Apr 2015, Volume 9 Issue 1

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  • research-article
    Changhong Ni,Yin Wu,Rensun Ye,Mingxing Ke

    This paper analyzes sixty-five influential collective turnover events that occurred from year 2000 to 2011. The first finding is that collective turnover is most likely to take place at the departmental level because staff in the same department tend to reach collective consensus more easily. The second finding is that collective turnover takes place more frequently in industries such as IT, retailing and banking. The third finding is that collective turnover often begins with the turnover of managers at the departmental or higher levels. With further exploration of collective turnover, we notice that the institutional environment during China’s economic transition is the external constraint on collective turnover, and improper management policies is the internal driving factor. We also find that motivations vary for employees at different levels in the organization. Finally, we conclude that organizational outcomes of collective turnover are not only linked with the absolute level of turnover, but “quality” factors of collective turnover such as relative turnover ratio, occurrence frequency, employee type, rank and work experience should also be taken into consideration.

  • research-article
    Huacheng Wang,Feng Cao,Xiangqiang Liu,Sifei Li

    This study investigates whether accounting earnings can predict future Gross Domestic Product (GDP) growth within China’s institutional settings. Konchitchki and Patatoukas (2014a) find that accounting earnings is a significant leading indicator of GDP growth for the next three or four quarters. We conjecture, however, that earnings management would weaken such predictive power for accounting earnings because it distorts earnings from real corporate profit. As earnings of Chinese firms are more seriously manipulated than those of US firms, this study finds that earnings of Chinese listed firms can only predict GDP growth for a single quarter. We further decompose accounting earnings into operating cash flow and accrual earnings and find that operating cash flow which is less affected by earnings management has better predictive power for GDP over the longer horizon of the next three quarters, but accrual earnings can only predict GDP growth for the next quarter.

  • research-article
    Lynda Jiwen Song,Meng Zhong,Jiewen Shi,Yuanyuan Wang,Hui Meng

    Based on the social-cognitive model of transference, this paper discusses the transference effect of the leader-member exchange (LMX) relationship between the follower and the previous leader. The results show that the LMX between follower and the previous leader influences the follower’s LMX with the current leader. The study identifies two moderators: both the traits difference between the previous leader and the current leader and the follower’s individual transition resistance negatively moderate the main effect between the previous LMX and the current LMX.

  • research-article
    Yunshi Mao,Tian Li,Yangchun Liu

    In this paper, we review how original equipment manufacturing (OEM) firms break the “lock in the global value chains” (GVCs) and upgrade to original/own brand manufacturing (OBM) through accelerated internationalization. We focus on investigating how Lacquer Craft Mfg (later referred to as Lacquer Craft), an OEM firm in southern China successfully upgraded to OBM through reverse acquisitions. By proactively utilizing the resources (including the mindset or perspectives formulated) generated from practicing OEM, Lacquer Craft developed the needed capabilities to build its own brand in an international setting. Lacquer Craft’s successful experiences show that in a globalized economy, the ability to identify and exploit opportunities to link with established players, and the ability to search, acquire, and integrate strategic assets from the developed world rather than replicating the entire previous technological trajectory greatly facilitate the OEM firm in climbing up the value-added ladder and upgrading to OBM. This is a more aggressive upgrading approach. Its experiences also reveal that a firm’s product and technological upgrading strategies are closely interwoven with its internationalization strategy.

  • research-article
    Jia-Chen Zhang,Li-Qun Wei

    This case describes the development process of Fu Yuan Guan, a Chinese time-honored brand. Through privatization, Fu Yuan Guan survived and rapidly captured its market. However, the family business management style proved to be a bottleneck during further expansion. There is a need to recruit qualified professional managers to improve the overall management of the firm but it seems there are challenges in doing so. This case describes the daily operationalization of this family firm together with the approach of top managers, with the purpose of exhibiting how its internal management is implemented.

  • research-article
    Xuebing Cao

    This paper investigates Chinese doctors’ informal payment, known as red packets, with reference to the debate on organizational misbehavior, fiddles and control. It aims to examine the internal and external factors that have contributed to the emergence of red packets in health services and the strategies of hospital management in dealing with informal payment. Analysis on the data collected from two hospitals shows that doctors’ misbehavior is influenced by health services’ funding mechanism, payment systems and corruption. More importantly, the study demonstrates the rationality of employee fiddles and management responses. Findings indicate that doctors are mainly responsible for this fiddling, unethical and illegal activity because of the financial gains acquired from patient bribery. However, doctor misbehavior remains under management’s latent control as long as hospital income generation and reputation are not severely threatened. The study contributes to the analysis of informal payment in the field of organizational studies and employment relations, with a fresh perspective offered to extend our understanding of red packets in the context of healthcare marketization reform.