Stark wealth inequality is consequential for politics, yet the underlying mechanisms are still understudied. We join recent research urging a deeper analysis of how oligarchic interests and material power operate in highly unequal societies by expanding the business power literature to understand new sources of influence based on wealth. We engage in a concept-building exercise for the concept of business power and clarify the similarities and differences between material power and other sources of business power. We then discuss different mechanisms underlying material power and develop the mechanism of opportunity hoarding from the literature on social closure. Opportunity hoarding helps understand how oligarchic interests appropriate well-functioning state institutions for their benefit. We illustrate these mechanisms by analyzing the case of Guatemala, a country with tremendous wealth inequality and pervasive political instability. We highlight the usefulness of our proposed concept structure for analyzing diverse instances of business power and the concept of material power for understanding business influence in highly unequal societies.

This article introduces “epistemic business power” as a distinct facet of corporate influence. Epistemic business power refers to the strategic communication of firms to influence the perceptions and beliefs of policymakers, experts, media, and the public regarding which issues, goals, norms, methods, and instruments to be politically considered. Rather than influencing decision-making and policy formulation directly, this form of power enables firms to intermediate the anticipatory dynamics of structural forms of business power and shape issue salience as well as the definition and recognition of topics as political problems. The article explores the scope conditions of epistemic business power, detailing the interaction of material aspects, corporate communication and issue salience dynamics. Based on quantitative and qualitative content as well as reception analyses, ownership data and interviews, a case study of the world’s largest asset manager BlackRock illustrates how today’s finance capital can use epistemic channels with regard to fundamental questions about the role of state capacity and private enterprise in capitalist democracies. By foregrounding the political nature of corporate public relations, the conceptual endeavor and its empirical illustration contribute to a deeper understanding of corporate power and its multifaceted role in shaping politics in capitalist democracies.

Previous studies have found that media coverage of a firm's corporate social irresponsibility (CSiR) often delays or blocks the completion of a cross-border acquisition when the acquiror is a multinational enterprise (MNE) from an emerging market. Drawing from the attention-based view, we argue that the effects of Chinese MNEs’ CSiR on deal completion vary depending on several contextual factors, as these factors garner more attention by making the deals more salient to stakeholders. Using a sample of cross-border acquisitions by Chinese MNEs from 2013 to 2020, we find that CSiR media coverage per se does not decrease the likelihood of a deal's completion. However, consistent with attention-based arguments, we find that CSiR media coverage negatively affects the deal's completion when the acquirors are state-owned enterprises and when the target country has high institutional quality. Our findings enhance our understanding of the effects of CSiR on cross-border acquisitions by highlighting the moderating roles of contextual factors related to stakeholder attention. Thus, it is important for MNEs to recognize the boundary conditions that may influence the potential sanctions from local stakeholders. Based on these findings, this study contributes to the literature on CSiR, cross-border acquisitions, and stakeholder attention.

This article investigates the internationalization process of incubating, parenting, and eventually spinning-off overseas entrepreneurial ventures originating from emerging markets. In a comparative case study of Chinese high-tech firms, we leveraged multiple sources of data to reveal (1) how the exploitation of parent firms’ technological and platform resources enables them to initiate, support, and eventually profit from the international growth of foreign ventures that autonomously engage in the exploration of product and market innovations, and (2) how ambidextrous synergy was created through the continuous exchange, combination, and reconfiguration of knowledge and resources between parent firms and foreign ventures. These findings extend our understanding of how Chinese high-tech firms manage the learning process in overseas venturing. We draw implications of these findings for research and practice.

The current conflictual dynamics underlying high-tech rivalry between China and the United States and the management of collateral damages by middle-power countries emanate from the clashes of techno-statecraft. Each country’s pursuit of technological superiority for its own prosperity, security, and prestige through deep and wide state intervention has aggravated the situation. Against this backdrop, our paper attempts to elucidate the dynamics of techno-statecraft of China, the United States, and South Korea. First, we examined the concept of techno-statecraft, which can be differentiated from that of economic statecraft, as an analytical framework of the paper. Second, we looked into China’s technological challenge as shaped by its techno-statecraft. Third, we traced the American threat perception of China’s technological rise and its techno-statecraft response. Fourth, the paper discussed the dilemmas Asian countries are currently facing and their choices through a case study of South Korea. Finally, it draws some theoretical, empirical, and policy implications.

The change in brand from British Railways to British Rail (BR) marked an important moment in the history of Britain’s railway. Running alongside BR’s modernization was a wider process of “professionalization” within the field of marketing. This paper explores how the wider professionalization of marketing impacted BR’s own marketing practices, showing that after 1965 BR opened its doors to new methods, means, and perhaps most importantly, specialists from outside the railway industry. Such marketing efforts helped to frame the railway in terms of individual travelers’ specific economic needs: by 1968 it had effectively segmented its passengers into demographic audiences, and by 1975, BR had a much better understanding of its markets. These individual economies were often highly gendered and saw only mixed success, but ultimately demonstrated an application of research, advertising, and promotion.

This paper explores the role of microeconomic analysis in policy formulation by assessing how the regulatory impact analyses (RIAs) that federal regulatory agencies prepare for important proposed rules may affect outcomes when regulations are challenged in court. Conventional wisdom among economists and senior regulatory officials in federal agencies suggests that high-quality economic analysis can help a regulation survive such challenges, particularly when the agency explains how the analysis affected decisions. However, highlighting the economic analysis may also increase the risk a regulation could be overturned by inviting court scrutiny of the RIA. Using a dataset of economically significant, prescriptive regulations proposed between 2008 and 2013, we put these conjectures to the test, studying the relationships between the quality of the RIA accompanying each rule, the agency’s explanation of how the analysis influenced its rulemaking decisions, and whether the rule was overturned when challenged in court. The regression results suggest that higher-quality RIAs are associated with a lower likelihood that the associated rules are later invalidated by courts, provided that the agency explained how it used the RIA in its decisions. Similarly, when the agency described how the RIA was used, a poor-quality analysis appears to increase the likelihood that the regulation is overturned, perhaps because it invites a greater level of court scrutiny. In contrast, when the agency does not describe how the RIA was utilized, there is no correlation between the quality of analysis and the likelihood that the regulation will be invalidated.

Over the last century, the United States has witnessed three approaches to achieving better regulatory outcomes: the removal of “economic” regulations in certain sectors; regulatory impact analysis (RIA) of new “social” regulations; and retrospective analysis of existing regulations. This article reviews the rationale for each approach, the results to date, and the remaining challenges. It finds that both institutional and technical factors influence the success of reform efforts.

This study tests the role of the full range leadership model’s leadership styles in employees’ job-stress-related presenteeism (JSRP). Further, the study tests a model that introduces mediating variables in the relationship between absent leaders and JSRP. Employees from four different types of organizations: police (N = 148), public service (N = 479, not-for-profit (N = 96), and construction (N = 214) completed the Multifactor Leadership Questionnaire on their direct supervisor, as well as a self-report measures of JSRP, psychological distress, and work–life balance. Correlations and hierarchical linear regression models showed that laissez-faire leadership had the strongest influence on JSRP for all four organizations. The parallel mediation model results showed that both employee psychological distress and work–life balance partially mediated the relationship between laissez-faire leadership style and employees’ JSRP. These results underscore the importance of looking at absent leaders and how they affect employees negatively.

This article examines the role of the mass media in driving anticartel debates during a coal crisis in Germany in 1900. Threatening the fuel supplies of millions of people, the nationwide energy shortage marked the beginning of the anticartel movement, adding a decisive thrust to antimonopoly sentiment toward the cartelized Ruhr coal industry. While hitherto overlooked, this symbolic chapter of German antimonopoly history was profoundly shaped by daily newspapers, a medium that revolutionized public communication during this period. By cross-referencing newspaper articles with records of the coal industry, this paper investigates how newspapers raised public concern for the fuel shortage and thereby forged narratives blaming the coal industrialists as well as how the coal producers responded to the ever-intensifying public scrutiny. As such, this study would serve to identify the mass media as a key determinant in the broader history of cartels and cartel politics in the twentieth century.

Charisma, often seen as an innate trait, is now understood as leader signaling grounded in values, symbols, and emotions, suggesting it can be developed through interventions. However, the method for cultivating charisma remains unclear. This study examines nonverbal communication strategies, highlighting the potential of body language, facial expressions, and vocal modulation to enhance charisma. Additionally, we introduce a virtual reality training program focused on these cues and explore the role of audience presence in boosting the intervention’s effectiveness by fostering self-awareness and behavioral adjustments. Results of a controlled randomized experiment with virtual reality-trained participants and online charisma assessors demonstrated significant improvements in observer-rated charisma from pre- to post-training compared to the control group. Moreover, training in front of a virtual audience yielded the expected outcomes. This study sheds light on charisma theory, its potential virtual reality training application, and its implications for leadership development.

Firms are calling their employees back to the office because of concerns about employee productivity, collaboration, and trust. Thus, knowledge about the psychosocial aspects of virtual work environments is now more essential than ever. This study compared the relationships between mutual cognitive trust and employee performance in virtual and face-to-face leader–member dyads. Numerous studies have adopted a unidirectional approach to leader–member trust, exhibiting difficulties related to common method bias. The validity of previous research results comparing trust in face-to-face and virtual leader–member dyads can also be questioned because of other methodological drawbacks. We examined mutual trust and employee performance using different raters. We utilised the multigroup exploratory approach to simultaneously analyse face-to-face and virtual dyads formed by 180 leaders and 561 employees working at a multilatina company. Our results reveal the existence of differences between virtual and face-to-face leader–member dyads vis-à-vis mutual cognitive trust and employee performance relationship.

We examine how the central government's management of subnational governments' agency influences the smartness of the latter's industrial specialization choices. Based on smart industrial specialization theory and agency theory, we hypothesize how two central government tools governing subnational governments' agency – facilitating their organizational efficacy and promoting their officials to higher ranks – explain recent industrial specialization choices by China's 31 provincial governments. We find that provincial governments with greater organizational efficacy, measured by access to better-resourced local state-owned enterprises in focal industries, make smarter specialization policies. In addition, we show that provincial governments with greater numbers of officials previously promoted to the central government make, contrary to conventional wisdom, potentially less smart specialization policies. Our research extends smart specialization theory by explaining that central government tools governing subnational agency problems can have knock-on effects making subnational governments' industrial specialization choices smart or unsmart.

This study extends the upper echelons literature by shedding light on the role of top management team (TMT) dissimilarity, a specific conceptualization of team diversity. TMTs are typically composed of members from different functional areas who have unique information and values. The perception of the degree to which TMT members view themselves as dissimilar from other team members affects the TMT’s decision-making and, therefore, organizational outcomes. However, research does not address this perspective of TMT diversity. We examine how informational and value dissimilarity among TMT members is associated with incremental and radical innovation capability. We survey top managers from various industries and use partial least squares structural equation modeling analysis to explore the association between TMT dissimilarity and innovation capability empirically. The findings show that informational dissimilarity is positively associated with incremental innovation capability. Value dissimilarity is negatively associated with incremental innovation capability, whereas it is positively associated with radical innovation capability.

Authentic leadership studies are often criticised for the limited use of causally defined research designs. To advance scholarship is this area, this article presents a scoping review on the use of experimental designs to examine causality in authentic leadership. Eleven publications were identified, which presented 16 experiments that met the inclusion criteria. Generally, these experiments tested authentic leadership as an antecedent; were conducted online; used a one-factor design; involved large samples, typically of working adults or residents; involved a manipulation check; involved the use of written vignettes to manipulate levels of authentic leadership; included counterfactual conditions; culminated with outcomes pertaining to followers; and established the causal effects of authentic leadership on the outcome(s) of interest. These findings suggest the value of: written vignettes; multi-method approaches; and online experiments. They also highlight opportunities to advance authentic leadership research through the use of sequential experiments and immersive technologies.