Exploring the Process of Business Ecosystem Emergence from Value Chains: Insights from the Chinese Mobile Phone Industry

Xianwei Shi, Yuankun Luo, Hong Hou, Ke Rong, and Yongjiang Shi

ABSTRACT A business ecosystem is a community of multiple co-evolving actors with interdependent product offerings organized around a specific value proposition. While the extant literature focuses on these two structural elements of ecosystems that existed ex ante, we challenge this notion with our core discovery that ecosystem actors emerge in an ex post dynamic process. With a longitudinal qualitative study of the vertically disintegrated part of the Chinese mobile phone industry, we develop a two-dimensional process model of ecosystem emergence, namely the temporal dimension that delineates three processal stages of ecosystem emergence and the spatial dimension that highlights an architectural pattern of reciprocities between value chain and resource pool to enable the ecosystem emergence. We also offer inter-temporal enabling conditions during ecosystem evolution. These findings enable us to complement the ecosystem literature by elaborating the antecedents, outcomes, and enabling conditions of ecosystem emergence in relation to multiple types of ecosystem actors. We also shed light on the value chain (re-)configuring process which derives from the reciprocity between value chains and ecosystem resources.

KEYWORDS business ecosystem, Chinese mobile phone industry, ecosystem emergence, ecosystem resources, value chain

Implicit Voice Delivery: Its Antecedents, Consequences, and Boundary Conditions

Run Ren, Li Ma, (George) Zhen Xiong Chen, Hui Wang, and Dong Ju

ABSTRACT Although many organizations encourage employees to voice, employees may be reluctant to voice directly because they are afraid that their supervisors will perceive it as challenging their face (i.e., the positive image or social value of an individual). Alternatively, employees could deliver improvements or express concerns to their supervisors using indirect and implicit approaches, which we refer to as ‘implicit voice delivery’. Applying face theory, we examine the antecedents and outcomes as well as two boundary conditions of implicit voice delivery in organizations with two studies. In Study 1, we define the construct and develop a measure of implicit voice delivery. In Study 2, we test our proposed model with supervisor-subordinate dyadic data from a time-lagged survey. Results demonstrate that concern for other people’s face drives employees to express their voices implicitly and that this relationship is stronger when supervisors’ concern for their own face is high rather than low. In addition, implicit voice delivery is associated with supervisors’ favorable response in terms of voice endorsement. Furthermore, the effect on voice endorsement is stronger when the supervisor is more able to infer meaning from implicit messages. Theoretical contribution and managerial implications are discussed.

KEYWORDS ability to infer meaning, face concern, implicit voice delivery, voice endorsement

Is Identification All the Same? The Differential Effects of CEO and CFO Organizational Identification on Corporate Philanthropy

Yuehua Xu, Wei Shi, Xin Qin, Junsheng Zhang, and Xiaojian Tang

ABSTRACT By integrating role theory and social identity theory, this study examines the differential effects of organizational identification of the chief executive officer (CEO) and the chief financial officer (CFO) on corporate philanthropy. We argue that CEO organizational identification can positively affect corporate philanthropy, whereas the opposite holds for CFO organizational identification. This is because the CEO and the CFO have varying attitudes about corporate philanthropy owing to their different role expectations; thus, those who identify strongly with their organizations would act for the best interests of the firm. Moreover, because the beliefs of top executives are probably influenced by those of other executives, we further explore the interaction between the CEO and the CFO. We propose that the positive influence of CEO organizational identification on corporate philanthropy will be weakened by CFO organizational identification, and the moderating effect of CFO organizational identification will become stronger when the CEO and the CFO have opposite genders or when the CFO has ownership. From a sample of 880 publicly traded firms in China, we found support for our hypotheses. Our study can contribute to the corporate philanthropy literature and research on executive organizational identification by highlighting the importance of executive roles and their interactions.

KEYWORDS CEO, CFO, corporate philanthropy, executive roles, organizational identification

Management Innovation and Middle Managers: The Role of Empowering Leadership, Voice, and Collectivist Orientation

Sylvia Rohlfer, Abderrahman Hassi, and Simon Jebsen

ABSTRACT Exposing under which conditions management innovation diffuses within firms, this study investigates at the individual level the mediating influence of middle managers’ voice behavior on the relationship between CEOs’ empowering leadership behavior and perceived management innovation. We also propose that the magnitude of this relationship depends on middle managers’ collectivist orientation. This study exploits a unique Moroccan sample of small and medium-sized enterprises (SMEs) and utilizes structural equation modeling to analyze the studied relations. We found that the positive relationship between CEOs’ empowering leadership behavior and management innovation is mediated by middle managers’ voice. This effect is conditioned by middle managers’ collectivist orientations, which positively influence their attention to CEOs’ signals and the value and frequency of their contributions to management innovation. While research has identified the external and organizational factors that shape management innovation, our study concentrates on the individual level and accentuates that middle managers’ closeness to management processes, combined with their access to technical knowledge, renders them essential to management innovation. We contradict arguments that middle managers may be less inclined to help management innovation to emerge. SMEs can systematically invest in management innovation by advancing their managerial capabilities and considering individual value orientations.

KEYWORDS empowering leadership, management innovation, middle manager, value orientations, voice

CEO Leadership, Strategic Decision Comprehensiveness, and Firm Performance: The Moderating Role of TMT Cognitive Conflict

Yaqun Yi, Yu Chen, and Xiaoming He

ABSTRACT Managers make comprehensive strategic decisions to cope with environmental challenges. Questions remain regarding how different types of leadership styles influence top management team (TMT) strategic decision comprehensiveness (SDC) and firm performance. This study explores the impact of two different CEO leadership styles on TMT SDC and subsequent firm performance, considering the moderating role of TMT cognitive conflict. Based on data from 357 questionnaires of 126 firms in China, we found that 1) CEO empowering leadership positively affects SDC; 2) CEO directive leadership generates an inverted U-shaped effect on SDC; 3) the effect of SDC on firm performance is positive; and 4) TMT cognitive conflict weakens the relationship between CEO empowering leadership and SDC. This study takes a systematic approach by integrating CEO-TMT dynamics into SDC, which in turn affects firm performance, and thus offers a holistic view of how upper echelons influence firm performance.

KEYWORDS CEO directive leadership, CEO empowering leadership, firm performance, TMT cognitive conflict, TMT strategic decision comprehensiveness

Technology Decomposition and Technology Recombination in Industrial Catch-up for Large Emerging Economies: Evidence from Chinese Manufacturing Industries

Xiaoling Chen, Bin Guo, Jingjing Guo, and Wen Helena Li

ABSTRACT The influence of technological learning on industry-level catch-up has long drawn substantial attention in the catch-up research field. However, the underlying mechanisms of technological learning and the unique catch-up context in large emerging economies are much less explored. To explain the technological learning processes of latecomers that face the technology gap and strive to build differentiated competitive advantage, this study builds on the absorptive capacity perspective and deconstructs technological learning processes into two mechanisms: technology decomposition and technology recombination. The former entails decomposing advanced technologies into pieces, parts, or modules, while the latter entails the process of capturing market opportunities through recombining knowledge from diverse sources into commercial products through localized innovations and adaptations. Then, we propose a unique ‘ladder-like’ catch-up context (i.e., technology ladder and market ladder) and investigate how the technological learning process and the unique catch-up context jointly affect industrial catch-up performance in China. Using seven-year panel data from Chinese manufacturing industries, the results indicate that only technology recombination has a significantly positive relationship with industrial catch-up performance. In addition, the market ladder strengthens the positive impact of technology recombination on industrial catch-up, while the technology ladder weakens the positive impact of technology decomposition on catch-up.

KEYWORDS catch-up, emerging markets, market ladder, technological learning, technology ladder