Enrolling in global networks and contingencies for China's solar PV industry

This study tests the contention in the Asian business systems literature that interacting with global managers and increasing experience via international education are ways by which Asian firms enroll in global networks, thus potentially leading to changes in their broader network contingencies. Chinese solar PV firms are examined given the competitiveness of Chinese products in the global marketplace and the importance being placed on solar energy domestically as China confronts increasing pressure to protect its environment and control pollution while meeting mounting energy needs. Results indicate an emphasis on extra-firm institutional network relationships both within and outside of China for all firms, characteristic of a bourgeoning energy sector. A unique result is that buyer–supplier networks are spatially influenced by extra-local managerial education. Enrolling in wider networks also matters as firms with internationally educated managers have more non-mainland Chinese managers, which mitigates traditional management practices at home.     

Why do Chinese firms tend to acquire strategic assets in international expansion?

More Chinese companies are using cross-border merger and acquisition (M&A) to access and source strategic assets so as to address their competitive disadvantage. However, there is lack of research on the rationale for such strategic-asset-seeking M&A. This paper intends to address this critical issue from an institutional perspective. Building on institutional theory, we propose a model of resource-driven motivation behind Chinese M&A. To shed light on the explanatory power of this institutional framework, we draw on a multiple-case study of three leading Chinese firms—TCL, BOE and Lenovo. By arguing that cross-border M&A from Chinese firms represents a means to acquire strategic assets is the logic of Chinese unique institutional environment, this study is of importance not only to stimulate possible theoretical extensions but also to draw implications to other emerging market firms.     

Innovation and risk-taking in a transitional economy: A comparative study of chinese managers and entrepreneurs

This research was set in the People's Republic of China. As former socialist China moves from central planning toward a more market-driven economy, improved knowledge about the new environment and firm decisions within such an environment has significant implications. For organizational researchers, such a transition represents a genuine shift of paradigm, and thus offers a unique opportunity to test existing organizational theories and develop new ones. For multinational businesses seeking business opportunities, they have to compete or cooperate with these Chinese firms, whether state-owned or privately owned.Motivated by a deep curiosity in, using the language of Williamson (1996), “What is going on there” behind the “bamboo curtain,” and underpinned by a strong conviction that organizational researchers have much to gain as well as to offer by focusing on transitional economies, I undertook this study to examine characteristics of a regulatory environment and the impact on innovation and risk-taking among Chinese managers and entrepreneurs. I collected original primary data that represents managers from large state-owned enterprises (SOEs) and entrepreneurs from small privately-owned enterprises (POEs) through personal interviews and a survey. Significant differences were found between managers and entrepreneurs in their reported environmental characteristics, strategic orientations, size, and firm performance, indicating that managers are not as innovative and are less willing to make risky decisions than entrepreneurs. Being smaller and faster than SOEs, entrepreneurial firms have adopted some strategies that distinguish them from their larger and more established competitors. Speed, stealth, and sound execution allow entrepreneurs to harvest first-mover advantages and thus increase their chances for survival in a turbulent environment.     

Differences between Presidents' and Sales Managers' Perceptions of the Industry Environment and Firm Strategy in Small Industrial Firms: Relationship to Performance Satisfaction

The industrial sales force is the primary source of information about the competitive environment. Differences of perceptions of that environment between the national sales manager and the firm president in small industrial firms may reflect inadequate environmental information input into strategic decision-making. The sales force is a major element in implementation of strategy and differences between perceptions of firm strategy may reflect inadequate coordination and communication between the chief strategy decision-maker and the manager who is responsible for implementing that strategy in the market place. It would be expected that these differences in perceptions would impact negatively strategy formulation and execution resulting in unsatisfactory firm performance. This study surveyed the environmental and strategy perceptions of presidents and national sales managers in small to medium-sized industrial firms as well as presidents' satisfaction with firm profitability and marketing/sales effectiveness. The average absolute difference in environment perceptions has a negative relationship with satisfaction with profit. The average absolute difference in strategy perceptions has a negative relationship with marketing/sales effectiveness. This latter relationship is especially strong in an environment high in capital spending variation and for larger firms. The authors suggest implications for managers based on these results.     

An Exploration of Managerial Views on Positioning Services in Ghana

ABSTRACT

The paper constitutes an analysis of the views of managers of service firms on positioning strategies in Ghana. The research employed a qualitative research method. Data were collected from 21 service managers and analyzed using content analysis procedures. The results indicate that for service managers, the perceived dominant positioning strategies of their organizations were: service quality, customer relationship, innovation, availability of service, community support, and leading organization, among others. The findings suggest that the dominant managerial views of Ghanaian service managers form a ‘hybrid’ of those of the Western manager. This research is important in clarifying this position. Additionally, as an exploratory piece, the study provides bases for further research on a topic in Ghana with a rather scant evidence of research.     

Managerial Success Factors

Abstract

This article reports on an exploratory study conducted in the People's Republic of China (PRC) to identify the managerial success factors perceived by Chinese managers to be important in their market economy. The study also looked at how these factors are exhibited by recent graduates of Chinese universities now working in Chinese firms. Questionnaire responses were collected from managers in 113 Chinese state-owned exnterprises (SOEs) and private firms. Managers in both types of firms agreed on the relative importance and presence of the following factors: work habits, teamwork, creativity, ethics, communication, leadership, and business area knolwedge. Respondents gave higher ratings to the importance of each factor than to its presence in the recently hired gradutes. The results of this study provide a management profile of knowledge, skills, and abilities considered desirable by Chinese managers for today's market economy in the People's Republic of China. The identification of gaps between importance ratings and presence ratings provides valuable insight into changes that should be considered by educators in the design of business area currucula in Chinese universities.     

Earnings management and firms' investment behavior: The threshold effect of ROE

This paper, on the basis of a sample of Chinese listed firms, investigates the relationship between both real and accrual-based earnings management activities and firms' capital investment behavior. We apply the threshold model proposed by Hansen (1999) and find firms managing earnings can either over or underinvest, depending upon firms' return on equity (ROE) level. The study results show an inverted relationship between earnings management and firms' investment, which changes from negative to positive with ROE rising beyond certain threshold levels. We also find that the level of ROE affects whether managers use real and accrual manipulations jointly or as substitutes in affecting firms' investment. Our evidence is important because it sheds new light on the relationship between earnings management activities and firms' investment behavior by showing that ROE may act as an important determinant in this relationship. This finding has important implications for policymakers such as the Chinese Securities Regulatory Commission (CSRC) as it shows that the regulatory benchmarks they set may have a significant impact on firms' investment behavior.     

Environmental Protection in Environmentally Reactive Firms: Lessons from Corporate Argentina

We propose a model of planned corporate environmental behaviour that emphasises the values and attitudes of managers towards the environment, environmental intentions and the context in which these intentions are formed and translated into actual performance. In particular, we focus on the extent to which environmentally reactive (as oppose to pro-active) managers influence the environmental performance of their firms. We identify the factors that mitigate or accentuate the effects of environmental “reactivism”—i.e. a mind-set shared by those who assign to the state the responsibility of protecting the environment. We generate a series of hypotheses and use structural equation modelling to test them in the context of a unique dataset of Argentinean firms. Our system’s approach to corporate environmental behaviour explains approximatively 70 % of the variation in reported environmental performance across firms while highlighting elements of the model that may potentially be influenced by policy. Amongst other things, our empirical results suggest that stakeholder pressures can be an effective tool in the development of pro-environmental attitudes (and environmental intentions in the case of small firms) and in so doing offset some of the negative effects of environmental reactivism on environmental performance. Our paper highlights a number of other important implications for the design and implementation of environmental policies that account for human managerial determinants of corporate behaviour and social factors.     

Internationalization of Chinese Firms: What Role Does Guanxi Play for Overcoming Their Liability of Outsidership in Developed Markets?

This article explains how managers of Chinese firms can use guanxi when entering and expanding in developed markets. The empirical basis for the investigation is formed by interviews with 29 managers at 17 Chinese business‐to‐business firms internationalizing to Europe. The results generated are twofold. On the one hand, existing guanxi was largely irrelevant for initially entering the European market. On the other hand, Chinese firms managed to successfully overcome the liability of outsidership by building new guanxi‐like relationships with their Western business network partners after a certain period of time. Six propositions give insights on the process for Chinese firms to become insiders in the business networks of developed countries. The propositions were combined into two comprehensive models that give implications for future research and for management practice. © 2016 Wiley Periodicals, Inc.     

Corporate shareholdings and organizational ambidexterity in high-tech SMEs: Evidence from a transitional economy

As important engines for economic development in transitional nations, high-tech SMEs are confronted with numerous business opportunities, but are at the same time faced with developing institutions and a legacy of government involvement in their domestic environments. We examine the case of Chinese high-tech SMEs and develop a strategic orientation framework distinguishing between exploitation and exploration-type opportunities which accounts for the possibility that managers of such firms may attend to one, both, or neither. We find that shareholdings by top-managers promote a dual “ambidextrous” focus on both types, but that governmental share ownership leads to an orientation focusing on neither. We also find that the degree to which these firms utilize comprehensive decision-making processes partially mediates these main effects. Implications regarding the entrepreneurial performance of firms and economies in transitional contexts are discussed.     

Relations between multinational firms and host governments: the experience of American-owned firms in China

A survey of managers of American firms in China indicates that they have been able to maintain good relationships with the Chinese government; this is particularly true for larger firms. Statistical results suggest that government interference in the operations of the subsidiary is generally minimal though it is greater in the case of joint ventures as compared to wholly owned firms. The performance of the subsidiary is influenced by the quality of the relationship with the host government. Implications for managers of foreign firms are discussed.     

Adjusting to BRICs in Glass Houses: Replacing Obsolete Institutions and Business Models

Global adjustment to the rise of the BRIC and other emerging economies is an important challenge for firms in the advanced economies. Emerging market firms increasingly trade and invest globally while monetary imbalances continue to rise and hobble advanced economy firms. Advanced country firms feel like they live in glass houses as the tectonic forces of technology, demographics, globalization, sustainability, and climate change force obsolescence in their business models. In this article, this overseas projection of economic power by the rising new economies is illustrated by the Indian and Chinese overseas economic expansion focused on Africa. This analysis shows that noneconomic state‐driven entities are likely to be a significant part of the rise of South‐South economic trade and investment flows and it poses theoretical and practical problems for existing market‐based economic and geopolitical institutions. Global adjustment to these new realities is also challenging as existing multilateral institutions seem to be inadequate. These changes in the global environment have significant implications for policy makers and managers of global companies. © 2013 Wiley Periodicals, Inc.     

What do firms from transition economies want from their strategic alliance partners?

A financial system engaged in active transition from central planning to free market may be dubbed a transition economy. On today's global landscape, there are several important transition economies, all at various stages of transition and with differing degrees of success. Yet, much is not known about this important sector of the world economy. As outside enterprises seek alliances with firms from transition economies, it is important to know what these firms want from alliance partners. To learn more, we conducted a study interviewing managers of private firms from the two largest and most strategically important transition economies: China and Russia. We found that while Chinese and Russian firms often hope for some of the same things as their counterparts in mature economies as regards alliances, they are also interested in other things not normally associated with alliances: political influence, relief from paying bribes, and protection from extortion or even violence. Moreover, we discovered that because of differing institutional conditions in the two countries, Chinese firms are not always looking for the same things from alliances as are Russian firms—in spite of surface similarities between the two economies. Based on these findings, we provide guidelines for firms seeking alliance partners in transition economies, to assist them in determining if an alliance is right for them and planning accordingly.     

A cognitive perspective on managers' perceptions of competition

This paper focuses on the way managers perceive their competitive environment. Within a cognitive perspective it discusses why they might group similar competitors and considers whether they are attentive to all competing firms. The literature on similarity of perceptions between managers is reviewed. Interviews amongst managers in the North Sea off‐shore oil pumps industry revealed that they made sense of competition through a categorization process. None perceived the industry in the objective manner as economists suggest. Different perceptions as to the nature of competitions were found between managers, but more homogeneous perceptions were seen between managers in the same firm than between different firms.     

Microfoundations of dynamic new venture partnering capabilities

Managing relationships with new venture suppliers require the adaptation of supplier management practices and routines. This research builds upon the dynamic capabilities perspective to explicate the ability to partner effectively with new venture suppliers as a dynamic capability. We argue that new venture partnering capability (NVPC) encompasses sensing, seizing, and transforming capabilities. Firms with sensing capabilities can interpret new ventures' value propositions and then match them to the needs of their business units. Seizing capabilities allow firms to coordinate and develop the relationship with a new venture supplier to capture value. Transforming capabilities enable firms to adapt resources and reconfigure their sensing and seizing capabilities. Our findings suggest that firms accelerate the transformation and strengthen dynamic NVPCs by applying entrepreneurial behavior through high-quality and regular interactions with new venture suppliers and embedding a dedicated new venture function. We also find that dynamic NVPCs can reside at different levels and that entrepreneurial managers can stimulate the development of organizational NVPCs. In general, we provide further empirical evidence on how buying firms can more effectively leverage the potential of new venture suppliers.     

FDI expansion speed of state-owned enterprises and the moderating role of market capitalism: Evidence from China

Drawing on an institutional logics perspective and isomorphism viewpoint, we posit that the negative impact of state ownership on the speed of foreign direct investment (FDI) expansion is attributed to the state socialism logic, which is inconsistent with market-oriented mechanisms that underpin rapid international expansion. We further argue that firms associated with the market capitalism logic shape an institutional context in which state-owned enterprises (SOEs) may adjust their behaviors by adopting market-oriented practices to expand quickly in the global market. Using outward FDI project information from Chinese listed firms over a fourteen-year period, we find evidence that confirms our theoretical predictions. Our analysis shows that, despite the negative relationship between state ownership and the speed of an SOE’s FDI expansion, both the non-state economy in the firm’s subnational region and privately owned enterprises in its industry sector positively moderate this relationship. This study enriches our understanding of institutional complexity in emerging markets and internationalization of emerging-market firms.     

Early international entrepreneurship in China: Extent and determinants

We use data on 3,948 Chinese firms obtained from the World Bank’s Investment Climate Private Enterprise Survey to investigate early international entrepreneurship (international new ventures) in China. The extent of early international entrepreneurship in China is significant: 62% of the exporting firms start export operations within 3 years. Foreign shareholders within the firm and an entrepreneur with previous exporting experience are noted to significantly increase the probability that a firm internationalizes early. We find marked differences in the behaviour of indigenous and foreign-invested firms, and between direct and indirect exporters. For example, for an indigenous firm the more foreign experience its entrepreneur has, the less likely it is to start exporting early. As far as indirect exporting is concerned, business networks are significant determinants of the extent of such exporting, but delays the internationalization process of indigenous firms. The more firms in China export, the more time their managers need to spend on government regulations, although perhaps counter-intuitively, this was not found to discourage exporting. Overall, the findings suggest that exporting by indigenous Chinese firms is often due to challenging or adverse domestic conditions.     

Corporate social responsibility disclosure in China: Do managerial professional connections and social attention matter?

We examine the effect of managerial professional connections and social attention on corporate social responsibility disclosure. Using a unique sample of Chinese listed firms that includes 7462 firm-year observations from 2009 to 2017, we hypothesize and provide supporting evidence that in emerging markets such as China, firms whose top managers have professional connections are more incentivized to improve corporate social responsibility disclosure. This is particularly the case when firms face significant public and media attention. Additional analysis shows that firms with professional connections tend to be more conservative when choosing accounting policies to maintain their professional reputations. Professional connections bring value to both firms and managers in that professionally connected managers are valued by external investors, have greater job security, and are better compensated. Our results are robust to a series of endogeneity tests and perform well in various robustness tests. Overall, our study suggests that corporate social responsibility decisions are shaped by managerial idiosyncratic characteristics and external institutions.     

The comparative organisation of large and small firms: An information cost approach

The paper introduces the concept of information cost and explains its relevance to the organisation of the firm. A distinction is drawn between autocratic and consultative management styles, and the economic logic of each style is explained in terms of information costs. It is argued that autocratic management is a rational organisational response to a business environment that contains a single dominant source of volatility, while consultative management is a rational response to multiple sources of volatility. It is argued that small firms exploit the advantages of the autocratic style. Small firms are therefore to be found predominantly in industries dominated by a single source of volatility.     

How foreign knowledge spillovers by returnee managers occur at domestic firms: An institutional theory perspective

Instead of treating the spillover process as a black box, this paper conducts a qualitative study of foreign knowledge spillovers by returnee managers at Chinese firms. Unlike mainstream spillover studies which adopt economics approaches, this paper uses an institutional theory perspective and regards returnee managers as boundary spanners. Results show that returnee managers' boundary-spanning activities in the form of social interaction, including building relationships with colleagues and transforming their identities from outsiders to insiders, help gain legitimacy for their new roles. Their boundary-spanning activities in the form of grafting foreign knowledge, including understanding existing knowledge resources, introducing foreign knowledge to colleagues, and integrating foreign knowledge with domestic firms, help gain legitimacy for foreign knowledge. Foreign knowledge' contributions in new product development at product, process, and cultural perspective levels reinforce its institutionalization at domestic firms. Absorptive barriers include domestic firms' administrative heritage and returnee managers' arduous relationship with others.