This study adopts a configurational perspective to examine how business model designs and contextual factors in transforming economies combine to create value. We investigate configurations of efficiency-centered and novelty-centered business model designs, corporate ownership, development stage, and external regulatory volatility associated with high growth in a transforming economy. Using a fuzzy-set qualitative comparative analysis of Chinese firms, we find five solutions associated with superior growth, suggesting that the effective configurations of business model designs vary in different contexts. Our study offers a holistic understanding of the relationship between business model designs and firm growth, and yields useful insights for business model designs for practitioners.

In a transitional economy such as China's, when resources are unevenly distributed across different sectors, the disadvantaged sector may seek a growth path that bypasses resource constraints. We investigated this phenomenon in the context of the Chinese real estate industry. By comparing the post–merger and acquisition (M&A) performance of acquiring firms between state-owned enterprises (SOEs) and privately-owned enterprises (POEs), we attempted to show that POEs are better performers in the market should they be granted equitable resources, and the superior performance is strengthened by market-oriented institutional environment. We used M&A events data of publicly listed real estate firms in China from 2004 to 2012, in conjunction with firm characteristics and province-level market environment data. We found the results to be consistent with our hypotheses. In particular, compared to SOEs, privately-owned acquiring firms tend to have better post-M&A performance when both the regions of the acquirer and the target have high level of marketization. The results suggest that the private sector in China's transitional economy is potentially more efficient than the state-owned sector, as long as the market environment is favorable.

We conducted two studies to investigate the contingent role of regional human capital quality (i.e., the knowledge, skills, and abilities of the collective workforce in a region) in the relationship between firm-level human resource (HR) practices (i.e., practices focusing on employees’ human capital development) and firm performance in China. Drawing upon human capital theory, we hypothesized that the human capital–enhancing HR practices and regional human capital quality have a substitutive effect on firm performance. Study 1 uses a World Bank survey of 9,125 firms in 30 provinces. We found that the human capital–enhancing HR practices relate more strongly to firm performance when regional human capital quality was lower than when it was higher. Study 2 used a sample of 203 firms across seven provinces. We found similar results. We further hypothesized and found that the substitutive effect of regional human capital quality was stronger when a firm adopted an innovation strategy. Our findings provide new evidence for the contingency perspective of strategic HR management and highlight the importance of matching HR practices with local labor quality conditions and the business strategy of the firm.

As he gazed on the sea, Confucius sighed: ‘The passage of time is like the flow of water, which goes on day and night’. In later generations, the image of ‘water’ was found everywhere in Chinese literature, and most works used the metaphor first expressed by Confucius (Xing & Liu, 2015). However, Lao Zi's understanding differed from Confucius's, as he was more concerned with the virtues of water than its image. He believed that ‘the highest virtue is like that of water. Water benefits everything in the world without contending’.

This paper discusses some aspects of innovation in China. As China seeks to transition to a knowledge-based economy, it may become more important for China to develop innovative technologies to sustain economic growth. How do China's history, culture, institutions, and organizations aid or hinder innovation? How does China's national innovation system compare to the innovation culture in the US, as well as other developed and emerging economies? What are the prospects for the future of the Chinese national innovation system?

Our starting point is the Needham Puzzle – the paradox that while China was once a world leader in technological development, it fell behind; the Industrial Revolution happened in Europe rather than in China. Potential explanations for the Needham Puzzle may shed light on the challenges facing innovation in modern China. We identify three factors that might help explain the Needham Puzzle; assess how the Needham Puzzle and Chinese culture and history have affected the modern innovation system; discuss comparative aspects of innovation ecosystems in the United States and elsewhere; and suggest that Chinese innovation emphasizes exploitation and refinement of existing knowledge to the exploration and development of new knowledge. We also discuss implications for the future of innovation in China.

This paper argues that it is crucial to take account of both home and host country contexts in order, adequately, to understand their implications for Chinese enterprises investing into foreign countries. This calls for an analysis that is sensitive to both home and host country contexts, and that takes into account how the institutions and political systems in those contexts establish institutional and resource capital needs for the overseas-investing firm. We discuss and illustrate three different combinations of Chinese and host country characteristics, and the firm-level learning and adaptation required in the light of the relevant capitals likely to be available to Chinese firms. The analysis draws upon insights from resource-based, institutional, and political perspectives. While it is developed with specific reference to China, we also suggest that this form of analysis can be applied more generally to the implementation of outward foreign direct investment from any country.

This article provides background information on public and non-profit sector innovation in the past thirty years in the West as well as in China. We summarized and commented on the articles in this issue, which document cases of public and non-profit sector innovation in China and theorize their significance. These cases tell vivid stones about how Chinese organizations innovate and also point out the importance of the role of government in initiating or constraining these innovations. We find, through the review of these studies, that China's public and non-profit sector organization innovation experiences carry some important messages about the unique features of China's public and non-profit organizations that should not be ignored while studying changes in China.

There is still an ongoing debate regarding the firm performance implications of pay gaps between top executives and subordinate employees. This study integrates relative deprivation theory and tournament theory to investigate the potential nonlinear effects of pay gaps. We expect that at low levels of pay inequality, increased inequality hurts firm productivity, while at higher levels of pay inequality, increased inequality helps firm productivity. Our study of Chinese firms confirms that pay gaps have an approximately U-shaped relationship with firm performance. This nonlinear relationship is weaker in state-owned enterprises (SOEs) than in non-SOEs, suggesting that state ownership is an important moderator in the association. Overall, this study explains previous mixed findings regarding consequences of pay gaps with meaningful implications for policymakers and entrepreneurs in China and other economies with similar cultural and institutional backgrounds.

In this study, we examine the effect of institutional ownership on corporate philanthropy in China, an emerging economy. Employing stakeholder identification and salience theory, we posit that institutional ownership positively influences corporate philanthropy, which varies for different types of institutional investors. We further argue that institutional ownership's influence is stronger when philanthropy is aligned with firm goals. Using data from Chinese publicly listed firms, we find a positive effect of institutional ownership on philanthropy, and this effect is stronger for domestic institutional owners when compared to foreign institutional owners, and long-term when compared to short-term institutional owners. We also find that the positive influence of institutional ownership is stronger in private firms and in regions with low institutional development – situations characterizing high alignment between philanthropy and firm goals. Our findings highlight the important role of institutional investors on corporate philanthropy decisions, which have implications for scholars studying and policy makers enacting corporate governance in emerging economies.

Although social harmony is one of the most important cultural values in many of Asian societies it has rarely been studied in the mainstream management literatures. Based on the group-value theory of justice we examined how group justice climates influence group effectiveness through group harmony. Analyses of data on 106 upper-level management teams from Chinese organizations showed that justice climates were positively associated with group harmony, which in turn was positively associated with team task performance and team helping behavior. Group harmony was found to significantly mediate the positive effect of both distributive and interactional justice climates on team helping behavior but only marginally on team task performance. Finally, in support of past research both at the group and individual level, procedural justice climate had the weakest effect on group processes and outcomes. By applying the group value theory on group harmony this paper aims to integrate Eastern and Western perspectives on one hand and the justice climates and group harmony research on the other. Theoretical and practical implications are discussed.

Previous studies have found no relationship between scholar participation and public project performance. Building on the work of Lindblom (1977; 1990), I propose a model depicting scholars' roles in social organizations and governance. A study of thirty-two cases of large public works projects in China and seventeen projects in thirteen other countries shows a moderately positive relationship. The study further shows the greatest influence on project success occurs when participating scholars serve as information brokers and entrepreneurial activity organizers. Successful scholar participation occurred through five working principles: (1) there is dispersed and specialized knowledge production; (2) there is dispersed and asymmetric knowledge possession; (3) knowledge-driven volitions and consensus are criteria for knowledge; (4) the satisfaction of diverse and heterogeneous individual needs is realized through knowledge-driven institutional arrangements; and (5) there are multiple methods of knowledge application. In general, scholar participation seems to be more effective in projects in which there is low political intervention, and in village and county projects. The results of the study provide a theoretical and empirical foundation for further research on scholar participation in social organizations.

This study examines how cultural values (i.e., individualism and collectivism) and personality (i.e., self-perceived superiority and exhibitionism) jointly affect self-rating among Chinese respondents from mainland China (N= 161), Hong Kong (N= 350), and Taiwan (N= 398). The results demonstrated that respondents with a more individualistic cultural orientation exhibit greater leniency in self-rating than those with a more collectivistic cultural orientation. Furthermore, self-perceived superiority and exhibitionism are related to high self-ratings among individuals who expressed low individualism values, but not among individuals who expressed high individualism or collectivism values. The results suggest that self-rating research needs to take both the individual's cultural values and personality traits into account.

Loan guarantees to related parties by affiliated subsidiaries within family controlled pyramids form a means by which the controlling family expropriates value from minority shareholders. The controlling family, however, will attempt to escape blame for the behavior. Using a sample of 1785 listed Chinese firms affiliated with family-controlled business groups, we explore how family governance structure affects the use of related party loan guarantees. As hypothesized, we find that affiliates with non-family chairmen, but with family directors or senior executives, issue larger volumes of loan guarantees to related parties, whereas affiliates with family chairmen and those with non-family interlocking chairmen do not. The behavior is moderated by regional institutional development.

This study compares East Asians' evaluations of task and maintenance inputs in reward allocation decisions and examines the effects that inequity in various types of inputs and rewards have on fairness judgements. Based on a sample of 587 employees from various organizations in Hong Kong, Japan, and South Korea, we find that Hong Kong Chinese and South Korean employees are more likely to want their organizations and supervisors to emphasize maintenance inputs, while Japanese employees value task inputs in reward allocation. Results also show that there are significant country differences in fairness judgements associated with various types of inputs. For example, the positive relationship between pay level and perceived fairness of pay is significantly stronger when task contributions are high rather than low among Japanese employees but not among Hong Kong and South Korean employees. The concept of independent self-construal (similar to individualism at the societal level) seems to provide an adequate account of the country differences in choice of input preferences but not fairness judgements.

‘The truth is under attack’, I wrote earlier this decade (Levine, 2012). As the replication crisis became apparent, the alarm was timely. But now, a counter-attack is raging. In its arsenal are replications, open data, shared instruments, pre-registration of hypotheses and now – data visualizations.

The need to innovate is relevant to many firms around the globe and is particularly pressing for those in emerging markets. They face global competition, are under-resourced, and suffer from weaker institutional support. It is suggested that to innovate successfully in this context, indigenous firms would benefit from focusing on managing their current knowledge base more efficiently. We know little about how knowledge management works outside developed economies and which knowledge governance mechanisms have more influence than others in the context of emerging economies. To address this gap, we explore how context may matter for the use of knowledge governance mechanisms and their effect on innovation performance in Brazilian firms. Using the survey data of 109 firms, structural equation modelling, and cluster analysis, our findings suggest that the joint application of knowledge-focused rewards, organizational design, and information and communication technologies that support knowledge processes is critical for boosting innovation performance. We discuss how the peculiarities of the Brazilian context may shape these findings. Our article contributes to the knowledge management and innovation literature by demonstrating that the joint effects of bundles of knowledge governance mechanisms and contextual variables should be explored in order to understand their impact on organizational outcomes.

Managers make comprehensive strategic decisions to cope with environmental challenges. Questions remain regarding how different types of leadership styles influence top management team (TMT) strategic decision comprehensiveness (SDC) and firm performance. This study explores the impact of two different CEO leadership styles on TMT SDC and subsequent firm performance, considering the moderating role of TMT cognitive conflict. Based on data from 357 questionnaires of 126 firms in China, we found that 1) CEO empowering leadership positively affects SDC; 2) CEO directive leadership generates an inverted U-shaped effect on SDC; 3) the effect of SDC on firm performance is positive; and 4) TMT cognitive conflict weakens the relationship between CEO empowering leadership and SDC. This study takes a systematic approach by integrating CEO-TMT dynamics into SDC, which in turn affects firm performance, and thus offers a holistic view of how upper echelons influence firm performance.

This article investigates the relationship between director networks and earnings quality in Malaysia. Using data on 4,416 individual directors who served on the boards of 745 firms listed on Bursa, Malaysia during 2011, we map the entire network of directors and generate measures to reflect the size and quality of information within the network. We find a negative and significant relationship between the overall connectedness of a director's network and the firm's earnings quality. In addition, we find a negative and significant relationship between the political connectedness of the director's network and earnings quality. Our results are robust for different measures of earnings quality.

We introduce incubators as an organizational form intended to facilitate entrepreneurship. The theorizing and research on incubators have been primarily anchored in market failure perspective and carry over the assumptions about a free market economy, mostly implicitly into the empirical work. This ignores the influence of the institutional context and obscures processes that may come into play in emerging economies like India. Using Scott's model (2008) of institutional context, we argue how the institutional context provides a complementary perspective that may reveal a richer picture of incubator operation in emerging economies. We illustrate this in the case of academic incubators in India.