Management Innovation and Financial Performance: The Case of Amoeba Model in Chinese Enterprises

Abstract

Introduction: In response to increasing competitive and operational pressures, Chinese enterprises have increasingly turned to innovative management models. Among these, the Amoeba Management Model, originating from East Asian managerial philosophy, has garnered attention for its emphasis on decentralization, accountability, and profit consciousness.

Objectives: This study aims to empirically examine the effect of the Amoeba model on corporate financial performance in Chinese enterprises, focusing on key performance indicators such as Return on Assets (ROA) and Return on Equity (ROE).

Methods: A balanced panel dataset was compiled from 16 firms across eight industries in China, covering the period 2010 to 2023. A fixed-effects regression model was employed, augmented by a Difference-in-Differences (DID) approach, to identify performance changes before and after Amoeba model implementation.

Results: The analysis demonstrates statistically significant improvements in both ROA and ROE among firms that adopted the Amoeba model. These findings reinforce the model’s effectiveness in enhancing financial performance through decentralization, internal control, and transparent accounting structures.

Conclusions: The results support the transformative potential of the Amoeba Management Model as a tool for performance enhancement in emerging market enterprises. By fostering autonomy at the unit level while maintaining financial accountability, the model offers a robust approach to sustainable organizational performance improvement.