Taking an inductive approach followed by validation techniques, we analyzed the meaning and dimensionality of the organizational justice construct in the People's Republic of China (China). By using qualitative and quantitative methods, we found that organizational justice involves a higher level of subjectivity in the Chinese context. Interpretation and organizational justice judgments depend on the specific situation and social relations involved. The findings revealed similarities with the Western conceptualization with one important exception, suggesting both cultural values and institutional environment shape justice judgments and managerial practices in China. The article concludes with a discussion of the findings and implications for management theory, research, and practice.

As China shifts its development model from focusing on economic growth at all costs to a model in which economic growth is balanced with solving pressing societal and environmental problems, there is an increasing need for management research on building sustainable organizations in China. This collection of papers focuses attention on the role of business in promoting sustainable economic development, highlighting a number of key processes including: the factors that foster transparency and CSR reporting, how stakeholders can influence corporations to abandon their CSR commitments, the benefits of environmental branding and labeling, and the antecedents and performance consequences of proactive environmental strategies. In this introductory essay we reflect on recent trends in sustainability research in China, and to encourage this important movement, provide recommendations for future research directions.

Extending La Porta, Lopez-de-Silanes, Shleifer, and Vishny (1999), we examine the effect of local government quality on firm performance, since regional and firm research provides a more fine-grained analysis especially in countries where local administration is an integral part of the bureaucratic apparatus. Using a dataset of 7,873 Chinese listed firm-years for 1994–2006, we find a positive relationship between the quality of provincial government and firm performance, controlling for location and firm-specific governance variables. Among various government quality variables, we find that having a special economic zone depicting low taxes and bureaucratic efficiency is the best predictor of firm performance, followed by the degree of marketization, efficient property registration, and environmental protection. Most intriguingly, political freedom has a significant impact on firm performance and productivity, even in a regime where democracy is not practiced. This has never been documented before at a microeconomic level and barely so at a macro level, vindicating Hayek's (1944) theory.

I truly enjoyed reading the perspective article entitled ‘Advancing indigenous management theory: Executive rationale as an institutional logic’ by Gordon Redding and Michael Witt (2015), especially its implications for a ‘promising avenue for indigenous management research’ (179). I agree with the authors in general terms that the research on the impact of culture as an informal institution, and also the effect of formal institutions, on business practices must come down from a highly abstract level to a more pragmatic ground, especially their interaction and integration as embodied by various specific mechanisms to guide practices. For that purpose, Redding and Witt introduce an interesting notion of ‘executive rationale’ to guide action. Applying the abstract notion of institutional logic to specific business practices, executive rationale refers to the ‘socially constructed, historical patterns of material practices, assumptions, values, beliefs, and rules by which individuals produce and reproduce their material subsistence, organize time and space, and provide meaning to their social reality’ (Thornton & Ocasio, 2008: 101) in the specific context of business practices. In other words, executive rationale provides a mental blueprint for practical actions in a business context. In addition, the authors have empirically generated a tentative model with multiple dimensions to compare the dominant executive rationales as institutionally-embedded across five key economies.

The existing literature does not provide adequate insight into the initial diffusion of new management practices, especially those that yield no immediate economic benefits, and have not yet gained legitimacy. We study how firms’ local institutional environments influence early adoption behavior, examining the spread of corporate social responsibility (CSR) reports in China's banking industry from 2006 to 2011. We find that banks are more likely to be first movers of CSR reporting if they operate in communities where more companies publish CSR reports or where there are guidelines encouraging CSR reporting, and the impacts of these two institutional factors are further moderated by the length of time that banks have operated in communities. Our study highlights the usefulness of institutional theory in understanding the initial adoption of new management practices, when the organizational field is defined as a geographic community instead of an industry sector and its supply chain.

There is regular and explicit media coverage of employee behaviour intended to advance organizational goals, but that harms stakeholder interests in ways that exceed necessity and reason. Although several constructs such as workplace deviance, organizational misbehaviour, corporate crime and corruption, and unethical pro-organizational behaviour have been advanced to account for this type of behaviour, no comprehensive framework exists that also includes the full scope of its important consequences. Accordingly, we propose the umbrella construct of detrimental citizenship behaviour (DCB) that allows us to integrate and build upon previous related conceptualizations that have developed mostly in parallel bodies of research. We rely on ethical decision-making, creativity, and instrumental stakeholder theories to embed the umbrella DCB construct within a multi-level and longitudinal model. The DCB model includes processes through which such behaviour and its consequences unfold over time for organizational members, organizations, and society at large. The proposed framework describes, explains, and predicts DCB and also leads to suggestions for future research. In addition, we offer suggestions regarding how to manage this highly consequential type of organizational behaviour, thereby engaging in a much-needed science-practice dialogue in management and organization studies.

Although development in China is quite heterogeneous across regions, little research has explored how the value of Chinese firms’ political ties is contingent on the institutional and economic development of firms’ regional environment. This article explores some of the factors that moderate the benefit of political ties, differentiating between ties to central and local government. The study investigates how benefits of ties to central and local government are moderated by regional market and economic development, respectively. The study is based on a quantitative analysis of 858 listed Chinese firms. The results suggest that firms enjoy a positive effect of political ties but mainly ties to central government. The analysis, furthermore, finds these ties to be less valuable in economically well-developed regions. Market development, on the other hand, does not moderate the effects of local or central government ties.

Choi, Jiang, and Shenkar (2015) offer an interesting and new perspective on the relationship between local governance and firm performance in China. This commentary focuses first on how we conceive of the nature of China's capitalism and then examines what that suggests about their metrics and findings.

The business ethics literature has paid little attention to the similarities, differences, and interactions between ‘justice climate’ and ‘ethical work climate’, two key perspectives on the moral dimension of organizations that are related to cultural diversity. In this conceptual paper we argue that integrative studies of justice and ethical work climates could contribute significantly to our understanding of the moral dimensions of organizations. We propose a model showing that an organization's moral climate can perform both normative and evaluative functions. With the globalization of business and increasing diversification of the labour force, cross-cultural differences regarding organizational perceptions and behaviours are increasingly salient. Hence, we also explore the influence of cultural diversity in our integrated model with the Chinese business context as a specific example. We conclude by discussing directions for further research on the relationship between cultural diversity and moral climate in organizations.

In this study, we use the context of corporate social responsibility (CSR) suspension and provide a case study from China to show how conditions allowed shareholders to seize power and alter a firm's mission. We show that managers reacted to a change in shareholder power by changing their priorities to correlate with shareholder influences. Our dynamic model first highlights the importance of precipitating events that allowed shareholders to seize power. In response, managers rebalanced their priorities, paid more attention to the shareholders who demanded higher profits, and suspended ethical and discretionary responsibilities as a result. We further present evidence that CSR suspension subsequently harms relationships between stakeholders and threatens firm survival. We contribute to stakeholder theory by providing a dynamic model for interpreting stakeholder influences and managers’ subsequent responses. We add to corporate social responsibility studies by providing a more nuanced understanding of CSR suspension.

In a transitional economy such as China's, when resources are unevenly distributed across different sectors, the disadvantaged sector may seek a growth path that bypasses resource constraints. We investigated this phenomenon in the context of the Chinese real estate industry. By comparing the post–merger and acquisition (M&A) performance of acquiring firms between state-owned enterprises (SOEs) and privately-owned enterprises (POEs), we attempted to show that POEs are better performers in the market should they be granted equitable resources, and the superior performance is strengthened by market-oriented institutional environment. We used M&A events data of publicly listed real estate firms in China from 2004 to 2012, in conjunction with firm characteristics and province-level market environment data. We found the results to be consistent with our hypotheses. In particular, compared to SOEs, privately-owned acquiring firms tend to have better post-M&A performance when both the regions of the acquirer and the target have high level of marketization. The results suggest that the private sector in China's transitional economy is potentially more efficient than the state-owned sector, as long as the market environment is favorable.

We conducted two studies to investigate the contingent role of regional human capital quality (i.e., the knowledge, skills, and abilities of the collective workforce in a region) in the relationship between firm-level human resource (HR) practices (i.e., practices focusing on employees’ human capital development) and firm performance in China. Drawing upon human capital theory, we hypothesized that the human capital–enhancing HR practices and regional human capital quality have a substitutive effect on firm performance. Study 1 uses a World Bank survey of 9,125 firms in 30 provinces. We found that the human capital–enhancing HR practices relate more strongly to firm performance when regional human capital quality was lower than when it was higher. Study 2 used a sample of 203 firms across seven provinces. We found similar results. We further hypothesized and found that the substitutive effect of regional human capital quality was stronger when a firm adopted an innovation strategy. Our findings provide new evidence for the contingency perspective of strategic HR management and highlight the importance of matching HR practices with local labor quality conditions and the business strategy of the firm.

In this article, we propose that types of CEO paternalistic leadership will affect the effectiveness of top management team (TMT) decisions, and that team conflict will play a mediating role in the relationship between CEO paternalistic leadership and decision effectiveness in the Chinese context. Data collected from 108 TMTs in China suggest that dimensions of paternalistic leadership significantly affect decision effectiveness: benevolent and moral leadership positively affect TMT decision effectiveness, but authoritarian leadership has negative effects on TMT decision effectiveness. In addition, cognitive and affective team conflicts partially mediate the links between paternalistic leadership types and decision effectiveness. The results suggest that CEO paternalistic leadership approaches and conflict modes significantly determine TMT decision effectiveness.

Drawing on economic, sociological, and strategic perspectives, we use data of a large sample of 936 Chinese manufacturing firms in the period from 2000 to 2005 to examine how environmental labeling may affect a firm's financial performance. We argue that reducing information asymmetry, increasing legitimacy, and differentiating strategically through environmental labeling may prompt customers to patronize the firm, thereby enhancing firm performance. However, not all firms benefit equally; environmental labeling conveys fewer benefits for larger firms and for firms listed in a stock market, because they are less threatened by information asymmetry or insufficient organizational legitimacy. Our findings suggest that environmental labeling has generally limited influence on financial performance, but for small and unlisted firms, environmental labeling increases sales.

We investigate how trust reduces the tendency to use deception in negotiations from a culturally contextual perspective. We find culturally divergent patterns across Chinese and American negotiators. Specifically, for Chinese negotiators, cognition-based trust decreases the approval of using negative emotional and informational deception, whereas affect-based trust increases the approval of using informational deception. For American negotiators, affect-based trust decreases the approval of using negative emotional deception. We discuss theoretical and practical implications on the need for culturally specific strategies in managing deceptions in negotiations.

This study provides new insight into guanxi practice and quality differences between business-to-business (B2B) and business-to-government (B2G) ties in China. The results, based on data obtained through structured interviews with 108 Chinese managers across eight cities in China, reveal stark differences between the practices used in developing B2B ties and those used in developing B2G ties. More specifically, these two tie types differ in a variety of guanxi initiation, building, and utilization practices. This study also builds upon the process model of guanxi development by highlighting the dissimilar role of gift giving practices in B2B and B2G ties. Furthermore, this study measures guanxi quality as a separate concept from guanxi process and demonstrates that guanxi quality is a multidimensional concept that is composed of affective attachment and felt obligation, both of which vary across B2B and B2G ties. Implications of these results for theory development and managerial practice in China are also discussed.

We propose an integrative model on how contextual distance influences the learning process and performance of international strategic alliances (ISAs). We argue that contextual distance increases knowledge diversity but decreases knowledge exchange between the alliance partners, which has implications for the alliance's knowledge creation and performance. A meta-analysis of 46 empirical studies published between 1990 and 2013 dealing with Sino-foreign collaborations in China revealed that contextual distance showed an inverted U-shaped relationship with alliance performance. Proxies for partners’ contextual experience, for example, the length of an alliance's operation in China, the foreign partners’ in-country experiences, and ISAs’ location in a more developed Chinese region, moderate the learning processes. Implications and directions for future research are discussed.

This paper explores the relationship between poetry and leadership – in particular, how business leaders might leverage poetry in practice. Drawing on the theoretical lenses of logic of appropriateness and ambiguity, we suggest a conceptual model to understand the multilayered meaning of poetry, noting that poetry has four layers of meaning: the superficial meaning, the poet's evocative meaning, the reader's recasting into a modern situation, and the recipient's interpretation. Using the storytelling research method, we collected leadership narrative stories that indicate poetry as an effective communication tool in practicing leadership. From these data, we identify four approaches that leaders use to apply the multilayered meaning of poetry in contemporary business practice: drawing lessons from poets' experience through critical interpretation of the poem, inspiring leaders' heroic spirits, guiding leaders' rules of behavior, and adopting poetry as a tactic to influence others. Our study contributes to the argument of ambiguity as a source of intelligence and illuminates how poetry as an artistic form of story facilitates contemporary leadership practice in light of the logic of appropriateness framework.

In this article we provide a comprehensive framework to explain, in China and in Western countries, how three antecedents – regulations, stakeholder norms, and managerial mindsets – differently affect proactive environmental strategies (PES) and subsequently influence firm performance. A meta-analysis of 68 studies involving 71 samples supports our hypotheses. In Western countries, top managerial mindsets have the strongest effect and regulations have the weakest effect on PES. In China, regulations, stakeholder norms, and managerial mindsets have similar effects on PES. For Western firms, the PES has stronger effects on environmental performance than on economic performance and the effect on environmental performance is stronger than that in Chinese firms. For firms in China, the PES has equally positively affects on environmental and economic performance, but the effect on economic performance is stronger than that of Western firms. Implications for future research are discussed.

Although employees react negatively when employers hire individuals with whom the employers have personal ties, the practice is prevalent worldwide. One factor contributing to the discrepancy between reactions to the practice may be differences in cultural beliefs and institutions regarding perceptions about hiring decisions. To examine cross-national differences in perceptions about hiring personal ties, we conducted a consensus analysis on the perceived fairness, profitability, and overall evaluation of hiring decisions in China and the United States. We find cross-national differences in consensus levels as to whether people believe it is fair or unfair to hire moderately qualified candidates with employer ties (kinships or close friends with the employer) and whether people positively or negatively evaluate the hiring of unqualified candidates with stakeholder ties (ties to business associates or government officials). We also find contrasting areas of consensus about whether hiring unqualified candidates with stakeholder ties is profitable. Implications for research on cultural comparisons of perceptions of hiring practices and guanxi are discussed.