Transforming economies such as the BRIC countries – Ex-Soviet Republics, or Eastern European countries – share national aspirations of becoming innovation economies. These aspirations have stimulated a push for entrepreneurship and experimentation with new ways of doing things. This has created a fascinating context for research on business model innovation, relating to the way incumbent firms adapt their business models or come up with entirely new models. Similarly, new business models may be originated by start-up companies that often are challenging and leapfrogging the ‘tired’ old business models or simply invent new ones. However, research that specifically explores indigenous business model innovation in the context of these transforming economies is still in its early stages. The MOR special issue on ‘Business Model Innovation in Transforming Economies’ aims to address this gap by soliciting research uncovering successful new business models that is indigenous to these economies, as they transition to becoming innovation economies themselves and contribute to strategy and management theory development.

Built upon the mixed gamble perspective, we used a recent survey on Chinese family firms (FFs) and found that increased family influence lowers Chinese FF environmental proactiveness, as they show a peculiar tendency to take a financial view rather than a socioemotional wealth view. Moreover, we found that increased resource endowment attenuates this tendency, whereas provincial marketization strengthens it. However, entrepreneur reputation does not have a significant moderating effect. Overall, the study enriches an understanding of environmental proactiveness for FFs, organizational heterogeneity, and institutional differences. It also introduces new elements into the mixed gamble framework.

Some firms use hidden knowledge facilitators (HKFs) to facilitate knowledge sharing among employees within intrafirm online communities. These firms hope for enhanced knowledge sharing outcomes within their organizations without letting employees know that HKFs exist. Yet, the extent to which HKFs’ interventions are effective remains unknown to researchers and managers. Built on the knowledge sharing (KS) literature, this study explores the unique roles of HKFs as moderators between a company and its employees. We develop several hypotheses to test the impact of the quantity and quality of HKFs’ online interventions on several KS outcomes. By analyzing log data of a Chinese corporation's online R&D community, we find that (1) the quantity of HKFs’ intervention has a mostly positive impact on KS outcomes; (2) the quality of HKFs’ intervention has a mixed impact on several KS outcomes, depending on which aspect of quantity is considered; and (3) the quality of HKFs’ intervention also moderates the positive impact of the quantity of HKFs’ intervention in different ways on different intended KS outcomes. This study makes a clear contribution to the literature on knowledge sharing and knowledge facilitation by demonstrating the impact of HKFs on KS outcomes in a Chinese context.

I welcome any well-informed debate over the unique value of Yin-Yang as a cognitive frame in the development of Chinese indigenous management research. The commentary by Xin Li to engage in a debate is timely. Xin Li and I share the same premise that ‘we need indigenous Chinese management research to offer new insights and contribute to the development of truly universal theories’ (Li, X., 2014: 8). That is the common ground upon which we can debate over how best to engage in indigenous research with confidence in balance so as to avoid both overconfidence and under-confidence.

Where we depart from the above common ground is our different perspectives about the value of the Yin-Yang frame. Xin Li challenges my positive perspective on the unique value of the Yin-Yang frame on several dimensions. First, he characterizes my perspective as ‘both/and’ in sharp contrast to Aristotle’s ‘either/or’ logic. Second, he characterizes my perspective as arguing that ‘Yin-Yang thinking is superior to other logical systems and philosophies’ (Li, X., 2014: 8). Third, he implies that my perspective on the Yin-Yang frame is essentially a claim that ‘Westerners cannot think in a non-either/or way’ (Li, X., 2014: 8). Fourth, the above challenges are based upon his basic claim that the Yin-Yang frame is just one form of dialectical framing (Li, X., 2014). Based on these claims, Xin Li warns against the ‘danger of overconfidence’ among Chinese management scholars (Li, X., 2014: 8).

Through examining executive rationale on why firms exist, Redding and Witt's (2015) paper serves as a window through which we can view varieties of capitalism and management models in several societies. However, though rationales are the socially constructed, historical patterns of material practices, they are after all ideational factors. The economic action and organizational practices, as Redding and Witt acknowledge, are often the result of the interplay of the material and ideational forces in society. Meanwhile, as the studied five economies are all relatively mature economies, executive rationales are rather stable, which is not the case for China. This commentary thus examines the evolution of Chinese management along with the shift of political economic parameters.

This article aims to understand how Eastern and Western philosophies shape the perspectives of scholars and practitioners in framing co-opetition (i.e., the coexistence of competition and cooperation) in distinctive manners and, in turn, how such distinctions shape the behavioral patterns of co-opetition. We disentangle the constructs of competition and cooperation and their coexistence as proposed by three Chinese schools of thought (i.e., Taoism, Confucianism, and Legalism) and three Western philosophers (i.e., Immanuel Kant, Georg W. F. Hegel, and Adam Smith). Based on this groundwork, we unveil four comparative philosophical logics used to address the essence of co-opetition (i.e., either/or, both/and, both/or, and either/and). In addition, we apply such East-meeting-West linkages to a typology of co-opetition strategies.

Despite the growing interest in social businesses, knowledge about and theorization of how these businesses change social and institutional conditions in emerging economies is scarce. This research investigates how an innovative social business model acts on institutional voids and creates social value for deprived communities. Building on insights from the literature and a longitudinal case study of a local, grassroots social business venture operating in Brazilian slums and shantytowns (favelas), we uncover and theorize eight mechanisms by which an innovative social business model brings about institutional change and creates social value. These mechanisms are: orchestrating local business networks, developing local business networks, upgrading and building cognitive capacity, legitimizing, assigning multiple roles, empowering, building a positive territorial identity (territorial de-stigmatization), and boundary spanning. Our findings have important implications for social entrepreneurs and organizations supporting social business ventures in transforming economies.

This article investigates the relative roles of formal property rights institutions versus deregulated markets in entrepreneurial development, based on China's market transition. Empirically, it is not yet known which set of institutions matters more for entrepreneurship, particularly in the long run, despite the existence of well-established theoretical arguments for each. Using provincial-level panel data from China's transition economy, this study has the following findings: On average, both formal protection of property rights and deregulated markets have positive effects on entrepreneurial development; yet, as market transition progresses, the effect of formal protection of property rights increases, while that of deregulated markets decreases. These results are robust to both multiple model specifications and an endogeneity test using an instrumental variable approach. Overall, therefore, while both sets of institutions indeed play positive roles in entrepreneurial development, property rights institutions may be more fundamental in the long run.

The extensive narrative of growth and development of the information and communication technologies (ICTs) in China by Jiang and Murmann (2022) and the discussion of Chinese strengths and weaknesses portray the remarkable progress that China has made, especially in technology relative to advances in the basic sciences. In our response, we situate their contribution in the larger context of Chinese economic growth and the challenges it faces in transforming these accomplishments into an embedded national capability to become a leading innovation economy and thereby deliver prosperity to its enormous but aging population. The contexts for the successes and weaknesses in ICT that Jiang and Murmann (2022) describe so admirably are vital for a more comprehensive understanding of their place in the overall development of China.

Although many organizations encourage employees to voice, employees may be reluctant to voice directly because they are afraid that their supervisors will perceive it as challenging their face (i.e., the positive image or social value of an individual). Alternatively, employees could deliver improvements or express concerns to their supervisors using indirect and implicit approaches, which we refer to as ‘implicit voice delivery’. Applying face theory, we examine the antecedents and outcomes as well as two boundary conditions of implicit voice delivery in organizations with two studies. In Study 1, we define the construct and develop a measure of implicit voice delivery. In Study 2, we test our proposed model with supervisor-subordinate dyadic data from a time-lagged survey. Results demonstrate that concern for other people's face drives employees to express their voices implicitly and that this relationship is stronger when supervisors’ concern for their own face is high rather than low. In addition, implicit voice delivery is associated with supervisors’ favorable response in terms of voice endorsement. Furthermore, the effect on voice endorsement is stronger when the supervisor is more able to infer meaning from implicit messages. Theoretical contribution and managerial implications are discussed.

During technology transitions, incumbents are frequently faced with the ambidextrous challenge of exploiting existing capabilities and exploring new ones. While extant studies focus on radical changes in the product domain, we notice radical changes can happen in both product and market domains. Pioneering studies indicate that cross-functional ambidexterity addresses this challenge at the business-unit level by juxtaposing exploration and exploitation across different functional domains (particularly in product and market domains) and that complementary assets address this challenge at the organizational level. However, how efforts at two levels can be combined to build cross-functional ambidexterity and what roles complementary assets play remain unclear. Therefore, this study conducts an in-depth case study of Huawei Mobile, which managed to achieve superior performance during a technology transition that triggers radical changes in both product and market domains. We find that multi-level synergies contribute to the transition process. Specifically, cross-functional ambidexterity is constructed by prioritizing exploration in the product domain ahead of that in the market domain, and that it generates learning, brand and channel extension, matching, and brand alliance benefits at the business-unit level. Complementary assets help to reduce the uncertainty of exploration and resolve functional conflicts at the organizational level.

Strategic decision makers interpret information and translate it into organizational action through the lens of strategic schemas. How should firms realize high performance with various strategic schemas? Cognitive content and structure have been shown to underlie strategic schemas, but few studies have considered them together. This study employs aggregation analysis to clarify the interaction between cognitive content (technology orientation, market orientation) and structure (complexity, centrality) in affecting the firm performance (FP) of ‘hidden champion’ companies, identified by the Economy and Information Technology Department of Zhejiang Province, China. The empirical method applies fuzzy-set qualitative comparative analysis to generate strategic schema profiles for high FP. This exploratory study fills a gap in the literature on managerial cognition and provides key lessons from ‘hidden champion’ companies in China and their paths for small- and medium-sized enterprises to grow.

Institutional logics are interrelated sets of cultural elements (norms, values, beliefs, and symbols) that help people and organizations make sense of their everyday activities and order those activities in time and space. In this paper, we describe the rise of a robust literature on institutional logics, which mostly focuses on Western societies. We then describe changes in Chinese society and economy over the past four decades, as it shifted from state-controlled planning and redistribution to market-mediated exchange. We detail how the institutional logics that guide Chinese firms have been transformed in the wake of the economic transition. The state logic, which developed in the Maoist era, valorizes equality, national community, and political stability. Although it is still in evidence, it has been partly supplanted by a market logic that encourages efficiency, competition, and property rights. But this market logic differs from the one that prevails in Western capitalist economies. The Chinese version of the market logic valorizes the central role that the state and the Communist Party continue to play in economic life. Therefore, in the Chinese version of the market logic, efficiency, competition, and property rights are tempered by a continued concern for political stability. We review and summarize the existing literature on institutional logics and Chinese firms, and then identify fruitful lines that future research could take.

Universities in China have increased their entrepreneurship significantly, yet a good understanding of the specific characteristics of university-based technology transfers remains missing. This study focuses on a special type of university spinoffs in China, University-Run Enterprises (UREs), and examines how URE eminence contributes to a university's technology transfer performance, using panel data covering 195 universities over the five years from 2002 to 2006. The findings reveal that URE eminence not only signifies a university's strong entrepreneurial culture, but also signals commercial values and quality of the university research. It moderates the contribution of university scientists from the supply side and that of sourcing firms from the demand side.

Although McCarthy, Dolfsma, and Weitzel (2016) cover much ground in their study, in this commentary I focus on alternative explanations for the empirical results indicating that Chinese acquirers outperformed acquirers from other countries – particularly acquirers from the United States. First, based on research I have done with colleagues (e.g., Chen & Young, 2010; Young & McGuinness, 2001) and that of a doctoral student (Tang, 2016), I suggest that comparison of Chinese stock market reactions to merger announcements with stock market reactions to merger announcements from more mature markets, such as the United States, may create some misleading results. The Event Study Method (ESM) used in this study is a measure of investors’ short-term reactions to unanticipated events and it assumes that investors are capable of accurately evaluating such events (MacKinlay, 1997; McWilliams & Siegel, 1997). I suggest that, given the relative newness of Chinese stock markets, Chinese investors may have reacted more positively to merger announcements regardless of the mergers’ prospects for success. Second, similar to Shapiro and Li (2016), I suggest that stages of industry and organizational development better explain the actual motivation and success of Chinese acquirers than does a general theory of culture or corporate governance traditions.

This research commentary responds to Jiang and Murmann (2022), by offering further explanations for the miraculous growth of the digital economy in China from both the demand and supply perspectives. To complement their views, we identify several additional important factors, and classify them in three categories in an explanatory model. We believe that factors on the demand side played a primary role, along with innovative and entrepreneurial e-commerce service providers on the supply side. Infrastructures and government policies provided the foundation and a facilitating environment. We conclude that digital transformation of traditional industries will become the next wave of digital economy, stronger than the previous wave of e-commerce. Implications for research and practices are also discussed. In addition, we highlight emerging trends and turbulences. In conclusion, despite short-term turbulences, we expect that the digital economy in China will make big-stride progress in the long term, with strong potential to continue its growth.

Integrating the strategic choice and the institutional perspectives, we provide a contextualized analysis of human resource (HR) development investment in Chinese private firms. Based on a nation-wide survey of domestic private firms, we found that strategic choice variables (i.e., private entrepreneurs’ education and governance team completeness) are positively related to HR development investment. Perceived government support for private business strengthened the positive relationships between strategic choice variables and HR development investment. Furthermore, institutional variables (i.e., owners’ political affiliation and firms’ former state ownership) explained additional variance in HR development investment above and beyond strategic choice variables. Perceived government support negatively moderated the relationship between former state ownership and HR development investment. Theoretical and policy implications were discussed at the end.

In this commentary we reflect on Shaalan, Eid, and Tourky's (2022) article in which they investigated the Chinese concept and practice of guanxi in the Middle East,1 a region in which wasta represents the common way of informal networking.2 While we encourage and welcome research into informal networks, we have serious concerns about the conceptual and methodological approaches taken by Shaalan et al. (2022) in investigating informal networks in the Middle East and explain herein why we do not believe guanxi should have been used in place of wasta.

Within the last two decades, the international expansion of Latin American companies has undergone remarkable growth. This phenomenon has attracted scholarly attention, however, most of the available research is focused on companies that have already engaged in foreign direct investment (FDI), meanwhile, Latin American firms in pre-FDI stages remain mostly understudied. This article uses an explanatory case study design to analyze the corporate reputation and decision-making process related to international expansion of a set of ten Latin American companies. Both archival and primary data were used in the individual and cross-case analyses stages for 22 months. Our study identifies and establishes analytical generalizations when examining and contrasting the findings with the previously revised theoretical frameworks. More specifically, we identified that these companies exhibit similarities with the behavior of Jaguars, the Latin American wild feline; especially because of (i) their preference to remain in their regional market to exploit current capabilities and advantages, and eventually enter developed markets to upgrade capabilities and surpass strong competitors at home; (ii) their strategies to disguise their country of origin and lack of experience when operating internationally; and (iii) their solitary behavior and reluctance to engage in partnerships and/or strategic alliances unless they have a specific interest in building legitimacy and enhancing reputation.