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Team innovation is nurtured by the combination of team members’ diverse knowledge and collaborative teamwork. Previous research predominantly assumed a linear interaction between knowledge diversity and network density in predicting team innovation. A pivotal question arises: How do varying levels of knowledge diversity and network density interact to influence team innovation? To address this complex question, we conducted a machine-learning inductive study, leveraging its ability to uncover curvilinear interactive patterns between knowledge diversity and network density in fostering team innovation. We collected comprehensive, multisource data from 1,883 teams within a prominent high-technology firm in China over a four-year period from 2014 to 2017. The results indicate that knowledge diversity and network density exhibit a curvilinear interactive effect on team innovation. The two factors reinforce each other in the initial stage and foster peak innovation with an optimal balance at a medium-to-high level. Beyond this threshold, however, the two factors begin to restrain each other’s effectiveness. Consistent with the perspective of yin-yang balancing, this study deepens our understanding of the paradoxical joint effects of knowledge diversity and network density on team innovation.
In Corporate Power and the Politics of Change, Matteo Gatti examines how corporations have taken on roles traditionally reserved for governments – advocating on social issues, setting internal norms, and stepping in where public institutions fall short. This phenomenon, called corporate governing, takes two forms: socioeconomic advocacy, when companies take public stances, and government substitution, when they deliver services or protections the state does not provide. Drawing on legal doctrine and insights from the social sciences, Gatti shows how this shift reflects broader pressures within firms and deep dysfunction outside them. The rise of corporate governing has also triggered political, legal, and cultural backlash that challenges its legitimacy and reach. Clear-eyed and timely, this book offers a framework for understanding how corporate power reshapes policymaking and what that means for business and democracy.
Public governance is inherently normative, so it is important to study the values of public governance – particularly in the present-day context, where, given increasingly differentiated Western public governance, many different values come into play and new value conflicts arise. In this Element, a value-based governance (VBG) perspective is presented. In this perspective, values take center stage as the guiding concept in the theory and practice of public administration and are used as a heuristic to understand and analyze public governance. One section focuses on the advantages and disadvantages of coping strategies used by actors and institutions when dealing with value conflicts. In the final section, the author returns to the practice of public governance: the VBG paradigm entails public governance with normative reasoning. Value-based governance is about bringing the value rationality back in and recognizing intrinsic values. This title is also available as Open Access on Cambridge Core.
To advance the understanding of how e-government resources drive e-participation, the current research conducts a meta-analysis on the relationship above from the perspective of citizen experience. This meta-analysis synthesizes 517 effect sizes from 126 empirical studies to examine how e-government resources influence citizens’ e-participation intention. The findings highlight several key variables that moderate this effect. Specifically: (1) From the perspective of the experience channel, e-government resources are more effective in facilitating citizen e-participation intention when delivered through social (vs. official) channels. (2) From the perspective of the experience affair, e-government resources exert a stronger impact on citizen e-participation intention when targeting specific (vs. general) public affairs and when focusing on regional (vs. national) government affairs. (3) From the perspective of the experience environment, the effect of e-government resources on e-participation intention is stronger in developing (vs. developed) countries. Based on these findings, this study offers implications for governments and researchers and suggests directions for future research.
We develop and test a theoretical model to investigate the effects of faultlines within the top management team (TMT) on corporate financial fraud. We propose that TMT faultlines can generate mutual monitoring among factional subgroups in the executive suite, which reduces fraudulent behavior. We also examine the contingent roles of subgroup configuration and the TMT members’ tenure overlap in shaping the relationship between TMT faultlines and financial fraud. The mutual monitoring effect is likely to be stronger when the TMT has a balanced subgroup configuration and shorter TMT members’ tenure overlap. We test our argument in the context of publicly listed firms in China. This article extends the mutual monitoring perspective of corporate governance and has important research implications for the corporate financial fraud literature.
Workplace happiness has emerged as a strategic and ethical priority due to its impact on employee well-being, engagement, and sustainable performance. However, the construct remains conceptually fragmented, with existing measures often limited to affect or job satisfaction. This study addresses these limitations by proposing and preliminarily validating a multidimensional instrument that integrates hedonic and eudaimonic dimensions of workplace happiness: emotional well-being and purpose, work–life balance, and work relationships and support. Using a multi-phase research design, including expert content validation, a pilot study (n = 100), and large-scale psychometric testing (n = 354), the study applies exploratory and confirmatory factor analyses. Results provide initial evidence of strong structural validity, internal consistency, and convergent and discriminant validity (CFI = 0.971; TLI = 0.959; RMSEA = 0.078). Workplace happiness is conceptualised as a synergy of affective fulfilment, meaningful contribution, and supportive relationships. Despite cross-sectional and non-probabilistic limitations, the instrument offers a robust foundation for future validation and human-centred organisational research.
What drives elite capital flight into offshore destinations? While existing literature focuses on regulatory gaps or global tax competition, international bailouts themselves can catalyze elite capital flight. Specifically, we examine how two instruments of the Global Financial Safety Net (GFSN)—the International Monetary Fund (IMF) and the People’s Bank of China (PBoC)’s swap lines—impact elite incentives to move wealth offshore. We develop a two-dimensional framework centered on Disbursement Control and Elite Threat Perception to theorize when and how elites extract and expatriate wealth. Using data from 201 countries between 1990 and 2018, we find that the anticipation of IMF programs increases offshore bank deposits by 14.2%, consistent with elites responding to rising threat perception. By contrast, the introduction of PBoC swap lines increases offshore deposits by 92.3%, reflecting extraction under low disbursement control, enabling moral hazard. We illustrate the core mechanisms of our argument through mini-case studies of Angola, Tajikistan, and Mongolia. Our findings reveal a structural vulnerability in the GFSN stemming from regulatory fragmentation and uncoordinated oversight.
How do we make corporations accountable for human rights violations? This book illuminates how governments, international organisations, NGOs and individuals make (and break) the rules in business and human rights. It covers a rich array of examples of rule-making in business and human rights, including: (i) legal developments in domestic courts in the US, Canada, the UK, and Europe; (ii) initiatives endorsed by the United Nations, including the 2011 UN Guiding Principles; and (iii) multistakeholder initiatives such as the Kimberley Process Certification Scheme (KPCS), the Extractive Industries Transparency Initiative (EITI), and the Voluntary Principles on Security and Human Rights (VPs). It also introduces a new theoretical framework to assist scholars in understanding trends in the area of business and human rights. By emphasising implementation, the framework brings much-needed conceptual clarity to the processes of rule-making and legalization and constitutes an important contribution to the business and human rights literature.
This comparative analysis of business systems examines firms and enterprises across three major economies in the world: the US, China and Japan. It asks how the law relates to business practice, economic growth and social development; and how enterprise law maximizes firm value in these three jurisdictions. The divergent legal, social and economic approaches towards the market, firms, and business and corporate law in these three major economies justify a close scrutiny of enterprise law with the aim of better understanding legal and economic models for social and economic development in a comparative context. This book will be of interest to academics and practitioners in law, business, management, public policy, political science, and economics. It offers a useful framework for legislative policy makers across the world - particularly in developing countries.
The Principles of Family Business Law offers an accessible approach to legal issues that shape family businesses. Drawing on years of research, the book introduces three principles – intimacy, integration, and inheritance – that explain why family businesses are distinctive and how, with proper guidance, they can thrive. The book examines recurring problems such as role conflicts among family members, succession planning obstacles, and ownership disputes. Vivid case studies illustrate how legal rules interact with family dynamics in practice. Designed for scholars, students, lawyers, and business advisors, the book integrates insights from corporate law, family law, and estate planning, while remaining readable and grounded in real-world concerns. Whether used in the classroom or in practice, it provides essential tools for navigating the complex interplay of law and family business. By supporting the resilience of family businesses, the book affirms the family and community values they help to sustain.
This volume shows how remote work is regulated by a holistic set of arrangements that govern all forms of employment, weaving together labor institutions in complex ways that the book presents and explains. The scholarship assembled here examines the handling of remote work through institutional analysis cutting across national cases and focusing on both fundamental rights and regulatory challenges. The rights that are examined – by analyzing their nteraction with employer powers – include privacy, equality and non-discrimination as well as collective rights and the distribution of responsibilities in the workplace. The book shows how the location of work interacts with new technologies redefining the universe of labor relations and the institutional system governing employment. This title is also available as open access on Cambridge Core.
We develop a real options model in which an entrepreneur facing ambiguity makes optimal investment and financing decisions for an innovation project. We introduce jumps in innovation returns and model investors’ aversion to ambiguity in both diffusion and jump risks. Debt accelerates investment by lowering the threshold and shortening expected waiting time, thereby increasing project value. This effect strengthens under greater ambiguity, offering a novel rationale for why debt—not equity—fosters innovation. Our results provide a coherent explanation for recent empirical findings on debt’s role in innovation and contribute to the broader literature on investment under uncertainty.
This article argues that the global Business and Human Rights movement demonstrates a push towards a human-rights type of sustainable corporation, reconciling economic development and human rights. It explains the necessity for and significance of a definition of a sustainable corporation at the intersection of traditional international human rights and sustainable development instruments. It argues, inter alia, that an internationally recognised definition of a sustainable corporation can settle fundamental questions and create a minimal framework for meaningful discourse on corporate accountability for human rights, climate change and the environment. It identifies difficulties of defining a sustainable corporation such as the integration problem. It suggests ‘direct human rights obligation’ as a minimally sufficient normative criterion for the definitional correctness of a sustainable corporation. The suggested definition of sustainable corporation requires taking a normative position which makes the term ‘essentially contested’ resulting in discursive and behavioural norm contestation in the search for definitional determinacy and consensus within the divide between international and domestic law.
We exploit U.S. states’ staggered adoption of Universal Demand (UD) laws to study how the risk of shareholder lawsuits affects insider trading. UD laws, which make it harder for shareholders to bring derivative lawsuits against directors and officers, lead to more profitable insider trades, especially sales. This effect is stronger among smaller firms and firms with lower institutional monitoring. After UD laws, the timing of insiders’ trades also appears more opportunistic and riskier, for example, sales increase before negative earnings surprises. Overall, our study offers clean evidence that the threat of shareholder litigation deters opportunistic insider trading.
The Sustainable Development Goal for Health and Well-being (SDG#3) faces major challenges in reaching its 2030 targets, largely due to funding gaps. The pandemic has further strained fragile health infrastructure, reversing progress in life expectancy and maternal mortality reduction. Traditional funding – government spending and aid – falls short of demand.
This chapter explores game-changing solutions to unlock health capital for the Global South, revealing why private investment – common in energy and infrastructure – remains underutilized in health. It examines how blended finance, impact investing, remittances, and corporate ESG capital can transform funding. With real-world examples, it illustrates how catalytic finance can bridge shortfalls and offers a roadmap for policymakers, investors, and changemakers to rethink health finance and mobilize toward a healthier, more equitable world.
As CEOs play pivotal roles in shaping environmental, social, and governance (ESG) investment strategies, existing studies have explored the influence of CEOs’ demographic and professional traits while acknowledging the impact of their cognitive characteristics. However, an overlooked aspect in these investigations is the role of CEOs’ time perspective. To address these gaps, this study investigates the relationship between CEOs’ temporal focus, a key executive perception in strategic contexts, and three dimensions across ESG investments. Utilizing data of Chinese listed firms between 2009 and 2021, we find that CEOs with past-oriented or present-oriented temporal focus exert suppressive effects on environmental and social investments, whereas CEOs with future-oriented temporal focus significantly enhance such sustainability initiatives. Present-focused CEOs are more likely to champion governance investments while both past-focused and future-focused tend to restrict them. Notably, these relationships are further moderated by CEO wealth sensitivity. Our findings illuminate the considerable influence of executive temporal perceptions on ESG investment heterogeneity, offering valuable implications for both research and practice.
Catalytic Capital in a Fractured World: Building a Road Map
As the authors in this compendium have articulated, catalytic capital – and philanthropy as a critical enabler thereof – holds immense potential for mobilizing financial and nonfinancial resources to tackle so-called wicked problems and drive positive, systems change. However, it is not a panacea. To realize its full impact, catalytic capital requires concomitant structural reforms within the international development architecture as well as a rethinking of the role and nature of impact finance in a world of “permacrisis.”