In this editorial, we are delighted to introduce the seven papers in this Special Issue. Each article considers various aspects of how management research can assist in the achievement of the United Nations Sustainable Development Goals (SDGs) in different contexts. Starting from a desire to provide a mechanism to drive real research outcomes for management research, this editorial considers the SDGs and their implementation/adoption in universities and businesses to date. It then introduces the different contexts for management research and the SDGs explored in the seven articles in the Special Issue. Finally, in a Postscript at the end of this Special Issue, we look at current progress against the SDGs, how COVID-19 has impacted this progress and what the future may hold for the links between management research and the SDGs.

This article studies how minimum-wage policies affect capital investment using the industrial census of manufacturing firms in China, where minimum-wage policies vary across counties. Exploiting discontinuities in minimum-wage policy at county borders, we find that minimum wages increase capital investment. The investment response to minimum wages is stronger for firms that are labor intensive, that have more room for technological improvement, and that cannot sufficiently pass on labor costs to consumers. A natural experiment based on county jurisdictional changes further assures the causal relationship.

A chief executive officer (CEO) acting as the firm's transformational leader is typically viewed as instrumental to corporate entrepreneurship in established firms, but how exactly does a higher level of corporate entrepreneurship come about, given a transformational CEO's actions? We suggest that organizational ambidexterity can function as a core mediating mechanism between transformational CEOs and the observed level of corporate entrepreneurship and that the effectiveness of this mediating process varies as a function of critical contingencies related to characteristics of the top management team (TMT), the environment and the organization's design. Our empirical evidence, based on a sample of 145 Chinese private sector firms, and using three primary sources of data (145 CEOs, 506 TMT members, and 1,981 middle managers), provides support for a moderated mediation process. We find that the mediating pathway from transformational leadership to corporate entrepreneurship through organizational ambidexterity is not significant when boundary conditions are ignored. However, when environmental dynamism, TMT collectivism, and structural differentiation are included as moderators, CEO transformational leadership does affect corporate entrepreneurship via the creation and effective functioning of organizational ambidexterity.

This paper examines the influence of three different forms of global economic engagement on the lobbying behavior of US businesses with regard to trade relations with China: (a) input sourcing; (b) downstream export; and (c) vertical foreign direct investment. It will be hypothesized that firms involved in all three forms of global economic activities should have incentives to lobby over China-related trade issues in order to maintain unimpeded access to sources of supply or markets and to ensure the smooth operation of the entire supply chain. Going further, drawing on the exit-voice framework developed by Albert Hirschman (1972), it will be argued that compared to firms in those industries mainly involved in input sourcing from China, American multinational corporations that have verticalized their production should have even stronger incentives to engage in lobbying activities and “voice” their policy preferences due to their greater “sunk costs” and hence the higher cost of “exit.” Statistical analysis of the China trade-related lobbying activities of US firms between 2006 and 2016 lends substantial support to these conjectures.

Wages – the monetary payments that workers receive from employers in exchange for their labour – are widely overlooked in academic and policy debates about human rights and business in global supply chains. They shouldn’t be. Just as living wages can insulate workers from human rights abuse and labour exploitation, wages that hover around or below the poverty line, compounded by illegal practices like wage theft and delayed payment, leave workers vulnerable to severe labour exploitation and human rights abuse. This article draws on data from a study of global tea and cocoa supply chains to explore the impact of wages on one of the most severe human rights abuses experienced in global supply chains, forced labour. Demonstrating that low-wage workers experience high vulnerability to forced labour in global supply chains, it argues that the role of wages in shaping or protecting workers from exploitation needs to be taken far more seriously by scholars and policymakers. When wages are ignored, so too is a crucial tool to protect human rights and heighten business accountability in global supply chains.

This article looks at the relationship between psychological contract breach and voluntary turnover among newcomers, using supervisor trustworthiness as a mediator and negative affectivity as a moderator. Relying on data from 243 newcomers, psychological contract breach was found to be negatively related to the three dimensions of supervisor trustworthiness, i.e., ability, benevolence, and integrity. Supervisor integrity further mediated a positive relationship between psychological contract breach and voluntary turnover measured 8 months later. Psychological contract breach interacted with negative affectivity such that it was less negatively related to dimensions of supervisor trustworthiness at high levels of negative affectivity. The indirect relationship of psychological contract breach to voluntary turnover as mediated by supervisor integrity was also weaker at high levels of negative affectivity. We discuss the implications of these findings for research and practice.

Research uncovering the behavioural and cognitive foundations of capability development has gained traction in recent years. However, the emotional foundations of capability development have not been adequately addressed. This is an important gap; if emotions impact decisions and actions of key organisational actors, this suggests an influence on capability development processes in organisations, with implications for their survival and evolution. In this paper, we therefore explore ‘how do the emotions of key strategists enable and/or hinder capability development?’ Our in-depth qualitative research, based on five small- and medium-sized enterprises (SMEs), shows that emotions of key strategists, including emotional tensions and ambivalence, have multi-faceted effects on capability development depending on the activation level of pleasant and unpleasant emotions experienced. This adds to extant understanding of idiosyncratic foundations of capability development and extends conversations regarding the internal dynamics behind organisational survival and evolution.

This paper adopts an explanatory sequential mixed method design to explore the impact of decentralized (vs. centralized) leadership on cross-functional teams' resource exchanges at a long-term care facility in Canada. In the quantitative phase, social network analyses were used to examine the direct and moderated effects (via leader–follower relationship quality; LMX) of the presence of formal decentralized leaders on: (1) knowledge sharing, and (2) work hindrance networks within cross-functional healthcare teams. In the qualitative phase, team members were interviewed regarding the impact of their decentralized leaders. Collectively, the findings suggest that the presence of a decentralized leader may enhance knowledge sharing and safeguard against work hindrance behaviors in cross-functional healthcare teams. However, these effects are contingent on the situation (e.g., LMX quality and status-based hierarchies). Implications for research and healthcare practice are discussed.

Cross-cultural research on corporate social responsibility (CSR) dealing with specific stakeholder groups is fairly rare in the existing literature. The aim of this research is to investigate the level of recognition of CSR in companies by employees working in micro/small, medium-sized and large companies. The research is based on the survey conducted in Bulgaria, Russia and Serbia with the employees' attitudes obtained via a structured questionnaire. A similar socio-historical background of the three countries and different levels of accomplished socio-economic development at present is taken into account. A proposed ranking methodology was based on the multi-criteria decision analysis approach, observed through five studied dimensions: environmental, social, economic, stakeholder and voluntariness. The ranking was carried out using the integrated Entropy-PROMETHEE-GAIA method, where the Entropy method was used for determining the weights of the criteria, whereas PROMETHEE-GAIA was used for final ranking. The obtained results were analyzed from the multi-cultural point of view and show more significant differences in the attitudes of employees from different countries, rather than when the size of a company is taken into consideration.

Analyzing several developed and emerging international markets, I test the ability of global, regional, and local models to explain a large set of 134 cross-sectional anomalies. My main finding is that both global and regional factor models create substantially larger average absolute alphas than local factor models. Annual (absolute) anomaly portfolio alphas are on average 1.7 and 1.1 percentage points higher, respectively, with global and regional than with local factor models. Even for the most recent period, there is no evidence of a catch-up of global and regional factor models. There is substantial potential for international diversification of anomaly strategies.

Recognizing the need for organizational change in a transition setting, we specify a research model entailing the effects of two important workplace variables on the relationship between dispositional resistance to change and organizational commitment. Organizational commitment is important because of its relationship with a host of considerations relevant to successful organizational change and development. We test the model with samples from four Ukrainian firms undergoing comparable substantive change, including in their human resource systems. The results indicate that the negative relationship between resistance to change and organization commitment is moderated by trust in management. Specifically, it is the lack of trust that exacerbates the negative influence of resistance to change on commitment. Also, high procedural justice strengthens the negative relationship, thereby reducing organizational commitment, an interesting divergence from the Western literature. These indigenous findings in a markedly different context from the West hold potential for theory that is richer and more comprehensive in its explanatory reach. The findings also provide useful insights for managers in Ukraine in their efforts to change organizational practices.

Developing countries face the daunting challenge of stimulating innovation-intensive sectors to increase their participation in the knowledge economy. In this context, two pressing questions arise: What types of state-business relations foster the adoption of industrial upgrading policies? And, what are the mechanisms through which some state-business relations configurations shape the likelihood of policy adoption under more democratic and open conditions? Bridging developmental state and business politics literature, this paper presents a novel framework that posits that the levels of bureaucratic quality and business cohesion generate diverse industrial upgrading policymaking patterns, and thus outcomes. An in-depth case study of the software sector and a cross-case comparison of the aerospace sector in Mexico during the 2000s illustrate and refine the framework. This article makes three main contributions. First, it expands extant political economy theories of industrial upgrading in developing democracies. Second, it improves our understanding of the private sector by carefully analyzing sectoral business cohesion. And third, the paper specifies the mechanisms through which bureaucrats and firms in democratic developing countries collaborate to enact programs that spur high-tech industries in the twenty-first century.

We document that long-run excess returns following announcements of share buyback authorizations and insider purchases are a U-shaped function of firm centrality in the input–output trade-flow network. These results conform to a model of investors endowed with a large but finite capacity for analyzing firms. Additional links weaken insiders’ informational advantage in peripheral firms (simple firms whose cash flows depend on few economic links), provided investors’ capacity is large enough, but eventually amplify that advantage in central firms (firms with many links) as a result of investors’ limited capacity. These findings shed light on the sources of managerial market-timing ability.