I feel very fortunate to be able to open the MOR Dialogue, Debate, and Discussion editorial section with a striking perspective advanced by Shawn Pope and John W. Meyer of Stanford University. They point to the rise of a global corporate organization that is shedding its national distinctiveness and any remaining local rooting. Instead, they envision global standardization as no longer related to national origins and as managed according to abstract, universalistic principles. The global standard is furthermore run by managers who graduated from the same homogenous business programs, who gain advice from like-minded consultants, and who, of course, go to the same Davos meetings. The new standard, the universal corporation, seeks to convey its socially responsible character by confirming, sometimes voluntarily, to the standards of excellence as decreed by other organizations perhaps increasingly like itself. This provocative perspective invites debate – refutations and support alike – in future MOR issues and blogs. Where does your research lead you to take a stand?

In this study, we examine the effect of institutional ownership on corporate philanthropy in China, an emerging economy. Employing stakeholder identification and salience theory, we posit that institutional ownership positively influences corporate philanthropy, which varies for different types of institutional investors. We further argue that institutional ownership's influence is stronger when philanthropy is aligned with firm goals. Using data from Chinese publicly listed firms, we find a positive effect of institutional ownership on philanthropy, and this effect is stronger for domestic institutional owners when compared to foreign institutional owners, and long-term when compared to short-term institutional owners. We also find that the positive influence of institutional ownership is stronger in private firms and in regions with low institutional development – situations characterizing high alignment between philanthropy and firm goals. Our findings highlight the important role of institutional investors on corporate philanthropy decisions, which have implications for scholars studying and policy makers enacting corporate governance in emerging economies.

Literature has advanced two contrasting theoretical perspectives related to the governance structure of business groups: the ‘value-constraining’ perspective, which focuses on principal–principal agency conflict and organizational inertia theory, and the ‘value-enabling’ perspective, which emphasizes the role of business groups in mitigation of institutional voids. Building on these two competing lenses, we develop hypotheses to examine post-acquisition performance of affiliate firms relative to stand-alone firms. As our empirical context, we study 440 majority-stake, domestic and cross-border merger and acquisition deals closed by Indian firms during the period 2002–2013. The results imply that in emerging markets, despite concerns of organizational inertia and principal–principal agency issues, the value-enabling impact of group affiliation persists. We also examine the contextual impact of intergroup heterogeneity owing to group diversification on post-acquisition performance and find that greater group diversification leads to better performance for affiliate acquirers.

Drawing on the threat-rigidity hypothesis, we examine how managerial opportunity and threat interpretations of external environments affect a technology venture's choice of external knowledge search strategies in an emerging market. Results from a sample of 141 technology ventures in China reveal that opportunity interpretation directly and positively influences both the breadth and depth of external search, whereas threat interpretation directly and negatively influences only external search depth. Furthermore, managerial ties strengthen the positive relationship between opportunity interpretation and external search breadth but weaken the positive relationship on external search depth. Managerial ties weaken the negative relationship between threat interpretation and external search breadth but strengthen the negative relationship on external search depth. Implications for both research and practice are offered.

This commentary targets the core ideas of the composition-based view (CBV). First, we argue that the deployment of compositional capabilities (CCs) to combine ordinary resources fits the resource-based view (RBV) and that there is therefore no need for a CBV. Second, we argue that the CCs should be presented as a specific type of dynamic capability (DC). We show that even where ordinary resources are being combined, superior combinatory capabilities are needed as competitive advantage cannot otherwise be achieved. Third, we argue that Luo and Child (2015) focused too much on the emerging economy enterprises (EEEs) as the conceptual setting. We conclude with a future research agenda to prepare the ground for research on compositional capabilities within the composition-based view of the firm.

This research examines how people perceive and respond to potential conflict in work settings. When individuals highly value their interpersonal relationships with others, they may take the potential costs to relationships into consideration in deciding how to handle conflict. We propose that individuals take an avoidance approach to conflict to prevent disruption in relationships from confrontation. Specifically, the value that individuals place on superficial harmony is positively related to their negative anticipation of relationship costs, which in turn leads to conflict avoidance. Furthermore, the direct relationship between superficial harmony and negative anticipation and the indirect relationship between superficial harmony and conflict avoidance are negatively moderated by the closeness of relations between the parties involved. The results of two studies conducted in workplace settings supported our hypothesized moderated mediation model. Highlighting the role of superficial harmony in conflict avoidance, this research contributes to the existing literature on conflict management and has practical implications for effectively managing conflict in the workplace.

Management scholars have suggested that our research is lacking in both relevance and meaning. In this article, I argue that a primary reason for this lack of relevance and meaning is the failure of our research to be responsive to all potential research stakeholders. Adopting the committed-to-participant research perspective, I offer suggestions for how both journal editors and organizational researchers can meaningfully include our research participants as valued stakeholders of the research process.

Leung and Morris (2015) propose conditions under which values, norms, and schemata drive cultural differences in behavior. They build on past theories about dimensions of situational strength to propose that personal values drive behavior more in weak situations and perceived norms drive behavior more in strong situations. Drawing on this analysis as well as two recent models of cultural tightness-looseness, country-level effects are predicted on the assumption that tighter cultures more frequently create strong situations and looser cultures more frequently create weak situations. Using secondary data, I examine values as well as perceived descriptive norms and injunctive norms relevant to collectivism in relation to two key dependent measures: helping strangers and emotion regulation. The relation of embeddedness values to helping strangers is moderated negatively by tightness (in that high embeddedness reduces helping less in the context of tightness), and its relation to emotion regulation is moderated positively (in that embeddedness increases emotion regulation more in the context of tightness). Furthermore, descriptive norms show main effects for both dependent variables that are predominantly unmoderated by tightness. Finally, the link of injunctive norms with emotion regulation is moderated positively by tightness (in that injunctiveness heightens emotion regulation more in the context of tightness). Results support the relevance of nation-level tightness to reliance on values and norms, but the strength of effects depends on how it is operationalized.

In this commentary, I discuss some philosophical issues related to contextualizing Chinese management research. First, it should be noted that contextualization can be interpreted in different ways by different philosophical perspectives. Second, the Duhem-Quine thesis implies that replications, in the form of empirical generalization, are an appropriate means of testing Western theories in a Chinese context. Third, owing to the difficulty of conclusively falsifying management theories, attempts to create theories that explain unique Chinese management phenomena may lead to theory proliferation and the perpetuation of weak, or even false, theories. Finally, I propose the study of empirical regularities as an alternative to the theory application and theory creation approaches.

Using data from China's listed privately owned enterprises (POEs) during the period from 2002 to 2014, we explore the effects of firm life cycle on board structure. We find that the board size of China's listed POEs declines over firm life cycle, and there is a trend of separation for board chair-CEO duality while board independence remains almost static. We further provide evidence that board size and independence are determined by the benefits of monitoring and advisory roles of the boards through all the stages of firms’ life cycle with different drivers. The impact of CEO power on board chair-CEO duality is determined by the benefits and costs of separation of board chair, and CEOs are supported at all stages of firms’ life cycle. This article sheds light on the dynamic board structure in an emerging economy where the external corporate governance is weaker than that of developed countries. Our findings suggest that the board structures of China's listed POEs are adjusted at various stages of firms’ life cycle, and the adjustments are mostly based on the resources brought by the new board of directors.

Nowadays social entrepreneurship is recognized as a two-way process, addressing both social and economic concerns that can bring social inclusion, equity, and development to disadvantaged groups in society. This aspect is particularly important and desirable within emerging economies. In these markets, which are constantly faced with profound economic and social challenges, we see the growing importance of social entrepreneurs as they take upon themselves the provision of welfare services and progressive activities. However, our understanding of the mechanisms underlying the creation of social and economic values in social enterprises, and the factors contributing to the establishment of these value creation objectives, is still rather fragmented. Our article contributes to this gap in the literature by decoding the process via which for-profit social entrepreneurs from China and India create social and economic value. In addition, by combining a deductive and an inductive approach of analysis, we offer novel insights into the context-dependent processual patterns deciphered within the two countries. A new entrepreneurial process framework that reflects the contextualized social value creation process by social entrepreneurs is thus provided.

This Management of Organization Review (MOR) special issue aims to explore the key features of the innovation and entrepreneurship ecosystem in India. There is recent evidence that innovation and entrepreneurship dynamics in transforming economies differ from like processes in advanced market economies in significant ways (e.g., Maimone, Mudambi, Navarra, & Baglieri, 2016). Therefore, applying the dominant theoretical lens developed to study innovation and entrepreneurship in advanced market economies may be inappropriate. For instance, the Global Entrepreneurship Monitor (GEM) surveys clearly demonstrate the composition of total entrepreneurial activity (TEA) for advanced and transforming economies is substantially different, with a significantly higher level of ‘need-based’ entrepreneurship in the latter. Hence the typical advanced economy transition from wage employment to a larger share for entrepreneurship may be reversed in transforming economies. Transforming economies also witness a significant role of the transnational diaspora in their entrepreneurial and innovation processes (Riddle, Hrivnak, & Nielsen, 2010). Further, at the level of corporate entrepreneurship, London and Hart (2004) argue that results of studies of subsidiary entrepreneurship undertaken in advanced market economies may not generalize to transforming market economies. In summary, a fundamental question is whether entrepreneurship and innovation in transforming economies are diverging from the norms of advanced economies as these countries get wealthier and develop entirely new trajectories (Hill & Mudambi, 2010).

In an attempt to respond to recent calls for better understanding the coexistence of multiple business models, we develop the concept of ‘multidexterity’ – the ability to develop, nurture, and execute several distinctive BM strategies simultaneously across different levels and functions of the MNC and its host markets. To illustrate this approach, we describe a European healthcare firm entering the rapidly transforming economy of China and facing regulatory constraints and ambiguities in the application of industry standards. This situation is a generic challenge for MNCs entering rapidly transforming economies, which they help in turn to substantially alter and develop. We argue multidextrous business models are effective entry strategies for MNCs. They also help resolve two conceptual limitations in the BMI literature: (1) the problem of environmental contingencies and (2) the interrelatedness of factors at the macro, meso, and micro levels. We address these problems from a practice approach. We provide some implications for the concept of multidexterity and business models and address managerial challenges and prospects in developing multidextrous organizations.

This article investigates the impact of cross-level interplay between team members’ and their leaders’ goal orientations (learning, performance approach, and performance avoidance) on knowledge sharing using samples from design teams in two companies in China. Our results show that team leaders’ learning goal orientation plays a critical moderating role. Specifically, team leaders’ learning goal orientation strengthens the positive relationship between team members’ learning orientation and knowledge sharing; positively moderates the relationship between team members’ performance approach orientation and knowledge sharing; and weakens the negative relationship between team members’ performance avoidance orientation and knowledge sharing. Team leaders’ performance approach orientation demonstrates a positive moderating effect when there is congruence between the performance approach orientation of leaders and members. Finally, team leaders’ performance avoidance orientation negatively moderates the relationship between team members’ learning and performance approach orientation on knowledge sharing. This research enhances our understanding of the conditions under which knowledge sharing occurs among team members, using the lens of Trait Activation Theory.

Meso-institutions are weak, intermediate forms of institutions that bridge the gap between institutional disintegration and the development of new, more firmly established institutions. Meso-institutions lack the stronger behaviour-guiding signs and symbols of more established institutions, but instead contain fragments of former institutions mixed with emerging, but fragile, components of developing institutions. Institutional disintegration leads to a disorienting period characterized by the dissolution of fundamental, widely held ideologies. This offers an opportunity for actions rather than institutions to guide actions. Because meso-institutions are weak, only after actions are repeated will they solidify into specific patterns that may be retrospectively granted legitimacy. Using archival data supplemented by interviews, we identified three meso-institutional occurrences with the phenomenologically based manifestations of fractured ideology, actions as rules and retrospective legitimization.

By integrating role theory and social identity theory, this study examines the differential effects of organizational identification of the chief executive officer (CEO) and the chief financial officer (CFO) on corporate philanthropy. We argue that CEO organizational identification can positively affect corporate philanthropy, whereas the opposite holds for CFO organizational identification. This is because the CEO and the CFO have varying attitudes about corporate philanthropy owing to their different role expectations; thus, those who identify strongly with their organizations would act for the best interests of the firm. Moreover, because the beliefs of top executives are probably influenced by those of other executives, we further explore the interaction between the CEO and the CFO. We propose that the positive influence of CEO organizational identification on corporate philanthropy will be weakened by CFO organizational identification, and the moderating effect of CFO organizational identification will become stronger when the CEO and the CFO have opposite genders or when the CFO has ownership. From a sample of 880 publicly traded firms in China, we found support for our hypotheses. Our study can contribute to the corporate philanthropy literature and research on executive organizational identification by highlighting the importance of executive roles and their interactions.

Although social harmony is one of the most important cultural values in many of Asian societies it has rarely been studied in the mainstream management literatures. Based on the group-value theory of justice we examined how group justice climates influence group effectiveness through group harmony. Analyses of data on 106 upper-level management teams from Chinese organizations showed that justice climates were positively associated with group harmony, which in turn was positively associated with team task performance and team helping behavior. Group harmony was found to significantly mediate the positive effect of both distributive and interactional justice climates on team helping behavior but only marginally on team task performance. Finally, in support of past research both at the group and individual level, procedural justice climate had the weakest effect on group processes and outcomes. By applying the group value theory on group harmony this paper aims to integrate Eastern and Western perspectives on one hand and the justice climates and group harmony research on the other. Theoretical and practical implications are discussed.

This study seeks to answer the following question: What are the organizational attributes that influence organizational responses to institutional complexity? Building on core ideas of organizational imprinting, I argue that organizational response is influenced by the imprint from the dominant logic of organizing during the founding period and from the institutional position an organization possessed at founding. Empirically, I examine the variation in board composition of Chinese state-owned firms listed in the Hong Kong Stock Exchange market. It is found that state-owned firms founded in the market logic dominant period tend to have more non-state directors on the board in that they were organized around the prescription of the market logic and more responsive to shareholders’ demands for legitimacy reasons. Besides, state-owned firms founded by central government agencies tend to have fewer non-state directors because they were born at the center of the socialist system to accomplish strategic goals of the central government and non-state directors may challenge the vested interests. This study contributes to the organizational imprinting and institutional literature and resonates with the contemporary call for a more systematic examination of organizational attributes that influence organizational responses to institutional complexity.

We study the impact of formal and informal institutions perceived and experienced by firms on their innovation using the 2012 World Bank Enterprise Survey data in China. We propose a framework to identify different innovator types of firms. Our analysis shows that (1) perceived constraints from the governmental system make firms more likely to be innovators than non-innovators; (2) perceived constraints from the legal system make firms more likely to be imitators than innovators; (3) lack of formal finance makes firms more likely to be non-innovators than innovators; (4) prevalence of bribery makes firms more likely to be non-innovators than innovators but less likely to be innovation pretenders than innovators. Our study enriches institutional theory and innovation research by establishing a framework that encompasses multiple dimensions of formal and informal institutions perceived and experienced by firms and the impacts of such perception and experience on firms’ propensity to become certain type of innovator.