We investigated how third party managers from China, Japan and the USA intervened in employees' disputes. Consistent with predictions, we found (using non-linear HLM analysis) that managers who were superiors to the disputants behaved autocratically and/or decided on conservative (e.g., contract adhering) outcomes; but managers who were peers (especially in China and the USA), generally involved disputants in decision-making and obtained integrative outcomes that went beyond initial contract related mandates. Our results extend prior research and theorizing using the dispositional and constructivist perspectives on culture by introducing norm complexity as an explanation for variations in third party conflict intervention behaviour within one culture.

China's state-guided economic miracle has revitalized a long-standing and unsettled debate about the role of government in transformative economic development. In a firm-level study of corporate governance we examine whether direct state involvement actually makes a positive contribution to the economic performance of newly incorporated firms in China's urban economy. We show that direct intervention into the governance of firms is likely to yield negative economic effects at the firm level. We infer from our findings that it must be other types of government intervention external to the firm that explain the success of China's developmental state in promoting rapid economic growth.

We enhance the theoretical precision of cultural intelligence (CQ: capability to function effectively in culturally diverse settings) by developing and testing a model that posits differential relationships between the four CQ, dimensions (metacognitive, cognitive, motivational and behavioural) and three intercultural effectiveness outcomes (cultural judgment and decision making, cultural adaptation and task performance in culturally diverse settings). Before testing the model, we describe development and cross-validation (N = 1,360) of the multidimensional cultural intelligence scale (CQS) across samples, time and country. We then describe three substantive studies (N = 794) in field and educational development settings across two national contexts, the USA and Singapore. The results demonstrate a consistent pattern of relationships where metacognitive CQ and cognitive CQ predicted cultural judgment and decision making; motivational CQ and behavioural CQ predicted cultural adaptation; and metacognitive CQ and behavioural CQ predicted task performance. We discuss theoretical and practical implications of our model and findings.

We examine how evolving FDI legitimacy in China influences two strategic choices (entry mode and expatriate staffing) of Japanese subsidiaries there over the period 1993–2000, based on data aggregated from Toyo Keizai and the National Bureau of Statistics of China (various years). As FDI legitimacy improves over time, we find that smaller subsidiaries tend to choose the wholly owned subsidiary mode and deploy a higher percentage of expatriates, whereas larger subsidiaries tend to choose the joint venture mode and use a lower percentage of expatriates; and that Japanese subsidiaries are more likely to have a local manager, and this tendency may be stronger for larger subsidiaries. The theoretical and practical implications of these findings are discussed from a density dependence theory perspective.

The proliferation of new property rights regimes in transitional economies provided an opportunity to examine the interaction between institutions and organizations. Some private enterprises in China developed the Red Hat strategy whereby they disguised their private ownership by registering as a public-owned organization. Drawing on a national survey, this study investigated how institutional variations, transaction costs and social embeddedness affected the firms’ Red Hat strategy. The findings suggest that private firms preferred a fuzzy property rights arrangement in the early years of market transition. The temporal and regional variation of the institutional environment contributed to the adoption of the Red Hat strategy. High transaction costs — networking cost and resource constraints — were positively related to the adoption of the Red Hat strategy. Social embeddedness also played an important role. The reliance on transaction partners in the public sector increased the pressure to adopt the Red Hat, while connections with high-ranking cadres facilitated the process. However, private firms opted for clearly delineated property rights as the institutional environment improved. In turn, the decisions of individual firms affected the institutional environment at the aggregate level. The Red Hat strategy exemplifies the co-evolution of institutional change and organizational dynamics.

Does CEO duality – the practice of one person serving both as a firm's CEO and board chair – contribute to or inhibit firm performance? Agency theory suggests that CEO duality is bad for performance because it compromises the monitoring and control of the CEO. Stewardship theory, in contrast, argues that CEO duality may be good for performance due to the unity of command it presents. The empirical evidence, largely from developed economies, is largely inconclusive. This article joins the debate by extending empirical work to the largely unexplored context of institutional transitions. Our findings, based on an archival database covering 403 publicly listed firms and 1,202 company-years in China, offer stronger support for stewardship theory and relatively little support for agency theory. Finally, we also call for a contingency perspective to specify the nature of conditions such as resource scarcity and environmental dynamism under which CEO duality may be especially valuable.

This study examines the determinants of the timing of Taiwanese firms' entry into China. Our empirical findings suggest that this strategic decision is influenced by both economic and institutional concerns. In particular, we found that Taiwanese firms that expected greater benefits from early entry tended to be early entrants in China, while those that were more sensitive to uncertainty chose to defer their entry. We also found a curvilinear relationship between firm size and timing of entry into China. Our findings further indicate that the negative relationship between investment irreversibility and early entry is weaker in the presence of substantial perceived first mover advantages.

I compare networks of entrepreneurs and venture capitalists in China and Russia by examining professional social networks of software entrepreneurs and private equity investors from the perspectives of institutional theory and culture paradigm. In the empirical study, I draw on survey data from Beijing and Moscow based on interviews of 159 software entrepreneurs and 124 venture capital decisions. I found that professional networks of the Chinese software entrepreneurs are smaller, denser and more homogeneous in educational specializations, compared with the networks of Russian entrepreneurs. Furthermore, I found that both ties and interpersonal trust in the referral tie are stronger in China than in Russia.

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.

Adopting a diversity-in-unity perspective that identifies all shared dimensions and typical delineations, both as structure-similar yet content-diverse configurations, this paper proposes an interdisciplinary conceptualization of trust with primary trust ideal-types. This conceptualization contains three components: (i) a typology of four trust dimensions related to trust conditions and trust functions; (ii) a typology of four trust delineations derived from the four trust dimensions; and (iii) a typology of four trust ideal-types built upon the first two typologies. These typologies jointly serve as a salient platform to unify the fragmented trust literature.

In a cross-cultural experiment, we examined how task interdependence influences the importance of organizational citizenship behaviour (OCB) in employee performance evaluations in China and the USA. A total of 150 graduate students in China and 154 in the USA (a total of 304), who serve as evaluators, participated in the experiment. Participants were exposed to a task interdependence manipulation and then rated the importance of OCB in their overall performance evaluations of employees. Results support the moderating effects of national culture (both using a country proxy and as a measure of collectivism) on the affects of task interdependence. Although among evaluators from the USA perceptions of the importance of OCB increased as task interdependence increased, the effects of task interdependence were significandy attenuated among evaluators from China. Implications of these results for research and practice are discussed.

High levels of trust and shared vision contribute to collaborative behaviour among units belonging to the same corporation. We examined the relationship of language fluency and socialization mechanisms to inter-unit shared vision and trustworthiness, using a sample of 310 inter-unit relationships involving subsidiaries of multinational corporations located in China and Finland. Results show that language fluency related significantly to shared vision and perceived trustworthiness in both the Chinese and Finnish subsidiaries. We also found socialization mechanisms to have a positive relationship to shared vision in the Chinese but not the Finnish sample, and no significant relationship to perceived trustworthiness in either sample. The interaction effects of language fluency and socialization mechanisms produced different results in the Chinese and Finnish samples. The study confirmed the importance of language fluency for inter-unit relationships and offered several suggestions for future research.

International joint ventures (IJV) are an important organizational mode for expanding and sustaining global business and have been of special relevance for the emerging Chinese market for decades. While IJVs offer specific economic advantages they also present serious management problems that lead to high failure rates, especially in developing countries. Because of the strategic relevance of IJVs and corresponding management challenges, research on success factors for managing IJVs in China has received broad attention, resulting in a variety of studies. However, there are no conceptual syntheses of the literature to date and further development in the field is hampered by both a lack of consolidation of what is known and identification of viable avenues for future research. We address this gap by building on existing concepts in the field, developing them further and synthesizing them into an integrative, theory-based framework of IJV success factors. We use this framework to systematically depict the results of both empirical studies related to Sino-foreign IJVs and to IJVs in general. Finally, we draw important implications from the research and propose potential paths for future study.

In this paper we introduce the concept of ’polycontextuality,’ which refers to multiple and qualitatively different contexts embedded within one another. We distinguish polycontextuality from the singularly contextual types of description typically provided by social scientists, and use the case of China to elucidate polycontextual phenomena. Polycontextuality can include verbal- and non-verbal nuances whose understanding is rooted in local, cognitive, emotional and even spiritual references -most of which cannot be easily observed or historically studied. For this reason we recommend the polycontexual sensitive research method to supplement the scientific deductive research typically designed to study observable phenomena based on a singular context (e.g. verbal) that are controllable by the researcher's stimuli and/or measures. Actions for increasing scholars’ polycontextual sensitivity are suggested, and guidelines for the scholar interested in doing high quality indigenous research are offered, using the case of China for illustrative purposes.