Existing research shows that subnational corruption can be used to expound the ownership choices of foreign firms entering a new foreign market. Yet, most studies either overlook the evolution of foreign firms’ ownership structure after entering the host market, or mainly focus on the national level. This study investigates how subnational corruption affects the conversion of Sino-foreign joint ventures (JVs) into wholly foreign-owned enterprises (WFOEs) in China. In a sample of Sino-foreign JVs operating in China between 1998 and 2007, we find that the relationship between subnational corruption and the conversion of foreign proprietorship of Sino-foreign JVs is U-shaped. Furthermore, the U-shaped relationship between subnational corruption and the conversion of foreign proprietorship of JV is stronger when the JV is in a higher degree of marketization, while it is weaker when the local partner is a state-owned enterprise (SOE) rather than a privately owned enterprise (POE). Overall, our findings emphasize how subnational corruption shapes the dynamic ownership choices of foreign firms operating in the host market.
Based on a comprehensive and structured literature analysis of 48 studies, this study explores and highlights the key research developments in the domain of responsible innovation in Asia. Accordingly, the paper critically analyses, maps, and structures responsible innovation research in Asia, and synthesizes the findings into an integrative conceptual framework that provides the basis for future scholars to further build on and practitioners to be guided by. Moreover, the study identifies several shortcomings in extant literature, proposes several avenues for further research, and provides best practice recommendations for researchers. This study revealed that majority studies were conducted in context of China, India and Korea. Contextually, there is a scope to extend research in other emerging Asian markets which are under-researched such as Pakistan. The key theories applied in the domain of responsible innovation in Asia were the resource-based view and stakeholders’ theory and major themes for the outcomes were discussed from social, environmental, and economic perspectives. Theoretically, there is a scope to apply and empirically validate other theories such as legitimacy and reputation-building perspectives and resource-dependency. Given the issue of responsible innovation is managerially important, studies should also examine underlying motivations for the responsible innovation, applying behavioral theory of firm.
The phenomenon of outsider-driven institutional entrepreneurship may appear both paradoxical and opaque. We examine outsider-driven institutional entrepreneurship by drawing on an in-depth qualitative case study of the emerging field of positive psychology education. We investigate how institutional entrepreneurs, located outside Kuwait’s Ministry of Education, enabled actors inside the Ministry both to deviate from existing institutional arrangements and to institutionalize new practices. Our findings illustrate that outsider-driven institutional entrepreneurship in emerging fields starts with ‘normalization’, that is, the production of claims, arguments, and evidence, about the effectiveness of the newly proposed practices. Our study contributes to the literature on outsider-driven institutional entrepreneurship in emerging fields by identifying a set of critical activities associated with deviation from prevailing institutional arrangements, and the institutionalization of innovation.
Abusive supervision is a manifestation of power and can lead to serious negative consequences for employees. Drawing upon the approach-inhibition theory of power, we examine how supervisors' coercive power affects abusive supervision, an approach behavior, and how subordinates then respond to abusive supervision in the form of silence, an inhibition-related behavior. More importantly, recognizing that exercises of and reactions to power may depend on the political environment of an organization, we also investigate the moderating role perceptions of organizational politics (POPs) play in these relationships. Using multi-source time-lagged data collected from 188 supervisor-subordinate dyads in Taiwan, we found a positive main effect of supervisors' coercive power on abusive supervision and further showed an accentuating moderating effect of supervisors' POPs on this relationship such that the relationship was only significant when supervisors' POPs were high. Moreover, while the abusive supervision-subordinate silence relationship was not significant, different from our prediction, we found a somewhat unexpected moderating effect of subordinates' POPs on this relationship. Specifically, silence stayed relatively high regardless of the level of abusive supervision when subordinates' POPs were high whereas a negative relationship was observed for subordinates with low POPs. The theoretical and practical implications of this study are discussed.
Do forerunners in global value chains (GVCs) select supplier in knowledge collaboration in a different way from latecomers? There are many factors in the selection criteria in co-creating GVC value and enhancing a focal firm’s competitiveness. However, little has been revealed on how firms select their GVC suppliers from the knowledge embeddedness perspective. Furthermore, latecomers and forerunners have gaps in knowledge that may result in different weights on the same selection elements. Based on the knowledge embeddedness theory, we compare the selection criteria of a latecomer (Huawei) with a forerunner (Apple). Specifically, we identify 129 Apple or Huawei global suppliers in 2018 and collect 144,496 patents of these suppliers. Using the data of patents and the tracking of backward citations from 2013 to 2017, we find that, as a latecomer, Huawei depends more on criteria of structural hole positions in GVC knowledge network, knowledge base, and scientific knowledge than Apple does. We further conduct scenario analysis to understand Huawei’s decoupling possibility from GVCs under tech cold war.
Prior studies have generally assumed that firm internationalization is more of a pure market strategy seeking economic opportunities in host country markets. In this study, we argue that in the case of China’s Belt and Road Initiative (BRI), international expansion into designated countries can simultaneously bear a nonmarket nature because this can enhance a firm’s political legitimacy. This in turn generates a trade-off effect on another nonmarket activity of the firm, namely CSR reporting. Based on a difference-in-difference analysis of a sample of 261 Chinese firms from 2010 to 2017, we find that Chinese firms’ engagement in the BRI negatively influences the quality of their CSR reporting. However, this negative impact is weaker when firms have invested less in the BRI, possessed greater slack resources, and come from a more institutionally developed province of China. We conclude by discussing the implications of our findings for future research and policymakers.
This study empirically examines the firm-level motivational mechanisms that drive firms to pursue investment avenues during periods of institutional transitions. Grounding this research at the intersection of organizational adaptation driven by institutional transitions and the search processes stemming from performance problems and growth opportunities, I propose a negative (positive) relationship between the intensity of performance below aspirations (growth opportunities) and strategic investments made by firms. In addition, I propose a moderating influence of business group affiliation on the relationships mentioned above. I test and find support for the hypothesized predictions on an unbalanced panel dataset comprising 8354 firm-year observations belonging to 1695 listed manufacturing firms from the emerging market of India during the period 1995 to 2010. This study bridges the macro–micro link between institutional transitions and firm behavior by theorizing the effect of organizational search mechanisms and identifies institutional transitions as a boundary condition that mutes problemistic search leading to investments. This study has important implications for the literature on institutional transitions and a behavioral theory of the firm.
Recently, home office and remote working have gained momentum triggering questions of the impact of ethical leadership on helping behavior and its ethical implication for employees and companies. In this study, we propose a moderated mediation model to clarify the mechanism of ethical leadership on online helping behavior, and tested this model using three-wave data from a sample of 481 employees in mainland China. We found that ethical leadership had a positive effect on subordinates’ other-praising moral emotion, and that these moral emotions significantly influenced online helping behavior. Subordinates’ other-praising moral emotion mediated the relationship between ethical leadership and online helping behavior. Moreover, the relationship between ethical leadership and other-praising moral emotion was more significant for employees with high moral identity. Finally, our findings provide new insights into how to motivate employees’ online helping behaviors through managerial practices for organizations.
Work and family are important life domains. This study investigates the relationship between employees’ perceptions of workplace ostracism and their provision of family social support. Integrating social impact theory and self-verification theory, the study provides a novel theoretical framework for examining the influence of workplace ostracism on employees’ provision of family social support. Using a moderated mediation model, it reveals the mediating role of personal reputation and the moderating roles of job social support and perceived organizational support. The results of two three-wave surveys of married employees and their spouses in China demonstrate that the negative relationship between exposure to workplace ostracism and an employee’s provision of family social support is mediated by the employee’s personal reputation. In addition, job social support and perceived organizational support weaken the relationship between personal reputation and family social support and the mediating effect of personal reputation on the relationship between workplace ostracism and family social support. The theoretical and managerial implications of this study for human resource management are discussed.
Prior research indicates that employees from ethnic minority backgrounds are more likely to experience depression and other mental health problems than their ethnic majority counterparts. To understand what drives these negative outcomes, we integrate research on ethnic minorities at work with the job demands-resources (JDR) model. Based on the JDR model, we consider climate for inclusion as a key job resource for ethnic minority employees that mitigates the deleterious effects of ethnic minority status on job self-efficacy, perceived job demands, and depressive symptoms. We conducted a two-wave survey study (Time 1: N = 771; Time 2: N = 299, six months apart) with employees from five medium sized not-for-profit and local government organizations in Australia. Our empirical results indicate that ethnic minorities report a higher job-self-efficacy and fewer depressive symptoms when they perceive a high climate for inclusion.
There have recently been many calls to explore corporate governance in emerging economies, as these countries have distinctive characteristics such as a weaker institutional environment and the dominating influence of controlling shareholders. The literature has revealed that, in such institutional settings, there is the risk that powerful insiders maximize their own benefits at the expense of minorities and firm performance. This study advances our knowledge of corporate governance in emerging economies by exploring the moderating impact of quad-qualified directors – i.e., directors with independence, expertise, bandwidth, and motivation – on the relationship between dominant-owner CEOs and firm performance. We tested our hypotheses on a large cross-sectional sample of Indian listed firms. Our results show that dominant-owner CEOs undermine company performance, but quad-qualified directors may improve board monitoring and consequently attenuate their negative influence. Our findings support the soundness of the quad-qualified model for boards of directors, and contribute to the growing literature investigating which directors’ attributes may have a significant impact on board monitoring and firm performance.
By combining social stratification theory and philanthropy studies, we examine how social class affects Chinese entrepreneurs’ philanthropic engagement strategy. Relying on a survey of 462 entrepreneurial firms, we found that Chinese middle-class entrepreneurs are less likely to employ in-house philanthropy than entrepreneurs in either low or high classes. Prior experience in state-owned enterprises further reduces this tendency. However, no difference is found in the firm’s tendency to outsource philanthropy. This study reveals important patterns on how entrepreneurial firms address social issues in an increasingly stratified social environment, an important social phenomenon not just in China but also in other major economies.
We draw on the process model of emotion regulation (Gross, Emotion,13(3), 359–365 2013) to propose that the two main components of paternalistic leadership – authoritarianism and benevolence, would induce negative emotions in employees that cannot be freely expressed at work, and how the act of emotion suppression would result in employee work–family conflict. Data from 218 employee–spouse dyads from three Chinese companies provide strong support for our hypotheses, revealing that both authoritarian leadership and benevolent leadership are positively related to employee work–family conflict through the mediation of employee emotion suppression in the workplace. Furthermore, employee power distance orientation positively influences the effect of authoritarian leadership, but negatively impacts the effect of benevolent leadership, on employee emotion suppression. These findings reveal the dark side of paternalistic leadership and shed light on the mechanisms through which leadership affect employee experience in the life domain and its boundary condition. We discuss the theoretical and practical implications in the context of Chinese organizations and beyond.
Managing knowledge has become a new reality for multinational corporations (MNCs). Previous studies in the management field have closely examined personality traits as stable dispositional constructs over time, but they oversighted the possibilities that seemingly stable traits are likely to have different effects on outcomes in varying time waves. Combining horizontal and longitudinal surveys, this study collected two-wave datasets of 216 employees from MNCs, and built Fixed, Continuous and Interacting Models to investigate the effects of individual emotional intelligence (EI) and cultural intelligence (CI) as key traits on the processes of organizational knowledge management (KM) over time. This study discovered the fixed, continuous and interacting roles of EI and CI in KM processes at different times, and it also concluded that the traditional assumption of conceptualizing the effects of dispositional variables as fixed should be re-examined. The findings provided empirical and statistical evidence for future research as well as management suggestions for MNCs implementing KM practices.
This study examines how business group affiliation moderates the performance (P) consequences of internationalization (I) by firms from advanced emerging economies that have implemented major promarket reforms. Our theoretical framework integrates institutional and network perspectives with internationalization research to investigate the effects of institutional change on the role of business groups in supporting the internationalization of their affiliates. Using a dataset of 143 publicly listed Korean manufacturing SMEs over a five-year period, our findings provide statistical evidence that business group affiliation has different moderating effects on the I-P relationship according to the degree of internationalization. Specifically, group-affiliated SMEs exhibit a U-shaped I-P relationship while non-affiliated, independent SMEs present an overall downward S-shaped relationship, where group-affiliated SMEs perform better at any level of internationalization. Besides, we also examine the moderating effect of industry characteristics and found that in the case of SMEs in technology-intensive industries, affiliation to a business group enhances firm performance at low and intermediate levels of internationalization. Overall, we conclude that business groups are able to provide benefits to their internationalizing affiliates in an improved institutional context.
In this study, the relationship between CEO temporal focus and family business succession planning is examined and the moderating effects of family interactions and environmental uncertainty are assessed. Based on data from 198 CEOs of family businesses and additional data from 15 semi-structured interviews in China, we find that CEO temporal focus (i.e., past, present, or future focus) is positively associated with succession planning. In addition, family interactions strengthen the relationship between CEO past focus and succession planning and weaken the relationship between CEO future focus and succession planning. Moreover, in uncertain environments, past-focused CEOs are more likely to plan for succession than present-focused CEOs. The theoretical contributions and practical implications of the study are also discussed.
Past research has offered conflicting evidence concerning the effect of family wealth on philanthropy. Equality of Opportunity (EOP) theory has received wide scholarly attention to explain an individual’s philanthropic engagement through the simultaneous consideration of both family wealth and personal effort. Drawing on the insights of EOP, we extend EOP toward entrepreneurial theory and practice by examining how entrepreneurs’ family endowment and entrepreneurial effort impact their charity donation and business growth. Utilizing a large, national dataset with 2503 Chinese entrepreneurs, our findings suggest that entrepreneurs with higher level of entrepreneurial effort are more likely to donate to charity and achieve greater firm growth in the process. In addition, higher level of entrepreneurial effort attenuates the contribution of philanthropy to firm growth. Conversely, no significant effect with respect to family wealth was found.
While a large body of literature has focused on the positive effect of work effort on improving individual performance and organizational effectiveness, little is known about how work effort produces the negative outcome, such as unethical pro-organizational behavior. Our study proposes that work effort will activate the moral licensing mechanism through moral credential to increase unethical pro-organizational behavior, and leader Confucian value negatively moderates this relationship. Through the single-factor two-level experimental research (study 1) and the multi-time point investigation data analysis (study 2), the mediation model and the moderated mediation model proposed in both two studies have been supported by observation data. These findings are significant to further understanding of the psychological mechanism and boundary condition of unethical pro-organizational behavior, and provide practical guidance for managers to effectively control employee’s unethical pro-organizational behavior.
This study explores the relationship between board committees’ independence and the financial distress of firms in China and the UK. Akin to previous literature, we estimate this relationship between 2007 and 2016 using a conditional logit model on a sample of matched pair firms. For China, the results indicate that there is a positive and statistically significant association between the percentage of independent audit committee members and the financial distress of firms. In Contrast, the opposite relationship was found for independent compensation and nomination committee members. For the UK, the relationships are the same, but the results are significant only for nomination committee independence. Our overall results suggest that independent audit committee members are not favorable for firm survival. In contrast, the independent compensation and nomination committee members are beneficial for the financial health of firms, as they are responsible for designing fair compensation packages and for selecting the most suitable persons to decide the strategic moves of the firm, respectively. A robustness test demonstrates that the results are robust to the assumed functional form imposed by the conditional logit model and confirms our core findings for both Chinese and UK firms.
Drawing on the resource-based view, this study examines how parent-subsidiary resource linkages in terms of resource commitment and resource similarity affect the performance of the parent firm. By using the data from 199 Taiwanese firms investing in China, the results of this study show that resource commitment has an inverted U-shaped relationship with the parent firm performance, whereas the relationship between resource similarity and the parent firm performance is U-shaped. In addition, this study also finds that organizational slack and parent involvement moderate these relationships. This study provides important theoretical and managerial implications for international business management.
We investigate the impact of cross-border acquisition activity on the domestic productivity of Chinese multinationals. Chinese MNEs have engaged in cross-border acquisitions in an attempt to explore for new capabilities, technologies and management practices so as to enhance productivity and compete in increasingly competitive domestic markets. Empirical scholarship, however, has yet to establish that cross-border acquisition activity by emerging-market multinationals generally contributes to domestic-productivity upgrading, as learning from foreign-acquisition targets, transferring and assimilating this learning, and ultimately upgrading the productivity of home operations represents a challenging and complicated process. We accordingly apply and advance the literature on reverse-knowledge transfers and capability upgrading by first considering the relevance of cross-border acquisition activities on domestic productivity in an emerging-market context, and by second extending the literature’s understanding of the target-firm characteristics which abet domestic-productivity upgrading. Employing firm-level panel data based on 329 Chinese multinationals over the 2000–2010 period, we find outward cross-border acquisition activities generate increased domestic productivity. In addition, we find domestic-productivity upgrading to be larger when acquiring high-tech (versus low-tech) targets and that this effect is further enhanced when acquiring related (versus unrelated) targets.
We consolidate and comprehensively review the international business (IB) literature on the firm-specific advantages (FSAs) of emerging market multinational enterprises (EM MNEs). We do so through a systematic examination of 88 empirical and conceptual articles published in top-ranked IB journals between 2011 and 2018. The results reveal that in the past decades, EM MNEs have acquired several of the same FSAs as their counterparts in developed countries (developed country enterprises or DC MNEs) - financial resources, technologies, marketing capabilities, brand equity, R&D intensity, and management competencies. However, more recently, EM MNEs have developed additional unique FSAs in the form of managerial capabilities - to cope with competition in uncertain and constantly changing environments; easy access to cheaper capital; a stronger commitment to networks, such as those with diaspora communities; and, political connections. These additional FSAs have catalyzed the internationalization of EM MNEs. Our study also shows that some hurdles remain in the IB literature on FSAs. For instance, while IB scholars agree that EM MNEs have different investment motives depending on whether they invest in other emerging economies or developed economies, scholars are silent on the exact FSAs necessary to make EM MNEs investments in the respective economies successful. To advance the IB literature, we present some promising future research areas and challenge scholars to pursue further empirical studies on the FSAs of EM MNEs.
We study how state and market logics, which operate both internal and external to the firm, jointly influence firm strategy. In the context of the Chinese financial intermediary industry, we argue that the level of state ownership in a firm has an inverted U-shaped relationship with the firm’s financial portfolio diversification. This is because firms prioritize financial investment options that serve the dominant logic. As a result, their financial portfolios are more diversified when the multiple logics are balanced than when either logic dominates. This relationship is attenuated by the prevalence of market logic in the regional institutional environment and amplified by industry regulation aimed at correcting market failure. We test these arguments using panel data of Chinese trust companies during a period of de-regulation and re-regulation and find empirical support for the moderated curvilinear effect of state ownership. Our findings demonstrate the relevance of the institutional logics to analyzing firms in contemporary China and highlight how institutional logics at multiple levels jointly shape corporate strategy.
On the basis of the sociopolitical legitimacy perspective, we examine how firms respond to the celebrity pressure as well as the underlying mechanisms. We argue that the pressure associated with having a celebrity owner/leader will push firms to undertake activities that “bridge” with stakeholders by engaging in corporate giving while at the same time buffer against them by revealing less information through earnings management. The extent to which a firm engages in such maneuvers varies with the level of social and political pressure from stakeholders. Our hypotheses were supported by an analysis of 297 publicly listed Chinese firms whose owners had recently been included in a list of China’s richest people. The findings enhance our understanding of the sources of celebrity pressure and extend the research on celebrity and legitimacy management.
We develop a theoretical model of empowering leadership that integrates role-based views of followership and social information processing theory and adds a reciprocal component to research on empowering leadership. Our theoretical model proposes that employee task performance and the quality of the supervisor-employee relationship serve as cues that shape supervisor empowerment behaviors, which, in turn, serve as cues that influence employee voice through employee state promotion focus. Data from 223 supervisor-employee dyads supported our hypotheses and showed that supervisors engage in more empowerment behaviors with employees who perform well and with whom they have a good relationship. Supervisors’ empowerment behaviors elicit a state promotion focus in employees, which stimulates these employees to express their concerns, ideas, and opinions in order to improve the functioning of the employee, the team, or the organization.
We propose a new construct—role-based paternalistic exchange, or followers’ awareness of and engagement in a family-like exchange relationship with leaders that builds upon both leaders’ parent-like role and followers’ child-like obligation. We use this construct to explain the joint effect of leader authoritarianism and benevolence, the essential components of paternalistic leadership, on two culture-specific follower outcomes in Chinese settings: emic organizational citizenship behavior and deference to supervisor. Using three independent samples, we develop a unidimensional measure. We then employ another sample to test how leader authoritarianism and benevolence relate to role-based paternalistic exchange and, thereby, the two follower outcomes indirectly. Our results indicate that, in contrast to authoritarianism- or benevolence-dominant paternalistic leadership, classical paternalistic leadership (the balanced display of leader authoritarianism and benevolence) has the greatest potential to facilitate role-based paternalistic exchange, which, in turn, positively relates to the two follower outcomes. These results suggest that role-based paternalistic exchange advances our understanding of how paternalistic leadership enhances emic outcomes in Chinese settings.
How does review-based online reputation (for brevity, online reputation) influence online firm survival? Drawing insights from the resource-based view and signaling theory, we examine a nonlinear (U-shaped) relationship between online reputation and firm survival on a cross-border business-to-business (B2B) platform and the resulting moderate-reputation trap. We further examine how online firms employ product strategies to moderate the effect of online reputation on firm survival and thus mitigate the moderate-reputation trap. Using data from 17,920 monthly observations (3145 sellers) from July 2016 to December 2017 on DHgate.com in China, we find strong evidence supporting our hypothesized relationships. More specifically, we demonstrate the existence of the moderate-reputation trap and that this trap can be mitigated by a high product price or low product diversity. Our research provides important insights for managers of online firms, B2B platform providers, and governments.
Prior research suggests that market-supporting institutions are attractive to international venture capital (IVC), yet paradoxically VC firms increasingly invest in countries characterized by institutional weaknesses. In this study, we explore the institutional contexts that make countries attractive to IVC investment and favorable to IVC performance, thus illuminating the implied risk-reward tradeoffs in IVC firm location choice and ability to navigate institutional weaknesses. Utilizing fuzzy-set Qualitative Comparative Analysis (fsQCA), we find four distinct configurations of institutions associated with IVC attractiveness. Each configuration allows for some institutional weaknesses, enabling us to elaborate theory on institutional complementarities and substitutions that drive IVC investment. Further, we find that IVC firms have performed well even in countries with pervasive institutional weaknesses, suggesting that IVC firms may uniquely contribute to the success of new ventures in such institutional contexts. We discuss implications for theory and offer policy and managerial recommendations particularly relevant to IVC activity in the Asia-Pacific region.
What type of investment strategies are effective for foreign venture capital (VC) firms investing in transition economies? This is the research question we address in this paper by analyzing recent institutional developments and investment activities of foreign VC firms investing in China. We find that foreign VC firms identify China as lacking fully-developed institutions necessary to effectively support VC investing. We further find that foreign VCs have evolved unique proactive, hands-on investment strategies via a bumpy road of investing in China: initially dominating the Chinese VC industry, but since the great financial recession playing a still-significant but reduced and disadvantaged-role subservient to the rapidly increasing role of domestic VC firms. We developed a novel triangulation research methodology that allows us to provide significantly more depth in our analysis of how foreign VCs compete in transition economies. This research contributes to both the institutional theory and VC investing literatures. We suggest that foreign VCs can increase their competitive advantage by developing hands-on value-added investing strategies, when investing in transitioning markets.
Research on abusive supervision typically posits that abusive supervision will impede subordinate performance. We pivot from this predominant logic, arguing that under certain circumstances, abused subordinates are socialized to experience shame at the moment and aftermath of abusive supervision and then attempt to manage their shame and protect their self-image by improving their work performance as a self-image reparative action. Drawing on appraisal theories of emotions and the social functional view of emotions, we propose that such a self-image reparative process is more likely to ensue when subordinates otherwise hold a sensitivity to threats to their social self-worth (i.e., face threat sensitivity). The study sample comprised 312 military officers in Taiwan. A three-wave, time-lagged field study was conducted to provide support for our theorizing. As such, our study extends previous speculations on the consequences of supervisory abuse, which have typically found that it lowers subordinate performance. Overall, our work provides answers to both how and under what conditions abusive supervision improves subordinate performance and explains why abusive supervision can continuously prevail within organizations. Theoretical and practical contributions are discussed.
Past research has documented the many psychological and behavioral benefits of negative emotion differentiation, that is, the degree to which one can identify, distinguish, and describe specific negative feeling states. Drawing on Affective Events Theory, we argue that negative emotion differentiation affects how individuals react to a need-laden affective event (i.e., being in a situation where one is asked for some assistance). Specifically, we posit that individuals high in negative emotion differentiation will be more adept at interpreting their negative emotions as arising from others' needs (i.e., moral emotions) and regulating them through helping behavior. We tested this basic premise in two studies conducted in East Asia – a field study involving working adults in a general work setting and a quasi-experiment involving a student sample. In both studies, we examined the role of negative emotion differentiation in how individuals respond to negative emotions facing a need-laden affective event. The results supported our predictions, as high negative emotion differentiation weakened the negative relationship between general negative emotions and subsequent helping behavior (Study 1) and strengthened the positive relationship between negative moral emotions and helping behavior (Study 2). Theoretical and practical implications are discussed.
Since the days of Hofstede (1980), cross-cultural comparisons of countries based on societal-level work values have been a norm. This approach has been represented more recently in Ronen and Shenkar’s (2013) 11 clusters of country cultures. However, more contemporary research found within-country heterogeneity of values/behaviors is substantial and growing exponentially across today’s twenty-first century businessworld. We investigated, across a sample of 39 societies, whether work values variance within societies was greater than work values variance across societies, and whether individual work values differences contributed more to predictions of behavioral performance criteria than the society in which the individuals lived. Both sets of analyses addressed how work values conceived at societal-levels are relevant in understanding the twenty-first century businessworld. Our findings revealed first that there was substantial within-society values heterogeneity, which resulted in the failure to replicate Ronen and Shanker’s (2013) societal cluster aggregations. Second, we found individual-level values contributed significantly to the prediction of employees’ behaviors, while societal-level values contributed substantially less. These findings strongly suggest that cross-cultural studies of work values predictive power are most relevant when conducted at the individual-level. Finally, we also make available for future investigators a 51-society database containing 11,780 individual-level records.
This study uses a diffusion of innovation framework to examine how small and medium-sized enterprises’ (SMEs’) export development is impacted by managerial perceptions of factors inhibiting or enhancing international activities. The focus on perceptions provides greater utility to the finding of this study, given the managerially controllable nature of the variables explored and the impetus on the long-term survival of the firm. A three-stage synthesized innovation diffusion model of internationalization is proposed and empirically tested via a survey of 172 managers of Taiwanese SMEs in the food and beverage processing sector. We profile the stages of export development by these SMEs and demonstrate the effect of managerial perceptions of inhibiting/enhancing factors on export stages and the moderating role of managerial commitment in the relationship between perceived inhibiting/enhancing factors and export stages. This paper adds to our understanding of factors that can facilitate SMEs' progression from pre-exporters to becoming established exporters. It concludes by discussing implications for international business scholars, managers, and policymakers.
In 1991 India embarked on far-reaching economic, financial and regulatory reforms, which led to not only a surge in economic growth, but also spurred scholarly interest in Indian firms, their strategies, and their business environment. As it has been almost three decades since the reforms were initiated, we believe that it is an appropriate time to take stock of the research on strategic management in the Indian setting. Our scoping review finds three dominant themes in extant research: impact of environment (specifically liberalization) on firms, strategies of firms, and the different ownership structures of firms. We discuss the key findings within these domains and identify the theories and methods that scholars have used to address their research questions. We assert that the unique Indian context — a mix of public and private economy operating within a democratic system — provides a rich environment for not only testing existing theories in strategic management but also generating new theories. We conclude by identifying several important areas of research and urging strategy scholars to engage with the opportunities offered by the evolving Indian business environment.
Many studies focus on the factors that facilitate or inhibit counterproductive work behavior, but pay less attention to the actors’ behavioral consequences. To address this gap, the present study explores the influence of counterproductive work behavior on actors’ pro-social rule breaking. Extending moral cleansing theory, we propose that counterproductive work behavior can promote actors’ pro-social rule breaking through impression management motives. A three-wave survey with a sample of 374 employees and 118 supervisors are conducted to test our hypotheses. The results show that counterproductive work behavior has a positive effect on the actors’ impression management motives, and then indirectly promotes pro-social rule breaking. Moreover, leader-liking moderates the relationship between employees’ counterproductive work behavior and their impression management motives, such that this relationship is stronger for the employees liked by the leader. This study contributes to the literature of counterproductive work behavior, and extends the research on pro-social rule breaking. The practical implications of this study are also discussed.
As a panacea for solving the negative externalities of innovation, responsible innovation has attracted widespread attention from all walks of life. The prior research has studied the concepts, methods, applications, and influence factors of responsible innovation. However, few studies have investigated the driving role of innovative factor inputs in the process of enterprise responsible innovation. Our study using input and output data is based on Chinese industrial enterprises from 2011 to 2015 to measure the growth drivers of enterprise responsible innovation by building a nonparametric decomposition framework. The results are as follows: first, at the national level, the contribution of factor input to the responsible innovation of industrial enterprises is higher than that of total factor productivity. Second, at the regional level, R&D capital and personnel investment have promoted the growth of industrial enterprises responsible innovation in the eastern region, and the responsible innovation of industrial enterprises in the central and western regions mainly comes from R&D capital investment. Third, at the provincial level, the responsible innovation model of industrial enterprises in most provinces has changed from extensive to intensive. The increase in total factor productivity is the main driving force for the transformation of the industrial enterprises' responsible innovation model.
Academic interest in corporate venturing (CV) has grown considerably over the past
decade, given its importance to corporate transformation and improvement. Prior research emphasized the effect of the external market environment on CV, neglecting the role of nonmarket arenas in supplying resources and opportunities to incumbent firms as a potentially vital antecedent to CV activities. This paper brings attention to the important but ignored role of corporate philanthropy, which has been employed by private firms to build their political legitimacy and garner the resources and opportunities needed in their external corporate venturing (ECV) activities. Drawing on institutional theory, in particular the notion of political legitimacy, this paper first tests the relationship between corporate philanthropy and ECV. It then unveils the varying moderating roles of three types of political connections (i.e., exploiting entrepreneurs’ prior governmental working experience, being political council members and affiliating with the All-China Federation of Industry and Commerce) that influence the proposed relationship. Research findings from 1,574 entrepreneurial private firms in China support our theoretical predictions. This paper advances the CV literature by introducing a nonmarket strategy explanation to the antecedent of ECV and specifying the simultaneous effect of corporate philanthropy and political connections on ECV.
Over the years, researchers have used various theoretical frameworks and analytical tools to evaluate the relationship between board gender diversity and firm financial performance. The results, however, have remained largely inconclusive, perhaps because the role of board gender diversity has been studied separately from other board and firm characteristics. To address this issue, we examine the relationship between board gender diversity and firm financial performance through the theoretical framework of complexity theory, using qualitative comparative analysis (QCA). Our sample comprises 204 non-financial firms listed on the Bombay Stock Exchange (BSE). We find that board gender diversity does not affect firm financial performance in isolation, but rather in combination with other board and firm characteristics. In some combinations it is associated with both stronger firm financial performance and in other configurations with weaker firm financial performance. We also find that greater gender diversity on boards mitigates the negative effects of CEO duality on firm financial performance.
In this paper we perform a systematic literature review of the diverse and somewhat fragmented current state of research on firms’ internationalization and innovation. We analyze 207 key works from 1989 through 2020 and synthesize them into an internationalization process framework that conceptually maps key internationalization-related antecedents and moderators that influence innovation behaviors and outcomes. Through an internationalization process framework, we categorize existing relevant studies into three key stages: (a) the pre-internationalization stage, (b) the internationalization entry stage, and (c) the post-internationalization stage. Furthermore, we review how firms’ various strategic decisions and operations in different stages influence their innovations by elaborating the moderating role of external country/region institutions and firm internal characteristics. Building on this review, we provide suggestions for future research to advance the developments of this domain.
Do emerging market multinational enterprises (EMNEs) from the Asia–Pacific region experience cultural distance in the same way that developed economy firms do? In swapping the focal home country position from developed economies to emerging economies, we examine whether the ‘illusion of symmetry’ of the cultural distance construct prevails. When EMNEs make strategic decisions about cross-border equity ownership, they are driven by the critical need for learning. We study the internationalization of Asia–Pacific EMNEs and explore how the organizational form of the business group (BG) influences the learning behavior of EMNEs while they navigate cultural distance. We perform a multilevel analysis of 400 acquisitions made by Indian firms across several industries into 38 host countries between 1990 and 2015. We find that the BG organizational form provides structural and contextual antecedents to strategic ambidexterity by leveraging the absorptive capacity and cross-cultural experience of the BG through simultaneous exploratory learning (entailing lesser control) and exploitative learning (entailing greater control). Our results hold good for other group-affiliated EMNEs from the Asia–Pacific region as well and contribute to multiple streams of literature.
Responsible Business Model Innovation is increasingly becoming a relevant challenge in academic research and business practice, mainly in the Asian context. Changes in business models are widely acknowledged as a key strategy for achieving long-term innovation. However, little is known about the design journey of Responsible Business Model Innovation. By applying the knowledge-based view and stakeholder theory, this paper introduces the founding pillars of Responsible Business Model Innovation, namely: Corporate Social Responsiveness, Inclusiveness, and Reflective Knowledge Exchange. Based on the analysis of extended bodies of literature published between 2011 and 2021 on business model innovation, sustainability innovation, stakeholder theory and responsible innovation, the article explores the state of the art of business ethics and dynamic capabilities in Asian organizations. Findings show that recent research in the field of sustainability and ethical values are improving the impact on business models, thus encouraging the advent of Responsible Business Model Innovation. This article contributes to the emerging field of responsible innovation and offers novel theoretical and practical implications for academy and practitioners, including a first attempt to develop a road map to be followed to achieve of sustainable and ethical values for business and society at large.
As the largest and fastest-growing transition economy in the world, China has seen both the growth of entrepreneurship and increasing scholarly endeavors in this area. To gain an in-depth insight into the evolutionary themes of entrepreneurship research in China, the present study applied a combination of co-word and critical event analysis to examine the co-evolution path of entrepreneurial activity and transition process. By investigating 277 articles published in 23 leading international academic journals from 2005 through 2019 along with several contemporaneous critical events, this paper finds that entrepreneurial studies have become more complex and diverse along with the growth of entrepreneurial activities. It implies a positive impact caused by China’s market transition on entrepreneurial opportunities which has further given rise to the development of academic inquiry in the area.
Prior research on the relationship between financial resource availability and corporate social responsibility (CSR) has presented contrasting theoretical arguments and evidence. While the relationship has been theorized to be positive in developed countries, it has been argued to be negative in emerging economies due to institutional differences. However, prior theorization in the context of emerging economies has failed to consider the possibility of a non-monotonic relationship between financial resources and CSR. Although due to the high costs of obtaining external finance in emerging economies, firms may choose to prioritize capital retention over engaging in CSR activities when financial resource availability is low, this behavior is likely to change beyond a point when the level of available financial resources has crossed a reasonable threshold. In this paper, we develop this perspective and predict a U-shaped relationship between financial resource availability and CSR in emerging economies. We test and find support for this prediction on a sample of the top 500 listed firms in India. Further, we also predict and find that three dominant ownership structures (i.e., family ownership, business group affiliation, and state ownership) differentially condition this relationship.
Drawing on the information processing perspective, this study examines the effects of TMT participative decision-making and heterogeneity on management innovation. It finds that TMT participative decision-making and heterogeneity individual and jointly contribute to management innovation. In addition, the effect of TMT participative decision-making is positively moderated by firm age, whereas that of TMT heterogeneity is negatively moderated by firm age. This study offers insights into how TMTs matter to management innovation, enriching the knowledge of the antecedents of management innovation. It also represents one of the first attempts that introduce firm age as a contingency for the innovation implications of TMTs.
Drawing on human capital theory, this paper develops a contingency approach to explore how independent directors’ scarce human capital affects innovation investment intensity and innovation outputs in the Chinese context. Controlling for the presence of ordinary technical independent directors (TIDs) and a range of other factors, we find that academy fellow independent directors (AFIDs) have an incremental positive effect on innovation investment intensity and innovation outputs, and that this effect exists only for non–state-owned enterprises (non-SOEs), which are more constrained in their ability and resources to pursue value-enhancing innovation activities. Our channel analyses suggest that AFIDs play a strong resource provision role in enhancing innovation. However, their positive role in promoting impactful innovation activities diminishes when they face intensified government intervention and political risk. We clearly document that regulations that are designed to impose only intense external monitoring of independent directors may have unintended negative consequences on innovation, particularly when firms’ demands for resource provision are intense, as is the case with firm innovation.
Increasingly, firms are forming alliances to engage in cooperative innovation activities with their competitors. Participating firms in an R&D consortium can not only obtain the general benefits from cooperation, but also further promote communication and mutual learning due to the common knowledge base with their competitors in the consortium. However, R&D consortium as a typical cooperative innovation alliance has downsides too - competition in a cooperative consortium provides member firms with not only benefits, but also challenges. The opportunistic nature of competition poses a dilemma for member firms when they decide how much effort should be committed to cooperative R&D activities. This study aims to investigate the benefits and costs of competition for firm innovation in cooperative R&D consortia. The study will also identify the boundary conditions to amplify the advantages of competition in terms of the network properties of consortia. The study employs data from 649 firms in 50 Japanese R&D consortia to analyze the curvilinear relationship between the intensity of competition and firm innovation in a cooperative consortium. It was found that a focal firm with a moderate level of competition will have better innovation performance compared to those with either a low or high level of competition. Moreover, it investigates the moderating roles of the firms’ size disparity of R&D consortia and the consortium-organized interaction. The results indicate that the R&D consortium with a low size disparity amplifies the linear effect of the competition on cooperative innovation, which can help the focal firm achieve more gains from cooperative R&D. The consortium-organized interaction strengthens the curvilinear effect of the competition intensity on innovation. This study, using resource dependence theory and social network lenses, extends our understanding of the role of coopetition in firm innovation performance by filling the gap in when and to what extent the intensity of competition matters in multiparty cooperative R&D consortia. It also provides new evidence on the boundary conditions of R&D consortia managing the tension.
Drinking with others is seen as a necessary activity for business negotiations worldwide. However, employee alcohol use in business context is rarely investigated. This study focuses on employee business drinking (EBD), defined as employee drinking with clients for business matters. Based on role theory, the antecedents and consequences of EBD are examined using three-wave data obtained from 183 full-time Chinese employees. The results show that the leader business drinking norms and coworker business drinking norms have positive effects on EBD. Employees with high performance drinking motives and high alcohol tolerance are more likely to participate in EBD. Furthermore, EBD is positively related to leader-member exchange (LMX), team-member exchange (TMX), and client ties. These results show the drivers and potentially beneficial effects of EBD and provide important theoretical and practical implications.