This conceptual paper examines the considerable scope of leadership theories built from literature originating in the West to focus on the ‘process’ of leadership. By opening the door to include traditional Chinese thought, the worldview of Western tradition is challenged using the work of philosopher and sinologist François Jullien. Chinese culture views process as the basis of transformation and renewal in the world. It is explained through ‘the propensity of things’ in relation to European ontology and causality. Recognizing the evolving nature of reality through the generic Chinese notion of shi 勢, which serves as a conceptual tool for Jullien, leadership process is understood as an aspect of organization propensity. Shi 勢 is then recognized as a leading force encompassing human agency that is able to open a new avenue for research nurturing the emerging quantum phase of leadership.

Although research in cultural psychology has established that virtually all human behaviors and cognitions are in some ways shaped by culture, culture has been surprisingly absent from the emerging literature on the psychology of technology. In this perspective article, we first review recent findings on machine aversion versus appreciation. We then offer a cross-cultural perspective in understanding how people might react differently to machines. We propose three frameworks – historical, religious, and exposure – to explain how Asians might be more accepting of machines than their Western counterparts. We end the article by discussing three exciting human–machine applications found primarily in Asia and provide future research directions.

While the construct of moqi (默契, pronounced ‘mò-chee’) is ubiquitously understood and finds itself in everyday conversations around the home and workplace in China, the theoretical development of moqi has been scarce. In this article, we expand on prior work on moqi and conceptualize moqi as a dyadic level construct that describes a situated state of shared contextualized understanding without saying a word between two counterparties. We further articulate a broader view of moqi as a dyadic communication construct that is both target-specific and situation-specific. We propose a nomological network of moqi that shows how shared contextualized understandings between counterparties are informed by several different layers, including ‘capability’ (a) a generalized proclivity to be able to form such understandings with others, and ‘contributing factors’, (b) how those understandings are formed either (i) through interactions or (ii) without them through overlaps in background characteristics or experiences, and (c) how other factors accentuate the capability and inclination to ultimately achieve moqi. We then discuss several potential consequences of moqi in organizational settings. Finally, we discuss why moqi is a powerful form of effective communication that is meaningful beyond the Chinese cultural context.

Past studies have shown that the flow of knowledge from incumbent firms is associated with the creation of startups and their subsequent performance. While much research has focused on the mechanisms of how incumbent-to-startup knowledge transfer takes place, such as entrepreneurs pursuing opportunities that their previous employers do not want to pursue, we explore with detailed qualitative analysis of six private startups in the Chinese synthetic-dye industry what type of knowledge actually flows and what type is more important for the long-term success of startups. We discover eight types of knowledge that flow from incumbents to new firms during the foundation of startups. Abstracting these eight types of knowledge into two general categories of functional knowledge and strategic knowledge, we find the reception of strategic (not functional) knowledge shapes the long-term competitiveness of surviving startups. Receiving technical knowledge – one type of functional knowledge – during the founding period is necessary for startups’ short-term survival but insufficient for long-term success. Our findings show that the performance implications of initial knowledge flows from incumbents hinge on the type of knowledge, contributing to a more explicit explanation of how incumbent-to-startup knowledge flows affect entrepreneurial performance.

Strategic management scholars have shown increasing interest in explaining strategic change from the perspective of cognitive bias. However, most studies focus on individual cognitive bias but pay little attention to group cognitive bias. This study introduces a typical group cognitive bias (group polarization) to explain strategic change decisions made by the board of directors. Following the theory of group polarization, we argue that, when the average prior strategic change experienced in performance decline by board directors is relatively high (or low), the focal strategic change in performance decline will become even higher (or lower). We further contend that the proportion of female directors and board versus CEO power as the contingencies can mitigate this group polarization effect. Our hypotheses were strongly supported by a longitudinal sample of Chinese publicly listed companies during 2008–2018. The study's framework and findings contribute to the contextualization of social psychology research on group polarization in the study of board's strategic decision-making.

This study examines the impact of language diversity on interpersonal relationships in multinational and national/domestic teams in a multilingual country – India. Specifically, it explores whether and how the influence of language diversity differs in the two types of multilingual project teams. To this end, using direct observations and semi-structured interviews, we conducted a thematic analysis and found that native language-based faultlines and groups exist in both kinds of teams. However, such faultlines and language-based groups can disintegrate into smaller, regional dialect-based subgroups due to the emergence of dialect faultlines. Furthermore, evidence suggests that multilingual managers are more effective as boundary spanners in bridging the faultlines in multinational teams; at the same time, they need to be aware of the distinction between language differences and faultlines. This study provides the required distinction between language diversity and the role of multilingual managers in national and multinational teams in an understudied context, thereby contributing to the literature on language diversity.

Private equity funds implement various management and governance practices in firms they endorse, signaling higher quality of sponsored IPOs (Initial Public Offer). However, the participation of such PE funds comes at a cost for newcomer firms, as they may lose both autonomy and future post-IPO earnings. If they do not choose to signal quality through PE funds, the IPO literature points to the validity of other mechanisms, such as the experience and centrality of the board of directors. We theorize and test the effect of the tradeoff between private equity sponsorship and board centrality and experience on IPO performance. We analyzed the effects of signaling on long-term performance through the one-year cumulative abnormal return in Brazilian IPOs issued between 2004 and 2013. Our results indicate that private equity sponsorship is the most effective signal, completely overtaking the relevance of board centrality and experience to explain IPO performance. However, these latter board characteristics significantly affected the performance of non-private equity-backed IPOs. Between PE-backed companies, there is a reverse effect of the board centrality on the IPO's performance and a substitution effect of the board's previous experience with IPO processes.

This study provides a behavioral account of opportunistic diversification. We argue that top executives’ social comparison with peer firms based on business segment performance can lead them to increase their investments in high-profitability new businesses (i.e., opportunistic diversification). Specifically, when the performance of a firm's main business relative to its peer firms’ high-profitability business segment falls short of their aspirations, the firm's top executives will engage in problemistic search and subsequently increase opportunistic diversification. This effect is stronger when the firm is similar to peer firms along key firm characteristics and when top executives of the firm are underpaid. Although opportunistic diversification helps improve a firm's short-term accounting performance, it may weaken its long-term performance. Using Chinese non-real-estate firms’ diversification investment in real estate as our empirical context, we find support for our arguments.

Building on recent developments in optimal distinctiveness (OD) research, we identify two dimensions of corporate social responsibility (CSR) practices – CSR scope conformity and CSR emphasis differentiation – and examine the antecedents of both. We theorize that private ownership and enhanced media coverage may increase scope conformity and emphasis differentiation, while such effects may be contingent on industrial context. In socially contested industries, the impact of private ownership on scope conformity will be mitigated, and the impact of media coverage on scope conformity will be amplified. Meanwhile, in highly competitive industries, the impact of private ownership and media coverage on emphasis differentiation will be mitigated. We test our predictions using a database of 942 Chinese publicly listed firms between 2008 and 2016. Our findings imply that the choice of optimal CSR strategy has to be made in accordance with the embedding context. The multidimensionality view of OD enables firms to better orchestrate firms’ strategic positioning along different dimensions of complex practices, which leads to better customization of societal expectations and the industrial competitive landscape.

In this study, we conceptualize the thus far little explored relationship between expatriate and host country as a form of social exchange governed by the norm of reciprocity. Drawing from social exchange theory and our analysis of 451 self-initiated expatriates (SIEs) living and working in the United Arab Emirates, we examine whether the degree of SIEs’ career and community embeddedness explains their host country withdrawal intention via enhanced perceived institutional trust and a more tolerant attitude toward workplace discrimination. Our results provide general support for our theoretical model and most of our hypotheses. In this way, our article makes three contributions. First, it suggests a novel way to conceptualize the relationship between SIEs and host country as a form of social exchange. Second, it differentiates between two dimensions of embeddedness and explicates how the two contribute to SIEs’ intentions to stay in the host country. Finally, the analysis theorizes and empirically tests two previously little explored mechanisms of enhanced institutional trust and a more tolerant attitude toward workplace discrimination through which SIEs’ host country embeddedness influences their host country withdrawal intentions.

Through two in-depth case studies, we compare the approaches of a state-owned enterprise (SOE), Beijing Automotive Industries Holding Co., and a privately owned enterprise (POE), Geely, to acquire and absorb advanced technological knowledge to enhance their innovation capabilities. Each company acquired advanced knowledge from troubled famous Swedish automakers and upgraded their products technologically. Analyzing data mainly collected from secondary sources identifies major differences in approaches and actions at each acquisition step rooted in the type of ownership. We juxtapose these differences with insights from the literature on knowledge acquisition and research on firm ownership. Our findings show that the POE seeks the strategic goal of synergistic technology integration for better innovation and economic performance. In contrast, the SOE pursues national objectives with less regard for market success. This SOE focuses on an independent approach to knowledge absorption and development during their acquisition, whereas the POE emphasizes collaboration in innovation capacity development. This study provides insights into Chinese firms’ positioning on innovation development on the global stage, comparative capitalism, and the particular case of state capitalism in China.

This article develops a framework to test how surface-level and deep-level faultlines impact team performance through subgroup formation and team interaction quality. We test it with 96 empirical articles on team faultlines from 2002 to 2022, using meta-analytic techniques. Firstly, results suggest that subgroup formation and team interaction quality act as serial mediums through which surface-level and deep-level faultlines exert negative indirect effects on team performance. Secondly, moderator analyses reveal that increasing interaction time will mitigate the effects of surface-level faultlines but enhance the effects of deep-level faultlines. Finally, surface- and deep-level social faultlines and deep-level task faultlines are detrimental to team interaction quality, and these negative effects are mediated by subgroup formation. Surface-level task faultlines are beneficial to team interaction, and this positive effect does not work through subgroup formation.

Organizational interactions in fields, including their antecedents and consequences, remain under-researched, in particular with regard to relational distance and transformative skills. Through a comparative study of the German and Japanese wind power sectors, we explore the importance of distance among organizational actors and the development of skills. While in the case of Germany a radical increase in wind energy generation can be witnessed, the situation in the field of Japanese wind power remains largely unchanged. We show how different degrees of distance among organizational actors in these two countries result in the different development of skills that stimulate transformation in the field of energy generation. More precisely, we illustrate the pivotal role of distant challengers with their transformative skills for the successful conversion of already established field structures. Our study contributes to field theory by elaborating on the understanding of the evolution of relational distance, thereby grasping the dynamic interplay between the diversity of actors and their skill formation within a certain strategic action field.

How can a firm apply the appropriate interaction between exploration and exploitation with the goal of either radical or incremental innovation? In this study, we seek to answer this puzzling question by reframing exploitation and exploration as a duality of learning (i.e., two modes that are partial complementary for synergy as well as partial conflicting for tradeoff). Specifically, rather than assuming either a positive or negative interaction between exploration and exploitation as prior literature has done, our study highlights a novel pattern of inverted U-shaped interaction between exploration and exploitation for both radical and incremental innovations. With a Chinese sample of 508 firms, our empirical evidence supports our prediction of two patterns of inverted U-shaped interaction of exploration and exploitation. Such unique findings showcase the unique value of reframing paradox into duality from the meta-perspective of yin-yang balancing to shed new light on organizational ambidexterity and innovation management.