Two approaches to the evolution of Chinese scholarship are possible. The first – developing a theory of Chinese management – focuses on applying and refining theories developed elsewhere in a Chinese context. In this sense, the emergence of the Chinese economy represents an important natural experiment for the test and refinement of general management theories. The second – developing a Chinese theory of management – focuses on creating explanations for the existence of Chinese management phenomena that are uniquely Chinese. This approach rejects a research agenda created by Western scholars in favour of a research agenda created by Chinese scholars in order to understand Chinese phenomena. The implications of choosing either of these approaches for the future of Chinese management research and possible relationships between them are discussed.

This paper describes two studies conducted in the People's Republic of China aimed at improving understanding of knowledge sharing among managers. Study 1 found evidence for the role of two individual factors: greed which reduced knowledge sharing, and self-efficacy which increased it. In addition, co-worker collegiality has an indirect influence on knowledge sharing by lowering greed and raising self-efficacy. Study 2 replicated the key findings of Study 1 and also identified the influence of organizational support on knowledge sharing. Organizational support led to higher utilization of information and communication technologies, resulting in more knowledge sharing, especially for explicit as opposed to implicit knowledge.

In this article I propose a Yin Yang perspective to understand culture. Based on the indigenous Chinese philosophy of Yin Yang, I conceptualize culture as possessing inherently paradoxical value orientations, thereby enabling it to embrace opposite traits of any given cultural dimension. I posit that potential paradoxical values coexist in any culture; they give rise to, exist within, reinforce, and complement each other to shape the holistic, dynamic, and dialectical nature of culture. Seen from the Yin Yang perspective, all cultures share the same potential in value orientations, but at the same time they are also different from each other because each culture is a unique dynamic portfolio of self-selected globally available value orientations as a consequence of that culture's all-dimensional learning over time.

This paper examines the status of boundaries in organizational theory. Tacitly if not explicitly, most researchers view organizations as bounded, tightly coupled and more or less rational systems. Yet organizations may also be open, loosely coupled, hierarchically nested systems whose boundaries are indefinite. In the case of China, incomplete separation of firms from the state, incomplete integration of firms and partial listing of assets have left most Chinese firms with indefinite boundaries. While many Chinese firms are disadvantaged by indefinite boundaries, some have managed their boundaries advantageously. The Chinese group corporation described here has resisted interference from its state owners, one of whom tried but failed to turn it into a captive supplier. It has secured full operational and financial control of subsidiaries despite their independent legal status, fractional local government ownership, and local government representation on their boards. And it has successfully funded and executed an aggressive acquisition strategy and now dominates its industry globally. There are lessons specific to the Chinese context. The most important is that boundaries should be assumed indefinite unless shown otherwise. And there are lessons about firms in emerging economies. Indefinite boundaries are characteristic of such firms; indefinite boundaries pose either threats or opportunities depending on the strategic response; lastly managing indefinite boundaries will be a key strategic priority and a precondition of finding and exploiting market opportunities.

Adopting a dynamic view of guanxi, we investigated how the closeness in Chinese coworker relationship changes as a function of interpersonal incidents, exploring factors such as the prior closeness level as well as the valence and job relevance of the incident. Two studies of PRC managers probed the content and dynamics of their coworker relationships. Results indicate that such relationships mix affective and instrumental ties. A key finding about changes is that the increase in closeness created by positive incidents was greater when the prior relationship was distant, and the decrease created by negative incidents was greater when the prior relationship was close. The implications of these findings for theory development and future guanxi research are discussed.

Using recent survey data, this study examines the impact of firm resources, industry dynamics, and government policies on the outward foreign direct investment (FDI) motives of Chinese firms, based on the integrated ‘strategy tripod’ framework. The results suggest that supportive government policies are important motivators for both strategic asset-seeking and market-seeking outward FDI. Firms' technology-based competitive advantages and a high level of industry research and development (R&D) intensity tend to motivate strategic asset-seeking outward FDI, whereas firm's export experience and higher level of domestic industry competition tend to induce market-seeking outward FDI.

This Editors' Forum – ‘Creativity East and West’ – presents five papers on the question of cultural differences in creativity from the perspective of different research literatures, followed by two integrative commentaries. The literatures represented include historiometric, laboratory, and organizational studies. Investigation of cultural influences through country comparisons and priming manipulations, focusing on how people perform creatively and how they assess creativity. This introduction notes parallels in the findings across these research perspectives, suggesting some cultural universals in creativity and some systematic differences. Many differences can be explained in terms of the model that creativity means a solution that is both novel/original and useful/appropriate, yet that Western social norms prioritize novelty whereas Eastern norms prioritize usefulness – an account which predicts cultural differences would arise in contexts that activate social norms. The commentaries elaborate this argument in terms of processes – at the micro cognitive level and at the macro societal level – through which creativity occurs.

Received internationalization theory argues that firms occupy domestic space before going abroad; in other words, large, oligopolistic firms are most likely to internationalize. The experience of China, whose economy is fragmented and whose firms are small by global standards, suggests otherwise. We construct a model of small firm internationalization driven by the relative transaction costs of crossing domestic (in the case of China, provincial) and international borders. When the costs of crossing domestic borders exceed the costs of crossing international borders, firms will internationalize at a relatively early stage of development. In the case of China, local protectionism and inefficient domestic logistics increase the costs of doing business domestically; moreover, protection of property rights in the West and the advantages afforded Chinese owned firms reconstituted as foreign entities operating in China decrease the costs of ‘going out’. We coin the term ‘institutional arbitrage’ to capture Chinese firms' pursuit of efficient institutions outside of China. We argue that strategic exit from the home country rather than strategic entry into foreign markets may explain the internationalization of many Chinese firms.

In this work, we examine and integrate the research streams on learningbehaviours of both local firms and foreign entrants in emerging markets. Wepropose that local firms and foreign entrants differ in the types oflearning pursued and in the learning processes used. While emerging marketfirms engage in a significant amount of exploratory learning, they alsoattempt to exploit the newly gained knowledge in their current markets.Furthermore, foreign entrants engage in exploitative learning as expectedbut also must participate in exploratory learning to acquire knowledge ofculture, institutional norms, and important social relationships. While muchof the learning occurs through cooperative processes with both partners,they also each engage in experiential learning. We argue that emergingmarkets also differ; firms in the more mature emerging markets seekdifferent types of learning and the learning processes used vary compared tothose in less mature emerging markets. Our research suggests that emergingmarkets represent learning laboratories and provide a base to catalysefuture research.