Editorial Essay

Why Do We Need Phenomenon-based Indigenous Chinese Management Research? An Evolution of Theories Perspective
Xiao-Ping Chen

Abstract
This editorial essay describes what is phenomenon-based research and why it is important to conduct indigenous Chinese management research. Grounded in the Chinese context, the author identifies emerging new organizational phenomena in the digital age that calls for new theoretical explanations and empirical validation. Adopting an evolution of theories perspective, the author outlines the various paths that can move a new theory explaining an indigenous phenomenon toward becoming a universal theory that can transcend time and space.

Perspectives

Change, Governance, and Diffusion of Institutional Logics in and Beyond Chinese Contexts
Milo Shaoqing Wang, Michael Lounsbury, Xiaoyang Chen, and Yufei Ren

Abstract
The institutional logics perspective provides a powerful theoretical lens that emphasizes how meanings and practices are intertwined in relatively enduring configurations that can profoundly shape organizational behavior across space and time. In this article, we propose the need for a broader research agenda on the dynamics of institutional logics in the Chinese context, particularly in three aspects. We begin by elaborating on the distinct configuration of logics in China, where state logic is more dominant and often directs other logics, thus shaping organizational behavior differently than its Western counterpart. We then argue for the need to examine (1) the change of logics per se, leveraging China’ market transition, which provides a unique opportunity to observe how existing configurations of logics undergo transformational change and regain coherence; (2) the governance of logics, focusing on the influence of social evaluators and command posts; and (3) the diffusion of the China Model, a distinct configuration of logics and orders, to other countries through the Chinese state’s political and economic campaigns.

Keywords
Chinese management, governance, institutional logics, institutional theory

Regular Articles

Transfusion or Hematopoiesis? CEOs’ Early-Life Poverty Trauma and Asymmetric Involvement in Poverty Alleviation
Yongzhi Du, Li Tong, Wenxin Wu, and Chenjing Wang

Abstract
How does a CEO’s early-life poverty trauma exposure affect a firm’s involvement in poverty alleviation and the prioritization between generic and strategic involvement? We find that CEOs with such exposure are more likely to engage in both types of poverty alleviation initiatives. We further examine the asymmetry effect and find that these CEOs will prioritize strategic over generic involvement in poverty alleviation. We also conduct a post hoc analysis to test the mediating effect of emphasis on resource efficiency on the relationship between CEOs’ early-life exposure to poverty trauma and the relative emphasis on strategic over generic involvement in poverty alleviation. Using a sample of Chinese publicly listed firms from 2016 to 2021, we find strong support for our predictions. Our study contributes to the literature on CEOs’ early-life experiences and corporate poverty alleviation engagement.

Keywords
CEOs’ early-life experience, corporate social responsibility, poverty alleviation, resource efficiency, strategic CSR

CEO Humility and Firm Reputation in China: The Mediating Role of Organizational Virtuousness and Government Intermediary Connection as a Boundary Condition
Fangmei Lu, Shuyang You, and Liangding Jia

Abstract
We theorize on how and when CEO humility positively shapes stakeholders’ evaluations of a firm. We posit that CEO humility has a positive effect on organizational virtuousness and, hence, on firm reputation in the eyes of the government in China when the firm is intensively connected to government intermediaries. Data for this study were collected from a large-scale on-site survey and archives of 195 firms in 32 Chinese industrial towns. Our 1,099 respondents included 975 top managers and 124 local government officers. Empirical analysis results support our theory. We also complemented our quantitative findings with qualitative evidence. We offer a new perspective for understanding humble CEOs’ influence and condition in shaping their firms’ reputational judgments.

Keywords
CEO humility, China, firm reputation, government intermediary, organizational virtuousness

Returnee Executives, Institutional Environment, and Enterprise Bribery
Xi Zhong, Ge Ren, and Xiaojie Wu

Abstract
Returnee executives have been found to be able to predict a variety of strategic actions effectively; however, less attention has been given to how these executives influence nonmarket strategic actions, especially bribery. We integrate upper echelons theory and institutional theory to examine whether and when returnee executives influence enterprise bribery. We argue that returnee executives may develop moral relativism, which makes them more likely to view bribery as an ethical means of competition. This, in turn, increases the extent to which enterprises engage in bribery. In addition, we argue that anticorruption initiatives (formal institutions) and Confucian culture (informal institutions) moderate the above relationships. The empirical discussion of data from 2,241 nonstate-owned listed companies in China confirms most of the above theoretical speculations. This study helps us recognize the dark side of returnee executives in emerging economies.

Keywords
anticorruption, bribery, Confucian culture, moral relativism, returnee executives

Environmentally Responsible or Irresponsible: Political Connections and Organizational Visibility
Yuxuan Li, Xin Miao, Christina W. Y. Wong, and Zhou Liang

Abstract
Grounded in institutional theory, this study delves into the heterogeneous responses of politically connected top executives (PCTEs) to uniform institutional requirements for corporate environmental responsibility (CER). Specifically, we scrutinized the moderating role of organizational visibility in shaping the association between PCTEs and both environmentally responsible and irresponsible practices. Analyzing data from listed Chinese firms in heavily polluting industries spanning from 2010 to 2018, the findings indicate that PCTEs contribute to an increase in firms’ environmentally responsible activities and a decrease in their environmentally irresponsible activities. Notably, the impact on environmentally responsible activities is significant only for privately controlled PCTEs. Furthermore, the moderating influence of organizational visibility is validated. The implications of these findings for the broader research on political connections and CER are thoroughly discussed.

Keywords
corporate environmental responsibility, institutional theory, organizational visibility, politically connected top executives

Strategy for Sustained Profitable Growth: The Difference Between Growth- and Profit-Oriented Firms
Nan Zhou, Jingoo Kang, and Seung Ho Park

Abstract
Firms adopt different strategies to achieve sustained profitable growth. We argue that the success of sustained profitable growth relies on the alignment between a firm’s prior and subsequent strategy. This study views a firm’s prior strategy, i.e., growth-oriented vs profit-oriented, as a primary driver of future sustained profitable growth. We adopt the resource-based view to understand the types of resources required for these two strategies. We argue that to achieve sustained profitable growth, growth-oriented firms need to enhance their firm-specific advantages by developing valuable, rare, inimitable, and non-substitutable resources such as technology and brand. In comparison, profit-oriented firms must identify versatile resources to capture growth opportunities and manage growth by successfully replicating their profitable operations. Low turnover in senior management could help profit-oriented firms achieve this goal. We find support for the arguments in a sample of 3,802 listed firms worldwide from 1992 to 2019.

Keywords
growth-oriented firms, profit-oriented firms, RBV, sustained profitable growth

Subsidiary Distributive Justice, Internal Embeddedness, and Subsidiary Initiative
David. H. Weng and Hsiang-Ling Chen

Abstract
While prior research has suggested that justice matters for multinational enterprises (MNEs), whether distributive justice affects a subsidiary’s tendency to show initiative remains unclear. In this study, we postulate that the extent to which a subsidiary manager regards the sharing of profit and rewards from the headquarters as fair has a curvilinear relationship with the subsidiary’s inclination to take initiative. Specifically, although a low to moderate level of distributive justice can motivate subsidiaries to show initiative, this stimulating effect will diminish when distributive justice goes beyond a certain threshold. We furthermore contend that this non-monotonic effect will differ between low internally embedded subsidiaries and high embedded subsidiaries. Results based on a sample of subsidiaries owned by MNEs in Taiwan support our arguments. Implications for theory and practice are discussed.

Keywords
distributive justice, internal embeddedness, subsidiary initiative