Recently, Dr. Zhi-Xue Zhang from Guanghua School of Management, Peking University, was interviewed by Dr. Ray Friedman from Vanderbilt University for the “Lights on MOR” series to discuss a paper by Zhi-Xue and his coauthors, Xiwei Yi and Yuntao Dong, titled “Taking the Path Less Traveled: How Responsible Leadership Addresses a Grand Challenge in Public Health” (Zhang, Z.-X., Yi, X., & Dong, Y., 2023). This video series, produced by Management and Organization Review (MOR) and Cambridge University Press, features Dr. Friedman interviewing authors of standout papers published in MOR, offering readers deeper insights into the research and its implications for management practices in China and the broader field of management science globally.

In this paper, the authors unpack how responsible leadership driven by a social mission can balance and accomplish both social objectives and financial goals of the organization. Focusing on a social enterprise in the healthcare industry in China, this research reveals how the motivation and actions of an entrepreneur in establishing a socially responsible firm enabled the enterprise to balance its social mission and economic goals as well as the social implications of responsible leadership in operating such an enterprise. Please watch the video by clicking here.

In this review, Dr.Zhang first sheds light on the intricate healthcare challenges in China, particularly the widespread public preference for top-tier hospitals over lower-tier ones. Dr.Zhang attributes this preference to a deep-rooted mistrust of lower-tier hospitals, largely due to the perception that their diagnostic testing results are unreliable. This lack of trust stems from a common practice where higher-tier hospitals often disregard diagnostic tests conducted at lower-tier facilities, requiring patients to undergo duplicate testing. As a result, China’s healthcare system faces an imbalance, with resources concentrated in a small number of high-level hospitals, while lower-tier facilities remain underutilized.

To tackle this issue, Yong Zhang, the founder of Yun Kang Company, pioneered a transformative approach known as the collaborative center model. His model standardizes diagnostic testing across various levels of medical institutions, enabling lower-tier hospitals, including those in rural areas, to provide reliable test results that are recognized by higher-level hospitals. This model not only improves healthcare access for patients in underserved regions but also helps reduce the overwhelming burden on top-tier hospitals. Dr.Zhang highlights this socially responsible decision, noting that despite the potential for higher profits by focusing the diagnostic business on urban centers, the founder of Yun Kang prioritized the public good over profitability. This socially driven leadership, according to Dr. Zhang, represents a significant shift in how private companies can contribute to addressing grand societal challenges.

Dr. Zhang goes on to explain that the impact of this model goes beyond healthcare, suggesting that similar entrepreneurial efforts could be applied to other sectors such as education, rural development, and environmental sustainability. For instance, in education, entrepreneurs could provide low-cost materials or technology-based platforms to improve access to quality education in rural areas. In rural development, social entrepreneurs could help bridge the income gap between urban and rural residents by promoting agriculture businesses or eco-tourism. Lastly, in environmental protection, the model could inspire efforts toward reducing carbon emissions and promoting sustainable practices. Dr. Zhang has introduced this case in a variety of education programs, where it has resonated with students, especially those in the healthcare sector.

Overall, this study offers crucial insights into how responsible leadership can navigate complex societal issues. It demonstrates a viable pathway for increasing the ability of lower-tier medical institutions and highlights the broader role of social entrepreneurship in solving grand problems across various industries.

For more videos of Lights on MOR!, please visit here (bilibli)or here （YouTube)