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This study aims to consider the effect of managerial capital (psychological, intellectual and social) on business strategy and growth. Per upper echelon theory, managerial capital enables high-level managers to drive firm performance in uniquely personal ways. The authors test the effects of managerial capital on a manager’s dominant regulatory focus (promotion and prevention balance) and whether having an explorative strategy mediates the relationship between dominant regulatory focus and the percentage of business unit growth expected from new lines of business.

Survey data from a sample of 211 Chinese executives were used to assess measurement and test hypotheses by means of structural equation modeling.

Results indicate that the direction of business strategy is influenced by the balance between promotion and prevention focus, which is shaped by managers’ risk propensity, product-market familiarity and bonding tie diversity. Explorative strategy, in turn, mediates the relationship between dominant regulatory focus and expectations of innovative growth.

Examining the effects of managerial capital on innovative firm strategy reveals the role of psychosocial traits of decision-makers.

In China, with the rapid dissemination of mobile communications technology along with congested traffic and increasingly expensive transportation costs, consumers are turning to smartphone-enabled, ride-sharing services. Sharing economy requires trust in strangers. Based on trust transfer theory and a dyadic conceptualization of trust from cognitive to affective, the purpose of this study is to examine trust building through the use of Didi, a third-party, ride-sharing platform that mediates exchanges among strangers.

Structural equation modeling (SEM) results based on 242 observations indicate that the platform functions as an important enabler of trust, which influences a consumer's behavioral intention.

Specifically, Didi's reputation and security assurance have a positive influence on passengers' cognitive trust in drivers. There is also evidence that the interaction as mediated by the app between passengers and drivers helps the formation of affective trust, while the results do not support a relationship between cognitive and affective trust.

The research findings address trust transference between participants in the sharing economy and its effects, which have significant theoretical and practical implications and offer opportunities for future research in other sectors of the sharing economy.

This study explores how organizations deal with divergent institutional logics when designing new products. Specifically, we investigate how organizations approach and embody institutional complexity in their product design. Through a multimodal study of serious games, we identify two design strategies, the proximity and the amplification strategies, which organizations employ to balance multiple institutional logics and design novel products that meet competing institutional expectations. Our study makes an important theoretical contribution by showing how institutional complexity can be a source of innovation. We also make a methodological contribution by developing a new, multimodal research design that allows for the in-depth study of organizational artifacts. Altogether, we complement our understanding of how institutional complexity is substantiated in organizational artifacts and highlight the role that multimodality plays in analyzing such situations.

The purpose of this paper is to identify the determinants for currency internationalization and forecast the potential of RMB as an international reserve currency.

This paper performs linear or non-linear regressions of the shares of eight major international reserve currencies as the reserve assets in global central banks on the macro economic and financial variables of their corresponding countries to identify the determinants for their international positions, and conducts an “counter-factual simulation” for the potential of RMB as an international reserve currency.

This paper finds that the economic size and the “network externalities” are the most important determinants for the international status of a reserve currency; that exchange rate volatility has negative impacts; the conditions for the RMB internationalization are basically available. The simulation for the potential of RMB as an international reserve currency reveals that the international role of RMB could surpass that of the Japanese Yen and the British Pound, and get close to Euro in the coming 15 years. Based on the empirical evidence, this paper suggests a promoting strategy for RMB internationalization.

This paper has not taken the influence of economic systemic and political factors on the process of RMB internationalization into account.

RMB internationalization promotion should follow the strategy of “stably create RMB international demand in the initial period and dramatically release the RMB overseas supply in the latter period” in the coming 15 years.

The conclusions and policy implications are from the results of the empirical analysis on the 45-year historical experience on the eight main international currencies.

Does the history of the bureaucratic system, along with the establishment of the Great Wall during the Ming and Qing dynasties (1368–1911), affect firm behavior across the borderlands of the Great Wall?

The Ming and Qing dynasties built a centralized administrative system in the borderlands on the south side of the Great Wall, in contrast to the “feudal lordship” system on the north side. Employing a regression discontinuity analysis framework with the Great Wall as a geographical discontinuity, we examine the long-run effects of the Great Wall on firms’ earnings management.

Using a large sample of nonlisted firms in the central core frontier region, we show that the earnings management of firms in the region south of the Great Wall is significantly curtailed compared with firms in the north of it, and this effect is more pronounced for non-SOEs. Our findings are robust to a battery of tests to account for alternative explanations.

Overall, by emphasizing the role of institutions, like legal system, shaped in history on firms’ earnings management, this study sheds new light on institutional determinants of firms’ behaviors in earnings information disclosure.

First, we enrich our understanding of the institutional determinants of firms’ financial reporting outcomes. Second, our findings shed new light on the long-term effects of historical ruling styles on modern corporate behavior.