CEO Transformational Leadership and Corporate Entrepreneurship in China

Yaotian Pan, Alain Verbeke, and Wenlong Yuan

ABSTRACT A chief executive officer (CEO) acting as the firm’s transformational leader is typically viewed as instrumental to corporate entrepreneurship in established firms, but how exactly does a higher level of corporate entrepreneurship come about, given a transformational CEO’s actions? We suggest that organizational ambidexterity can function as a core mediating mechanism between transformational CEOs and the observed level of corporate entrepreneurship and that the effectiveness of this mediating process varies as a function of critical contingencies related to characteristics of the top management team (TMT), the environment and the organization’s design. Our empirical evidence, based on a sample of 145 Chinese private sector firms, and using three primary sources of data (145 CEOs, 506 TMT members, and 1,981 middle managers), provides support for a moderated mediation process. We find that the mediating pathway from transformational leadership to corporate entrepreneurship through organizational ambidexterity is not significant when boundary conditions are ignored. However, when environmental dynamism, TMT collectivism, and structural differentiation are included as moderators, CEO transformational leadership does affect corporate entrepreneurship via the creation and effective functioning of organizational ambidexterity.

KEYWORDS ambidexterity, collectivism, corporate entrepreneurship, structural differentiation, transformational leadership

The Ties that (Un)Bind: Change and Organizational Commitment in Ukraine

Wayne H. Stewart Jr., Ruth C. May, Kristin L. Scott, and Amy E. Ingram

ABSTRACT Recognizing the need for organizational change in a transition setting, we specify a research model entailing the effects of two important workplace variables on the relationship between dispositional resistance to change and organizational commitment. Organizational commitment is important because of its relationship with a host of considerations relevant to successful organizational change and development. We test the model with samples from four Ukrainian firms undergoing comparable substantive change, including in their human resource systems. The results indicate that the negative relationship between resistance to change and organization commitment is moderated by trust in management. Specifically, it is the lack of trust that exacerbates the negative influence of resistance to change on commitment. Also, high procedural justice strengthens the negative relationship, thereby reducing organizational commitment, an interesting divergence from the Western literature. These indigenous findings in a markedly different context from the West hold potential for theory that is richer and more comprehensive in its explanatory reach. The findings also provide useful insights for managers in Ukraine in their efforts to change organizational practices.

KEYWORDS change, organizational commitment, procedural justice, resistance, trust in management

Can CEOs’ Facial Attractiveness Influence Philanthropic Behavior? Evidence from India

Arpita Agnihotri and Saurabh Bhattacharya

ABSTRACT This study extends the extant literature on corporate philanthropy by exploring the indirect effect of physical attractiveness of CEOs on corporate philanthropy under conditional effects of family ownership and control. Recent empirical studies in psychology suggest that egalitarian values are negatively related to physical attractiveness. Based on these findings, we propose that physically attractive CEOs invest less in corporate philanthropic activities than less attractive peers as they have lower egalitarian values. Leveraging upper echelons and stewardship theory, we further consider the moderating impact of family ownership and control on the indirect relationship between the physical attractiveness of a CEO and philanthropy mediated through egalitarianism.

KEYWORDS corporate philanthropy, egalitarian value, family control, family ownership, physical attractiveness

Firm Growth Performance and Relative Innovation Orientation of Exploration vs Exploitation: Moderating Effects of Cluster Relationships

Zhendong Li, Marina Yue Zhang, and Huiying Zhang

ABSTRACT This article studies the latent mechanisms underlying the non-linear correlation between a firm’s relative innovation orientation of exploration vs exploitation and performance. We also investigate the moderating effects of cluster relationships on this relationship. Using a sample of 638 SMEs in four industry clusters in Tianjin, China, we confirm an inverted U-shaped correlation between a firm’s relative innovation orientation and performance, and explicate the latent mechanisms underlying such an inverted U shape. We find that the number and strength of a firm’s cluster relationships can moderate this inverted U-shaped curve: the former moves the turning point of the inverted U shape toward exploratory orientation, and the latter moves the turning point toward exploitative orientation. For improved performance, we discuss appropriate innovation balancing strategies for cluster firms with different cluster relationships, and optimal cluster strategies under different innovation-balancing conditions. This study adds to the increasing scholarly effort on latent mechanisms behind U-shaped relationships and moderating effects on such relationships in management research.

KEYWORDS cluster relationships, exploitative innovation, exploratory innovation, firm performance, inverted U-shaped curve, relative innovation orientation

Performance Effects of Internationalization: Contingency Theory Analysis of Russian Internationalized Firms

Desislava Dikova and Anna Veselova

ABSTRACT The relationship between internationalization and performance has attracted researchers’ attention for more than 40 years, producing contradictory results. Research on emerging-market (EM) multinationals’ performance has not added much clarity to the issue. Although contingency theory is widely applied in management research to explain superior organizational performance as a direct result of a ‘fit’ between structure, strategy, and environment, there has been little effort in extending the notion of strategy-structure-environment fit to include internationalization. We address this limitation by offering a comprehensive analysis of Russian internationalized firms’ performance, which reflects the complexity of strategic and structural changes that Russian firms make during internationalization. We use survey data on 213 predominantly private and mature firms to examine whether the alignment of a multitude of strategic and structural choices in a specific context matters for subsequent performance. We apply a fuzzy-set Qualitative Comparative Analysis (fsQCA) and find several distinct types of ‘fit’ that positively affect Russian internationalized firms’ performance.

KEYWORDS contingency theory, fit, fsQCA, internationalization, performance