MOR 18.3 Abstracts
How Venture Capital Firms Choose Syndication Partners: The Moderating Effects of Institutional Uncertainty and Investment Preference
Lu Zheng, Likun Cao, Jie Ren, Xibao Li, Ximing Yin, Jin Chen
This study investigates how venture capital firms (VCs) choose syndication partners. Exponential random graph models of Chinese VC syndication networks from 2006 to 2013 show that the homophily mechanism does not always determine VCs’ partner selection. In selecting partners, VCs have to strike a balance between reducing uncertainty and mobilizing heterogeneous resources. Therefore, decisions about partners depend on institutional uncertainty and VCs’ investment preferences. While VCs that focus on traditional business in an immature market are more likely to form homogeneous syndications, their peers that prefer to invest in innovative companies and that can rely on a stable market tend to syndicate with heterogeneous partners.
Knowledge Hiding and Hider’s Innovative Behavior in Chinese Organizations: The Mediating Role of Silence Behavior and the Moderating Role of Zhongyong Thinking
Liangyong Chen, Xiaozhen Luo, Fei Zhou, Tianqi Zhang
Drawing from the theory of territorial behavior, this article predicts the explanatory role of silence behavior in the relationship between knowledge hiding and hider’s innovative behavior in Chinese organizations, and the potential of Zhongyong thinking in mitigating the detrimental effect of knowledge hiding. Results derived from a time-lagged and multi-source survey support our hypotheses. Specifically, knowledge hiding is negatively associated with the innovative behavior of the hider. Silence behavior mediates the relationship between knowledge hiding and innovative behavior. Meanwhile, Zhongyong thinking moderates the positive relationship between knowledge hiding and silence behavior, as well as the indirect relationship between knowledge hiding and innovative behavior through silence behavior. Theoretical and practical implications are discussed based on these findings.
When and Why Perceived Organizational Environmental Support Fails to Work: From a Congruence Perspective
Yun Zhang, Zhe Zhang, Ming Jia
Environmental responsibility has been increasingly emphasized in the management field. Perceived organizational environmental support is generally considered desirable within organizations. Nonetheless, both scholars and practitioners doubt that it is a panacea for enhancing employee green behavior (EGB), an important workplace behavior benefiting the environment and corporate sustainability. From a congruence perspective, this research explores when and why perceived organizational environmental support fails to increase EGB effectively. Drawing upon cue consistency theory and the corporate hypocrisy literature, we propose that perceived organizational environmental support backfires when it is incongruent with another critical cue signaling an organization’s environmental stance – perceived supervisory environmental support (particularly when perceived organizational environmental support is higher than perceived supervisory environmental support). This is because the inconsistent signals of environmental support from the organization (in the form of policy commitment) and supervisor (in the form of supportive behaviors) arouse employees’ perception of corporate hypocrisy, which in turn inhibits EGB. Both the scenario experiment results (Study 1) and the polynomial regression results of the field survey data (Study 2) support our hypotheses. Theoretical contributions and managerial implications are discussed.
From Host Country Nationals to Entrepreneurs: Insights from Professional Service Ventures in Vietnam
Yen Tran, Snejina Michailova, Huong Nguyen
Working for multinational companies (MNCs) is often viewed as a privilege for host country nationals (HCNs) in emerging economies. This raises the question: Why do HCNs leave their jobs to pursue the hardship of establishing their own business? This article addresses this question by adopting a phenomenon-based approach to study 12 professional service firms in Vietnam. We explore why HCNs initially become entrepreneurs and identify how they make this transition. We reveal several idiosyncratic motivations and identify four types of migration pathways: MNC returnee, committed hybrid, transitional hybrid, and direct spin-off. Our findings address the shortcomings of the existing HCNs literature that centers on MNCs’ view and employee entrepreneurship literature that overlooks the context of emerging markets. We find evidence that institutional voids often promote, rather than suppress, entrepreneurship in emerging markets. Importantly, by taking a local perspective, our findings help MNCs increase their awareness that in the fast-growing market of Vietnam, a brain drain might occur as a result of HCNs becoming entrepreneurs.
Networking in Weak Institutions: When Is It Good for Small Business Investment? The Case of Vietnam
This study investigates the influence of business-specific, bank-specific, and political-specific networks on small firm investments in Vietnam. Also, I aim to explain how these social networks substitute the weaknesses of local institutions. Examining a set of more than 9,800 firm-year observations of small businesses in Vietnam from 2005–2015, I find that social ties with bank officials can boost firm investments; social ties with government officials can help firms overcome institutional voids; whereas social ties with businesspeople appear trivial to investment decisions. More importantly, I propose that networking, especially networks built upon connections with government officials, can substitute local institutions by addressing weaknesses in (1) inefficient legal enforcement, (2) corruption, (3) bureaucratic compliance, and (4) non-transparent governance system.