MOR 20.1 Abstracts

Corporate Social Irresponsibility in Business: A Systematic Literature Review and Future Agenda
 Xiaoxia Tan, Xiaojie Wu, and Xi Zhong

Despite increased interest in corporate social irresponsibility (CSI) among business scholars, the current research is still fragmented, its findings lacking a nuanced understanding. We conduct a systematic literature review of 173 journal articles on CSI published in the field of business and synthesize insights regarding the antecedents, consequences, and mechanisms of CSI. We begin by providing a clear definition, distinct types, and the measurement methods of CSI. Then, we provide a comprehensive research framework that demonstrates the three key components of CSI research: antecedent, consequence, and moderating. Building on this, we identify additional specific research methods for each component and apply them to assess and analyze the existing research findings and research gaps concerning CSI. We suggest that scholars pay more attention to (a) the impact of stakeholders on CSI behavior, (b) the different impacts of CSI on firm performance, (c) the relationship among CSI, corporate social responsibility, and firm performance, (d) CSI in the context of emerging economies, and (e) measuring CSI.

Keywords corporate social irresponsibility, CSI, corporate environmental irresponsibility, literature review, stakeholders

Responsible Leadership with Chinese Characteristics
Qing Qu, Pingping Fu, Yu Tu, and Masoud Shadnam

Responsible leadership (RL) has become a buzz word in the current lexicon of business and politics, but there is still limited agreement on the components, scope, and characteristics. The confusion is rooted, in part, in the dominance of normative perspectives that take RL as a universal phenomenon. However, embedded in a specific culture, RL cannot be understood fully without understanding the moral traditions of that culture. In this article, we used a case study method to explore how RL is understood and practiced in China. Taking the role theory perspective, we conducted in-depth interviews with 9 highly regarded responsible executive leaders and 92 stakeholders in and outside of their companies who were well acquainted with the leaders. Our findings reveal that in China, the moral character of leaders guides them to define and take responsibility for themselves, their employees, companies, and external stakeholders. The five dimensions of RL we identified and the relationships among the dimensions include characteristics that reflect Chinese culture, such as strong sentiment for the nation, self-discipline, developing employees philosophically, and ‘jun zi wu ben’ (a gentleman should focus on fundamental matters). We conclude by discussing the implications of our study for RL research and practice.

Keywords Chinese context, Chinese culture, executive leadership, responsible leadership (RL), role theory

Network Centrality and Dissent Voting by Directors on Boards
Hong Zhang, Zimin Liu, and Weiguo Zhong

We investigate how directors’ positions within board interlocking networks influence their monitoring behaviors from a social network perspective. We argue that the effectiveness of directors’ monitoring of a firm’s management depends on their ability to overcome the information barrier and their motivation to develop a public reputation in the directorship market. We further contend that network centrality can supplement directors’ existing information set and facilitate reputation spillover, leading to an increase in the extent of their dissent on boards. We analyze the unique individual-director-level data of Chinese firms and find that directors occupying positions of greater centrality in the board interlock network are more likely to dissent. We then examine the underlying mechanisms of information and reputation through two moderators: firm transparency and media mention of a director. We also find that the effect of network centrality on dissent is weaker for independent directors. Our study advances the corporate governance literature by examining the micro-foundations of board monitoring and providing a social network perspective.

Keywords board network, effective monitoring, independent director, network centrality

Green Innovation and Export Performance in Emerging Market Firms: A Legitimacy-based View
 Chengli Shu, Jingxu Zhao, Qiong Yao, and Kevin Zheng Zhou

Whereas emerging market firms (EMFs) face severe legitimacy barriers when entering global markets, whether and under what conditions green innovation can help them gain legitimacy remains under-examined. This article argues that green innovation can help EMFs obtain regulatory and social legitimacy in host countries and consequently boost their exports. Based on a panel dataset populated by 254 Chinese-listed manufacturing companies from 2011 through 2017, this article finds that green innovation is positively associated with EMF export performance. Moreover, this positive relationship is stronger when host-country political risk is lower or host-country buyer sophistication is higher but becomes weaker for state-owned EMFs. These findings enrich the legitimacy-based view and international business literature by identifying the role of green innovation in boosting EMF export performance and specifying important institutional contingencies.

Keywords buyer sophistication, export performance, green innovation, political risk, state-owned enterprise

CEO International Experience in Advanced Market Economies and Firm Investment Horizon in a Transitioning Economy
 Lipeng Gary Ge, Alan Muller, Tianyu Gong, Cuili Qian

Building on the literature on managerial myopia, we investigate how chief executive officers’ (CEOs) international experience in advanced market economies affects their firms’ investment horizons in a transitioning economy. To overcome myopia, CEOs should possess the knowledge needed to manage current tasks, thereby freeing up cognitive resources for future considerations. In the context of our theorizing, we argue that international experience in advanced market economies equips CEOs with knowledge about how to deal with their current tasks of market-oriented adaptation in a transitioning economy, freeing up cognitive resources for considering longer-term investment horizons. Additionally, the effect of CEO international experience in advanced market economies on firm investment horizon is stronger under conditions that increase the cognitive burden on CEOs to perform market-oriented adaptation tasks – specifically, when there is a high scope of pro-market reform, high intensity of foreign competition, analyst coverage, and a high level of institutional ownership. Our estimation based on a matched sample of 204 Chinese CEOs during the period 2002–2019 supports the majority of our predictions. Our study contributes to research on firm investment horizon, CEO international experience, and transition economies.

Keywords CEO international experience, firm investment horizon, market-oriented adaptation, market-oriented transition, myopia

Working with a Mask: How and When Workplace Mask Wearing Decreases Employee Emotional Exhaustion
Yang Bai, Wenxing Liu, and Li Guo

Despite the salutary effects of mask wearing broadly recognized during the COVID-19 pandemic, little is known about the consequences of wearing masks in the workplace. The current research raises the question of whether and how mask wearing may impact employees’ emotional well-being at work. Drawing on emotion regulation theory (e.g., Gross, 1998, 2015), we propose that mask wearing enables employees to adopt more authentic emotional displays, which in turn decreases emotional exhaustion. Furthermore, guided by the social interaction model of emotion regulation (Coté, 2005), we further posit that for employees whose work requires more frequent face-to-face interaction, the positive impact of mask wearing on emotional exhaustion becomes more significant. Across a pilot study and a three-wave field survey, we find support for this hypothesized model. Implications of these findings for future theorizing and research on mask wearing are discussed.

Keywords authentic emotional displays, emotional exhaustion, face-to-face interaction, mask wearing