This study investigates the influence of business-specific, bank-specific, and political-specific networks on small firm investments in Vietnam. Also, I aim to explain how these social networks substitute the weaknesses of local institutions. Examining a set of more than 9,800 firm-year observations of small businesses in Vietnam from 2005–2015, I find that social ties with bank officials can boost firm investments; social ties with government officials can help firms overcome institutional voids; whereas social ties with businesspeople appear trivial to investment decisions. More importantly, I propose that networking, especially networks built upon connections with government officials, can substitute local institutions by addressing weaknesses in (1) inefficient legal enforcement, (2) corruption, (3) bureaucratic compliance, and (4) non-transparent governance system.

The increasing FDI in Africa from China and India in recent years has drawn the attention of scholars, policy makers, and the media. Africa is an arena where the two emerging giants compete on different bases. Indian firms have the advantage of institutional proximity and large diaspora communities in Africa, while Chinese firms rely on government-to-government relationship-building. The rivalry between India's soft power and Chinese hard power in Africa will continue for the foreseeable future.

This paper comments on Yulun Ma and Yue Hu's (2021) recent article ‘Business Model Innovation and Experimentation in Transforming Economies: ByteDance and TikTok’. It argues that TikTok's international success is not due to so-called business model innovation; instead, it is because ByteDance has overcome three major hurdles facing emerging market firms pursuing internationalization. It also posits that the case of TikTok offers inspiration for theorizing paradox, namely, individuals and organizations can solve paradoxical tensions by increasing capacity through the use of advanced technologies.

To stimulate a debate about the rise of China's digital economy, this essay compares China and the US in one key area of the digital economy – e-commerce and internet-based services. China still lags behind the US in internet penetration, but it distinguishes itself by building a mobile-first, fiber-intensive, and inclusive digital infrastructure. A favorable infrastructure, innovations tailored to the large Chinese market, and local firms’ rapid commercialization of products and services turned the world's largest domestic population into active online consumers, helping China overtake the US by a large margin in retail e-commerce and digital payment. While China translated digital technologies into leading business-to-customer and customer-to-customer businesses, it has not been so successful in business-to-business services. The US is still ahead in the general-purpose technologies underlying the digital economy.

In a recent paper, Carl Fey (2022) ponders the future development of Chinese business schools. He observes that the American model of business education – the target of emulation for most Chinese business schools up to this point – shows signs of serious inadequacy. It is high time, Fey argues, that Chinese business schools come up with ‘indigenous’ models of business education that better serve the needs of China's social and economical development. The paper then sketches a framework featuring some fundamental aspects of such indigenous models. We find Fey's central argument and framework both timely and inspiring. In what follows, we draw on what is happening at the School of Management of Zhejiang University (‘the School’) to respond to, and dialogue with, some of Fey's ideas.

Motivated by the research gap on intergenerational succession dynamics of family firms, this study examines the effects of initiating intergenerational succession on firms' innovation activities. We propose that initiation of intra-family succession can result in founder–successor co-governance that represents a strategic transition to the succession and incorporates the two conflicting yet complementary directions of change and continuity. Grounded in the theory of altruism, we suggest that co-governance will positively affect firms' innovation activities and that this positive link is contingent on the idiosyncratic intra-family relationships of kinship type, age difference, and gender difference between the founder and the successor. Furthermore, we posit that co-governance will lead to a flow of resources to low risk, rather than more inventive but higher risk, innovations. Based on the unbalanced panel data of 4,694 firm-year observations in our sample from listed Chinese family firms during the 2006–2015 period, empirical analysis supports our hypotheses and confirms that when examining family firms' innovation, there is a need to take the heterogeneity of the intra-family governance structure more fully into consideration.

In this commentary, I expand on Fey's (2022) perspective on the future development of Chinese business schools. In particular, I explore some of the nuances related to Chinese business schools that were not covered by Fey with the goal of continuing this important dialogue.

The ‘rivalry’ between India and China on the global stage is much ado about nothing. India and China both have huge potential to play a bigger role in global business than they do today. Both countries have experienced major growth domestically, which is not yet matched by their role in global business. MNEs from the two countries have been internationalizing along very different pathways, with few overlaps. Their ability to realize their potential depends on policies and institutions as well as entrepreneurial business leadership in their own country. Their future internationalization depends only to a small degree on the other of the two countries

Strategic decision makers interpret information and translate it into organizational action through the lens of strategic schemas. How should firms realize high performance with various strategic schemas? Cognitive content and structure have been shown to underlie strategic schemas, but few studies have considered them together. This study employs aggregation analysis to clarify the interaction between cognitive content (technology orientation, market orientation) and structure (complexity, centrality) in affecting the firm performance (FP) of ‘hidden champion’ companies, identified by the Economy and Information Technology Department of Zhejiang Province, China. The empirical method applies fuzzy-set qualitative comparative analysis to generate strategic schema profiles for high FP. This exploratory study fills a gap in the literature on managerial cognition and provides key lessons from ‘hidden champion’ companies in China and their paths for small- and medium-sized enterprises to grow.

This research commentary responds to Jiang and Murmann (2022), by offering further explanations for the miraculous growth of the digital economy in China from both the demand and supply perspectives. To complement their views, we identify several additional important factors, and classify them in three categories in an explanatory model. We believe that factors on the demand side played a primary role, along with innovative and entrepreneurial e-commerce service providers on the supply side. Infrastructures and government policies provided the foundation and a facilitating environment. We conclude that digital transformation of traditional industries will become the next wave of digital economy, stronger than the previous wave of e-commerce. Implications for research and practices are also discussed. In addition, we highlight emerging trends and turbulences. In conclusion, despite short-term turbulences, we expect that the digital economy in China will make big-stride progress in the long term, with strong potential to continue its growth.

The extensive narrative of growth and development of the information and communication technologies (ICTs) in China by Jiang and Murmann (2022) and the discussion of Chinese strengths and weaknesses portray the remarkable progress that China has made, especially in technology relative to advances in the basic sciences. In our response, we situate their contribution in the larger context of Chinese economic growth and the challenges it faces in transforming these accomplishments into an embedded national capability to become a leading innovation economy and thereby deliver prosperity to its enormous but aging population. The contexts for the successes and weaknesses in ICT that Jiang and Murmann (2022) describe so admirably are vital for a more comprehensive understanding of their place in the overall development of China.

In this perspective article, I draw on transition research that has been developed to account for the transitions in many socio-technical systems within human society, such as energy, water, and food. I argue that many ideas developed in transition research can be applied to the ecosystem of contemporary business schools in China for its transformation. Using the multi-level perspective (MLP) from transition research as an analytic framework, I examine the socio-technical system of business schools in China for understanding the main forces that may shape a potential transition of the sector. I also draw on transition management theory and insights from research on the politics of transitions for important conditions that are required to enable a transition in this specific context.