Wei Sun, Chengyixue Huang and Zhongfeng Su
While the relationship between non-family CEOs and corporate innovation in China has been widely studied, the results remain inconclusive. This study explores the relationship…
Abstract
Purpose
While the relationship between non-family CEOs and corporate innovation in China has been widely studied, the results remain inconclusive. This study explores the relationship between non-family CEOs and corporate innovation in the context of intergenerational succession. It considers the background and background characteristics of non-family CEOs in an attempt to provide a theoretical foundation for human resource management and innovative strategic management that can be applied in the transformation of family companies.
Design/methodology/approach
The authors develop, then test, a series of hypotheses using an econometric analysis of a large sample of Chinese listed family firms. To control for endogeneity problems, such as missing variables in the model and the selectivity bias of the sample, propensity score matching (PSM) model is applied to analyze the panel data of 452 listed family firms from 2009–2019.
Findings
This study first validates the mechanism by which non-family CEO background characteristics affect innovation performance in family firms. It then reveals the varying moderating effects of two stages of intergenerational succession (i.e. later-generation participation in management and later-generation take-over management) that influence the relationship between non-family CEOs and corporate innovation.
Originality/value
The study's findings based on upper echelon and imprinting theory complement and extend existing research by revealing the impact of non-family CEOs from different backgrounds, and also identifying the role of intergenerational succession in the relationship between non-family CEO background characteristics and innovation performance.
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Yuan Li, Zhongfeng Su, Yi Liu and Mingfang Li
Strategic change is critical for firms suffering greater environmental uncertainty, but how can firms change their strategies quickly? The purpose of this paper is to examine the…
Abstract
Purpose
Strategic change is critical for firms suffering greater environmental uncertainty, but how can firms change their strategies quickly? The purpose of this paper is to examine the impact of entrepreneurial orientation (EO) on the speed of strategic change (SSC) together with the moderating effect of strategic flexibility (composed of resource flexibility (RF) and coordination flexibility (CF)).
Design/methodology/approach
A survey instrument of 351 Chinese firms obtained through the face‐to‐face interview method is used to empirically test the hypotheses.
Findings
This study finds that EO has a positive impact on the SSC. In addition, the moderating effect of RF on the relationship between EO and the SSC is inverse U‐shaped, while that of CF is positive. The findings indicate that both EO and strategic flexibility are important antecedents of the SSC.
Originality/value
This study adds an in‐depth understanding on the roles of EO and strategic flexibility as the antecedents of the SSC.
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Zhongfeng Su, Yuan Li and Lin Li
The research on corporate governance has different perspectives on the relationship between ownership concentration and executive compensation, and the empirical findings on this…
Abstract
Purpose
The research on corporate governance has different perspectives on the relationship between ownership concentration and executive compensation, and the empirical findings on this linkage are also inconclusive. The purpose of this paper is to investigate the impact of ownership concentration on executive compensation in emerging economies.
Design/methodology/approach
By connecting different perspectives with the characteristics of emerging economies together, this research explores the impact of ownership concentration on executive compensation, and then empirically tests the hypotheses based on the archival data of publicly held firms in China.
Findings
The paper finds that there is no significant relationship between ownership concentration and executive compensation in state‐owned enterprises (SOEs), while there is a U‐shaped relationship in non‐SOEs.
Originality/value
This study not only offers an empirical test of the effect of ownership concentration on executive compensation, but also provides some insights into the debates on the relationship between ownership concentration and executive compensation in emerging economies.
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Dong Wang, Zhongfeng Su and Dongtao Yang
Organizational culture comprises a firm's climate that informally and tacitly defines how the firm develops and uses knowledge, thus it has a significant effect on knowledge…
Abstract
Purpose
Organizational culture comprises a firm's climate that informally and tacitly defines how the firm develops and uses knowledge, thus it has a significant effect on knowledge creation capability. The purpose of this study is to investigate the impact of organizational culture on knowledge creation capability.
Design/methodology/approach
The data of 212 Chinese firms collected through face‐to‐face interview is used to empirically test the hypotheses.
Findings
This study finds that organizational culture plays a critical role in knowledge creation capability. Specially, collectivism has a positive impact on knowledge creation capability, while power distance and uncertainty avoidance have negative effects.
Originality/value
This study not only contributes to knowledge management research by identifying a key antecedent of knowledge creation capability – organizational culture – but also is of importance to organizational culture literature by demonstrating the proper organizational culture for knowledge creation capability.
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Palka Chhillar and Ramana Venkata Lellapalli
This review paper aims to compare the various dimensions in the finance literature pertaining to the Anglo-Saxon Model (Stockholder Model) prevalent in the USA and the UK with the…
Abstract
Purpose
This review paper aims to compare the various dimensions in the finance literature pertaining to the Anglo-Saxon Model (Stockholder Model) prevalent in the USA and the UK with the German Model (Stakeholder Model) of corporate governance prevalent in Germany and continental Europe. The present study identifies different strands of research on the various dimensions of these models, along with aspects of governance in emerging economies and the phenomenon of the convergence of these governance mechanisms.
Design/methodology/approach
The literature review on corporate governance models has been carried out on the themes of internal and external governance mechanisms. The review considers agency theory along with principal–principal (PP) conflicts as the fundamental blocks explaining the need for governance structures.
Findings
The traditional models of governance, along with the incorporation of PP conflicts, will result in a hybrid model inculcating the best of both the traditional models. However, convergence in the true sense may not be possible owing to fundamental differences pertaining to cultural, economic, legal and socio-economic aspects of the firm.
Originality/value
This paper proposes a framework incorporating the interplay of managerial talent and controlling shareholders to understand the governance system that may be applicable for firms in emerging economies.
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Xiaoyan Li, Jiye Mao and Jing Qian
The paper seeks to investigate the effects of psychological contract on control mechanisms in outsourced ISD projects, based on control theories and psychological contract…
Abstract
Purpose
The paper seeks to investigate the effects of psychological contract on control mechanisms in outsourced ISD projects, based on control theories and psychological contract theories.
Design/methodology/approach
The paper is a multiple case study involving five outsourced projects completed by one of the largest and most successful telecommunication vendors in China. The company was the client in three of the projects and the vendor in the other two.
Findings
Based on first‐hand observations by the first author over a two‐year period and follow‐up interviews, four scenarios of match and mismatch of psychological contract between the client and vendor are identified, labeled as mutual transaction, client vulnerable, vendor vulnerable, and mutual loyalty. Moreover, the effect of psychological contract in shaping organizational control and outsourcing outcomes in the four different scenarios is revealed. For example, mutual transaction was associated with an emphasis on outcome control by the client. In contrast, mutual loyalty was associated with more informal control (self‐control and clan control). Furthermore, in the cases of mismatch between the client's and vendor's psychological relationship, the client implemented more behavior control and encouraged self‐control by its partner.
Originality/value
This research is, to the best of the author's knowledge, one of the first attempts to bring together psychological contract theory and organizational control theory in the domain of IT offshore outsourcing research. It reveals the effect of psychological contract in shaping organizational control in the four different scenarios labeled as mutual transaction, client vulnerable, vendor vulnerable, and mutual loyalty.
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Zhongfeng Sun, Guojun Ji and Kim Hua Tan
This paper aims to study the joint decision making of advance selling and service cancelation for service provides with limited capacity when consumers are overconfident.
Abstract
Purpose
This paper aims to study the joint decision making of advance selling and service cancelation for service provides with limited capacity when consumers are overconfident.
Design/methodology/approach
For the case in which consumers encounter uncertainties about product valuation and consumption states in the advance period and are overconfident about the probability of a good state, we study how the service provider chooses the optimal sales strategy among the non-advance selling strategy, the advance selling and disallowing cancelation strategy, and the advance selling and allowing cancelation strategy. We also discuss how overconfidence influences the service provider’s decision making.
Findings
The results show that when service capacity is sufficient, the service provider should adopt advance selling and disallow cancelation; when service capacity is insufficient, the service provider should still implement advance selling but allow cancelation; and when service capacity is extremely insufficient, the service provider should offer spot sales. Moreover, overconfidence weakens the necessity to allow cancelation under sufficient service capacity and enhances it under insufficient service capacity but is always advantageous to advance selling.
Practical implications
The obtained results provide managerial insights for service providers to make advance selling decisions.
Originality/value
This paper is among the first to explore the effect of consumers’ overconfidence on the joint decision of advance selling and service cancelation under capacity constraints.
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Guided by the theory of dynamic capabilities and the knowledge-based view of an organization, the purpose of this paper is to examine the crucial role played by entrepreneurial…
Abstract
Purpose
Guided by the theory of dynamic capabilities and the knowledge-based view of an organization, the purpose of this paper is to examine the crucial role played by entrepreneurial orientation and absorptive capacity in the relationship between strategic flexibility and firm performance, with a specific focus on small firms.
Design/methodology/approach
The study uses survey data collected from owners of 272 small businesses in India and follows the linear regression method to establish the link between strategic flexibility and firm performance. It hypothesizes that the strategic flexibility of a small firm impacts entrepreneurial orientation, and subsequently its performance, while absorptive capacity further enhances this relationship.
Findings
The conclusions drawn from the study provide empirical evidence on the mediating role of entrepreneurial orientation in the relationship between strategic flexibility and firm performance. The findings also point out that the potential absorptive capacity of a firm strengthens the relationship between its strategic flexibility and entrepreneurial orientation.
Research limitations/implications
The empirical findings of the study are limited to small firms from the automotive service industry.
Practical implications
The study contributes to the existing knowledge on managerial practice by pointing out the importance of strategic flexibility as a dynamic capability and illustrating its impact in the case of a small firm’s performance.
Originality/value
As yet, there is a dearth of empirical evidence derived from large samples of small firms. The study supplements available literature on dynamic capabilities and knowledge management.
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Nuraddeen Abubakar Nuhu, Kevin Baird and Ranjith Appuhami
This study aims to examine the role of organisational dynamic capabilities (strategic flexibility and employee empowerment) in mediating the relationship between management…
Abstract
Purpose
This study aims to examine the role of organisational dynamic capabilities (strategic flexibility and employee empowerment) in mediating the relationship between management control systems (MCSs), in particular the interactive and diagnostic approaches to using controls, with organisational change and performance.
Design/methodology/approach
Data were collected based on a mail survey of public sector organisations in Australia and analysed using structural equation modelling (SEM).
Findings
The findings indicate that strategic flexibility and employee empowerment mediate the association between the interactive approach to MCSs with organisational performance, and strategic flexibility mediates the relationship between the interactive approach to MCSs with organisational change.
Practical implications
The study’s findings inform public sector practitioners as to how to enact change within and enhance the performance of public sector organisations. Specifically, managers are advised to focus on the use of interactive controls and the development of two dynamic organisational capabilities, strategic flexibility and employee empowerment.
Originality/value
The study provides an initial empirical insight into the relation between controls and dynamic capabilities and their role in enacting change and performance within the public sector. The findings suggest that the achievement of new public management ideals is reliant upon the organisational environment, with change and performance facilitated by the interactive use of controls and strategic flexibility and employee empowerment.
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Jitrinee Chanphati and Nongnapat Thosuwanchot
Strategic flexibility (SF) has become an important factor for firm viability and success amidst uncertain and fast-changing environments. Firms should supplement their primary…
Abstract
Purpose
Strategic flexibility (SF) has become an important factor for firm viability and success amidst uncertain and fast-changing environments. Firms should supplement their primary strategy with alternative ones to change courses of action whenever required. Despite these benefits, some firms are constrained by the high costs of investments. Hence, this paper aims to synthesize and systematically review extant empirical studies on SF and to provide suggestions for future research.
Design/methodology/approach
The authors conducted a systematic review following the Theory, Context, Characteristics, and Methods (TCCM) framework based on 88 journal articles from 34 high-ranking publications.
Findings
The study shows that extant SF literature focuses on antecedents and outcomes and draws on three main theoretical perspectives. It also presents a growing trend of SF literature in various contexts.
Originality/value
This study provides a systematic review of SF literature from both theoretical and empirical perspectives using the TCCM framework. It highlights the significance of SF in management research and global context.