Zi Xuan Chan, Yibai Wang, Lin Yuan, Xiaoyun Chen and Yukun Feng
Building on upper echelons theory, this study explores the influence of managerial cognition on firm innovation during times of crisis. Specifically, we aim to disentangle the…
Abstract
Purpose
Building on upper echelons theory, this study explores the influence of managerial cognition on firm innovation during times of crisis. Specifically, we aim to disentangle the concept of cognitive complexity by examining how CEOs’ cognitive depth and cognitive width differently influence their firms’ innovation outcomes. Additionally, we investigate how organizational slack moderates the impact of these cognitive attributes on innovation, providing a deeper understanding of the conditions under which managerial cognition drives firm adaptability in crises.
Design/methodology/approach
This study utilized a sample of 115 listed US firms ranked in the top 200 in terms of market capitalization share in 2020. We measured the key variables by analyzing text and archival data from interviews with CEOs, particularly focusing on their discussions regarding the impacts of the COVID-19 pandemic. Regression analysis was employed to test the hypothesized relationships in the research model.
Findings
The results reveal that under the crisis, CEO cognitive depth enhances firm innovation, while CEO cognitive width impedes firm innovation. Moreover, organizational slack weakens the positive relationship between CEO cognitive complexity and innovation.
Research limitations/implications
This study significantly contributes to and extends the established body of research on a leader’s cognition during a crisis. Our study goes beyond traditional views of cognitive complexity by highlighting the distinct impacts of two critical elements: cognitive depth and width, on decision-making processes. This study contributed to the innovative decision-making literature by opening up the black box behind the decision-making process of innovation during uncertainty. This underscores the multifaceted nature of cognitive processes in innovation, highlighting the interplay between cognitive depth, cognitive width and organizational resources in driving firm innovative outcomes during the crisis. We also broaden the temporal scope of empirical research on CEO cognition by gathering data from CEO interviews conducted during the COVID-19 pandemic.
Practical implications
This study reveals that when CEOs have a broader focus and attend to a wide range of information, their ability to quickly utilize firm resources for formulating competitive actions decreases during uncertainty. Consequently, it is crucial for CEOs to acknowledge the limitations of their attentional capacity. The allocation of their attention and information processing capacity has significant implications for their innovative decision-making processes, particularly in navigating through crises.
Social implications
Our study finds that excessive attention during times of crisis may not necessarily be beneficial to firm innovation. An excessive focus on problems can lead to scattered attention, impairing judgment and decision-making abilities. Moreover, excessive attention to problems may trigger panic and unnecessary stress, further impacting decision quality. High cognitive width can trap teams in short-term thinking and emergency mode, neglecting long-term strategies and opportunities such as innovation investment. Yet, firms with more slack resources can reduce the negative impacts of cognitive depth.
Originality/value
This study proposes a comprehensive cognitive model to understand managers’ decision-making during a crisis. The research posits that different dimensions of CEOs’ managerial cognition have distinct impacts on firm innovation in crisis environments. This study significantly contributes to the study of managerial cognition and innovation literature.
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Xuan-Hoa Nghiem, Huong Trang Pham, Thu Giang Nguyen and Thi Kim Duyen Nguyen
Climate change has been universally recognized as a major threat to human well-being, necessitating a comprehensive transformation of people's activities. Various measures have…
Abstract
Climate change has been universally recognized as a major threat to human well-being, necessitating a comprehensive transformation of people's activities. Various measures have been proposed to contain climate change among which the green transformation grabs special attention, thanks to its desirable properties. Within the green transformation process, green tourism comes to prominence with huge potential. As one of the largest carbon emitters, the transition towards green tourism may offer substantial benefits not only for tourism companies but also for the whole economy. Yet, most studies tend to focus on the adverse effects of tourism on climate change while overlooking the potential impact of climate change on tourism. This chapter clarifies the feedback relationship between climate change and tourism and makes some recommendations.
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Wanxing Jiang and Ji Li
Based on a review of the Chinese ethic of bao (reciprocity), this paper aims to study the issue of reciprocity of trust at firm level by analyzing multiple-source data while…
Abstract
Purpose
Based on a review of the Chinese ethic of bao (reciprocity), this paper aims to study the issue of reciprocity of trust at firm level by analyzing multiple-source data while controlling for the effects of several contextual variables.
Design/methodology/approach
The authors collected data from the supplier–buyer partnerships in China’s automotive industry. Hierarchical linear regression approach is adopted to test the hypotheses.
Findings
The data show that reciprocity of trust between parties involved has a significantly positive effect on the stability of the supplier–buyer partnership, and that this reciprocity also moderates the relationship between trust itself and stability. In addition, several contextual variables, i.e. the suppliers’ sensitiveness to their buyer’s need, personal contact of top managers, motivation to develop symbiotic partnership and firm location, can also have significant and positive effects on the stability of the supplier–buyer partnership.
Originality/value
This study presents empirical evidence on how the Chinese ethic of bao may influence the stability of the supplier–buyer partnerships, suggesting that examining this Chinese cultural element is a useful exercise. Related to this issue, the data show that the level of trust between the parties in business transactions differs, and that this difference influences the stability of the partnership. In addition, the study suggests that several other factors have significant and positive effects on the stability of the partnership. Interestingly, the data suggest that these effects are more likely to be observed when the reciprocity of trust or bao between the partners is taken into account. By demonstrating empirically the significant direct and moderating effect of bao or reciprocal trust, this study makes an important contribution to the literature on trust and the stability of the supplier–buyer partnership.
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Established on the detailed exploration of Chinese ancient management philosophies (CAMPs), the purpose of this paper is to extract enlightenments from CAMPs to see whether there…
Abstract
Purpose
Established on the detailed exploration of Chinese ancient management philosophies (CAMPs), the purpose of this paper is to extract enlightenments from CAMPs to see whether there exist some similarities between CAMPs and contemporary human resources management thoughts (CHRMTs) and pinpoint CAMPs' implications on human resource management practices nowadays.
Design/methodology/approach
Inspired by Lao Tzu's “When we can lay hold of the Dao of old to direct the things of the present day, and are able to know it as it was of old in the beginning, this is called (unwinding) the clue of Dao”, the paper explores, categorizes and integrates wisdom stemmed from CAMPs to evaluate whether there exist some commonly accepted arguments between CAMPs and CHRMTs.
Findings
CAMPs which have been passed on by generations for the past 2,500 years in China provide firm ground for human resources management thoughts and practices development; CAMPs' emphasis on people's well cultured morality and highly developed virtues has kindled a light to illuminate human resources management practices, not only in the past but also in the future. CHRMTs' principles concerning “people‐centered strategies”, employee recruitment and selection strategies, employee training and education strategies, staffing as well as employee retention strategies, can all trace their sources from CAMPs.
Originality/value
The research on CAMPs is not only significant to complement and extend CHRMTs but also useful to direct current human resource management practices.
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Xiangdong Gu, Louise T. Higgins, Lixiang Weng and Xiaoye Holt
The aim of this paper is to examine the evolution and development of the selection process and methods used by the Chinese government for appointing public officials.
Abstract
Purpose
The aim of this paper is to examine the evolution and development of the selection process and methods used by the Chinese government for appointing public officials.
Design/methodology/approach
The paper adopts an approach combining literature and document reviews with discussion with field experts.
Findings
China has a long history of selecting the most able individuals for government officials. During the political turmoil of the twentieth century, this was abandoned for ideological reasons. Current selection criteria and process are increasingly based on solid psychology and management approaches.
Research limitations/implications
This paper is an overview of developments in Chinese government official selection approaches and process.
Practical implications
It may serve as a baseline for future research and practice on exploring sound and institutionalized selection methods and processes.
Originality/value
This is an initial attempt to explore senior Chinese officials' selection process.
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Hui-Wen Deng and Kwok Wah Cheung
The National People’s Congress (NPC) of People’s Republic of China, the highest organ of state power, is popularly seen as a rubber-stamp entity. However, it has been…
Abstract
Purpose
The National People’s Congress (NPC) of People’s Republic of China, the highest organ of state power, is popularly seen as a rubber-stamp entity. However, it has been substantially evolving its roles to accommodate the governance discourses within China’s political system over the decades. This study aims to explore the changes of governance discourse of the NPC within China’s political system through which to offer a thorough understanding of the NPC’s evolving substantial role in current China.
Design/methodology/approach
This study deploys a historical approach to explore the changes of governance discourse of the NPC that has seen a growing importance in China’s political agenda, as argued by this study.
Findings
The authors find that the NPC has been substantially evolving its role within China’s political system in which the Chinese Communist Party has created different governance discourses. Besides, the NPC and its Standing Committee have asserted its authority as a substantial actor within China’s political system. The NPC is no longer functioned as a rubber-stamp institution, though it is still popularized as a rubber stamp by many scholars.
Research limitations/implications
This study is a historical elaboration on the development of NPC under three governance discourses. It might be, to some extent, relatively descriptive in nature.
Originality/value
This study, therefore, sheds some light on a revisit on the governance discourses in current China.