Sep 2015, Volume 9 Issue 3

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  • research-article
    Hui Yang,Zeyu Wang,Xufei Ma,Sai Lan

    This study is based on behavioral theories and has the purpose of determining the predictors and contingencies of strategic decision making within the strategic tripod framework and CEO age effect. Furthermore, we focus on the effect of the interaction of these aspects on strategic decisions. Multiple theories and concepts are applied in this paper, such as the institution-, industry-, and resource-based view, upper echelons theory, socio-emotional wealth, empathy, and so on. Specifically, we focus on why Chinese real estate firms decide to enter the aged housing market. By conducting an empirical study using panel data from 134 listed Chinese real estate companies, we make the following conclusions: Institutional pressure and competitor numbers positively affect, whereas slack harms, the likelihood of entry. Ceteris paribus, the resource effect is strongest when the institutional effect is the most significant. When facing institutional pressure, a firm with a CEO older than 50 is significantly more likely to enter the aged housing market than firms with a CEO that is younger.Relieving institutional pressure and avoiding cutthroat competition are helpful in making strategic decisions but not for digesting slack resources. The CEO makes strategic decisions by replying to institutional pressure but likely not from engagements in resource or competitive affairs.

  • research-article
    Diego Quer,Enrique Claver,Laura Rienda

    In the past decade, Chinese outward foreign direct investment (OFDI) has become a major element of global capital flows. As a consequence, recent years have witnessed an increasing growth in the number of papers focusing on Chinese companies “going global.” This paper reviews 112 empirical papers focusing on Chinese OFDI that were published in major scholarly journals between 2002 and 2014. We report on individual and institutional contributions, citations, the theories and methods used and the research topics. We also identify the research gaps and discuss the implications of our literature review for future theory building.

  • research-article
    Jie Zou

    This paper attempts to understand selective engagement in corporate social responsibility (CSR). CSR involves various issues that can meet demands from multiple stakeholders. A firm can focus on certain CSR issues to satisfy a particular stakeholder while ignoring the demands from other stakeholders, or it can take a more balanced approach to CSR by addressing a wider range of social issues. In this paper, I investigate how stakeholder pressures from three types of primary stakeholders (customer, supplier, and employee) shape selective engagement in CSR. The empirical results based on a representative sample of more than 1,000 small and medium-sized enterprises (SMEs) in the early 2000s suggest that firms prioritize their stakeholders based on instrumental considerations. Those stakeholders who have greater power over the focal firm will exert a larger impact on a firm’s CSR engagement. Constrained by limited managerial resources, firms accord attention to a limited range of issues most relevant to salient stakeholders. Specifically, MNCs as major customers pressure the focal firm to assume more responsibility for product quality, as well as on a wider range of social issues; SOEs as both major customers and major suppliers pressure the focal firm to assume more responsibility for employee welfare; employees with higher education pressure the focal firm to assume more responsibility for employee welfare, and for a wider range of social issues. This study contributes to stakeholder theory and research on the CSR of SMEs, and has important implications for CSR practitioners.

  • research-article
    Jun Yang,Chao Liu,Qianghong Zhang,Wenwen Zhao,Chenxi Wang

    We collected data from 156 Chinese hospital employees to investigate how political skill and gender affect their advice and friendship network positioning. We found employees with high levels of political skill are more likely to proactively seek friendship ties, while political skill does not affect employees’ advice networks overall. In addition, results show that for men, those with high levels of political skill have lower in-degree centrality in advice and friendship networks than those with less political skill. Political skill does not affect women’s network positions.

  • research-article
    Lynda Jiwen Song,Byron Y. Lee,Haolan Li,Jinyun Sun,Wei Si

    Despite considerable interest in the adoption of profit-sharing plans in small firms in China, there lacks a comprehensive theoretical framework to explore why these plans are adopted. Much of the literature on profit-sharing originates from a pure economic perspective based upon agency theory. However, when profit-sharing is adopted in small firms at the discretion of the CEO, often psychological mechanisms become an important factor. This paper provides an integrated theoretical framework combining the economic perspective with the psychological perspective to investigate the reason why CEOs in Chinese private firms choose to adopt profit sharing schemes. Specifically, we develop a model examining both internal and external factors specific to the individual and the firm. We then theorize whether the reasons for using the profit-sharing plans will ultimately lead to improved firm performance.

  • research-article
    Louise Curran,Michael Thorpe

    This paper explores the recent evolution of Chinese investment in the wine industries in the Bordeaux region of France and Western Australia (WA). The study identifies variations in the nature of the investments undertaken, which are not always consistent with existing theory. We explore how these differences impact on the liability of foreignness (LOF) experienced (Eden and Miller, 2004; Zaheer, 1995). We find evidence of all three of the categories of hazards identified by Eden and Miller (2004), with unfamiliarity being particularly significant, especially for wholly owned investments. We postulate that differences in context between home and host countries are a key factor explaining both the observed difficulties and the differences in experiences. The findings of our work on LOF, in terms of its nature and mitigating strategies, resonate well with existing theory, although we also find evidence of a Country of Origin (COO) effect, both in terms of Liability of Origin (LOR) and Assets of Foreignness (AOF). The variations in entry mode and LOF, however, are less consistent with existing research and pose questions in relation to the interaction between the home and host contexts, company strategy and LOF.