We enhance the theoretical precision of cultural intelligence (CQ: capability to function effectively in culturally diverse settings) by developing and testing a model that posits differential relationships between the four CQ, dimensions (metacognitive, cognitive, motivational and behavioural) and three intercultural effectiveness outcomes (cultural judgment and decision making, cultural adaptation and task performance in culturally diverse settings). Before testing the model, we describe development and cross-validation (N = 1,360) of the multidimensional cultural intelligence scale (CQS) across samples, time and country. We then describe three substantive studies (N = 794) in field and educational development settings across two national contexts, the USA and Singapore. The results demonstrate a consistent pattern of relationships where metacognitive CQ and cognitive CQ predicted cultural judgment and decision making; motivational CQ and behavioural CQ predicted cultural adaptation; and metacognitive CQ and behavioural CQ predicted task performance. We discuss theoretical and practical implications of our model and findings.

This paper examines the patterns of, and motives for, internationalizationby prominent market-seeking Chinese firms. Case studies of these firmsindicate that they are seeking technological and brand assets to create acompetitive position in international markets. While mainstream theory tendsto assume that firms internationalize to exploit competitive advantages,Chinese firms are generally making such investments in order to addresscompetitive disadvantages. They are engaging in ‘inward’internationalization by means of original equipment manufacture (OEM) andjoint venture partnerships, and ‘outward’ internationalization by means ofacquisition and organic expansion abroad. Each of these routes offerscertain benefits coupled with its own challenges or risks. The paperconcludes that the Chinese case offers an opportunity to extend presenttheorizing in four primary areas concerning the latecomer perspective andcatch-up strategies, institutional analysis with reference to the role ofgovernment, the relations between entrepreneurs and institutions, and theliability of foreignness.

Everyone knows about China's huge population and the fast-growing economy. Although macro-level sociological and economic analyses have given some attention to the linkage between the two, at the micro level, the relationship between human resources and, more specifically, psychological capital of Chinese workers and their performance has been largely ignored. Within the context of three factories (two private and one state-owned) in the People's Republic of China, this exploratory study examined the relationship of a sample (n = 422) of Chinese workers’ positive psychological capital states and their performance. Results indicated the workers’ positive states of hope, optimism, and resiliency, separately and when the three were combined into a core construct of psychological capital, significantly correlated with their performance, as rated by their supervisors. An analysis of workers in one of the factories (n = 272) also found a significant relationship between the workers’ positive psychological capital and the performance outcome of relative merit-based salary. Limitations, future research, and practical implications conclude the article.

In this article we review research on Chinese guanxi andsocial networking in the past twenty years and identify the majorperspectives, theories, and methodologies used in guanxiresearch at micro and macro levels. We summarize the main findings of over200 journal articles on guanxi research in terms of itsconceptual definitions and measurements, its antecedents and consequences,and its dynamics and processes. Furthermore, we identify the gaps betweendifferent levels of guanxi research and discuss futuredirections to advance our understanding of the complex and intricate guanxi phenomenon.

The expansive research on innovation in organizations has primarily followed a technological imperative, postulating that organizations organize their innovation efforts through research and development (R&D) activities. Theories of innovation are thus shaped mosdy from the studies of technology-based innovations in the manufacturing sector, yet are applied in all contexts. This article advocates research on managerial innovations - new approaches to devise strategy and structure of tasks and units, modify the organization's management processes and administrative systems, motivate and reward organizational members, and enable organizational adaptation and change. We examine the conceptual development, generation and adoption processes, antecedents, and influences of managerial innovation on organizational conduct. By increasing an understanding of managerial innovation, this article aims to complement existing theories of innovation derived from the studies of technological innovations and thus help extend and advance theory and research on innovation process and outcome in organizations.

Guanxi, a social network tie drawing on connections in business relations, has been identified as a powerful strategic tool helping organizations maintain competitive advantages and achieve superior performance. However, prior empirical studies on die gM/m-performance link provide indefinite conclusions. The purpose of this study is to systematically review and quandfy the guanxi-performance link in a meta-analytic framework by decomposing guanxi into business ties (i.e., guanxi with business partners) and government ties (i.e., guanxi with government authorities) and organizational performance into economic performance and operational performance. Based on effect sizes from fifty-three studies encompassing 20,212 organizations, we estimate that the overall effect size of the guanxi-pertormance relationship is positive and significant, thus endorsing the argument that guanxi does enhance organizational performance. Specifically, our meta-analysis results demonstrate that both business and government ties lead to both economic and operational performance. However, business ties have a bigger impact on operational performance, whereas government ties exert larger effects on economic performance. Further meta-analytic regression results suggest that ownership (state-owned vs. non-state-owned) and location (Mainland vs. overseas China) explain some of the variations of the guanxi-performance link. Both business and government ties are more important to organizations in Mainland China than to those in overseas China. Government ties are more important to state-owned than to non-state-owned organizations. Lasdy, while business ties remain a valuable strategic tool in China, the importance of government ties is time-variant and has been declining with the development of the institutional environment in China.

In this article I propose a Yin Yang perspective to understand culture. Based on the indigenous Chinese philosophy of Yin Yang, I conceptualize culture as possessing inherently paradoxical value orientations, thereby enabling it to embrace opposite traits of any given cultural dimension. I posit that potential paradoxical values coexist in any culture; they give rise to, exist within, reinforce, and complement each other to shape the holistic, dynamic, and dialectical nature of culture. Seen from the Yin Yang perspective, all cultures share the same potential in value orientations, but at the same time they are also different from each other because each culture is a unique dynamic portfolio of self-selected globally available value orientations as a consequence of that culture's all-dimensional learning over time.

Received internationalization theory argues that firms occupy domestic space before going abroad; in other words, large, oligopolistic firms are most likely to internationalize. The experience of China, whose economy is fragmented and whose firms are small by global standards, suggests otherwise. We construct a model of small firm internationalization driven by the relative transaction costs of crossing domestic (in the case of China, provincial) and international borders. When the costs of crossing domestic borders exceed the costs of crossing international borders, firms will internationalize at a relatively early stage of development. In the case of China, local protectionism and inefficient domestic logistics increase the costs of doing business domestically; moreover, protection of property rights in the West and the advantages afforded Chinese owned firms reconstituted as foreign entities operating in China decrease the costs of ‘going out’. We coin the term ‘institutional arbitrage’ to capture Chinese firms' pursuit of efficient institutions outside of China. We argue that strategic exit from the home country rather than strategic entry into foreign markets may explain the internationalization of many Chinese firms.

This study examined the processes linking abusive supervision to employee contextual performance by focusing on the mediating influence of emotional exhaustion and the moderating influence of work unit structure. Data were obtained from 285 subordinate–supervisor dyads from three manufacturing companies in north-eastern China. The results revealed that: (i) emotional exhaustion mediated the relationships between abusive supervision and the contextual performance dimensions of interpersonal facilitation and job dedication; and (ii) work unit structure moderated these relationships such that the relationships were stronger in mechanistic than in organic work unit structures.

This paper describes two studies conducted in the People's Republic of China aimed at improving understanding of knowledge sharing among managers. Study 1 found evidence for the role of two individual factors: greed which reduced knowledge sharing, and self-efficacy which increased it. In addition, co-worker collegiality has an indirect influence on knowledge sharing by lowering greed and raising self-efficacy. Study 2 replicated the key findings of Study 1 and also identified the influence of organizational support on knowledge sharing. Organizational support led to higher utilization of information and communication technologies, resulting in more knowledge sharing, especially for explicit as opposed to implicit knowledge.

Performance appraisal has been the focus of considerable research for almost a century. Yet, this research has resulted in very few specific recommendations about designing and implementing appraisal and performance management systems whose goal is performance improvement. We believe that a reason for this is that appraisal research became too interested in measurement issues and not interested enough in ways to improve performance, although some recent trends in the area have begun moving the field in the right direction. We review these trends and their genesis, and propose a motivational framework as a means of integrating what we have learned and generating proposals for future research that focus on employee's performance improvement.

An organizational view of corruption is a frontier and challenging issue in the realm of management and organization research. This article elucidates four interrelated yet sequential issues that collectively constitute organizational explanations of corruption: (i) corruption and organizational environment; (ii) corruption and organizational behaviour; (iii) corruption and organizational consequences; and (iv) corruption and organizational architecture. Specifically, it (1) offers taxonomic metaphors that identify different corrupt organizations on the basis of corruption scale and hierarchical involvement; (2) defines task environments (oligopoly intensity, regulatory control and structural uncertainly) and institutional environments (opaqueness, injustice and complexity) that stimulate illicit acts; (3) confers a typology of corrupt behaviors that align with these task and institutional environments and correspond to different metaphors (system malfeasance, procedural malfeasance, categorical malfeasance and structural malfeasance); (4) develops the logic that corruption impedes organizational development through quadri-damages (evolutionary hazard, strategic impediment, competitive disadvantage and organizational deficiency; and (5) illuminates a corruption-resisting architecture comprising corporate culture, organizational structure and compliance system.

Does CEO duality – the practice of one person serving both as a firm's CEO and board chair – contribute to or inhibit firm performance? Agency theory suggests that CEO duality is bad for performance because it compromises the monitoring and control of the CEO. Stewardship theory, in contrast, argues that CEO duality may be good for performance due to the unity of command it presents. The empirical evidence, largely from developed economies, is largely inconclusive. This article joins the debate by extending empirical work to the largely unexplored context of institutional transitions. Our findings, based on an archival database covering 403 publicly listed firms and 1,202 company-years in China, offer stronger support for stewardship theory and relatively little support for agency theory. Finally, we also call for a contingency perspective to specify the nature of conditions such as resource scarcity and environmental dynamism under which CEO duality may be especially valuable.

Using recent survey data, this study examines the impact of firm resources, industry dynamics, and government policies on the outward foreign direct investment (FDI) motives of Chinese firms, based on the integrated ‘strategy tripod’ framework. The results suggest that supportive government policies are important motivators for both strategic asset-seeking and market-seeking outward FDI. Firms' technology-based competitive advantages and a high level of industry research and development (R&D) intensity tend to motivate strategic asset-seeking outward FDI, whereas firm's export experience and higher level of domestic industry competition tend to induce market-seeking outward FDI.

The literature on dirty work has focused on what physically (e.g., garbage collectors), socially (e.g., addiction counsellors), and morally (e.g., exotic dancers) stigmatized occupations have in common, implying that dirty work is a relatively monolithic construct. In this article, we focus on the differences between these three forms of dirty work and how occupational members collectively attempt to counter the particular stigma associated with each. We argue that the largest differences are between moral dirty work and the other two forms; if physical and social dirty work tend to be seen as more necessary than evil, then moral dirty work tends to be seen as more evil than necessary. Moral dirty work typically constitutes a graver identity threat to occupational members, fostering greater entitativity (a sense of being a distinct group), a greater reliance on members as social buffers, and a greater use of condemning condemners and organization-level defensive tactics. We develop a series of propositions to formalize our arguments and suggest how this more nuanced approach to studying dirty work can stimulate and inform future research.

This article develops a theoretical model of opportunism in inter-organizational exchanges in emerging markets. I decompose opportunism into ‘strong form’ (contractual norm violation) and ‘weak form’ (relational norm violation), and suggest that strong form tends to be more observable, measurable and remediable than weak form and its adverse effect on cooperation tends to be stronger but less enduring than weak form. I address how external uncertainty, a multidimensional concept that includes market volatility, legal unprotectability, information unverifiability and regulatory variability, along with internal uncertainty that reflects dyadic tensions such as goal disparity, resource misfit, cultural dissimilarity and bargaining asymmetry, together affect exchange members' opportunism. This is followed by further discussions on conditions under which firms will opt for strong form or weak form opportunism in the face of such external and internal uncertainties. I suggest that suppressing forces against opportunism necessitates not only economic ordering, such as contractual mechanisms and structural mechanisms, but also social ordering, such as relational mechanisms and justice mechanisms. I expect that economic ordering is more effective in resisting strong form opportunism while social ordering is more forceful in curtailing weak form opportunism.

The present article aims to answer the question of whether creativity is universal or culture-specific. We develop a conceptual framework that expands the existing knowledge in two ways. First, it distinguishes between the two dimensions of creativity – novelty and usefulness, and their relationship to culture. Second, it clarifies how the social context moderates the relationship between culture and creativity. We focus on the social context where cultural differences are likely to be more salient because of the presence of others, relative to the private work context where no one observes whether a person performs in a normative or a unique way. In addition, we propose that task structure, whether a task is tightly or loosely structured, is an important contextual characteristic that moderates the relationship between culture and creativity. Lastly, we offer several propositions to guide future research.

We develop a three-dimensional concept of supervisor-subordinate guanxi. This concept includes affective attachment, personal-life inclusion, and deference to supervisor. Based on this concept, we conducted three studies to develop and validate a three-dimensional supervisor-subordinate guanxi measure and to examine its relationship with related constructs, such as leader-member exchange. Results from Study 1 and Study 2 provide evidence of convergent and discriminant validity of the scale, while Study 3 demonstrates the scale's incremental validity and replicates results from Study 2. Furthermore, in Study 3, we found that the three dimensions of supervisor-subordinate guanxi had different significant effects on commitment, turnover intention, and procedural justice, providing further evidence of criterion-related validity. Overall, these empirical results provide support for our three-dimensional model of supervisor-subordinate guanxi.

By examining the level of ownership concentration across firms, we determine how principal–principal conflict, defined as the incongruence of ownership goals among shareholder groups in a corporation, impacts agency costs of Chinese boards of directors. Based on data from Chinese companies listed on the Shanghai and Shenzhen stock exchanges during 1999-2003, we found that ownership concentration had a U-shaped relationship with board compensation, board size and the presence of independent directors. These results provide corroborating evidence that principal-principal conflict can lead to high agency costs.