Chinese bureaucracy – the organizational apparatus of Chinese governments – has played a significant role in China’s economic development and political control in the post-Mao era. In this paper, we draw on research on Chinese bureaucracy in both English and Chinese to highlight major findings in three areas: agency problems and incentive provision, the use of guanxi in policy implementation, and variable coupling among different parts of the bureaucracy. These three aspects are interrelated: agency problems induce the prevalence of informal institutions as an organizational response, which leads to variable coupling in Chinese bureaucracy. We discuss the issues and implications this literature presents for the further development of organization theory and the emerging research agenda.

Firms adopt different strategies to achieve sustained profitable growth. We argue that the success of sustained profitable growth relies on the alignment between a firm's prior and subsequent strategy. This study views a firm's prior strategy, i.e., growth-oriented vs profit-oriented, as a primary driver of future sustained profitable growth. We adopt the resource-based view to understand the types of resources required for these two strategies. We argue that to achieve sustained profitable growth, growth-oriented firms need to enhance their firm-specific advantages by developing valuable, rare, inimitable, and non-substitutable resources such as technology and brand. In comparison, profit-oriented firms must identify versatile resources to capture growth opportunities and manage growth by successfully replicating their profitable operations. Low turnover in senior management could help profit-oriented firms achieve this goal. We find support for the arguments in a sample of 3,802 listed firms worldwide from 1992 to 2019.

Political connections have been tested for correlation with outward foreign direct investment (OFDI). Both theoretical rationale and research evidence are mixed. To advance this debate, we conceptualize political connections as a dual-dimensional construct and hypothesize the differential effects of the breadth and the depth of political connections on OFDI. Employing a sample of 2,374 Chinese listed firms, encompassing 15,647 firm-year observations from 2008 to 2016, we find evidence supporting our hypotheses: (1) the breadth of political connections reduces the likelihood of a firm engaging in OFDI and (2) greater depth of political connections increases the likelihood of a firm engaging in the OFDI. Thus, we advise firms to exercise caution when adopting corporate political strategies for internationalization in general and OFDI in particular.

While the innovation behaviors of family firms (FFs) have attracted burgeoning scholarly attention, few studies have investigated how intergenerational succession, one of the most critical aspects of family dynamics changes among FFs, affects innovation behaviors. Based on the socioemotional wealth perspective (SEW), we have introduced a concept of innovation decoupling that refers to the tendency of prioritizing the symbolic disclosures over substantive changes of innovation and proposed that FFs that have experienced intergenerational succession would exhibit a greater extent of innovation decoupling. By tracking a sample of Chinese publicly listed FFs from 2012 to 2021 while applying the machine learning approach, we have confirmed the proposition and further unveiled that such inclination becomes weaker when the focal FF is influenced by the family affective endowment and the successor with ascribed bureaucratic connections. Overall, this study brings new nuances to the knowledge of the innovation behaviors of FFs by highlighting the inter-firm heterogeneities and impacts of family dynamics.

In the behavioral theory of the firm, decision-makers' interpretation of performance feedback information is the fundamental intermediate step between the evaluation of performance and the consequent strategic decision-making. However, such interpretations can be shaped or even distorted by the cognitive lens taken by decision-makers, such as their time concept in terms of biased cognitions of the importance and imminence of the future over the present. This study focuses on the role of a specific temporal bias (the time concept expressed in languages) in shaping the response to performance feedback. On the basis of the baseline proposition of a positive relationship between the underperformance duration (a temporal dimension of performance feedback) and acquisition behavior, we theorize and empirically examine how the future-time reference (FTR) of languages under different conditions shapes the way firms respond to repeated performance shortfalls. Using a sample of 12,309 firms from 12 countries between 2007 and 2019, we find that the FTR weakens the connection between the underperformance duration and subsequent acquisitions. Moreover, slack resources strengthen, whereas political stability weakens, this moderating effect of FTR on the underperformance duration–firm acquisition relationship.

Given the growing trend of using digital platforms for exporters' internationalization, the management of exporters' online internationalization has become a critical issue. However, academic research in this area remains sparse. Specifically, little is known about when and under what conditions exporters may consider discontinuing the use of a digital platform for exporting, i.e., online de-internationalization. This study develops and tests a theoretical framework for these determinants and the contingencies for exporters' online de-internationalization. Specifically, drawing on the de-internationalization literature, we identify sets of internal and external antecedents of exporters' intention to discontinue the use of digital platforms for exporting. Furthermore, we examine the moderating effect of technological opportunism. Based on a unique sample of Chinese exporters registered on Alibaba.com, the world's largest business-to-business platform, the empirical findings support our proposed determinants of online de-internalization. This article ultimately discusses the theoretical and managerial implications.

Most existing literature treats family culture as a static and deterministic factor with a double-edged effect on the competitive advantage (CA) of family firms while overlooking its dynamic nature. Moreover, limited literature addresses how to solve this double-edged problem. This study fills these gaps by examining how family culture can generate sustainable CA from the lens of the affordance perspective. A three-stage process model is developed based on a longitudinal case study of Baiyun, a Chinese family firm with over a 100-year family history. This model suggests that family firms should intentionally adopt appropriate sensemaking and sensegiving strategies tailored to different stakeholders and dynamic entrepreneurship situations to effectively leverage the natural and designed affordances of family culture. By cultivating efficiency, emotional, and value identifications among internal and external stakeholders, these sensegiving strategies facilitate family collaboration, continuous trust, strategic focus, and extensive ecological synergy, which serve as the key sources of CA. Ultimately, the model emphasizes that the key to managing the double-edged effect lies in the four sensemaking strategies taken by family firm leaders. This study sheds light on the dynamic interplay between family culture, environment, strategies, and CA, offering actionable insights for family firms.

Digital technology enables employees to communicate with each other via virtual platforms. Emoji, particularly smile emoji, has received significant attention in virtual communication research. Drawing upon expectancy violation theory, we propose that in digital communications with followers, leader smile emoji usage has a positive effect on follower satisfaction with leader through perceived leader intimacy. In addition, leader smile emoji usage has a negative effect on perceived leader effectiveness through decreased perception of leader power. We further propose that the effects of leader smile emoji usage hinge on follower power distance orientation such that the negative effects of leader smile emojis usage are more pronounced for followers with high versus low power distance orientation. An experiment and a field study supported our hypotheses. Our research sheds light on the benefits and potential pitfalls of smile emoji usage in leader–follower digital communication.

The flourishing nature of family business research is evident not only in the growth of the number of studies published in top-tier journals over the past several decades (Daspit, Madison, Nordqvist, & Sieger, 2024; Rovelli, Ferasso, De Massis, & Kraus, 2022) but also in the number of studies that explore family business research outside Western contexts (e.g., primarily the US). An excellent example of such pioneering research is the literature review by Fang, Singh, Kim, Marler, and Chrisman (2022), published in the Asia Pacific Journal of Management. Their paper not only accumulates knowledge about Asian and particularly Chinese family firms (over 30% of articles in Fang et al. (2022) are on Chinese family firms) but also compares the findings to those in Western contexts, inspiring further exploration and theorization.

Despite the phenomenon of hybrid emerging market state-owned enterprises (EM-SOEs) in international markets, the complexity inherent in their ownership structure, their paradoxes in institutional and market economies, and concerns about their proximity to the state make it challenging for EM-SOEs to fulfill sustainable development mandates as part of their internationalization strategies. In this study, we propose a biomimicry perspective to investigate how hybrid EM-SOEs with plural institutional demands manage their stakeholder relationships and undertake their corporate sustainability practices in the host market. Shifting from the firm-centric perspective, the biomimicry perspective offers a systems' explanation to spur new insights based on a single in-depth case study in the power generation industry in Indonesia. The findings highlight the importance of a long-term, value-driven strategic approach, emphasizing the cultivation of symbiotic relationships for delivering innovative products and processes to provide renewable energy supply in local markets. Additionally, legitimation practices are observed across three key dimensions embedded in the internal and external systems – governments, local elites, and local grassroots citizens, involving idiosyncratic local stakeholders whose impacts are rather mixed for EM-SOEs' international operations in Indonesia.

The operating goals of family firms (FFs) typically include building both economic and socioemotional wealth. Innovation is increasingly recognized as a key source for the development and growth of family firms. From the multiple dimensions of socioemotional wealth (SEW), this research has focused on how family influences a particular type of innovation – green innovation – in family firms. Using 5,071 observations from among the listed firms in Taiwan over an eight-year period (2014–2021), we examined the relationships between FFs and green innovation. The results indicate that FFs are more likely to develop green innovation than their nonfamily counterparts. In particular, there are complicated effects within different types of FFs – control deviation family firms (CDFFs).

How do subsidiaries sell initiatives to their headquarters? Multilayer decision-makers at corporate headquarters, with divergent interests and power, can overly complicate the acceptance process. We present a multi-case study to explore how subsidiaries of a Chinese multinational enterprise convince top management teams and department heads at their corporate headquarters to engage in foreign investments. Building on a micropolitical perspective, we develop a process model of subsidiary micropolitical strategy adoption consisting of (a) political tension retrieval regarding divergent interests and power at corporate headquarters around specific initiatives, (b) selective coalition building whose interests and power are aligned with the initiatives, and (c) a transitive relation leveraging strategy based on the ties of allied headquarters' managers. We further reveal the interplay between corporate motivations (i.e., market seeking vs. strategic asset seeking) and specific micropolitical activities adopted by subsidiary managers. We enhance the understanding of micropolitics in subsidiary initiatives by underscoring how to strategically manage differences among multilayer actors at corporate headquarters. Additionally, we reveal a political view of foreign investment decision-making in addition to rationality.

How does family diversity affect the choice of hybrid entrepreneurship? The effect of family dynamics has received little attention in research on the mode of entry into entrepreneurship. Building on the family embeddedness perspective, we hypothesize that the diversity of family households at surface (i.e., age and gender) and deep (i.e., work experience and education background) levels impacts the entrepreneur's adoption of a full-time or hybrid mode to start a new business. We further theorize that the effects of family diversity on entrepreneurial entry decisions are moderated by income stratification, which largely determines the ways entrepreneurs deal with family diversity. Using a sample of 1,320 individual-wave observations from the China Health and Nutrition Survey (CHNS), our findings demonstrate that the choice of hybrid entrepreneurship is affected more by deep-level diversity than surface-level diversity among family households. Moreover, being from a high-strata family strengthens the relationship between surface-level diversity and the choice of hybrid entry, while weakening the effects of deep-level diversity. This study contributes to the ongoing discussion about family dynamics and entrepreneurship variations and provides important theoretical and practical implications.

While prior research has suggested that justice matters for multinational enterprises (MNEs), whether distributive justice affects a subsidiary's tendency to show initiative remains unclear. In this study, we postulate that the extent to which a subsidiary manager regards the sharing of profit and rewards from the headquarters as fair has a curvilinear relationship with the subsidiary's inclination to take initiative. Specifically, although a low to moderate level of distributive justice can motivate subsidiaries to show initiative, this stimulating effect will diminish when distributive justice goes beyond a certain threshold. We furthermore contend that this non-monotonic effect will differ between low internally embedded subsidiaries and high embedded subsidiaries. Results based on a sample of subsidiaries owned by MNEs in Taiwan support our arguments. Implications for theory and practice are discussed.

Parental mentoring plays a pivotal role in fostering intrafamily succession and entrepreneurial endeavors. Taking an identity-based perspective, we conducted an exploratory multiple case study involving nine Chinese family firms to investigate how successors perceive the influence of mentoring from their entrepreneurial parents on the development of their entrepreneurial identities. Our findings reveal that successors' entrepreneurial identity changes from ambiguous to clarified through four perceived parental mentoring strategies, namely laying foundations, painting bright futures, relating experiences, and leading by examples. In particular, we show how the unique Chinese family dynamics resulted in some paradoxical tensions influencing the successors' entrepreneurial identity. By taking a holistic view, we conceptualize parental mentoring as a crucial nurturing strategy for successors and connect it to the process of successor identity transformation. This research sheds light on the nexus of entrepreneurial identity, family dynamics, and the Chinese cultural context within the realm of family business research and practice.

This study investigates how institutional origin affects the dot tax haven (DTH) internationalization of Chinese family firms (FFs). Drawing on institutional theory and the mixed gamble perspective, we propose that restructured FFs (RFFs), originating from state-owned enterprises (SOEs), are more likely to engage in DTH internationalization than entrepreneurial FFs directly established by family founders. This propensity is attributed to the institutional legacies inherited from their SOE predecessors, which create a distinct potential gain-loss calculus. Our empirical analysis of publicly listed Chinese FFs from 2012 to 2021 demonstrates that restructured FFs are 30% more likely to use DTH and establish 43% more DTH subsidiaries than entrepreneurial FFs. This tendency, however, is mitigated by the firms’ economic ties to financial institutions. Our study enhances understanding of FFs’ global entrepreneurial decision-making, contributing to FF heterogeneity research. A novel aspect of our study is examining the impact of institutional legacies on FFs – a topic less explored in family business literature. Furthermore, our findings provide insights for policymakers and regulators, emphasizing the importance of tailored policies that consider the intricate interplay between institutional origin and contemporary entrepreneurial goals in FFs.

The literature shows that social media enhances individual stakeholders’ ability to directly influence firm behaviors, paying less attention to how it enables different stakeholder groups to influence firms collectively. Drawing on the stakeholder multiplicity perspective in stakeholder theory, this study theorizes and empirically demonstrates that social media can empower lower-salience stakeholders to drive the actions of higher-salience stakeholders to influence firm behaviors. By analyzing 506 consumer crises involving foreign and local companies in China from 2000 to 2020, we find that firms take more substantial responsibility when confronted with consumers’ social-media-based collective actions than when confronted with conventional channels of consumer complaints. This heightened responsibility stems mainly from collective actions’ tendency to spur law-enforcing agencies into addressing alleged firm misdeeds, demonstrating a stakeholder multiplicity effect of social media empowerment. We also identify the institutional contingency of this effect, showing that local governments’ bureaucratic capacity positively moderates collective actions’ effect on law-enforcing actions, whereas their intervention in firms’ operational decisions negatively moderates law-enforcing actions’ effect on firms’ responsibility assumption. This study extends the understanding of social media's relationship with stakeholder influence and consolidates the stakeholder multiplicity perspective in stakeholder theory.

Failure to attract external financing is a common puzzle for start-up firms and often leads to the use of entrepreneurs' personal funding, typically with the help of their family. With little entrepreneurial experience, nascent entrepreneurs will have no factual signals to show external investors, except their characteristics or those of their family. The literature mainly focuses on the net effects of entrepreneurs' personal capital endowments in isolation on start-up capital structure despite emerging appreciation of the importance of family-related factors. However, little is known about which combinations of capital endowments across capital dimensions (i.e., human, social, and financial capital) or generations (i.e., parent and child) will likely affect the level of external funding. Drawing on signaling theory, we adopt a configurational approach to examine the compositions of intergenerational capital endowments that are sufficient to shape external funding. Conducting a fuzzy-set qualitative comparative analysis of Chinese privately owned enterprises of nascent entrepreneurs, we identify four typical family prototypes that feature intergenerational capital endowments for low external funding. Findings highlight the significance of family dynamics in China and their role in shaping new venture financing by displaying intergenerational signals.