With growing economic globalization, returnee managers who have obtained education or work experience overseas play a much more crucial role in corporations, especially in emerging economies. Using hand‐collected managerial background data from a sample of firms listed on the Shanghai and Shenzhen Stock Exchanges from 2010 to 2014, this paper investigates the impact of returnee managers on corporate social responsibility (CSR) performance. We find that returnee managers can promote CSR performance. Further analyses show that the impact of returnee managers on CSR is more pronounced when managers have a foreign study background compared to managers with foreign work experience. The impact only holds when managers obtained their experience in developed economies. When enterprises face greater information asymmetry, returnee managers are more willing to use CSR as a tool to convey a positive image to stakeholders. CSR can help managers reduce information asymmetry and improve firm value. The results are robust through a series of robustness checks including a propensity score matching (PSM) procedure and a Heckman two‐state sample selection model. This paper contributes to growing studies on the economic consequences of returnee managers and advances our understanding of the determinants of CSR at the individual level. The results also have implications for government and enterprises attracting talents with overseas experience.
A wide difference of opinion exists about the content and composition of emotions. Advertising may influence an audience and their buying decisions about products and services. The objective of this study is to better conceptualize how women emotionally respond to emotional advertisements (EAs). The variant views are integrated into an ACE model, composed of subordinate levels of emotions (E), celebrity endorsements (C), and appeal drivers (A). This empirical study examines women’s emotional response using data from 240 Chinese women respondents. The study participants were invited to develop ACE mix based advertisements and fill out questionnaires. PLS‐SEM analysis, a novel approach in ACE advertisement development and its applicability to consumer behavior, was used. The results show that showbiz celebrities expressing the emotion of happiness with music and color make the most effective ACE mix to influence the consumption behavior of women. The results are significantly mediated by attention levels and are widely applicable in the burgeoning advertising industry. The study also calls for further research with different ACE mixes in different contexts and on different audiences. It also opens doors for policy making and an appropriate understanding of women’s consumption behavior in the Chinese context.
In contrast to traditional strategic approaches that are based on complexity reduction, this paper aims to develop an alternative way of understanding entrepreneurial strategy and managing complexity from a processual perspective. The new perspective is developed from a processual perspective integrating insights from an understanding of complexity to engage with philosophical accounts of Chinese processual thought particularly as it is applied to entrepreneurial strategy. The new theoretical framework is empirically investigated through case studies of 30 entrepreneurial organizations in China. The findings confirm that timing and action, context/situation, and efficacy are the three key components in complexity absorption as preferred entrepreneurial strategic approaches.
Based on the theory of technology spillover in international trade, this paper discusses the technological innovation effect of trade by taking the influence of domestic trade into account. Under the constraint of the production possibility frontier, there is either complementarity or substitutability between domestic and foreign trade. It must be decided whether resources should be concentrated in one of the sectors (trade specialization) or instead allocated equally (trade equalization) between the two sectors. This paper firstly discusses how domestic trade and foreign trade work together to influence technological innovation, and how trade equalization and specialization affect different types of innovation. Using a provincial‐level panel dataset from 2007 to 2015 in China, this paper constructs the indicators of domestic and foreign trade linkage and examines the impact of trade on innovation. The findings show that trade equalization mainly promotes incremental innovation, while trade specialization improves radical innovation. Thus, in the area of incremental innovation, attention should be paid to the equalized development of domestic and foreign trade, while in areas pursuing radical innovation, emphasis should be put on the specialization of the trade sector, avoiding equal allocation of resources to the two sectors.
Despite the extraordinarily high ownership concentration widely observed in emerging market firms as a result of institutional voids, there is little research on how this high ownership concentration affects the exporting behavior of emerging market firms. From principal-agent and institutional perspectives, we hypothesize that high ownership concentration has a negative relationship with export intensity, because, in emerging markets, highly concentrated ownership bridges the interests of owners (principals) and managers (agents) so that principals must be prudent in exploring risky international markets. Moreover, we hypothesize that export country diversification strengthens the relationship between ownership concentration and export intensity, because broad geographic dispersion increases risk exposure and principal-agent problems. Empirical analysis based on a panel dataset for publicly listed firms in Peru from 2005 to 2014 supports the hypotheses. The study highlights the risk aversion attitude activated by ownership concentration, an attitude that protects emerging market firms from overconfidently exploring international business opportunities. The study extends the conventional literature on the interface between ownership concentration and international business in an emerging market context. We also discuss the generalizability of the findings to other emerging markets, e.g. China.