A Tale of Two Countries and Two Stages: South Africa, China and the Lewis Model

Knight, John

doi:10.1111/saje.12280

Cited by 3 publications

(5 citation statements)

References 45 publications

(57 reference statements)

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“…One major debate surrounds the question as to whether China has run out of surplus lowcost labour; considerable labour shortages and increased wages of unskilled workers have been observed, especially in the coastal provinces, with a number of foreign and multinational corporations (MNCs) taking the decision to relocate their manufacturing factories to reduce labour costs (Athukorala and Wei, 2018;Cai, 2010;Knight, 2021;Knight et al, 2011). Labour economists have adopted the Lewis model to explain this developmental transition.…”

Section: The Chinese Labour Marketmentioning

confidence: 99%

“…Knight et al. (2011) argue that there is more likely to be “ a turning stage ” instead of a clear-cut turning point due to substantial regional disparities and remaining institutional restrictions on labour mobility (Knight, 2021, p. 17). In a similar vein, Song (2017) concludes that the current Chinese labour market is characterised by six prominent issues, for instance, the coexistence of urban labour shortages and rural labour surpluses and the changing employment structure featured by increasing jobs in the private sector in urban China.…”

Section: The Chinese Labour Marketmentioning

confidence: 99%

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The influence of the labour market and COVID-19 on human resource practices in SMEs in China: a longitudinal study

Li,

Rees,

Zhang

2023

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PurposeThe purpose of this study is to investigate the evolving perceptions and human resource (HR) responses of owners and HR managers of Chinese small and medium-sized enterprises (SMEs) towards local labour markets in the context of the impact of the coronavirus disease 2019 (COVID-19) pandemic.Design/methodology/approachThis study adopts a two-stage longitudinal qualitative approach involving 52 interviews with owners and HR managers of Chinese SMEs in the pre- and post-pandemic time periods.FindingsThe findings reveal a shift from the perceptions of a general labour shortage to perceptions of specialised talent shortages and increasing geographical disparities in local labour markets. They further reveal that SMEs are increasingly likely to adopt efficiency-oriented, flexibility-enhancing HR practices in the face of high uncertainty.Practical implicationsThe findings provide insights into the nature of the constraints of SMEs' sustainable development that need to be addressed by policymakers, SME owners and HR managers when they devise and implement policies relating to structure optimisation, labour market integration and mobility enhancement.Originality/valueIn contrast to extant literature that has examined the labour market at the national level, this study explores the views of SMEs (the demand side) by taking a localised perspective on how SMEs have responded to change through their HR practices.

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Section: The Chinese Labour Marketmentioning

confidence: 99%

Section: The Chinese Labour Marketmentioning

confidence: 99%

The influence of the labour market and COVID-19 on human resource practices in SMEs in China: a longitudinal study

Li,

Rees,

Zhang

2023

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“…Therefore, it is an important question: has China passed the turning point and entered the second stage of the Lewis model? We draw on Knight (2021).…”

Section: Introductionmentioning

confidence: 99%

Economic Transformation and Income Distribution in China over Three Decades

Meng,

Gustafsson,

Knight

2023

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It is arguable that the most important event in the world economy in recent decades has been the rise of China, from being on a par with Sub Sahara Africa at the start of economic reform to being an economic superpower today. That rise remains under-researched. Moreover, the great structural changes which accompanied economic growth require examination. The nationally representative China Household Income Project (CHIP) surveys, conducted for the years 1988, 1995, 2002, 2007, 2013, and 2018, permit a detailed examination of many important aspects of a country's economic development. Much of the analysis of this Element is closely related to, and largely caused by, China's remarkable economic growth and income distribution over the thirty years. This title is also available as Open Access on Cambridge Core.

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“…The Reserve Bank predicts a 6.1% economic decline, 1,600 SMME closures, and 370,000 loss of formal sector jobs, all in 2020 (Roeleveld, 2020). According to Knight (2021), numerous economists and analysts predict that actual employment losses will exceed one million. Considering the 6.7 million people who are currently unemployed in the South African labour market, it creates doubt predicting the economic future of the country (Knight, 2021).…”

Section: Introductionmentioning

confidence: 99%

“…According to Knight (2021), numerous economists and analysts predict that actual employment losses will exceed one million. Considering the 6.7 million people who are currently unemployed in the South African labour market, it creates doubt predicting the economic future of the country (Knight, 2021). Given that many of the big companies continued to pay their employees during the lockdown but many SMMEs couldn't survive the contingent situation, let alone pay their employees (Chakraborty & Maity, 2020).…”

Section: Introductionmentioning

confidence: 99%

Impact of Covid-19 on SMMEs and the future sustainability measures: a systematic review

Enwereji

2022

HOLISTICA – Journal of Business and Public Administration

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Small Medium and Micro Enterprises (SMMEs) have made remarkable contributions to enhancing the economic growth of South Africa. The emergence of COVID-19 retarded the growth of SMMEs due to the lockdown imposed by the government on the 23rd of March, 2020. This study investigated the impact of COVID-19 on SMMEs and the future sustainability measures. To achieve the objectives of this study, a systematic review was adopted and 150 articles were downloaded from various databases for the study. Findings obtained from the study revealed that several authors from different continents have made wide contributions to revive SMMEs amidst COVID-19 disruption. The recommendations made to SMMEs include amplifying their communication networks and adopting e-commerce options, as well as Social Network Sites to reach out to their customers. Other recommendations include the adoption of transactional leadership, strategic management, employee management, financial management, and effective collaboration. The study further recommended that the government should endeavour to provide funding opportunities to SMMEs, improve the provision of infrastructure and enhance the effectiveness of the business environment. The study concludes that the SMMEs that were affected by the interruption of COVID-19 would be revived if the recommendations of this study are applied.

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A Tale of Two Countries and Two Stages: South Africa, China and the Lewis Model

Abstract: for helpful comments.

Cited by 3 publications

References 45 publications

The influence of the labour market and COVID-19 on human resource practices in SMEs in China: a longitudinal study

The influence of the labour market and COVID-19 on human resource practices in SMEs in China: a longitudinal study

Economic Transformation and Income Distribution in China over Three Decades

Impact of Covid-19 on SMMEs and the future sustainability measures: a systematic review

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