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Managerial Ties and Firm Performance in a Transition Economy: The Nature of a Micro-Macro Link

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... Managerial ties and sustainable business model innovation Managerial ties are defined as "executives' boundary-spanning activities and their associated interactions with external entities" (Geletkanycz and Hambrick, 1997, p. 654). Managerial ties usually refer to the connections of managers with their counterparts in other firms, including exchanging parties, government organizations and research institutions or universities (Peng and Luo, 2000;Naqshbandi and Kaur, 2014;Bashir et al., 2023aBashir et al., , 2023b. Managerial ties with managers at other firms are referred to as business ties, which include ties with buyers, suppliers, distributors and even competitors. ...
... Literature acknowledges that managerial ties with counterparts in other firms serve as a bridge for acquiring knowledge (Peng and Luo, 2000). According to social capital theory, the performance of a company is determined by its relationships (Gabbay and Leenders, 1999). ...
... In this context, managerial networks facilitate the sharing of resources through flexible and swift mechanisms that enhance organizations' capacity to internalize newly explored ideas and adapt according to external market demands (Dittrich and Duysters, 2007). Moreover, managers' affiliations with governmental and political figures provide companies with access to resources such as technology and human capital (Peng and Luo, 2000), while also assisting them in securing institutional support that bestows political and social credibility (Luo and Tung, 2007;Naqshbandi, 2016). Furthermore, managers' ties with academic institutions or other research organizations assist companies in acquiring both scientific and technological knowledge (Peng and Zhou, 2005;Naqshbandi, 2016). ...
Article
Purpose The research on sustainable business model innovation (SBMI) has seen a surge over the years. However, despite the surge, the literature on the antecedents of SBMI is still at a budding stage. Therefore, the purpose of this paper is to expand the literature on SBMI by investigating the influence of managerial ties on SBMI. Design/methodology/approach Data were collected from 200 SMEs in Saudi Arabia to test the conceptual model, which was analysed using structural equation modelling. Findings The findings highlighted the significance of managerial ties in promoting SBMI. Furthermore, the findings highlighted that managerial ties might not optimally result in SBMI uncles channelized through absorptive capacity. However, the findings could not confirm the moderating role of strategic flexibility. Practical implications The findings from this study have implications for SME owners, recommending that these firms develop managerial ties and absorptive capacities to realize the benefits of SBMI. Originality/value To the best of the authors’ knowledge, this study is one of the first to highlight the significance of managerial ties in promoting SBMI from an emerging market perspective.
... Within the organizations literature, two perspectives are readily distinguished, largely insulated from one another. The first consists of culturally inspired work highlighting relational strategies in which guanxi is understood as a unique, interpersonal relationship and strategy (Xin and Pearce 1996;Tsui and Farh 1997;Guthrie 1998;Peng and Luo 2000). The common narrative running through this literature is that companies and individuals with guanxi and associated strategies can realize financial and market benefits when accessing scarce resources, such as capital, land, or skilled labor as well as administrative services (Peng and Luo 2000;Park and Luo 2001;Luo, Huang, and Wang 2011;Opper 2010, 2012;Opper, Nee and Holm 2017). ...
... The first consists of culturally inspired work highlighting relational strategies in which guanxi is understood as a unique, interpersonal relationship and strategy (Xin and Pearce 1996;Tsui and Farh 1997;Guthrie 1998;Peng and Luo 2000). The common narrative running through this literature is that companies and individuals with guanxi and associated strategies can realize financial and market benefits when accessing scarce resources, such as capital, land, or skilled labor as well as administrative services (Peng and Luo 2000;Park and Luo 2001;Luo, Huang, and Wang 2011;Opper 2010, 2012;Opper, Nee and Holm 2017). Similarly, guanxi may offer advantages in securing legal protection and varying forms of politically motivated preferential treatment in the presence of weak and unpredictable formal institutions (Peng and Luo 2000;Park and Luo 2001;Luo 2003;Li, Poppo, and Zhou 2008;Luo et al. 2011). ...
... The common narrative running through this literature is that companies and individuals with guanxi and associated strategies can realize financial and market benefits when accessing scarce resources, such as capital, land, or skilled labor as well as administrative services (Peng and Luo 2000;Park and Luo 2001;Luo, Huang, and Wang 2011;Opper 2010, 2012;Opper, Nee and Holm 2017). Similarly, guanxi may offer advantages in securing legal protection and varying forms of politically motivated preferential treatment in the presence of weak and unpredictable formal institutions (Peng and Luo 2000;Park and Luo 2001;Luo 2003;Li, Poppo, and Zhou 2008;Luo et al. 2011). There is ample cumulative evidence highlighting the value of guanxi (overview in Chen et al. 2013). ...
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The Chinese word, guanxi, distinguishes a kind of relationship that is familiar, consequential for network predictions of performance — and consistent with, but not yet distinguished in, network theory. Phrased in terms of network theory, guanxi is a tie that has become strong through its history such that trust within the relationship is high and independent of the surrounding network. As such, a guanxi tie can function on its own as a strong bridge between groups, bypassing the need for structural embedding in third parties. We use interviews with a stratified probability sample of Chinese business leaders to look for pattern in the ways they use the term guanxi, and the performance relevance of relations they designate guanxi. The discussion positions guanxi within network theory to improve predictions from the theory, and facilitates unambiguous use of guanxi as a concept in the theory.
... This helps to build new theoretical insights, as called for, for instance, by Puchibar et al. (2019) who argue that a sound theoretical foundation of the BMI concept is still missing. Moreover, this article extends extant research on managerial ties (Peng & Luo, 2000) by linking this concept with theorizing on incubators and EEs, offering a new connection between these important concepts and their associated literatures (for example, Mian et al., 2016;Spigel, 2017). Further, the model also illuminates how the external environment can enable BMI, a current gap in extant BMI theory and research (Foss & Saebi, 2017). ...
... The concept of managerial ties can therefore help to explain and unpack how founder-managers in the resource-based view can source external resources through their connections (Peng & Luo, 2000;Shih & Aaboen, 2019;Wang, et. al., 2017). ...
... Managerial ties (TIES): We adapted items and procedures from Peng and Luo (2000) to measure the concept of managerial ties. The following question was asked: "How would you describe the extent of the social network that the team of funder-managers had to the following types of actors when the venture became affiliated with the incubator community: entrepreneurs, (potential) customers, (potential) suppliers, (potential) investors, (potential) collaboration partners, and influential individuals in the region." ...
... We test these predictions using a sample of privately controlled, publicly listed firms in China from 2008 to 2018. We focus on this group of firms because political connections are critical for them to gain access to resources and legitimacy (Peng & Luo, 2000;Xin & Pearce, 1996). The results largely support our predictions. ...
... Next, we excluded state-owned enterprises (SOEs) and focused on privately controlled listed firms for two reasons. First, because they lack official state ties, private firms are keen to establish political connections to gain access to resources, political protection, and legitimacy (Peng & Luo, 2000;Xin & Pearce, 1996). Second, the incentives underlying the innovation of private firms are applicable to firms in other countries. ...
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This study investigates the influence of ascribed and achieved political connections on corporate strategies of incremental versus radical innovation. The corporate political strategy literature maintains that while politically connected firms have access to resources controlled by the government, they also have an obligation to reciprocate for this access by fulfilling government expectations. We integrate an institutional perspective with the political strategy literature to develop the argument that ascribed political connections enhance incremental innovation because firms with these connections will tend to innovate just enough to meet government expectations. In contrast, firms with achieved political connections will tend to prefer radical innovation because these innovations help them to maintain their relationships with the government and expand their competitive advantage in the market. Furthermore, we propose that these effects depend on firms' innovation orientation, captured by the firms' technological capability, industry characteristics, and the innovation context of their geographical region. Our predictions are largely supported by analysis of a panel dataset of privately controlled, publicly listed Chinese firms during the period 2008 to 2018. Our findings reveal that the positive effect of ascribed political connections on incremental innovation is less salient when a firm has stronger technological capability, or when a firm operates in a high‐tech industry or a region with a strong innovative climate. Conversely, the positive influence of achieved political connections on radical innovation is stronger when a firm has stronger technological capability, or when a firm competes in a high‐tech industry or is located in a region with a strong innovative climate. We also discuss the important implications for firms and the government.
... Statements include, "A lack of adequate training and education limits women's involvement in business," "The fact that men have better opportunities in education and training than women limits the involvement of women in business," "The fact that women have fewer connections than men with experts in certain fields limits their involvement in business," "Males have greater access to higher quality IJEBR training and education providers" and "Fewer training providers are available for women, in terms of quantity and quality." Peng and Luo (2000) formulated their Lack of Networking measure using a Likert scale that ranges from 1 (strongly agree) to 5 (strongly disagree). Statements include, "I can't figure out most problems without friends," "Network is as important as the business itself," "Business dealings entail reciprocity," "To pay back favor is more urgent than repaying debts," "I am alert to market developments that create potential partnership opportunities," "I always encourage my friends to introduce their friends to me," "I always look for opportunities to have lunch or dinner with new friends," "I can read others well and know how they are feeling in a given situation," "I know what others need and try to do what I can for them," "When I have disagreements with my partners, I usually strive to accommodate them and reach a mutually satisfactory compromise," I always analyze what I would like to achieve with others" and "I can successfully match my energy and resources to my different friends." ...
... Statements include, "I can't figure out most problems without friends," "Network is as important as the business itself," "Business dealings entail reciprocity," "To pay back favor is more urgent than repaying debts," "I am alert to market developments that create potential partnership opportunities," "I always encourage my friends to introduce their friends to me," "I always look for opportunities to have lunch or dinner with new friends," "I can read others well and know how they are feeling in a given situation," "I know what others need and try to do what I can for them," "When I have disagreements with my partners, I usually strive to accommodate them and reach a mutually satisfactory compromise," I always analyze what I would like to achieve with others" and "I can successfully match my energy and resources to my different friends." Peng and Luo (2000) formulated their Lack of Funding measure using a Likert scale that ranges from 1 (strongly agree) to 5 (strongly disagree). Statements include, "I can get funding from the government to fund my small/medium enterprise," "I tend to adopt the debt method," "I tend to adopt the equity method," "I can get loans from the banks to launch my business" and "I can obtain loans with low interest rates." ...
Article
Purpose Entrepreneurship institutions exhibit substantial gender discrimination despite worldwide efforts to decrease the phenomenon. The MENA area has a low percentage of women entrepreneurs since little is known about women’s desire to start their businesses. The authors use the theory of planned behavior (TPB) to explain what influences women's propensity toward entrepreneurship and what factors discourage them. Design/methodology/approach TPB is a psychological theory explaining how individuals act in certain situations. The authors created their database by using a systematic questionnaire. Overall, 350 women entrepreneurs contributed to their dataset. Finally, the authors used structural equation modeling to verify their hypotheses. Findings This study helps them to shed light to better understand the dynamics of Entrepreneurial Intention, in women from Lebanon. The authors do not find any relationship between lack of knowledge, funding, networking and entrepreneurial startup intention for Lebanese women. The role of dynamic capabilities in the entrepreneurial landscape of Lebanon, particularly for women, is substantially highlighted by the full mediation observed in the relationship between lack of knowledge and entrepreneurial start-up intentions. The findings discovered that these capabilities could fully mediate the negative impact of lack of networking on the intention to commence entrepreneurial ventures. Originality/value This research illustrates and explains how dynamic capabilities mediate the relationship between women entrepreneurs' challenges and their intention to start a business in the Lebanese context.
... China is at a critical stage of transition economy. Peng and Luo (2000) pointed out that the significant feature of this stage is the vacancy in the formal system. In this institutional context, entrepreneurs' cognitive and ability imprinting, social relations, or networks as an informal institution make up for the absence of formal institutions (Bruton et al., 2013;Peng & Luo, 2000). ...
... Peng and Luo (2000) pointed out that the significant feature of this stage is the vacancy in the formal system. In this institutional context, entrepreneurs' cognitive and ability imprinting, social relations, or networks as an informal institution make up for the absence of formal institutions (Bruton et al., 2013;Peng & Luo, 2000). Therefore, an in-depth insight into the imprinting mechanism of Chinese entrepreneurs is helpful to further reveal the problems of entrepreneurship research in the context of China's transformation. ...
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Military experience, as a special early experience exerts a very profound impact on individual decision making. This paper investigates the impact of military experience on male labor force entrepreneurial choices and its underlying mechanisms, using the 2014 to 2016 China Labor-force Dynamics Survey data. It is found that military experience significantly reduces the probability of individual entrepreneurship. The analysis of the influence mechanism shows that military experience inhibits survival entrepreneurship mainly by increasing employment opportunities in state-owned units, increasing the probability of becoming a member of the Communist Party of China(CPC), and accumulating human capital. This paper also finds that the inhibitory effect of military experience on individual entrepreneurship varies across household registration groups and is more significant for laborers with non-agricultural household. This paper not only reveals the impact of the military experience on individual entrepreneurship choices, but also provides empirical evidence for the development of innovation and entrepreneurship policies in emerging economies.
... According to social resource theory (Lin, 1999), the nature of resources within an entrepreneur's network will impact success, with an entrepreneur's decision to pursue innovation or replicate existing ideas in turn influenced by their social embeddedness (Ruef, 2002). Therefore, it is crucial to recognize that higher and lower innovating start-ups can leverage relational ties differently, with different types of connections contributing unequally to start-up financial performance (Peng and Luo, 2000). ...
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Purpose This study aims to explore which relational factors are crucial for accelerator-based start-ups to achieve high financial performance and whether innovation levels influence this relationship. Utilizing fsQCA and drawing from the resource-based view (RBV), we analyze 128 start-ups in a Spanish accelerator, split by innovativeness, to understand the impact of relational and human capital factors on performance. Design/methodology/approach The study uses fuzzy-set qualitative comparative analysis (fsQCA) to investigate conditions leading to high financial performance among 128 start-ups in a Spanish accelerator, divided by innovativeness. Four key factors are analyzed: social capital, social competence, resource mobilization and entrepreneurial ecosystem support. fsQCA examines complex relationships between these factors and financial performance. Findings Relational and human capital factors significantly impact start-up financial performance, varying with innovativeness. Highly innovative start-ups benefit from social competence and networked support, while less innovative but profitable start-ups rely on resource mobilization skills. The study highlights the contingent value of these factors, showing that unique configurations drive financial success. Research limitations/implications The paper enhances the RBV in entrepreneurial contexts by highlighting the critical role of relational resources and their configurations. It suggests social competence and networked support are crucial for highly innovative start-ups, while resource mobilization is key for less innovative ones. These findings encourage nuanced theorizing of start-up success strategies, considering varying innovativeness levels and their impact on performance. Originality/value This study enhances understanding of the relationship between relational factors and financial performance in accelerator-based start-ups, considering innovation levels. It provides insights into how different configurations of social capital, competence, resource mobilization and ecosystem support lead to success. It underscores the importance of considering the contingent value of relational factors for start-up growth.
... Through GSA participation, such as participation in the CITISA program, firms can secure resources from partners in the GSA and the government (Pfeffer & Salancik, 1978) and leverage cooperation relations formulated by government policies to acquire both partners' knowledge resources and government support to reduce the uncertainty surrounding exploratory innovation (Peng & Luo, 2000;Zhou et al., 2019), which may benefit the firm innovation outcome. At the same time, through GSAs, firms can actively develop their political means to influence the government and shape new Content courtesy of Springer Nature, terms of use apply. ...
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Innovation in firms can be doubly influenced by government-supported alliances (GSAs) for innovation and non-government-supported knowledge networks, but we know little about why and how GSA participation affects firm exploratory innovation and its combined effects with structural holes in the knowledge network. Drawing on research on corporate political strategy, we argue that GSA participation presents a puzzle. On the one hand, a firm can reduce resource constraint for innovation. On the other hand, the firm’s innovation is subject to political constraint for non-market purposes. Moreover, from a relational pluralism perspective, GSA dependence and knowledge network can be either synergetic or antagonistic in affecting exploratory innovation. Using a sample of public firms in China with a difference-in-differences approach, we find evidence that GSA participation decreases a firm’s exploratory innovation, supporting the political constraint argument. However, the negative effect diminishes when firms have more structure holes in the knowledge networks, supporting the synergetic perspective. This study provides new insight on how firms combine political strategies and network strategies to improve exploratory innovation.
... The social network theory highlights that firms can attain a competitive advantage by leveraging their connection within a network. Through these connections, firms can access valuable resources and knowledge that could otherwise be unavailable (Peng and Luo 2000). As such, managerial relations represent an essential type of social capital that connects top executives to important external stakeholders, including other firm executives, government officials, and suppliers (Shu et al. 2012). ...
... The impact of Guanxi culture is mainly reflected in two aspects. On the one hand, as social capital, it can make up for the shortcomings of formal systems, which is conducive to resource acquisition, reduces market transaction risks, and promotes economic development (Peng & Luo, 2000). On the other hand, Guanxi culture has become an inhibitor of corporate innovation activities. ...
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Plain language summary In this paper, we found that international talent inflow positively impacts on technological innovation. Guanxi culture significantly negatively impacts on technological innovation and negatively moderating the relationship between international talent inflow and technological innovation. Social trust significantly positively impacts on technological innovation and positively moderates the relationship between international talent inflows and technological innovation. The interaction between social trust and Guanxi culture has a significant positive effect on technological innovation. This study makes several contributions to the literature. First, it enriches the research on the influence of informal institutions in the field of international talents and reveals the boundary conditions for the role of international talents. Second, it deepens the research on the influence of culture with Chinese characteristics and enriches the empirical research on Guanxi culture in management. Lastly, it expands the antecedents of technological innovation. There are some limitations to this study. First, in addition to the negative side of the Guanxi culture, there is also a positive side. This study only uses the time invested by entrepreneurs and corporate entertainment expenses to explore its effect. Therefore, future research can analyze both sides of Guanxi culture. Second, Guanxi culture is just one of China’s core cultures. Other cultures such as favor and face are also cross-cultural adaptation issues that international talents must face. It is necessary to discuss them. Third, limited to data availability, the social trust data only covers 7 years. Therefore, more relevant alternative indicators can be sought to verify the results in the future.
... Political capital consists of a CEO's personal relationships with government officials at various administration levels (Peng & Luo, 2000). CEOs with ties to the political elite in China hold strong political capital and are in a position to obtain several information-selection benefits and may influence government decisions that favor their firms and reduce risks, such as safeguarding and further expanding their current market position, removing regulatory obstacles, and securing government contracts (Ma & DeDeo, 2018;Peng et al., 2015;Shi et al., 2014). ...
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We draw on several lines of literatures to develop a new theory on how CEO power can lead to strategic persistence in a set of new firms that are routinely touted as nimble and agile. IPOs may trigger strategic changes in organizational goals and boundaries. However, prior studies have shown that past organizational success can lead to strategic persistence—the tendency for firms to stick with strategies that yielded success in the past. We propose that one variable—CEO power—may explain why some post-IPO firms retain their strategic posture whereas others deviate from it. Using unique samples of new post-IPO firms in China, we find a positive relationship between CEO power and strategic persistence. This effect is positively moderated by firm diversification and the CEO’s political capital. We employ a multi-method approach and find consistent results across different samples and approaches. We conclude with a discussion of the implications of our findings.
... Zhang et al. 2018). Meanwhile, social news will provide a reflection in providing a business social network defense and strength for the sustainability of SMEs (Karami and Tang 2019;Peng and Luo 2000). An ability is called ambidexterous when it is able to provide an appropriate form of resource synergy and it can be a reflection as the concept of integration activities (Lumpkin and Dess 1996). ...
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This study aims to build a conceptual model based on the role of share value relational capital, frugal innovation and ambidexterity as an effort to link the increase in the resilience of SMEs (small medium enterprises). By using a quantitative research design, a structural study methodology was adopted in this study. Overall, data from 132 tourism SMEs was collected using a questionnaire and 568 data from respondents that can be used for further analysis. The analysis uses logistic regression with dichotomous response and predictor variables on structured tables of count data, representing firm performance as a result of capital resources, physical resources and possibly innovation. To test share value relational capital, frugal innovation and ambidextirity which is outlined in the research model and the hypotheses, the authors used the structural modelling software Analysis of Moment Structure, Structural of Equation Model (AMOS SEM) to analyse 568 usable questionnaires. The results show the acceptance of all hypotheses proposed in this study, as well as the role of share value relational capital, frugal innovation and ambidextirity variables can be a bridge to leverage the resilience of SMEs. The findings in this research area show that there are three pathway strategies for increasing resilience SMEs. Share value relational capital, frugal innovation and ambidexterity are the basis of separate contributions to increase the resilience of SMEs There are several practical implications for SMEs managers who want to increase their resilience. The originality in this research is the role of share value relational capital, frugal innovation and ambidexterity in being able to bridge the influence between digital business transformation and resilience SMEs.
... Theoretical discussions around networks encompass various types of relationships and their characteristics, as well as aspects such as trust, control, resources, and interdependence both within and between firms (Ruzzier et al., 2006). This includes their role in the selection of foreign markets (Andersen and Buvik, 2002), market services (Welch and Welch, 1996), entry dynamics (Meyer and Skak, 2002), development of international markets and marketing activities (Coviello and Munro, 1995), the internationalization timeline McDougall et al. (1994), propensity for exporting (Westhead et al., 2001), strategic decision-making, performance (Peng and Luo, 2000), and the degree of internationalization (Brush et al., 2002). Jaklic (1998) suggests that networks offer SMEs a valuable means to bridge gaps in economic development by addressing challenges related to knowledge, technology, and capital accumulation. ...
... Table 3 displays the VIF values for each independent variable. These values did not reveal significant multicollinearity, all falling below the accepted cutoff of 5. Hence, it suggests that multicollinearity is not a major concern (Hair et al. 2011;Kim 2019;Peng and Luo 2000). ...
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The urgent need for climate action and sustainable development has elevated the importance of Public-Private Partnerships (PPPs) in climate finance. While PPPs are crucial for mobilizing resources for climate finance, the factors influencing the willingness of different stakeholders to participate in these partnerships are not well understood. This study employs a multifaceted analytical approach, integrating theoretical insights from Stakeholder Theory, Transaction Cost Economics, and Agency Theory. We conduct a Tobit regression analysis to investigate the determinants of willingness to participate in climate finance PPPs among three key stakeholder groups: Governors, Firms, and the Public. Using survey data collected from over 1600 participants in Vietnam’s Mekong Delta, this research examines the influence of perceived benefits, perceptions of PPPs, the importance of climate finance, trust and transparency, and multilateral support on stakeholders’ willingness to participate in PPPs for climate finance. The analysis reveals that the perceived benefits of PPPs and trust and transparency universally enhance the willingness to participate across all groups of stakeholders. However, the impact of positive perceptions of PPPs varies, playing a crucial role for firms and the public but not for governors. The study also highlights the significance of understanding and emphasizing the importance of climate finance, particularly when combined with trust and transparency, in encouraging stakeholder participation. Furthermore, by revealing the varied impacts of determinants across stakeholder groups, this research points to the necessity of adopting differentiated approaches to maximize participation in PPPs for climate finance, thereby supporting sustainable development and climate action goals.
... The possible reason for this is that the environmental experience of executives can form rich "social capital" for the enterprise to engage in green technological innovation activities. That is to say, executives who have worked in the government can help enterprises better access to the corresponding government resources based on their special political affiliation, and they have the advantage of accessing enterprise innovation resources and utilizing policy resources [57]. Therefore, they can bring enterprises diversified and heterogeneous financing channels for green technological innovation, reducing the transaction costs in the process of financing, and enhancing the ...
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In the “14th Five-Year Plan” period, the emphasis is made on green and low-carbon initiatives, which has become a defining feature of China's development, and it is of great significance to help enterprises realize green and sustainable development under the guidance of environmental regulation to achieve the goal of “dual-carbon”. At first, this research analyzes the decision-making process between the government and enterprises under environmental regulation using the evolutionary game model. Moreover, using the TOPSIS method, this paper constructs the indicators of corporate green sustainable development performance, and empirically examines the impact of the intensity of environmental regulation on the green sustainable development performance of enterprises based on the data of Chinese A-share listed enterprises from 2010 to 2022. A noteworthy positive correlation between the intensity of environmental regulation and the sustainable green development performance of enterprises is unveiled by the results. Mechanism tests suggest that the intensity of environmental regulation has a positive impact on the green sustainable development performance of enterprises through enhancing green finance and green technological innovation. Moreover, this effect tends to be more pronounced for enterprises that are in the mature life cycle, with green executive team, and high media attention. The research presented in this study contributes to establishing a novel theoretical foundation for corporate sustainable development.
... Next, the counts were aggregated at the journal and pair level (Figure 1). For instance, for our first replication-original pair (Acquaah, 2007;Peng and Luo, 2000), we have found nine papers published in Asia Pacific Journal of Management that cite both studies, six such papers in Journal of Business Research, two in Industrial Marketing Management and so on. ...
Article
Purpose Replication is a primary self-correction device in science. In this paper, we have two aims: to examine how and when the results of replications are used in management and organization research and to use the results of this examination to offer guidelines for improving the self-correction process. Design/methodology/approach Study 1 analyzes co-citation patterns for 135 original-replication pairs to assess the direct impact of replications, specifically examining how often and when a replication study is co-cited with its original. In Study 2, a similar design is employed to measure the indirect impact of replications by assessing how often and when a meta-analysis that includes a replication of the original study is co-cited with the original study. Findings Study 1 reveals, among other things, that a huge majority (92%) of sources that cite the original study fail to co-cite a replication study, thus calling into question the impact of replications in our field. Study 2 shows that the indirect impact of replications through meta-analyses is likewise minimal. However, our analyses also show that replications published in the same journal that carried the original study and authored by teams including the authors of the original study are more likely to be co-cited, and that articles in higher-ranking journals are more likely to co-cite replications. Originality/value We use our results to formulate recommendations that would streamline the self-correction process in management research at the author-, reviewer- and journal-level. Our recommendations would create incentives to make replication attempts more common, while also increasing the likelihood that these attempts are targeted at the most relevant original studies.
... Often, the mere potential of excluding a less powerful partner from future transactions is adequate to enforce lower profit margins (Cook et al., 1983). When less powerful actors lack access to alternative resource sources, it is expected that they will proactively seek to establish and reinforce their relationships with more influential actors (Hirschman, 1970;Peng & Luo, 2000). Similarly, it is expected that complementors will make efforts to cultivate and strengthen their relationships with platforms to avoid exclusion from transactions. ...
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Purpose The purpose of the article is to explore the perceptions of Brazilian game developers about the power relations between them and the sponsors of digital game platforms. It also aims to identify forms of collective action that developers can use to counteract the asymmetry of power. Design/methodology/approach The research employed an abductive approach, seeking empirical evidence that would challenge consolidated theory. To achieve this, semi-structured interviews were conducted with 25 Brazilian developers. The data were analyzed qualitatively using NVivo software. The aim was to resolve theoretical ambiguities identified in the literature review and to explore unexpected findings. Findings The study explores Brazilian game developers' perceptions through interviews, revealing their experiences within the industry’s concentrated structure and their use of collective action to navigate power dynamics. Research limitations/implications The study's focus on Brazil limits the generalizability of its findings to the broader game development industry. Practical implications The study suggests Brazilian game devs can leverage collective action to counteract power imbalance with platforms, collaborate through events and projects and facilitate internationalization of their games. Social implications The study suggests collective action could empower developers to challenge platform dominance and foster a stronger community among Brazilian game developers. Originality/value The article’s value lies in examining Brazilian devs' experiences within their specific industry context and highlighting collective action as a potential strategy for developers.
... In contrast, the relational perspective argues that family firms -as a form of governance -emerge in underdeveloped countries due to their ability to offset the inefficiencies of low-quality institutions by leveraging the family's social network (Ge et al., 2019). When weak legal provisions, enforcement, and infrastructure do not effectively support market mechanisms, the use of family networks and the social capital of business families reduces uncertainty and transaction costs (Faccio et al., 2006;Peng & Luo, 2000). At the firm level, this provides family firms with a competitive advantage, which also translates into greater entrepreneurship, growth, and socioeconomic development at the country level (Ge et al., 2019). ...
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In this study, we examine the effect of cultural long-term orientation on the likelihood of adopting more family-intensive governance arrangements (FGAs) and the impact on firm performance. FGAs may impose various costs on the firm, including the extraction of private benefits, conflicts with professional managers, paternalistic human resource management practices, and lower legitimacy. Drawing on institutional economics, we theorize that cultural long-term orientation reduces some of these costs, thereby increasing the relative efficiency of FGAs as a governance option. Thus, we expect FGAs to be adopted more frequently in countries with a more long-term orientation. We also expect FGAs to have a less negative impact on performance in these countries as a result of these lower costs. The results of mixed-effects regressions on a cross-sectional sample of 3221 listed family and nonfamily firms in 19 countries confirm that FGAs are more likely to be adopted in more long-term oriented countries. We also find that FGAs have a negative effect on firm performance, but not that cultural long-term orientation weakens this relationship. However, an interesting mediating effect emerges whereby cultural long-term orientation increases the likelihood of adopting FGAs but negatively affects firm performance.
... In the group composed of auditors and managers, the number of people from the same hometown reflects the density of auditors-managers hometown connectedness (Cohen, Gaynor, Krishnamoorthy, & Wright, 2022;Peng & Luo, 2000;Yao et al., 2008). So the greater the density of the auditors-managers hometown connectedness, the higher the proportion of people who form emotional alliance and interest alliance through hometown connectedness (Suleiman & Yahaya, 2023), therefore the higher the probability of forming a consensus in the audit quality decision, and the greater the damage to the audit quality. ...
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Quality audit depends on the qualified audit team. Hometown connectedness affects audit quality among executives and auditors. Higher auditor-executive hometown connectivity degrades audit quality more. The present study aimed to analyse and test the influence of the strength and density of auditors-managers hometown connectedness on audit quality. Panel data research methods were employed here. The data is analyzed using the Regression model, including the Logit regression model and OLS regression model, Pearson correlation coefficients, χ2 grouping test and Heckman two-step regression, by using 3674 observations of the Chinese Stock markets from 2008 to 2020 and from the perspective of sociology and economics that were reserved over 15 different industries and the auditor-manager hometown connectivity involved 25 different provinces. The present study reveals that the auditors-manager's hometown connectedness has a negative effect on audit quality. The influence degree increases along with the strength of the auditors-manager's hometown connectedness. Secondly, the influence degree increases along with the density of auditors-managers hometown connectedness. Finally, some suggestions related to audit quality supervision are put forward. The above findings are still valid after controlling for potential endogenous problems. The research on the relationship between auditors-managers' hometown connectedness and audit quality is extended and deepened. The present study's findings apply to auditors and executives in that a bias-free relationship is essential to carry out an influence-free audit process. Audit organizations and business organizations can benefit from this research.
... Conducting a survey on and collecting reliable data from firms in China are known to be challenging. The development of a positive relationship with the respondents is important to enhance the response rate and improve the quality of the survey data (Peng and Luo, 2000). Thus, we hired a highly renowned marketing research company with extensive experience in collecting firm data to conduct the formal survey and maintained a positive Frontiers in Environmental Science frontiersin.org ...
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This chapter takes us on a journey through the intricacies of marketing and management in the Chinese context, as we explore a range of general marketing and management scales specifically developed for this market. We delve into nine prominent scales, including Marketing Relationship Orientation 1 and 2, Service Behavior Orientation, Service Delivery Orientation, Scale for Business Hypocrisy, Scale for Marketing Practices, Scale for Customer Relationship Management, Scale for Stakeholder Orientation, and Scale for JSLO.
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Purpose The purpose of this study is to investigate the effect of international expansion of emerging markets multinationals (EMNEs) on the home country nonmarket political strategy and why some EMNEs intensify this political tie more than others. Design/methodology/approach We test our theoretical framework using longitudinal data, with 16 years of observations, in Multilatinas and state loans from Brazil, one of the main outward foreign direct investment (OFDI) players in the world and the OFDI leader in Latin America. Findings Theoretically grounded on the institution-based view of strategy, it can be postulated that international expansion is a driver of home country nonmarket political strategy. It can also be hypothesized that political tie intensity is affected by the capacity of EMNEs to deal with international expansion issues without having to depend on relationship with homes country nonmarket political actors. The results provide support for the hypotheses presented. Originality/value This paper contributes to the EMNE internationalization literature by extending the understanding of the underlying motivations and forces shaping the home country nonmarket political strategy of multinationals from emerging markets and, thus, helping understand why some EMNEs tend to be more politically active than others. Likewise, the study contributes to advancing understanding regarding the home country strategic responses adopted by Multilatinas and the forces behind the nonmarket political strategies they employ in their international expansions, especially during turbulent times.
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We examine the effect of minority state ownership on firm performance using the Chinese stock market crash in 2015. We find that treatment firms with minority state ownership accumulated from governmental purchases of equities experience significant reductions in operating performance. The negative impact is more severe in firms with higher riskiness and firms with less powerful large shareholders. We also find that treatment firms’ risk decreases and their employment increases after minority state shareholders step in, providing supportive evidence on the government's motives of reducing risk and preventing mass layoffs. Further tests reveal the channels through which minority state ownership impedes investment efficiency, productivity, and innovation. The negative impact diminishes when government institutions divest their shares in a timely manner. Overall, our results suggest there are unintended negative consequences of minority state ownership arising from the governmental rescue package in a market crisis.
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Objetivo: Este estudo buscou compreender como as empresas brasileiras que exportam para a China desenvolvem o Guanxi como prática organizacional e como essas empresas podem utilizar o Guanxi como estímulo para a adaptação intercultural e diminuir a distância psíquica entre Brasil e China. Método: Trata-se de um estudo de caso múltiplo por meio de entrevistas em profundidade e pesquisa de dados secundários de três grandes empresas exportadoras de carne para a China. Além disso, realizaram-se entrevistas com dez especialistas que possuem experiência no assunto. A análise dos dados foi feita por meio da análise de conteúdo, apoiada pelo software ATLAS.ti. Principais Resultados: Os resultados mostram que: os fatores de distância psíquica entre Brasil e China são administração (e questões de legislação), desenvolvimento econômico e industrial e cultura; para lidar com esses fatores, as empresas mostram que conhecem e fazem uso extensivo do Guanxi; o Guanxi é efetivamente apresentado como prática organizacional e como estímulo à adaptação intercultural e à minimização das barreiras da distância psíquica. Relevância / Originalidade: O estudo trouxe uma contribuição para a área de Negócios Internacionais ao destacar a incorporação do Guanxi como prática organizacional entre as empresas que operam na China e levantar questões sobre o valor cultural, o futuro do Guanxi e a existência de distância psíquica nas negociações. As descobertas têm implicações práticas, pois auxiliam os empresários brasileiros na definição de estratégias de exportação para a China. Contribuições Teóricas / Metodológicas: O estudo apresenta uma contribuição essencial para a teoria visto que o Guanxi é uma prática já incorporada por empresas que lidam com a China. Surgem novas questões, como: até que ponto a China é hoje um país que ainda valoriza a cultura (e o Guanxi) e quanto é um país de negócios (focado em resultados, como os países europeus e americanos)? Como será Guanxi no futuro? Ele deixará de existir ou adotará outra abordagem? Ainda existe uma distância psíquica precisa entre os países nas negociações internacionais? Ou seriam diferenças culturais, mas que as empresas internacionalizadas buscam reduzir na hora dos negócios?
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Purpose This study aims to examine the impact of regulatory, normative and cultural cognitive institutions and firm and individual factors on entrepreneurial behavior. Design/methodology/approach Using the quantitative research method, the authors collected data from 316 micro, small and medium enterprises (MSMEs) in Kosovo, a transition economy, through a cross-sectional research design. The authors performed exploratory factor analyses, correlation and regression analyses on the data using SPSS 26 and STATA software. Findings The research findings indicate that, within transition economies, normative and cultural-cognitive institutions have a positive impact on entrepreneurial behaviors. The authors could not determine the effect of regulatory institutions on entrepreneurial behavior. The authors also discovered that young firms are more inclined toward entrepreneurial behavior than older firms, and micro firms display a stronger entrepreneurial behavior than small firms. Furthermore, family businesses showed a greater tendency for entrepreneurial behavior than nonfamily firms. Interestingly, when the rational decision-making interacts with regulatory institutions, the effect on entrepreneurial behavior is negative. Research limitations/implications This study employed a cross-sectional approach to investigate the influence of macro, meso, and micro-level factors on entrepreneurial behavior within a transitioning community across three industries. Future studies could replicate these findings within comparable institutional contexts, employing longitudinal studies that include additional variables beyond those considered in our present study. Practical implications Considering the importance of MSMEs for a country’s economic and sustainable development, the authors provide some policy implications. The authors recommend managers carefully evaluate the information gathered while they decide and also increase their capabilities concerning digitalization, which is crucial for their firm’s survival, growth and sustainable competitive advantage. Originality/value This paper contributes to the literature and shows and analyses entrepreneurial behavior at institutional (macro), firm-level factors (meso) and managers' rational decision-making (micro), providing evidence from a transition community.
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China’s increasing international prominence has prompted additional research on how Chinese firms manage organizational crises. The purpose of this paper is to identify patterns of concerns and experiences with crises in China. We report on a survey of 105 managers and non-managers in China about their experience and concern with crises in their firms. Our analysis underscores three key findings. First, one's concern about a crisis is strongly associated with one's experience involving that crisis. Second, views about crisis experience and concern differ between employees in state-owned enterprises (SOEs) and non-SOEs. Finally, despite these differences, perspectives on crisis training among SOE and non-SOE firms are similar. This paper augments the literature by identifying relationships among crisis experience, crisis concern, and training in Chinese organizations.
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Purpose How to successfully drive open innovation (OI) has become an important issue. However, the existing literature on the determinants of OI focuses on organizational and situational factors, while the “human side” of it remains poorly understood. To address such problem, this paper examines the impact of two core qualities of CEOs – CEO power and social capital – on three representative OI modes from a micro-level perspective. Design/methodology/approach This paper uses the data of 4,213 firm-year observations from Chinese A-share listed companies. A panel logit model is used to test the hypotheses, and the author also uses clustering robust standard errors to ensure the robustness of the model. Findings A powerful CEO can drive the firm's adoption of technology, organization and market-oriented OI, and different types of social capital have a differential impact on such relationship. Specifically, the CEO's political social capital has a negative moderating effect, while his/her stronger business social capital can enhance the positive relationship between CEO power and various types of OI activities, as well as mitigate the negative effect of political social capital. Originality/value This paper echoes the call for more attention to be paid to the microfoundations of OI and provides theoretical implications for research on the convergence of OI and strategic leadership.
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List of Tables - List of Figures - Foreword M. Warner - Introduction - Industrial Governance and Enterprise Management in China: 1949-1984 - Decentralization as a Central Objective of the Economic Reform from 1984 to 1989 and Six Beijing Enterprises - Decisions on Transaction: Purchasing of Raw Materials - Price Decision Making: Economic Motives and Societal Constraints - Recruitment of Employees: Decisions with Most Autonomy - Organizational Change: Relationship between Management and the Party - Investment Decision Making: Product and Production Innovation - Summary, Current Reform of State Enterprises and Conclusion - Endnotes - Appendix - References - Index
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  • Aldrich H. E.
  • Hambrick D. C
  • Peng M. W.
  • Peng M. W.