In this work we develop and validate a model measuring norms that distinguish three types of culture: dignity, face, and honor (Leung & Cohen, 2011). Our motivation is to produce empirical evidence for this new cultural framework and use the framework to explain cultural differences in interdependent social interactions such as negotiation. In two studies, we establish the content validity, construct validity, predictive validity, and measurement invariance of this measurement model. In Study 1, we present the model's three-factor structure and situate the constructs of dignity, face, and honor in a nomological network of cultural constructs. In Study 2, which uses a sample of participants from 26 cultures, we show that the measurement model discriminates among people from the three cultural regions corresponding to the dignity, face, and honor framework. In particular, we report differences between face and honor cultures, which are not distinguished in other cultural frameworks (e.g., Hofstede, 1980). We also show that the measurement model accounts for cultural differences in norms for use of negotiation strategy.

In this article, we propose that types of CEO paternalistic leadership will affect the effectiveness of top management team (TMT) decisions, and that team conflict will play a mediating role in the relationship between CEO paternalistic leadership and decision effectiveness in the Chinese context. Data collected from 108 TMTs in China suggest that dimensions of paternalistic leadership significantly affect decision effectiveness: benevolent and moral leadership positively affect TMT decision effectiveness, but authoritarian leadership has negative effects on TMT decision effectiveness. In addition, cognitive and affective team conflicts partially mediate the links between paternalistic leadership types and decision effectiveness. The results suggest that CEO paternalistic leadership approaches and conflict modes significantly determine TMT decision effectiveness.

I introduce the three articles in the MOR Editor's Forum on Chinese Capitalism. I then ask whether China's recent economic growth has been driven by a vibrant capitalism or instead has become an end in itself, supported by government policies promoting high rates of fixed asset investment. There are two key observations. First, gross domestic product (GDP), measured and reported at four levels of government, has much greater salience than corporate profits, often undisclosed. Second, fixed asset investment accounted for more than 60 percent of China's 2009 GDP and nearly two-thirds of 2008-2009 GDP growth, levels unprecedented for a major economy. Rather than capitalism, I argue that institutionalized GDP growth today accounts for China's rapid economic development.

Guanxi is one of the most popular topics in Chinese and Western scholarship concerning social ties in China. However, several problems in research on guanxi persist, and multiple debates are still ongoing without much consensus in sight. This study has two goals. First, we offer a systematic review of the current literature on guanxi, especially by differentiating guan dyads from xi networks. This reconceptualization of guanxi enables us to clarify the concept of guanxi by differentiating its two dimensions. Second, based on this literature review, we propose a redirection of future research on guanxi such that guan dyads and xi networks are not examined in isolation; rather, their holistic and dynamic interaction is the most fruitful avenue for future research, especially the four mechanisms of their interaction. The proposed reconceptualization and redirection are our two contributions to the literature.

Innovation contributes to a firm's long-term competitive advantages but also involves significant risk and uncertainty. As agency theory predicts, CEOs are self-interested and risk-averse, and thus are reluctant to engage in innovation investments. However, the extent to which CEOs are self-interested and the mechanisms through which self-interested CEOs affect firm innovation have not been empirically tested. To fill this gap, we propose that CEOs possess a mix of both self-preserving and other-regarding motives, and build a mediation model in which CEO values affect firm innovation via firms’ long-term orientation. Based on a three-phase (from 2014 to 2016) survey of 436 Chinese manufacturing firms, we find that CEOs with high self-regarding values reduce innovation efforts and performance by damaging a firm's long-term orientation. Moreover, CEO tenure, CEO duality, and environmental uncertainty weaken the relationship between CEO values and firm innovation via long-term orientation. Our study enriches the innovation literature by extending the basic assumptions of agency theory and by providing empirical evidence to determine whether and how self-regarded CEOs affect firm innovation.

Although product recalls are neither new nor unique to China, China bears much of the bitter criticism from the media and negative reactions from the public. This essay discusses the reasons behind recalls from a moral degradation perspective, grounded in the larger framework of anomie theory. While making remarkable economic progress, China is also moving toward a society with degraded moral standards. This moral degradation propels illicit and immoral business practices. This essay further presents an analysis of recall from the organizational control perspective, tackling the issue of how safety and quality problems damage a firm's long-term corporate credibility, legitimacy, trust and governance in a competitive environment. Strategic repercussions of recalls include impairing capability building, organizational learning and resource allocation. The essay ends with a call for action by the Chinese government, firms and management researchers to address and further understand this complex issue.

The transformation of state-owned enterprises (SOEs) into efficient entities has been an important approach in transition economies. However, the transition literature reveals little about how control structure affects firm performance of transformed SOEs. Drawing on agency theory, we distinguish three modes of control in transformed SOEs: state-controlled, dispersedly controlled, and privately controlled modes and argue that actual control after transformation plays a critical role in determining performance. Examining the impact of different control modes in China, we find that the key is who controls the transformed firm. Non-state-controlled (dispersedly controlled and privately controlled) firms are more likely to have enhanced post-transformation performance and reduced agency costs than state-controlled firms.

This study examines corporate philanthropy in the context of corporate wrongdoing punishment in emerging markets. Building on institutional theory, we propose that in emerging markets, after being punished for fraudulent behavior by the government, which is collectively the largest institution, convicted firms tend to use corporate philanthropy as an institutional strategy to regain legitimacy. Using data of Chinese-listed firms that were punished for financial fraud in the ten years from 2004 to 2013, our findings show the subsequent growth of corporate philanthropy to be positively related to punishment severity. Furthermore, convicted firms’ media visibility, dominant state ownership, and national political appointment strengthen the effect of punishment severity on corporate philanthropy increase. Our institutional perspective offers new insights into why firms engage in corporate philanthropy after fraud punishment.

This replication study was invited by the Editor in Chief of Management and Organization Review, Arie Y. Lewin. The original study by Judge, Fainshmidt, and Brown (2014) spanned the global financial crisis (2005–2010), and as such, this anomalous time period may not have been representative of most economies, or even the overall global economy. In this replication study we refine and extend Judge et al. (2014) which explored the provocative question – which form of capitalism works best in terms of ‘equitable wealth creation’? Similar to the earlier study, we find that there are multiple paths to macro-economic success. Notably, effective institutional configurations tend to combine high-quality regulatory institutions, effective skill development systems, and social cultures largely unaffected by corruption so there is some commonality amongst effective configurations. In contrast, ineffective institutional configurations tend to be relatively weak in one or several of these three critical sets of institutions. Importantly, we find some novel patterns emerging from the most recent data, including potentially new forms of capitalism associated with equitable wealth creation. In addition, we find that effective credit market institutions are more important, and collective bargaining institutions are less important than the original study suggested. We discuss implications for the comparative capitalism literature, policy makers, and the future of capitalism in the global economy.

In this paper, we argue that both labor unrest and collective bargaining are increasing in China. Using McAdam's political process theory, we argue that Chinese workers are striking more and offensively in support of their economic demands. We identify the state's interests in promoting collective bargaining, and through an analysis of union and employers’ organizations, attempt to predict the future trajectory of collective bargaining in China. Using new data about strikes, we confirm our argument that strikes in China are increasing. Based on very limited past and current research, we create a taxonomy of baseline collective bargaining in China against which future developments can be compared.

The Nordic countries – Denmark, Norway, Sweden, and Finland—have attracted attention in recent years. Some elements of the Nordic model—particularly the welfare state—are well understood, but its governance characteristics remain elusive to the international audience. This article reviews Nordic governance and discusses its relevance as a development paradigm. The article quantitatively documents the existence of a Nordic governance model using data from the World Bank, Transparency International and other sources. Secondly, it is shown how Nordic corporate governance – Nordic civil law, concentrated ownership, semi two-tier board structures, employee representation and low-powered managerial incentives – has been shaped by the welfare state in ways consistent with systemic corporate governance theories. The article concludes with a skeptical discussion of the Nordic model as a development paradigm.

Based on social exchange theory, we propose and test the mediating role of formal and informal contracts in linking cooperation characteristics of prior ties and shared values among partners to cooperation success in the public—private partnership context. Results from a survey of 244 partners in public—private partnerships in the medical and healthcare fields in China revealed that both formal and informal contracts mediate the relationship between cooperation characteristics and cooperation success. We discuss the theoretical and managerial implications for public-private partnership research and practice with a specific focus on the Chinese context.

While editors and their editorial teams play an important role in gatekeeping the knowledge dissemination process, the majority of the responsibility to ensure the quality of the created knowledge and its fair review actually falls on the shoulder of the authors. This essay discusses the dilemmas faced by authors between maximizing their publication possibilities and being truthful to data, to co-authors, and to editors. Potential solutions are also discussed.

Despite the major cultural and political differences between the United States and China, in both countries access to jobs is supposed to be guided by fair and equitable procedures. In the US, there is a presumption of an open labor market in which potential employees compete on the basis of their qualifications, where the fairness of decisions is guided by anti-discrimination laws and normative organizational policies. In China, although there is a history of close relationships that guide the exchange of favors, following the 1949 revolution, Communist Party leaders were given the authority to allocate positions in ways that were supposed to eliminate special privileges of class and background. Yet recent research has suggested that social connections are an important part of getting a job in both the US and China for two-thirds to three-quarters of job seekers. In the US context, such connections are described as social capital. In the Chinese context, connections are defined as guanxi. In this article, we review research on labor market processes in both the US and China to address three important questions: (a) How can we understand the similar functioning of labor markets in such distinct cultural and political systems as the US and China? (b) What are the mechanisms or processes by which people find jobs in the US and China, and how are people able to access these mechanisms or processes in the context of constraining social structures and legal environments? and (c) What are the theoretical implications of the ‘generalized particularism’ that seems to shape labor markets in both the US and China.

We use the parable of the blind men and the elephant to suggest that Barney and Zhang (2009) and Whetten (2009) analogously touch on only a part of the Chinese management research puzzle. Their analyses remind us of many attempts at anchoring the research purpose – etic versus emic approaches, exploration versus exploitation approaches, rigor versus relevance scenarios – touched on by the many commentators in this issue. We suggest researchers first answer the ‘purpose’ questions before embarking on the research design. The research design should fit the purpose of the knowledge, which is either to improve the performance of Chinese organizations (meeting the relevance criterion) or to replicate, extend or refine a theory developed in the US (meeting the rigour criterion). We believe the strength of applied management research allows us to create knowledge that can meet the criteria of both rigour and relevance. We support the use of academic international research teams and dialectic debate as tools to move the field of Chinese management research forward.

Recent research suggests that employees perceive organizational citizenship behaviour (OCB) as costly while OCB in the aggregate benefits organizations. Employees thus face an OCB dilemma. This study adopts the social dilemma perspective, proposing that employee OCB varies with the three types of psychological contracts (e.g., relational, balanced, and transactional) due to different degrees of perceived social dilemma and explains why employees engage in OCB in the context of varying levels of social dilemmas. We used moderated structural equation modelling to test the mediating and moderating hypotheses using data from 485 supervisor-subordinate dyads from 58 companies in a variety of industries in Taiwan. As predicted, results suggest that employee OCB has the strongest relationship with balanced psychological contract. Results also confirm the mediating role of felt obligations in both relational and balanced psychological contracts and the moderating role of empathie concerns in transactional psychological contract. We discuss the theoretical and practical implications of these results.

Violators of cooperation norms may be informally punished by their peers. How such norm enforcement is judged by others can be regarded as a meta-norm (i.e., a second-order norm). We examined whether meta-norms about peer punishment vary across cultures by having students in eight countries judge animations in which an agent who over-harvested a common resource was punished either by a single peer or by the entire peer group. Whether the punishment was retributive or restorative varied between two studies, and findings were largely consistent across these two types of punishment. Across all countries, punishment was judged as more appropriate when implemented by the entire peer group than by an individual. Differences between countries were revealed in judgments of punishers vs. non-punishers. Specifically, appraisals of punishers were relatively negative in three Western countries and Japan, and more neutral in Pakistan, UAE, Russia, and China, consistent with the influence of individualism, power distance, and/or indulgence. Our studies constitute a first step in mapping how meta-norms vary around the globe, demonstrating both cultural universals and cultural differences.

To deepen our understanding of organizations’ heterogeneous responses to institutional demand, we develop a ‘relational complexity’ argument to highlight organizations’ diverse institutional linkages as another important source of practice variation. We argue that diverse relations between organizations and the institutional authority can filter distinct institutional pressures and expectations, shape organizational interpretations of environmental demands, and thus trigger heterogeneous organizational practices. We adopt this theoretical framework and distinguish two types of institutional linkages with the state to understand different adoption patterns in corporate social responsibility (CSR) in its early stage of diffusion in China. Based on a national survey dataset consisting of 1,268 firms, our analyses show that firms having a stronger bureaucratic linkage with the state tend to focus on more visible external-oriented CSR practices. In contrast, those firms forming a closer partnership with the state through political or semi-political associations are more likely to take more extensive adoptions by further developing internal CSR structures. This study enriches the institutional analyses by shifting our attention to the relational dynamics between organizations and institutional authority as a key source of practice variation. It also has important implications to the research and practices of CSR in emerging economies.

Journal editors serve a vital role because they are the gatekeepers of new scientific knowledge. Given the workload and time pressures associated with their role, editors face an important ethical dilemma: Should they allocate sufficient time to the editorial role or should they focus on their individual research performance, which is an important determinant of salary increases, promotions, and other financial rewards? We borrow from the macro-level corporate social responsibility literature to conceptualize editorial responsibility in terms of the triple bottom line of economic, social, and environmental performance. Our thesis is that there are recursive relationships among the economic, social, and environmental editorial performance dimensions such that editors who do good (i.e., social and environmental performance) also do well (i.e., economic performance). Thus, we bridge micro and macro domains by adapting a macro-level theory to the individual level of analysis and also bridge science and practice by discussing the impact of journal editors and scientific journals on a broad set of stakeholders including universities, research consumers, and society. We also offer suggestions to guide future research on whether the three editorial performance dimensions are part of a virtuous cycle that develops over time through mutually reinforcing feedback loops.