The Structure of Labor Markets in the US and China: Social Capital and Guanxi

Nancy DiTomaso, Yanjie Bian

Despite the major cultural and political differences between the United States and China, in both countries access to jobs is supposed to be guided by fair and equitable procedures. In the US, there is a presumption of an open labor market in which potential employees compete on the basis of their qualifications, where the fairness of decisions is guided by anti-discrimination laws and normative organizational policies. In China, although there is a history of close relationships that guide the exchange of favors, following the 1949 revolution, Communist Party leaders were given the authority to allocate positions in ways that were supposed to eliminate special privileges of class and background. Yet recent research has suggested that social connections are an important part of getting a job in both the US and China for two-thirds to three-quarters of job seekers. In the US context, such connections are described as social capital. In the Chinese context, connections are defined as guanxi. In this article, we review research on labor market processes in both the US and China to address three important questions: (a) How can we understand the similar functioning of labor markets in such distinct cultural and political systems as the US and China? (b) What are the mechanisms or processes by which people find jobs in the US and China, and how are people able to access these mechanisms or processes in the context of constraining social structures and legal environments? and (c) What are the theoretical implications of the ‘generalized particularism’ that seems to shape labor markets in both the US and China.

Managerial Styles in Privately Owned Domestic Organizations in Russia: Heterogeneity, Antecedents, and Organizational Implications

Evgeniya Balabanova, Alexey Rebrov, Alexei Koveshnikov

Drawing on a dataset consisting of 344 personal interviews, participant observations, and internal documents collected in 26 privately owned business organizations in Russia, the study aims at complementing existing research on Russian indigenous management in three ways. First, it examines the managerial styles of key individuals (i.e. owners and/or CEOs) in the case organizations. Hence, it taps into the existing heterogeneity of managerial styles, the so-called groupvergence, found in contemporary Russian organizations, and documents their idiosyncratic features, such as the transformational nature of authoritarian leadership. Second, the study explores the antecedents of the identified styles to establish what factors contribute to their emergence and thus sheds light on how the heterogeneous managerial styles in Russian organizations come into existence. Finally, the study investigates how the identified styles manifest themselves in organizations by influencing organizational goals and strategies, organizational structures, supporting mechanisms, relationships between organizational members, and reward systems. It therefore elaborates on the organizational implications of the styles and highlights the mechanisms of their sustainable diffusion to lower organizational levels in Russian organizations.

Property Rights, Deregulation, and Entrepreneurial Development in a Transition Economy

Wubiao Zhou

This article investigates the relative roles of formal property rights institutions versus deregulated markets in entrepreneurial development, based on China’s market transition. Empirically, it is not yet known which set of institutions matters more for entrepreneurship, particularly in the long run, despite the existence of well-established theoretical arguments for each. Using provincial-level panel data from China’s transition economy, this study has the following findings: On average, both formal protection of property rights and deregulated markets have positive effects on entrepreneurial development; yet, as market transition progresses, the effect of formal protection of property rights increases, while that of deregulated markets decreases. These results are robust to both multiple model specifications and an endogeneity test using an instrumental variable approach. Overall, therefore, while both sets of institutions indeed play positive roles in entrepreneurial development, property rights institutions may be more fundamental in the long run.

Self-Sacrificial Leadership and Followers’ Affiliative and Challenging Citizenship Behaviors: A Relational Self-Concept Based Study in China

Wei He, Ru-Yi Zhou, Li-Rong Long, Xu Huang, Po Hao

Drawing from self-concept and implicit leadership theories, we propose a multilevel model to examine whether, why, and when self-sacrificial leadership motivates followers’ affiliative and challenging citizenship behaviors in China. Data from 329 full-time employees in 83 work groups provide support for the hypothesized model. Specifically, we demonstrated that self-sacrificial leadership was positively related to followers’ relational self-concept constructs of leader identification and leader-based self-esteem, which had differential, downstream implications for followers’ two types of citizenship behavior. Whereas leader identification was found to mediate the positive relationship between self-sacrificial leadership and affiliative citizenship behavior only, leader-based self-esteem mediated the positive relationships of self-sacrificial leadership with both affiliative and challenging citizenship behaviors. We further demonstrated individual power distance orientation as a significant cultural contingency in the above mediation relationships, which were found to exist among followers with low rather than high power distance orientations. We conclude by discussing the theoretical and practical implications of these findings.

A Self-Regulation Model of Zhong Yong Thinking and Employee Adaptive Performance

Wen Pan, Li-Yun Sun

Indigenous Chinese management research has attracted much academic attention in recent years. This study examines the mechanism through which Zhong Yong thinking influences employee adaptive performance from a self-regulation perspective. Using two-wave data of 361 subordinates in 62 teams from Chinese firms, job complexity was found to moderate the direct effect of Zhong Yong thinking on cognitive adaptability and emotional control, and the indirect effect on adaptive performance (via cognitive adaptability and emotional control). The direct and indirect effects of Zhong Yong thinking were found to be stronger with a higher level of job complexity. The study explores an important Chinese indigenous construct and its association with adaptive performance, and adds value to the indigenous management literature.

Toward a Chance Management View of Organizational Change

Runtian Jing, Andrew H. Van de Ven

Chance serves as the gate to organizational change. Based on a relational view of chance, we propose that in an organizational context, the chance to change is affected by the perceptions of change agents and the affordance of situational momentum, and that different time points of change are associated with different degrees of chance favorability. We develop a theoretical model to represent how change agents can assess the favorability of current and future momentum and how they can benefit from identifying a perceived chance by employing chance grasping, entraining, creating, or riding strategy to promote organizational change. We generate theoretical propositions to illustrate the four timing strategies of chance management. The overall contribution of this study is a chance management view of organizational change that considers change agents and situational momentum as two interdependent factors in the process of managing the chance to change.

Technological Innovation Research in China and India: A Bibliometric Analysis for the Period 1991–2015

Debabrata Chatterjee, Sreevas Sahasranamam

Although a substantial literature on the management of technological innovation exists, several scholars argue that much of this research has been rooted in Western contexts, where key assumptions are very different from those in emerging economies. Building on this viewpoint, we investigate the current state of knowledge on technological innovation in two of the largest and fastest growing emerging economies: China and India. We undertook a bibliometric analysis of author keywords and combined different quantitative approaches – frequency analysis, cluster analysis, and co-word analysis – to review 162 articles on technological innovation published about China and India for the period 1991–2015. From the analyses, the trends in technological innovation research in the two countries and the dominant themes of discussion were identified. These themes were further classified into eight sub-themes. Our key findings indicate a near absence of research on the management of technological innovation based on India, limited volume of research on indigenous aspects of innovation, and a lack of theory-building based on these countries’ contexts. Several suggestions for future research are offered based on the gaps identified.