Abstract

Drawing from social exchange theory, this article explores the founder–successor relationship quality as a mediated pathway in examining the effects of founder–successor value congruence on successor’s willingness to take over the business. Based on survey data from 102 founder–successor dyads, polynomial regression analysis shows that when both a founder and a successor have high value congruence in family prosperity, the relationship quality will be enhanced, which leads to higher successor’s willingness. When there is value incongruence between a founder and a successor, the successor’s family prosperity value has a more important impact on the founder–successor relationship and successor’s willingness.

Keyword

family prosperity ;  founder–successor relationship ;  social-exchange theory ;  successor willingness ;  value congruence

Abstract

This paper contributes to a multidimensional perspective on the speed of SME internationalization. It examines the influence of entrepreneurial characteristics – experience, rationales and innovation strategies – on multiple dimensions of internationalization speed. Findings from a sample of 180 SMEs show that earliness, speed of deepening, and speed of geographic diversification can be viewed as three different strategic alternatives and that each dimension is predicted by a different set of entrepreneurial antecedents. Earliness of internationalization is associated with entrepreneurs’ international business experience and their perception of opportunities abroad as well as preference for an innovation strategy characterized by ambidextrous innovation. Speed of deepening is related to entrepreneurs’ international business experience, their orientation towards differentiation vis-à-vis competitors, and commitment to innovation and a strategy focusing on exploration. These results indicate the importance of distinguishing between different forms of innovation. Speed of geographic diversification is predicted only by entrepreneurs’ orientation towards differentiation vis-à-vis competitors.

Keyword

Earliness ;  Entrepreneurship ;  Internationalization ;  SMEs ;  Speed of deepening ;  Speed of geographic diversification

Abstract

This study investigates the joint effects of business and political ties, cognitive capital, and institutional support on product innovation performance in China and India. The hypotheses are empirically tested using bootstrap and multiple group structural equation modeling methods, and data collected from 300 Chinese and 200 Indian manufacturers. The results reveal that cognitive capital mediates business ties’ impacts on product innovation performance in both China and India and that institutional support mediates the effects of business and political ties on product innovation performance only in China. The study also finds that political ties increase institutional support in India and that the effect of cognitive capital on product innovation performance is significantly stronger in India than in China. This study clarifies the mechanisms through which business and political ties enhance product innovation performance and generalizes the results in two emerging markets. The cross-country comparison sheds light on the influences of cultural and institutional environments on such mechanisms and provides insights into how to utilize managers’ business and political ties for product innovation in China and India.

Keyword

Business ties ;  China ;  Cognitive capital ;  India ;  Institutional support ;  Political ties ;  Product innovation performance

Abstract

Drawing on Denison and Mishra (1995)’s framework of organizational culture, this study examines why and when organizational culture is related to knowledge workers’ affective commitment. Data were collected from 640 employees working in three high-technology companies in China. The findings indicate that the relationship between organizational culture and affective commitment is mediated by perceived psychological contract fulfilment. In addition, organizational tenure moderates the relationship between two external dimensions (i.e. adaptability and mission) of organizational culture and perceived psychological contract fulfilment. This study extends the current theoretical framework of organizational culture by demonstrating the underlying mechanism and the boundary condition of the relationship between organizational culture and affective commitment. The findings also provide practical implications for international managers to design appropriate human resource management policies and practices in China.

Keyword

affective commitment ;  China ;  Organizational culture ;  organizational tenure ;  psychological contract fulfilment

Abstract

In the West, limited government capacity to solve environmental problems has triggered the rise of a variety of “nonstate actors” to supplement government efforts or provide alternative mechanisms for addressing environmental issues. How does this development - along with our efforts to understand it - map onto environmental governance processes in China? China's efforts to address environmental issues reflect institutionalized governance processes that differ from parallel western processes in ways that have major consequences for domestic environmental governance practices and the governance of China “going abroad.” China's governance processes blur the distinction between the state and other actors; the “shadow of the state” is a major factor in all efforts to address environmental issues. The space occupied by nonstate actors in western systems is occupied by shiye danwei (“public service units”), she hui tuanti (“social associations”) and e-platforms, all of which have close links to the state. Meanwhile, international NGOs and multinational corporations are also significant players in China. As a result, the mechanisms of influence that produce effects in China differ in important ways from mechanisms familiar from the western experience. This conclusion has far-reaching implications for those seeking to address global environmental concerns, given the importance of China's growing economy and burgeoning network of trade relationships.

Keyword

Belt and Road initiative ;  Environmental governance ;  Nonstate actors ;  she hui tuanti (“social group”) ;  shi ye danwei(“public service unit”)

Abstract

Keyword

Abstract

Stable and enduring cooperative relationships among people are primarily based on mutual trust. However, little evidence exists about the effects of mutual trust between supervisor and subordinate on work outcomes. To understand better the dynamics of trust in supervisor–subordinate relationships, we examined how mutual trust between supervisor and subordinate is associated with work outcomes. Based on a sample of 247 subordinate–supervisor pairs, multilevel analyses revealed a positive effect of perceived mutual trust on task performance and interpersonal facilitation after controlling for trust in leader and felt trust. In addition, task performance and interpersonal facilitation increased as trust in leader and felt trust or trust in subordinate both increased.

Keyword

Felt trust ;  Interpersonal facilitation ;  Mutual trust ;  Task performance ;  Trust in leader

Abstract

Purpose The purpose of this paper is to empirically investigate the mechanisms through which absorptive capacity (AC), trust and information systems jointly influence product innovation. Design/methodology/approach This study proposes a research model to examine the mediating role of AC on the impacts of trust and information systems on product innovation and the moderating roles of trust and information systems on the relationship between AC and product innovation. The hypotheses are empirically tested using regression and bootstrapping methods and data collected from 276 manufacturing firms in China. Findings This study finds that trust and information systems positively affect product innovation and the effects are fully mediated by AC. AC also significantly enhances product innovation, and the effect is amplified by trust as well as information systems. In addition, the results show that trust and information systems improve AC both individually and interactively. Originality/value The findings extend existing knowledge on the antecedents of AC and the contingent conditions under which a manufacturer’s AC is more effective than that of its rivals. The results also clarify the mechanisms through which trust and information systems improve product innovation. This study provides insights into the complex relationships among a manufacturer’s sociotechnical systems, knowledge management processes and new product development, and reveals how to design organisational systems to fully capitalise the value of AC on product innovation.

Keyword

Absorptive capacity ;  Information systems ;  Product innovation ;  Trust

Abstract

This study finds that stronger market control (measured as fewer anti-takeover provisions) and more effective boards (measured as boards that are more independent and for which independent directors have more outside directorships) are both associated with higher R&D valuation. Furthermore, stronger market control (more effective board governance) is associated with higher R&D valuation only in the presence of weaker board governance (market control). Taken together, the results are consistent with the interpretation that both the market for corporate control and effective boards mitigate agency conflicts arising from R&D investments and improve the market valuation of R&D. Furthermore, the two mechanisms act as substitutes in doing so.

Keyword

Board ;  market for corporate control ;  R&D valuation

Abstract

Researchers have emphasized the value of authenticity, but not much is known about what makes a person authentic in the eyes of others. Our research takes an interpersonal perspective to examine the determinants of followers’ perceptions of leader authenticity. Building on social identity theory, we propose that two fundamental self-identifications–a leader’s sense of uniqueness and sense of belongingness–interact to influence followers’ perceptions of a leader’s authenticity via perceptions of a leader’s self-concept consistency. In a field study conducted among leader–follower dyads and in a controlled laboratory experiment, we find that when a leader feels a low sense of belongingness, there is a positive relationship between a leader’s sense of uniqueness and perceptions of leader authenticity. When a leader feels a low sense of uniqueness, there is a positive relationship between a leader’s sense of belongingness and perceptions of leader authenticity. This is because followers perceive this leader as having high self-concept consistency.

Keyword

Perceived leader authenticity ;  Self-concept consistency ;  Sense of belongingness ;  Sense of uniqueness ;  Social identity theory