Abstract

We develop a process model of logic elaboration from a case study of a China-based financial training company. Based on 8 years’ of real time observations and interviews, we theorize how a firm steeped in a professional logic endogenously initiates a micro-institutional change to elaborate on its professional logic by incorporating elements from a market logic. The findings suggest that recognition, experimentation, articulation, and infusion are the key processes that underlie logic elaborations. Our study contributes to literatures on institutional change and organizational design by documenting empirically how a dominant logic could enable actors to incorporate an alternative logic through organizational design.

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Abstract

Behavioral integration among top management team (TMT) members is critically important for firm performance. Yet we know very little about the social psychological processes that occur among TMT members, in particular how CEOs develop competent and cohesive TMTs. Based on a three-year inductive study of three Chinese firms, we found that CEOs develop their TMTs by performing emotion management to help their TMT members acquire new knowledge and develop new executive behavior. We call this process emotional educating. We also identify a number of conditions that explain for the variation in the effectiveness of emotional educating. Our research contributes to the literature on top management team, emotion management, mentoring and training, leadership, and management education.

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Firms that operate in fast emerging economies often experience scarcity in managerial human capital, in particular competencies in general management to guide the fast growth of their firms. Based on a two-year inductive study of three Chinese firms, we found that CEOs develop their top management teams (TMTs) by using a rich set of what we call cognitive actions as well as affective actions to develop the managerial competence of their TMT members. We call this combined use of cognitive and affective actions "emotional teaching" and show how it is used in the process of CEOs recruiting, training, and evaluating members of their top teams. Our research contributes to the TMT literature that has under-researched how CEOs actually form and develop their TMTs in organizational settings as well as to the literature on management education that has under-explored the role of affective influence in developing managerial competence.

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