What, then, is the “Three Nine Theory”?

Recently, the School of Management Zhejiang University released the 2012 Health Index Report of Chinese Enterprises, signifying the first effort in China to establish a systematic index for evaluating the "health" of Chinese enterprises. Proposed as an essential part of the report, the "Three Nine Theory" has received wide resonance among circles of academia and business practitioners. The theory situates and evaluates the "health" of Chinese enterprises alongside three dimensions: business people, business organizations, and business environment. The three dimensions comprise of nine indexes: innovation, entrepreneurship, leadership, competitiveness, compliance, responsibility, market performance, service competence, and inclusiveness.

Based on the survey results of 328 senior executives (70% of respondents are primary decision-makers in businesses) from private enterprises in fifteen provinces of China, the report comprehensively reviews and assesses the status quo of human resources as well as the organizational and environmental factors of Chinese enterprises. Through in-depth interviews, factor analysis and statistical methods, the report categorizes the "health" of Chinese enterprises into three stages: the initial stage (score 0-60), the intermediate stage (score 61-80), and the advanced stage (score 81-100). The report finds that currently Chinese enterprises score 56.05 on average. This means that the majority of Chinese enterprises is in the transitional period from the initial to the intermediate stage in terms of healthy development.

Of the three analytical dimensions, "business environment" scores least (viz. 50.47). Generally, entrepreneurs have low opinions on the market performance, service competence and inclusiveness of the current business environment in China. This means that much remains to be done to improve business environment with either government policy making or increased media participation.

In the next twenty years, China will enter a period of economic development characterized by markedly new strategic opportunities. To cope with challenges posed by shifting global environment and domestic economic transitions, Chinese entrepreneurs need to reposition business strategies, accelerate industrial and service transitions, innovate on operation models, create Chinese brand images, and upgrade global competitiveness. In short, it is imperative for sustainable development that a new generation of entrepreneurs emerges to lead the Chinese economy with global perspectives, innovative capacities, entrepreneurial spirits and social responsibilities.

With the release of the 2012 Health Index Report of Chinese Enterprises, the School of Management wishes to highlight the importance of continuing discussions and debates in the above direction, of soliciting the attention of a wider audience, and of involving entrepreneurs in "healthy" development in all aspects of business and management practices.

JIN Deshui, Party Secretary of Zhejiang University addressed the audience with opening remarks

Professor WU Xiaobo, Dean of School of Management gave a keynote speech

Mr. GAO Shangquan, Honorary President of China Society of Economic Reform gave another keynote speech

The First Health Power ForumRoundtable Debate