperity in
every society. He also reviewed past trends in poverty, the
strengths and weaknesses of the twin goals and their implications
for policy making, especially in the face of globalisation.
He explained that the two goals have met with some criticism.
For example, the target of $1.25 a day (PPP or percentage of
population) is seen as being too low. Professor Basu contended
that even at this extremely low level, there are more than one
billion people living below the poverty line. He also clarified that
the target is a global target, and that the World Bank works to the
principle of “no country left behind” – attempting to ensure that
no country has a poverty rate of more than 30%. For the second
goal, by shared prosperity it means fostering the growth rate of
income per capita of the bottom 40% of each country. The
criticism comes specifically from China and India where the
growth rate for the bottom 40% is slower than the average growth
rate as a whole. However, Professor Basu thought it is a valid
argument that the bottom 40% in China and India is growing
faster than the bottom 40% in other countries.
As a firm believer in the free market economy, he asked the
audience to put on their economic hats to look at anti-poverty
policies. “Good intentions and passion are not enough when it
comes to policy design,” he stressed. “To reach to poor people,
you have to design programmes that are incentive-compatible and
won’t lead to too much leakage.” Professor Basu applied game
theory to illustrate why India’s food programme has failed. The
Indian Government bought basic grain and sold them back to the
poor below the market price. However, the government failed to
take into account the rationale of the agents and sellers – who
maximised their profit by selling the grain at a higher price. As a
result, 60% of the grains bought by the government did not reach
the poor. From Professor Basu’s point of view, the solution is to
give the subsidy directly to the poor and let them buy the food at
market price.
Professor Kaushik Basu
In closing, Professor Basu addressed the
inefficiencies in the global decision making process
behind taxation of the rich to benefit the poor,
explaining that – at a global level – taxation is a
game of coordination, which is best addressed
through game theory. As countries are all relational
players, they benefit from lowering their tax rates to
attract investment and skilled labour. The rich are
thus able to benefit by keeping their assets in
low-tax countries – and this money does not reach
the local poor population. Therefore, anti-poverty
policies require a certain amount of coordination
across countries in order to maximise benefits.
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2015
Eve nt s
Mr. Pinky Lai shared his story of how an average teen from
Quarry Bay ended up designing Porsches for the past 26
years in a public lecture titled “Destinations are only part of
the journey and the journey is the destination”, delivered
under the auspices of the Faculty of Business and
Economics of The University of Hong Kong on October 8,
2014.
Mr. Lai was invited to join Porsche AG as Chief Designer in
1989, and was responsible for the design of the 911 (996
Complete model–line), as well as the Porsche Cayman and
Boxster exterior. In 2005, he became the Chief Designer of
Global Customer Projects and Special Car Projects at Style
Porsche, including the design operation for private cars,
industrial vehicles, motorcycles, and cruise liners. As the first
Chinese to become a designer for Porsche – one of the most
respected names in the automobile industry, what was Mr. Lai’s
secret to success?
Like many of us today, Mr. Lai took his exams and competed to
find a job during his teenage years. He truly began to
appreciate the meaning of design while working at Jens Munk
Limited, and set his sights on Europe as his next destination.
After saving enough for a one-way ticket to Rome, he spent the
next six years studying there. Subsequently, Ford of Germany
offered him a full two-year scholarship to the Royal College of
Art in London – providing him with the opportunity to go back
to school and specialise in transportation design. Mr. Lai
accepted the offer, and then went on to work for four and a half
years at Ford, followed by five years at BMW, before finally
joining Porsche.
His career reached a new peak during the press presentation of
the revolutionary 911 (996). He joined Porsche’s press
department to entertain over 1,000 journalists from around the
world with 15 brand-new 911s lined up for a test-drive and
photo session – explaining how the design of the 911 had
hardly changed over the past 35 years. The press reported the
story enthusiastically, eager not only to test-drive the new 911s,
but also to dive into the background story of the first Chinese
car designer responsible for one of the world’s most iconic
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sports cars.
The new 911 models won a number of designer awards and
were beloved by the media. They were also a hit with sports
car enthusiasts, delivering record sales for Porsche AG every
year since their launch. When the 911 turbo was released in
1999, demand was so great that the company doubled the
production from pre-launch estimates. Moreover, Mr. Lai
introduced digital processes in design, shortening the time from
2D freehand sketches to 3D sketching and modeling, from an
average of two–three months to two–three weeks.
After recounting his experiences as a car designer, Mr. Lai
shared his two secrets of success with the audience of more
than 280: developing an animal instinct and treating every
project as if it were his last. He explained that animal instinct
taught him how to survive, attributing its role in kick-starting
his personal development in Hong Kong. However, during his
second year of studies in London, he realised that mere animal
instinct wouldn’t be enough to be the best in the field, he learnt
to develop his “killer instinct” – referring to his desire to
proactively achieve his goals. He referenced basketball legend
Michael Jordan’s famous quote, “Play every game as if it’s
your last”, to echo his own philosophy towards
success.
Rounding out the lecture, Mr. Lai shared
freehand and digital sketches of various
design projects, and shared stories of his life
and adventures in Europe – including being
part of the first generation of hippies, getting
pulled over by the police because his
antiquated Volkswagen beetle was too
dangerous to be on the road, and missing his
exit on the highway because he was
distracted by three different models of
Porsches zipping by together. The lecture
concluded with an enthusiastic Q&A
session.
The new 911
models won a
number of
designer awards
and were
beloved by the
media.
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Mr. Pinky Lai
Jan
2015
Eve nt s
Faculty’s School of Economics and Finance continued its
Edward K.Y. Chen Distinguished Lecture Series, hosting its
2014 event on October 31, at Loke Yew Hall. This year’s
lecture, “Democracy and Economic Development: the Asian
Experiences”, drew an audience of 550 students, faculty and
community members.
The distinguished panel comprised representatives from Asia’s
major democracies, including Dr. Narongchai Akrasanee,
Minister of Energy and Founding Member and Director of
Thailand Development Research Institute; Professor Yun-han
Chu, Distinguished Research Fellow at the Institute of Political
Science at Academica Sinica and Professor of Political Science
at the National Taiwan University; Professor Simon S.C. Tay,
Chairman of the Singapore Institute of International Affairs and
Associate Professor at the National University of Singapore;
and Dr. Soogil Young, Professor at the Korea Development
Institute’s School of Public Policy and Management and
Director of the UN Sustainable Development Solutions
Network in Korea.
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The panellists’ presentations were followed by an engaging
panel discussion moderated by Professor Frederick Ma,
Honorary Professor of the School of Economics and Finance,
which focused on the relationship between economic
development and social equity in Asian democracies. Speakers
noted that as income levels rise, populations begin focusing on
political freedom, freedom of speech, and taking part in
society’s decision-making processes.
Of particular interest were current events in Hong Kong,
especially as the Occupy Hong Kong protests were in full
swing at the time of the lecture. Dr. Tay emphasised that
societies must choose their democratic models in accordance
with their level of development and social ethos. “There’s no
cookie cutter,” he commented, while explaining that it is
important for youth to have a sense of belief.
Professor Chu advised the students not to let the politics of
polarisation destroys social trust, common ground, and social
foundations. “Don’t allow polarisation to undermine your rule
Professor Yun-Han Chu
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Dr. Narongchai Akrasanee
Professor Simon S.C. Tay
of law, and to erode the proper function of public authority,” he
said.
In his closing remarks, Professor Edward Chen summarised the
key takeaways of the discussion, explaining that a hard
development stage often precedes democracy in Asia; and a
more authoritarian government focused on economic
development often gives rise to democracy. He also explained
that there are good and bad democracies, and their value is
determined by both their effectiveness and their quality of
government.
In discussing Hong Kong, Professor Chen attributed today’s
challenges to certain pitfalls built into the political system, as
Hong Kong lacks a genuine multi-party political system or
alternating party rule – which discourages the formation of
long-term policies, dissuades talent from entering politics, and
creates a vacuum of constructive opposition in LegCo. He
urged the young people in the streets fighting for ‘one man, one
vote,’ to consider inherent flaws in the system. “While I praise
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2015
Dr. Soogil Young
the enthusiasm of the students, perhaps they might need to
think deeper about our problems,” he said.
E ve nt s
More than 5,000 prospective students visited our booth and
attended our seminars during the HKU Information Day for
Undergraduate Admissions on November 8. Many were
accompanied by their parents, and a number of school
counsellors also turned up.
The seminars were designed to promote the Faculty, introduce
its undergraduate programmes, and strengthen its connections
with schools and the community. Speakers included
admissions tutors, programme directors, area coordinators
and professors. They also answered questions from the
audience on admissions and student matters.
Professor J.A. Spinks, the University’s Director of
Undergraduate Admissions and International Student
Exchange, and Dr. Sammy Fung, Assistant Dean
(Undergraduate), visited our booth. Professor Peter
Mathieson, President and Vice-Chancellor of the University,
also handed out “superpass” buns to students, symbolising
good wishes for their examinations and appreciation of the
efforts in supporting the event.
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2015
P r o g r a m m e U pd a t e s
The IMBA programme between HKU and Fudan University in
Shanghai is a world-leading proposition for aspiring professionals
looking to broaden their perspectives in an international and
multi-cultural environment.
A key highlight of the multi-year programme is the annual
seven-day IMBA Executive Workshop. This year HKU
welcomed 303 IMBA students from Shanghai to Hong Kong for
an intensive series of workshops, immersing them in real-world
study of various Hong Kong business sectors. Students
participated in lectures and company visits, and took part in
on-site experiences with key companies and industries.
Following opening remarks by Dean Eric Chang, students
launched into intensive speaker sessions with esteemed faculty
including Dr. Y.F. Luk, who covered the overall economy of
Hong Kong; Professor Larry Qiu, who lectured about China’s
globalisation; Dr. Dragon Tang, who delved into structured
finance in Hong Kong; Mr. Baniel Cheung, who detailed diverse
marketing strategy; Dr. Kin Chan, who explored the roots and
philosophy of entrepreneurship; Dr. Kenneth Tse, who
documented the rise of the port of Yantian; and Dr. Chan Yan
Chong and Mr. Erwin Huang, who discussed the value of social
responsibility and its role in business.
Beyond classroom lectures, the IMBA students were invited to
visit Hong Kong government bodies and agencies such as the
Independent Commission Against Corruption (ICAC), ASTRI,
and InvestHK; leading companies such as MTR, Cathay Pacific,
and Bloomberg; and prominent non-profit organisations such as
the Hong Kong Jockey Club. Through these on-site experiences,
students acquainted themselves with the local business landscape
and learnt the ins-and-outs of Hong Kong’s unique market. A key
takeaway for the students from the weeklong experience was a far
more insightful and in-depth perspective of the similarities and
differences between the business environments in Hong Kong
and China.
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IMBA Workshop 2014
Pro gramme Up dates
Thirty-five BBA(IBGM) Year-1 and Year-2 students set out on
an international field trip to the Netherlands and Belgium from
October 12 to October 19, 2014. During the eight-day field
trip, students visited five firms in different cities including
Heineken and ING Group in Amsterdam, Port of Rotterdam,
Port of Ghent, and EuroClear in Brussels. They also visited
cultural and historical sites including Zaanse Schans, Bruges
Old Town (World Heritage Site), Grand Place, and Atonium.
The students were highly motivated in learning about the
cultural and business environments of the Netherlands and
Belgium. During the company visits, the host presenters were
impressed with the quality of the questions raised by the
students. The field trip provided BBA(IBGM) students a
broadened view of international business and an opportunity to
acquire first-hand knowledge of global management practices.
Mr. William Kwok, a BBA(IBGM) Year-1 student, wrote his
reflections after visiting ING Group in Amsterdam and Port of
Ghent in Belgium: “I found it quite interesting how cultural
diversity impacts ING Group. Cultural differences are not seen
as obstacles in the decision-making process, but as
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opportunities to enrich the quality of decision made in catering
to the different needs of people from diverse backgrounds.”
Year-1 student Miss Yuna Choi visited EuroClear in Belgium
and paid a cultural visit to the Grand Place in Brussels, noting:
“I thought CSR was about environmental sustainability until I
attended the presentation by Euroclear on how their operations
in India helped raise awareness of gender equality and
diversity issues. This came as a fresh perspective to me and
led me to think more deeply about what CSR really is.”
Mr. Martin Ma, Year-2 student of the programme wrote about
his role as a senior student helper on the field trip: “It was
amazing to see how the Year-1 students spontaneously learnt
and made strong progress in just a few weeks’ time. Without
prior knowledge of finance, they understood precisely what
post-trade services are, what systems the central securities
depositories are deploying and what legal requirements they
are facing. This was the most valuable part of the trip –
stimulating us to learn in a self-motivating way, and gaining
hard knowledge and hands-on experience by interacting with
real companies dealing with real problems. The practical
applications are beyond doubt. Even for senior students,
providing guidance for freshmen and seeing how companies
work reinforces what we learnt and keeps us up-to-date on the
latest developments in the business world.”
He also regarded the overall learning experience obtained
through the field trip as a valuable part of their IBGM
education. “It was fascinating to experience the Dutch and
Belgian culture and ways of life. They are systematic and
creative, yet at the same time warm and welcoming. I believe
knowing how people live and interact is important, because
being able to appreciate and respect different norms and
practices is not only a key to success in the dynamic world of
business, but also a prerequisite to becoming a good global
citizen. This is a lesson that is always valid for everyone. A
trip like this gives us a chance to rethink, reflect and grow in
dimensions beyond traditional classrooms.”
On October 13, 19 executives shortlisted from a pool of
over 10,000 employees from the Hainan Airline Group
participated in a four-day Global Management
Programme provided by the Faculty’s Executive
Education at Cyberport. The training programme was
customised for top leaders of the company, with the aim
to enhance their understanding of globalisation and its
influence on corporate strategy, human resources,
management, etc. It was the fifth programme Executive
Education has offered to the airline group in the past 10
months.
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Jan
2015
Pro gramme Up dates
Thirty-nine Year-1 and Year-2 FBE students, who had
enrolled in the course called Field Experience in China
Business Environment, participated in the China Business
and Economics Program from June 1 to June 15, 2014.
They spent 15 days on the Fudan campus in Shanghai and
participated in formal lectures, guest talks, company visits
and a cultural tour to Suzhou that enhanced their
understanding of mainland China.
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The Global Business in Asia: New Horizons Summer
Programme 2014 began on June 20. Fifty-five
undergraduate students from universities all over the world
gathered in Hong Kong to kick start this four-week
programme. In addition to Hong Kong, students also spent
two weeks in Shanghai.
Mornings were devoted to classes, lectures and discussions
while afternoon sessions featured guest speakers, site visits
and group projects. Cultural tours to Lantau Island, Macau
and Suzhou were also arranged on weekends, providing a
better understanding of the environment in Hong Kong and
Shanghai.
The Pilot Scheme
Kick-off
Ceremony was
held at the
Central
Government
Offices on June
5, 2014. The
scheme was
organised by the
Financial Services
and Treasury Bureau of
the HKSAR Government
and three FBE students were
selected to participate this year. “They would be able to
improve their understanding of financial markets, experience
how the financial development of Shanghai also enhances the
financial development of Hong Kong, and see for themselves
how mutual benefits can be achieved through competition and
co-operation between the two places, thereby having more
confidence on the development of Hong Kong and Mainland
China,” said Secretary for Financial Services and the Treasury
Professor K.C. Chan.
Participants then spent six weeks in Shanghai, where they
embarked on four-week attachments at financial institutions;
visited government bodies, financial regulators and exchanges
in Shanghai; and took part in exchange activities with local
students.
On October 7, 2014, the Recognition Ceremony of
Citi-HKCSS Community Intern Program 2014 was held
at the YMCA Hong Kong. Miss Yip Ho Yee, a
BBA(Law) Year-3 student who interned at the Society of
Rehabilitation and Crime Prevention Hong Kong,
received the Grant Award for Excellence.
The Citi-HKCSS Community Intern Programme 2014
was sponsored and organised by Citi and co-organised by
the Hong Kong Council of Social Service. The
Programme aimed to inspire Hong Kong university
students majoring in business studies to contribute their
knowledge and expertise to non-profit organisations
through internship, with the ultimate goal of cultivating
their concept of corporate social responsibility and
providing them with a broader understanding of the
community.
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Jan
2015
Res e arc h
A valuable lesson in knowledge management
Companies like Apple, Intel, and Yingli Solar are
producing products that radically shape the nature of
product markets. But what strategies should managers
apply if they want to raise or leverage the firm’s
capabilities to develop leading innovative products?
When Apple started to think about Smartphone technology,
they had a belief that cell phones were going to become the
most important portable device for accessing information.
With this in mind, Apple began to place more focus on
developing their iTunes synchronization software for their
iPods. They correctly believed that great synchronization
software was the key in enabling a cell phone to access greater
information. When the time came to develop their
Smartphone, Apple’s initial strategy was to partner with
Motorola. With time, Apple found the partnership limiting and
shifted the project back in-house to arrive at a better product in
their iconic iPhone. It appears that Apple learnt a valuable
lesson in knowledge management – how to leverage its broad
knowledge base to develop radical product innovations.
Moving forward, Apple continues to set the pace in mobile
technologies.
China, the new frontier for radical product
development
In 2006 the China Central Government set a target for
technological progress to drive more than 60% of economic
growth by 2020. This need for technological progress was
further heightened by the recent marked slowdown of
consumption in the West, together with increases in domestic
wages – China knows it can no longer rely on exports of
manufactured products to sustain its growth. With the current
12th Five Year Plan on National Intellectual Property
Development, and the 12th Five Year Plan for Patent
Examination, the Government has placed a firmer focus on
increasing protection of property rights. This has further
increased confidence in R&D development in China,
particularly for foreign-invested firms.
“It is the firm’s
knowledge base which
provides it with leverage
in developing radical
product innovations”
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To get closer to expanding consumer markets, multinationals
from the West continue to locate key R&D activities in China.
The current number of R&D centres in China is approximately
1,600, and about 1,300 of these are foreign owned. According
to Professor Kevin Zheng Zhou , a product innovation strategy
expert from HKU’s Faculty of Economics and Business, “the
pressure foreign firms bring to the China market is forcing
local firms to be more proactive in their efforts to pursue
radical technology innovations”. To satisfy the growing
sophistication of consumers in China, and global markets,
Chinese firms need to continue to raise their capabilities for
developing radical product innovations.
It’s not how much you spend on innovation that
counts
Although Chinese companies tend to be spending more on
R&D, firms from the West are still spending more. Large
companies like China National Petroleum spent $2.291 billion
or less than 1-2 percent of its sales on R&D. ZTE Corp, the
fifth largest telecom equipment maker spent $1.399 billion, or
10% of its sales. In terms of global R&D spend they ranked
64th and 100th, respectively. But the amount a company
spends on R&D may not be the most vital statistic. Apple is
currently the most innovative company in the world and
spends $3.4 billion or 3% of its revenues on R&D. In
global terms, it is ranked as the 43rd largest spender.
Because developing radical product innovations is normally
an expensive exercise, effective spend on R&D is more
important than the absolute or comparative spend of a firm.
Raising the firm’s capabilities for developing radical
product innovations should also increase the effectiveness
of the firm’s R&D spend.
What influences the firm’s capabilities for
radical product innovation?
As Professor Zhou points out, “it is the firm’s knowledge
base which provides it with leverage in developing radical
product innovations”. Firms tend to possess either a broad
knowledge base like you might find in Huawei, GE, Apple,
and Samsung, or a deep knowledge base, such in companies
like Intel in their production of semiconductor chips,
Thorlabs and their production of photonic tools and
systems, and China’s Yingli Green Energy, known as
‘Yingli Solar’ the largest global producer of photovoltaic
modules. But how should firms manage the integration of
their internal knowledge and market knowledge to
effectively leverage their knowledge base for radical
product development?
According to Professor Zhou, there is little known about
this question, so he and his colleague Professor Caroline Li
from the University of Denver decided to explore it. They
propose that the roles of knowledge breadth and depth in
the development of radical product innovation critically
depend on external and internal knowledge integration
systems of the firm. To advance the proposition, they
conduct research in two stages, across a total of 422
participants from 245 firms. The firms are located in the
three most developed areas in China – the Yangtze River
Delta, Beijing District, and Guangdong, where foreign firms
make up a large part of the market. Findings from the
research provide important insights into how managers can
leverage a firm’s knowledge base more effectively for
radical product development.
Effectively integrate knowledge into your
knowledge base
Professor Zhou and Li’s research finds that firm’s with a
broad knowledge base, such as Microsoft, Huawei, Apple,
and Samsung, should benefit more from developing their
internal knowledge capabilities, rather than trying to
develop capabilities to acquire knowledge from the market.
Effective knowledge sharing within the firm creates bridges
across its functional units and encourages the firm to
develop new ways to combine its range of knowledge
applications for achieving unique product advances. On the
other hand, when firms with a broad knowledge base seek
to acquire additional market knowledge it can result in too
many ideas and be counterproductive. These factors appear
to shed some light on why Apple ended its partnership with
Motorola and shifted its Smartphone product development
back to its own broad knowledge base.
For firms with a deep knowledge base, such as Intel,
Thorlabs, and Yingli Solar, the research of Professors Zhou
and Li finds that market knowledge tends to complement
deep knowledge and can substitute for broad knowledge
development. Here, internal knowledge sharing may only
reinforce expertise and routines that already exist in the
firm. This can result in resistance within the firm to
develop radical innovations, which reside outside the scope
of its current deep knowledge base.
P.19
Intel provides us with a good example here. The Intel
China Research Centre believes that its focus on
communications technology and microprocessor technology
holds the key to advancement of Intel’s future products. To
drive research in these areas Intel China has developed
working relationships with R&D centres located in the
USA, Russia, and India. Cooperative relationships have
also been developed with leading technology companies
and universities in China, including the Chinese Academy
of Science. Areas of collaboration include compiler
technology, audio visual speech recognition systems, and
device and circuit research.
Become focussed on radical product
development
To improve the fit between the firm’s existing knowledge
base and the way it integrates knowledge, Professors Zhou
and Li suggest managers should consider two important
issues when devising the firm’s strategy for developing
radical product innovations:
1. Managers should examine the knowledge base of the
firm and identify whether the advantages that exist across
the nature and content of the firm’s knowledge, reflect a
position of depth or breadth in knowledge.
2. Managers should then adjust the firm’s knowledge
integration strategies and mechanisms, to fit with the firm’s
existing knowledge base.
 A firm with a broad knowledge base should
consider strengthening its knowledge sharing
processes and routines, as this should maximise
benefits from the firm’s already accumulated
knowledge.
 On the other hand, to maximise benefits from
the firm’s already accumulated knowledge in its
deep knowledge base it should consider placing
greater focus on building and refining internal
processes associated with acquiring and
integrating intelligence from the market.
The findings from Professor Zhou and Li’s research auger
well for firms wishing to raise their capabilities for the
development of radical product innovations. They are
particularly important to Chinese, and Western firms located
in China. Not only is China becoming more conducive for
radical product R&D, the number of sophisticated
consumers in China continues to grow. As Professor Zhou
says “firms focused on developing radical product
innovations that meet the needs of China’s expanding
sophisticated consumer base should reap attractive
rewards”.
Jan
2015
Contributing Reporter: Michael Trimarchi, PhD
Stud e nt A c hi ev em en ts
Organiser:
Date:
Winners:
Organiser:
Date:
Winners:
School of Information Systems ,
Singapore Management University
May 4 - May 8, 2014
Second place :
Mr. Poon Chun Hin, BBA(Acc&Fin), 2014
Mr. Pang Sai Cheong, BBA(IS), 2014
Mr. Tam King Hei, BBA(IS), Year 4
Asia Case Research Centre,
Faculty of Business and Economics, HKU
June 5 - June 6, 2014
Champion :
Ms. Chan Wing Yan, BBA(IBGM), Year 3
Mr. Ho Tsun Shing, BBA(IBGM), 2014
Mr. Ho Ka Ching, BBA(Acc&Fin), 2014
Mr. Kwong Joseph Gin Ming, BBA(Law), Year 4
Organisers: China Commercial Accounting Institute (CCAI);
China Chamber of International Commerce
Date:
June 7, 2014
Winners:
First Prize :
Ms. Li Cai, BBA(Acc&Fin), Year 3
Mr. Hou Liwei, BBA(Acc&Fin), Year 3
Ms. Sui Fuyang, BSc(QFin), Year 3
Ms. Wang Yue, BBA(Acc&Fin), Year 3
Third Prize :
Mr. Wu Tianxiao, BEcon&Fin, Year 3
Ms. Tu Yuxi, BEcon&Fin, Year 3
Mr. Lin Zitong, BEcon&Fin, Year 3
Mr. Zhang Ankai, BEcon&Fin, Year 3
Ms. Hu Sijia, BEcon&Fin, Year 3
P.20
Organisers:
Date:
Winners:
Chung Chi College of CUHK;
The University of Hong Kong and Lingnan University
September 25, 2014
Grand Prize and First Prize :
Mr. Mitra Arjyo, BEcon&Fin, Year 3
Second Prize :
Ms. Leung Chi Yung, BEcon, Year 4
Third Prize :
Mr. Cheung Wing Lam, BSc(QFin), Year 3
Runner-up :
Ms. Kim Yehan, BBA(Acc&Fin), Year 2
Mr. Yu Sheung Tat, BBA(IBGM), Year 3
Ms. Yuen Hei Ting Molly, BBA(Law), Year 4
Organiser:
Date:
Winners:
Organiser:
Date:
Winners:
NUS Business School,
National University of Singapore
September 1 - September 5, 2014
First Runner-up :
Mr. Chang Richards, BEcon&Fin, Year 2
Ms. Hu Sijia, BEcon&Fin, Year 3
Mr. Loke Sebastian Mun Foo, BBA(Acc&Fin), Year 3
Mr. Yam Tsz Kit, BBA(IBGM), Year 3
The Association of Chartered Certified Accountants
November 22, 2014
Champion and Best Proposal Award :
Miss Chan Wing Yan Jacqueline, BBA (Law), Year 3
Miss Lau Ka Man, BBA (Law), Year 3
Miss Kwan Yi Nga Eos, BBA (Law), Year 3
Miss Yip Si Ching Cheryl, BBA (Law), Year 3
Organiser:
Date:
Winners:
Hong Kong Institute of Certified Public Accountants
November 29, 2014
First Runner-up :
Miss Chan Natalie Lai Yee, BBA(IBGM) , Year 2
Miss Chan Wai Kwan Manalie, BBA(Law)&LLB, Year 2
Mr. Cheng Tak Wai, BBA(IBGM) , Year 2
Mr. Ng Chi Wing, BBA(IBGM) , Year 2
P.21
S tude nt A c hiev em en ts
Ms. Tatyana Franck is a student of the Class of 2016 in the
EMBA-Global Asia programme jointly conducted by The
University of Hong Kong Business School, Columbia
Business School and London Business School.
Tatyana has been appointed the Head of the Musée de
l’Elysée in Lausanne, Switzerland. Opened in 1985, the
museum is one of the top European photography
museums. Robert Capa, Mario Giacomelli, Raymond
Depardon, Sabastiao Selgado, and Pieter Hugo are all
featured in the collection of over 100,000 photographic
prints. She previously worked in the contemporary art
department at Christie’s Paris and for the Fine Art Fund in
London before becoming the director of the Archives
Claude Picasso in Geneva. She will begin her new
position in March, 2015.
Tatyana aims to further enhance the museum’s presence at
an international level as well as setting strategies for the
museum’s future development by managing, enhancing
and digitalising its photographic collections. She is
determined to meet the challenges of the museum with her
dedication and extensive years of experience within the
industry.
The EMBA-Global Asia programme has been one of the
key factors contributing to her success. Tatyana believes
her biggest gains from the programme have been
leadership skills, management methods and strategic
thinking. She also thinks that the programme’s impact on
her has been immediate, allowing her to relate and apply
the theories to real world situations.
“This EMBA programme has allowed me to meet more
people that are outside of my usual business circles. My
classmates come from diverse industries and backgrounds,
and all the interactions with them have enriched my
perspectives,” she added.
“The EMBA-Global
Asia programme has
been one of the key
factors contributing
to her success.”
P.22
Ms. Tatyana Franck
Alumni
(Eve nts & Cla ss No t es )
On a beautiful sunny afternoon on December 6, 2014, alumni
gathered in a cozy Australian restaurant in Central to celebrate
Christmas. The happy gathering began with a reception with
fine wine and refreshments. Dean Eric Chang, Professor Keith
Wong, Dr. Maurice Tse and Dr. Sammy Fung attended the lunch
party catching up with alumni. The party game - a drinking
competition - brought the festive atmosphere to new heights.
And what would a Christmas party be without presents? The
lunch was wrapped up by a lucky draw. Each alumnus also
received a set of personalised Christmas cookies with each of
their names written in creamy frosting. We wish all our alumni
in the FBE Family a Merry Christmas and a happy, wealthy and
prosperous New Year!
P.23
Alum n i
(E v ents & Cl as s Notes)
A new sports craze BUBBLE SOCCER arrived at the FBE
alumni family gathering in September 2014, bringing FBE
alumni and their friends together. As a 3 vs 3 team game,
everyone had an exciting time participating in a fierce “Bubble”
match, kicking the ball and bumping into the others. This
raucous activity was perfectly wrapped up with laughter!
On July 19 and July 26, 2014, more than 30 of our FBE alumni attended mooncake workshops. Master Chef
Yip (葉潤發師傅), the “recipe founder and pioneer” of the gourmet custard mooncake made famous by The
Peninsula Hotel and The Kowloon Hotel, shared his skills in making the festive delicacy. Each participant
made 16 mooncakes and enjoyed discounts on further purchases.
P.24
Jan
2015
Beijing Reunion
Shenzhen Reunion
In 2014, three MEcon and MFin alumni reunion
dinners held in Beijing, Shanghai and Shenzhen
warmly welcomed our alumni working in the
mainland. More than 100 alumni in Beijing, around
60 alumni in Shanghai and around 70 alumni in
Shenzhen attended the happy gatherings. They all
enjoyed reuniting with old school friends and
professors. Professor Paul Lau, Professor Larry Qiu,
Dr. Ruijing Meng, Dr. Y.F. Luk and Dr. Dragon Tang
participated in these memorable reunions.
After graduating in 2013, I spent one year in
Singapore and the Philippines working in a social
enterprise that supports small-and-medium companies
in South-east Asia. It was a life-changing year for me.
On one hand I came across many international
investors and high-net-worth individuals with a
mission to raise fund for the company, on the other
hand I worked with entrepreneurs in the Philippines to
help grow their businesses. Through the broad
exposure, I had developed a wider global perspective
and a better business sense. What’s more, every
person I met in the journey had given me some
inspiring lessons which turned me into a better person.
P.25
Fac ulty A pp o in tm en ts
Dr. Min Kwan AHN
Dr. Jinghan MENG
Dr. Tracy Ti GU
Dr. Yang SUN
Dr. Ke NA
Dr. Shaojun Aria ZHANG
Dr. Cheng CHEN
Dr. Chao DING
• Assistant Professor
• BS, MS, Brigham Young University;
PhD, The Ohio State University
• Assistant Professor
• BA, Southwestern University of Finance and
Economics;
MA, Sun Yat-sen University;
PhD, The University of British Columbia
• Assistant Professor
• BS, Shanghai University of Finance and
Economics
PhD, University of Rochester
• Assistant Professor
• BA, Nanjing University;
MA, Hitotsubashi University;
MA, PhD, Princeton University
• Assistant Professor
• BSc, Beijing Normal University;
MSc, University of Minnesota (Twin Cities);
PhD, University of North Carolina
(Chapel Hill)
• Assistant Professor
• BSc, University of Pennsylvania;
PhD, MIT
• Assistant Professor
• BA, Peking University;
MPhil, PhD, NYU
• Assistant Professor
• BBA, Sun Yat-sen University;
MSc, HKUST;
PhD, University of Florida
Dr. Hyelim SON
• Assistant Professor
• BA, Seoul National University;
MA, PhD, Columbia University
Dr. Dennis Y. HSU
• Assistant Professor
• BA, BBA, Soochow University;
MA, Columbia University;
PhD, Northwestern University
Dr. Yujing XU
• Assistant Professor
• BA, BSc, Peking University;
MA, PhD, UCLA
Dr. Sohyeon SHIM
• Assistant Professor
• BA, Korea University;
PhD, Northwestern University
P.26
Dr. Ping YU
• Assistant Professor
• BA, MSc, Peking University;
MSc, PhD, University of Wisconsin-Madison
Miss Vera Wing Han YUEN
• Assistant Lecturer
• BBA, HKUST;
MSc, Oxford University
Dr. Danqing WANG
• Assistant Professor
• BA, Tsinghua University;
MPhil, HKUST;
PhD, INSEAD
Jan
2015