Firms in a nascent industry need to search across various technological trajectories and market opportunities with limited prior knowledge. While inter-firm learning (e.g., imitation) helps the focal firm adapt in the process of conformity, intra-firm learning (e.g., independent experimentation) helps a firm stand out from rivals in the process of differentiation, both of which can gain competitive advantages. This study investigates how the conformity-differentiation balance can be achieved from the cross-level learning perspective. Adopting a mixed-method design, we first conduct a case study on the Chinese photovoltaic industry. The case suggests that firms are inclined to conform in upstream and bottleneck technological domains but differentiate in the downstream market applications. We then extend the case findings through a computational simulation based on March's learning model. When experimentation and imitation are possible, the balance between conformity and differentiation can be reframed as the classical balance between exploitation and exploration across the firm and industry levels: while experimentation is often exploitative at the firm level but exploratory at the industry level, imitation is often exploratory at the firm level but exploitative at the industry level. The study makes a new attempt to bridge the optimal distinctiveness literature with the organizational learning literature.

Researchers have paid much attention to the performance implications of authoritarian leadership. However, less effort has been devoted to exploring its ethical consequences at work. Drawing on the social cognitive theory of morality, this study explores the indirect relationship between authoritarian leadership and subordinates’ unethical pro-organizational behaviors (UPB) via displacement of responsibility. A vignette-based experimental study (Study 1) and a time-lagged field study (Study 2) were conducted to test our hypotheses. Consistent findings were accumulated for the indirect relationship between authoritarian leadership and UPB through displacement of responsibility (both Study 1 and 2). Furthermore, this indirect relationship was stronger among employees with low level of moral efficacy (Study 2). We conclude this study by discussing the theoretical and practical implications of these findings.

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.

Drawing from conceptualizations of organizational learning and institutional complexity, we advance the understanding of how the coexistence of multiple institutional logics in a community influences firms’ learning. Viewing communities where firms and local governments coexist as clusters, our analysis of 354 firms in 39 township clusters in China shows that government logic negatively moderates the positive effect of community logic on organizational learning; however, social connections between the community and local governments mitigate this negative effect. Modeling the relationship between the two logics in this manner extends prior conceptualizations of interfirm learning as a process of isomorphic diffusion of social norms and advances understanding of the role of institutions in organizational learning. This study also offers new insights for theoretical conversations on the compatibility and incompatibility of multiple institutional logics by demonstrating when logic multiplicity leads to conflicts and when it maintains harmony.

Despite the growing interest in social businesses, knowledge about and theorization of how these businesses change social and institutional conditions in emerging economies is scarce. This research investigates how an innovative social business model acts on institutional voids and creates social value for deprived communities. Building on insights from the literature and a longitudinal case study of a local, grassroots social business venture operating in Brazilian slums and shantytowns (favelas), we uncover and theorize eight mechanisms by which an innovative social business model brings about institutional change and creates social value. These mechanisms are: orchestrating local business networks, developing local business networks, upgrading and building cognitive capacity, legitimizing, assigning multiple roles, empowering, building a positive territorial identity (territorial de-stigmatization), and boundary spanning. Our findings have important implications for social entrepreneurs and organizations supporting social business ventures in transforming economies.

Pursuing ambidextrous foreign direct investment (FDI) has been suggested as a desirable strategic choice of emerging economy (EE) firms in their internationalization. Yet, reconciling explorative and exploitative activities overseas is complicated due to their conflicting and tensional nature. This study explores why some EE firms can achieve high levels of ambidextrous FDI while others cannot. Drawing on upper echelons theory, we propose a micro-foundation perspective of ambidextrous FDI by studying top management teams’ (TMTs) attributes. Applying a configurational approach to a sample of 294 EE firms’ FDI observations (of which 43 are ambidextrous FDI in nature) from 2011 to 2015, we not only confirm the equal importance of both TMT incentive and cognitive factors as causal conditions to achieve a high degree of ambidextrous FDI, but also provide original evidence on the interactive configurations of those factors that lead to ambidextrous FDI.

During technology transitions, incumbents are frequently faced with the ambidextrous challenge of exploiting existing capabilities and exploring new ones. While extant studies focus on radical changes in the product domain, we notice radical changes can happen in both product and market domains. Pioneering studies indicate that cross-functional ambidexterity addresses this challenge at the business-unit level by juxtaposing exploration and exploitation across different functional domains (particularly in product and market domains) and that complementary assets address this challenge at the organizational level. However, how efforts at two levels can be combined to build cross-functional ambidexterity and what roles complementary assets play remain unclear. Therefore, this study conducts an in-depth case study of Huawei Mobile, which managed to achieve superior performance during a technology transition that triggers radical changes in both product and market domains. We find that multi-level synergies contribute to the transition process. Specifically, cross-functional ambidexterity is constructed by prioritizing exploration in the product domain ahead of that in the market domain, and that it generates learning, brand and channel extension, matching, and brand alliance benefits at the business-unit level. Complementary assets help to reduce the uncertainty of exploration and resolve functional conflicts at the organizational level.

In this article, I draw from organizational imprinting theory to illuminate the impact of the Soviet legacy on contemporary Russian economic geography and regional policy. I argue that central coordination in the creation and regulation of Russian urban agglomerations is connected to a socialist imprinted paradigm associated with the Soviet economic regionalization model and territorial-production complexes (TPCs). I conduct a qualitative historical study to analyze the role of the foundational environment and the dynamics in the development of this imprint. I propose that this imprint effect is prone to reproduction in contemporary regional development strategies and community-based paradigms due to exaptation and cultural-cognitive persistence. The article extends the literature of socialist imprinting by demonstrating how imprints may emerge, transform, and affect localized organizational communities in transition economies and highlights the role of imprinted paradigms in policymaking and regional development.

We study two quick-service restaurant (QSR) chains based on regional ethnic foods that were launched in China and India. The products that these QSR ventures offered had hitherto been sold by fragmented street vendors who typically operated single outlets. Inspired by the successful business models of international QSR brands, these entrepreneurs developed business models to popularize their chosen regional ethnic foods in multiple new regions and grew their organizations to 1,400 and 300 outlets in China and India, respectively. We build on the recently coined concept of ‘secondary’ business model innovation (SBMI), which is based on inter-organizational learning, break down its constituents into creative and imitative, specify the mechanisms through which it is achieved, and propose that it is a specific case of the more general construct of creative imitation.

In this article, I propose a typology of thinking pattern that helps us understand the variants of the so-called ‘both/and thinking’ shared by many organizational paradox scholars in the West and China. The variants are distinguished by the ‘primary thinking-secondary thinking’ structure between the combined elementary thinking. One of the variants, i.e., Neither-And thinking, is associated with James March's discussion of logic of consequences and logic of appropriateness. An examination of March's writings reveals an additional ‘principle-practice’ structure underlining March's unique solution to paradox. Incorporating the ‘principle-practice’ structure into the proposed typology in turn helps us better understand the other variants of ‘both/and thinking’ such as ambidexterity, contingency, and Zhong-Yong. The typology shows March's Neither-And solution is unique because it embraces a primary neither/nor thinking while all the other variants do not. To demonstrate the value of March's unique solution, I apply Neither-And thinking characterized by the ‘principle-practice’ relationship to paradoxes outside organization studies, e.g., in Deconstruction, Buddhism, and quantum physics. The wide application of Neither-And thinking implies that James March's unique solution to organizational paradox may have provided a key to understanding paradox in general.

Based on interviews and documentary analysis, we analyzed the mechanisms being adopted by the HQ of Huawei, a Chinese MNC, for controlling the outputs and processes of its foreign subsidiaries and social behaviours within them and how these controls were supported by corresponding strategies of legitimation. The controls comprise key performance indicators, standard operating procedures, divided subsidiary mandates, HQ-centric rotational expatriation, military-style induction, public oath-taking and self-criticism ceremonies, and training in and role-modelling of core values. The HQ provides comprehensive legitimation for each of these control mechanisms, drawing on five strategies of legitimation, which comprise espousals of organizational benefits, inducement, affirmation, moral exhortation, and narrativization. In many cases, the legitimizing statements have been provided by Mr. Ren, Huawei's founder and CEO, whose authority appears to have been important in conferring legitimacy to the HQ. The historical path of Huawei's development as an MNC has also been salient in conferring legitimacy to the HQ. Our findings suggest that interviewees regard the controls as legitimate, that the subsidiaries broadly comply with the controls, and that micro-political contestation is largely absent.

Firms are often criticized for their reluctance to embrace sustainability in their business strategies. Frugal innovation is a recent concept that represents a new way for firms to serve underserved customers in developing countries while also promoting sustainability. Based on three cases of frugal innovation at the grassroots level in India, this article demonstrates how frugal innovation presents a promising way to tackle some of today's pressing societal problems with new business models. We use a range of parameters for economic, social, and environmental sustainability to strengthen the case for frugal innovation. This article attempts to inspire scholars to consider frugal innovation further in their future research endeavors and encourage firms to integrate it into their existing business models.

Optimal or rational decision making is not possible due to informational constraints and limits in computation capability of humans (March & Simon, 1958; March, 1978). This bounded rationality serves as a filtering process in decision making among business executives (Hambrick & Mason, 1984). In this study, we propose the concept of CEO reflective capacity as a behavior-oriented cognitive capability that may overcome to some extent the pervasive limitation of bounded rationality in executive decision-making. Following Hinkin's (1998) method and two executive samples, we developed and validated a three-dimensional measure of CEO reflective capacity. Based on two-wave surveys of CEOs and their executive-subordinates in 213 Chinese small-medium sized firms, we tested and confirmed three hypotheses on how CEO reflective capacity is related to a firm's sustainability performance (including economic, societal, and environmental dimensions) through the mediating mechanisms of strategic decision comprehensiveness and CEO behavioral complexity. We discuss the contribution of this study to the literature on the upper echelons and information processing perspectives. We also identify the implications for future research on strategic leadership and managerial cognition in complex and dynamic contexts.