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Frontiers of Business Research in China

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, Volume 11 Issue 2 Previous Issue   
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Orginal Article
Methodological choices of HR research conducted in Asia
Karin Sanders, Julie A. Cogin, Cai-Hui Veronica Lin
Front. Bus. Res. China. 2017, 11 (2): 167-185.   DOI: 10.1186/s11782-017-0011-9
Abstract   PDF (1108KB)

A twenty-year study of the Human Resource (HR) practices– outcome relationship has found that more rigorous methodologies have been adopted over time. However, several problematic features such as cross-sectional, single-informant, and single-level designs continue to be adopted (Bainbridge et al., Human Resource Management, 2016). Responding to calls for increased contextualization of research by investigating the relationship between the location of data collection and the methodological choices of researchers, this study answers the question “How unique are the methodological choices of HR research conducted in Asia?” Applying content analysis to 241 published articles, we compare internal, external, construct and statistical conclusion validity of studies collected in North America (n=66), Europe (n=95) and Asia (n=80, including 57 studies from China). Results show that despite similarities in cross-sectional, single-informant and single-level designs across regions, research conducted in Asia is mainly undertaken via field studies, using subjective outcome measures at the organizational level, following a post-predictive design. In addition, studies from Asia are more recent, and show a shorter time gap between data collection and publication. Theoretical and practical implications embedded in the dynamic context of Asia in general, and China more specifically are discussed.

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Why employees stay: the roles of psychological ownership, territoriality and work relationship closeness in affecting employee turnover intention
Lu Lu, Jun Liu, Na Zhao
Front. Bus. Res. China. 2017, 11 (2): 186-207.   DOI: 10.1186/s11782-017-0010-x
Abstract   PDF (579KB)

Drawing on a tripartite perspective on attitudes, this study examines the influence of psychological ownership and territoriality on turnover intention, as well as the moderating role of work relationship closeness on the relationship between territoriality and turnover intention. Analyses of longitudinal data collected from 341 employees in three Chinese automobile manufacturing companies demonstrate that employees’ psychological ownership is negatively related to their turnover intention. As well, territoriality is negatively related to turnover intention and mediates the relationship between psychological ownership and turnover intention. Additionally, work relationship closeness moderates the relationship between territoriality and turnover intention such that the negative relationship is stronger when employees experience a higher level of work relationship closeness. Theoretical and practical implications are discussed.

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Voluntary disclosure of internal control and auditor’s attestation: evidence from China
Fang Lou, Qian Sun, Hongqi Yuan
Front. Bus. Res. China. 2017, 11 (2): 208-241.   DOI: 10.1186/s11782-017-0007-5
Abstract   PDF (1860KB)

We examine what determines a firm’s decision to disclose a self-assessment report on its internal control (IC) system and to further attain an auditor’s attestation on the report, using a sample of firms from the Shanghai Stock Exchange during the period 2006–2010. We hypothesize and find supporting evidence that the likelihood of having voluntary disclosure of IC self-assessment with an auditor’s attestation is positively related to future equity refinancing, mutual-fund shareholding, and whether the firm is controlled by the government, especially the central government. Our study also takes the identification problem into consideration, as our sample includes firms with IC weaknesses/deficiencies. Our study not only makes an incremental contribution to the literature, but also has practical implications, especially for regulators and investors in China.

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How do work-family balance practices affect work-family conflict? The differential roles of work stress
Xiaoxi Chang, Yu Zhou, Chenxi Wang, Carmen de Pablos Heredero
Front. Bus. Res. China. 2017, 11 (2): 242-268.   DOI: 10.1186/s11782-017-0008-4
Abstract   PDF (1041KB)

This paper investigates the relationship between employees’ perception of work-family balance practices and work-family conflicts. It examines the role of challenge stress and hindrance stress as moderators. Based on survey data collected from 841 civil servants in Beijing, we found that perceived work-family balance practices may reduce work-family conflict, while challenge and hindrance work stresses were positively related to work-family conflict. In addition, challenge and hindrance stresses differentially moderated the relationship between perceived work-family practices and work-family conflict. When challenge stress is high then work-family balance practices will reduce work-family conflict. However, under high hindrance stress, work-family balance practices will serve to reduce work-family conflict less. More detailed analysis of the configurational dimensions of work-family balance practices (work flexibility, and employee and family wellness care) are also tested. This study provides additional insight into the management of work-family interfaces and offers ideas for future research.

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ROE as a performance measure in performance-vested stock option contracts in China
Bo Zhang, Hongliu Yuan, Xiaoqiang Zhi
Front. Bus. Res. China. 2017, 11 (2): 269-291.   DOI: 10.1186/s11782-017-0009-3
Abstract   PDF (832KB)

In this paper, we hand-collect the performance measures adopted in performance-vested stock option plans in China. We find that return on equity (ROE) is a widely used performance measure. Different from most of the other performance measures, ROE is affected by the number of shares outstanding. When executive compensation contracts are explicitly tied to ROE performance, in order to avoid the reduction in reported ROE through the issuance of additional common shares (i.e., ROE dilution), managers have an incentive to influence ROE performance through financing decisions. We find that managers are more likely to avoid ROE dilution related to debt-versus-equity choice when their performance-vested stock option plans are explicitly tied to ROE performance and when firms have a high level of access to bank loans. However, there is no such link for firms with a low level of access to bank loans. Our study shows that the association between executive compensation design and corporate financing decisions depends on the accessibility of bank loans, demonstrating the importance of institutional factors in China. The results hold after controlling for potential endogeneity in executive compensation and corporate financing decisions. Our study contributes to both the executive compensation and corporate finance literature.

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Creative leaders create ‘unsung heroes’: leader creativity and subordinate organizational citizenship behavior
Xiao Deng, Zhishuang Guan
Front. Bus. Res. China. 2017, 11 (2): 292-307.   DOI: 10.1186/s11782-017-0013-7
Abstract   PDF (484KB)

As leader creativity is found to be effective at promoting outcomes for organizations, more and more organizations select creative individuals as leaders. However, the influence of leader creativity has not received enough attention. Thus, this research seeks to focus on the potential influences of leader creativity in organizations. Based on social cognitive theory, we explore the relationship between leader creativity and subordinate organizational citizenship behavior (OCB). We find that leader creativity is positively related to subordinate OCB, and perceived team creative efficacy mediates the relationship. Moreover, creative self-efficacy moderates the relationships between perceived team creative efficacy and subordinate OCB. We then discuss implications and limitations, and suggest directions for future research.

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