Perkins and Murmann (2018) advance a provocative thesis, based on Tesla Motors, that ‘a well-funded company could develop a new electric vehicle (EV) from scratch and move it into production within 3 to 5 years. . . .’ This thesis of feasibility – indeed likelihood – of more new entrant EV automakers is at odds with my recent work (e.g., Jacobides, MacDuffie, & Tae, 2016; MacDuffie, 2013) which argues that automotive OEMs have been able to prevent extensive value migration to suppliers and new entrants due to their structural role as system integrators with the capabilities to manage a primarily integral product and organizational architecture. This role is bolstered by societal demands for OEMs to meet regulatory requirements for safety and handle legal liability claims. These structural features have helped automotive OEMs avoid the fate of IBM, which saw massive value migration, after introducing the modular PC, to Intel and Microsoft (suppliers of key components). These same features, I argue, will position these OEMs for continued centrality, forestalling a wave of successful new entrants despite many new, disruptive changes in technology and business models.

Indigenous Chinese management research has attracted much academic attention in recent years. This study examines the mechanism through which Zhong Yong thinking influences employee adaptive performance from a self-regulation perspective. Using two-wave data of 361 subordinates in 62 teams from Chinese firms, job complexity was found to moderate the direct effect of Zhong Yong thinking on cognitive adaptability and emotional control, and the indirect effect on adaptive performance (via cognitive adaptability and emotional control). The direct and indirect effects of Zhong Yong thinking were found to be stronger with a higher level of job complexity. The study explores an important Chinese indigenous construct and its association with adaptive performance, and adds value to the indigenous management literature.

Using data from China's listed privately owned enterprises (POEs) during the period from 2002 to 2014, we explore the effects of firm life cycle on board structure. We find that the board size of China's listed POEs declines over firm life cycle, and there is a trend of separation for board chair-CEO duality while board independence remains almost static. We further provide evidence that board size and independence are determined by the benefits of monitoring and advisory roles of the boards through all the stages of firms’ life cycle with different drivers. The impact of CEO power on board chair-CEO duality is determined by the benefits and costs of separation of board chair, and CEOs are supported at all stages of firms’ life cycle. This article sheds light on the dynamic board structure in an emerging economy where the external corporate governance is weaker than that of developed countries. Our findings suggest that the board structures of China's listed POEs are adjusted at various stages of firms’ life cycle, and the adjustments are mostly based on the resources brought by the new board of directors.

Chance serves as the gate to organizational change. Based on a relational view of chance, we propose that in an organizational context, the chance to change is affected by the perceptions of change agents and the affordance of situational momentum, and that different time points of change are associated with different degrees of chance favorability. We develop a theoretical model to represent how change agents can assess the favorability of current and future momentum and how they can benefit from identifying a perceived chance by employing chance grasping, entraining, creating, or riding strategy to promote organizational change. We generate theoretical propositions to illustrate the four timing strategies of chance management. The overall contribution of this study is a chance management view of organizational change that considers change agents and situational momentum as two interdependent factors in the process of managing the chance to change.

This study investigates how CEO behavior and incentives change during the CEO's final years in office, known as the horizon problem. We examine how the horizon problem alters managerial slack, a measure of operational inefficiency and managerial value diversion. Using data on Chinese publicly traded firms between 2003 and 2011, we find that managerial slack increases in the last two years of CEO tenure compared to earlier years. We also show that the increase in managerial slack in CEO final years in office is smaller in privately controlled firms than in state-owned enterprises, smaller in firms with CEO equity ownership and more independent boards compared to those without. We conclude that higher quality corporate governance mechanisms ameliorate the perverse incentives associated with the CEO horizon problem, and reduce CEOs’ tendency to increase managerial slack during their final years in office.

This interview contributes to the conversation around the automobile industry by focusing on the Chinese electric vehicle (EV) sector. Both of the discussants’ research interests encompass China's industrial competitiveness, innovation, science and technology policy, and the evolution of Chinese manufacturing industries. Professor Feng Lu, the interviewee, has conducted continuous and substantial fieldwork tracing the development of the Chinese automobile industry. He was one of the first experts to urge the Chinese government to help local automobile manufacturers develop innovation capabilities and proprietary products. Further, his 2005 book, The Policy Choice to Develop China's Automobile Industry with Independent Intellectual Property Rights, profoundly influenced the national policy transition toward emphasizing in-house innovation.

In this article, we examine the cross-cultural variation in the perceived effects of idealized influence and individualized consideration leadership behaviors – two behavioral dimensions of transformational leadership – on followers’ organizational identification in two culturally distinct countries: Russia and Finland. We also test whether the followers’ role ambiguity mediates these relationships. Using the self-concept-based theory of leadership as an explanatory framework, our analysis of white-collar employees in four Finland-based multinational corporations and their subsidiaries in Russia shows that whereas in Russia both behaviors facilitate followers’ identification, in Finland only idealized influence does. We also find differences in how role ambiguity mediates the relationship between the two behaviors and followers’ identification in the two countries. In Russia, it fully mediates the relationship between individualized consideration and followers’ identification, whereas in Finland it partially mediates the relationship between idealized influence and followers’ identification.

Although a substantial literature on the management of technological innovation exists, several scholars argue that much of this research has been rooted in Western contexts, where key assumptions are very different from those in emerging economies. Building on this viewpoint, we investigate the current state of knowledge on technological innovation in two of the largest and fastest growing emerging economies: China and India. We undertook a bibliometric analysis of author keywords and combined different quantitative approaches – frequency analysis, cluster analysis, and co-word analysis – to review 162 articles on technological innovation published about China and India for the period 1991–2015. From the analyses, the trends in technological innovation research in the two countries and the dominant themes of discussion were identified. These themes were further classified into eight sub-themes. Our key findings indicate a near absence of research on the management of technological innovation based on India, limited volume of research on indigenous aspects of innovation, and a lack of theory-building based on these countries’ contexts. Several suggestions for future research are offered based on the gaps identified.

We extend Burt, Burzynska, and Opper's cross-sectional network prediction of relative success among Chinese entrepreneurs by predicting which ventures are still active five years later. The cross-sectional analysis is corroborated in three ways (despite the vicissitudes of a national anti-corruption campaign): (1) Businesses run in 2012 by CEOs with a network rich in structural holes are more likely to be active five years later, in 2017. (2) Survival odds are improved if the large, open network around a CEO in 2012 was initially a supportive ‘cocoon’ closed network when the business was founded. (3) Both results are contingent on capturing the guanxi ties valuable early in the history of the business. The two network effects disappear when the network around a CEO is limited to his or her currently valued contacts. Beyond corroboration, we find that advantage is concentrated in ventures that began well and had become successful. Network advantage here does not compensate for weakness – it is a mechanism for cumulative advantage, amplifying the success of businesses already doing well.

I've been asked to comment on this collection of three papers, each of which offers deep insights into the forces affecting the auto industry, particularly as concerns the relative positions of incumbent auto firms with respect to new electric vehicle entrants. Taken as a whole, the papers open a lens on the changes roiling the automotive sector. In this essay, I'll attempt to widen the aperture and provide a framework for a more systemic analysis of the forces reshaping the industry and the prospects for new entrants.

Some firms use hidden knowledge facilitators (HKFs) to facilitate knowledge sharing among employees within intrafirm online communities. These firms hope for enhanced knowledge sharing outcomes within their organizations without letting employees know that HKFs exist. Yet, the extent to which HKFs’ interventions are effective remains unknown to researchers and managers. Built on the knowledge sharing (KS) literature, this study explores the unique roles of HKFs as moderators between a company and its employees. We develop several hypotheses to test the impact of the quantity and quality of HKFs’ online interventions on several KS outcomes. By analyzing log data of a Chinese corporation's online R&D community, we find that (1) the quantity of HKFs’ intervention has a mostly positive impact on KS outcomes; (2) the quality of HKFs’ intervention has a mixed impact on several KS outcomes, depending on which aspect of quantity is considered; and (3) the quality of HKFs’ intervention also moderates the positive impact of the quantity of HKFs’ intervention in different ways on different intended KS outcomes. This study makes a clear contribution to the literature on knowledge sharing and knowledge facilitation by demonstrating the impact of HKFs on KS outcomes in a Chinese context.

This article addresses corruption as a negative practice displaying the ‘darker side’ of social capital in Chinese guanxi and Russian blat/svyazi networks. It presents a conceptual framework integrating several research streams to establish a conceptual linkage between social network characteristics and three forms of corruption between business persons and public officials: cronyism, bribery, and extortion. We argue that the forms of corruption in a society are determined by the nature of social network ties and their underlying morality, with particularistic and general trust being key factors. Our framework depicts networks as three concentric circles representing three types of corruption resulting from their corresponding types of reciprocity: open, closed, and negative. We then apply the framework to the practice of guanxi in China and blat/svyazi in Russia. We propose that different network characteristics and different forms of corruption may help explain what we label the ‘China-Russia paradox’ of why corruption and high economic growth have co-existed in China, at least in the short term, but less so in Russia. We conclude with ethical and legal implications for doing business in those two transforming economies and offer suggestions for future research.

Strategic ambidexterity has been under researched in the context of Chinese outward foreign direct investment (FDI). An ambidextrous FDI, balancing between exploratory and exploitive activities, is strategically desirable but managerially challenging. We examine the role of top management team (TMT) functional diversity in influencing Chinese firms’ degree of FDI ambidexterity, and its boundary conditions in relation to the informal and formal institutional environments within which the TMT operates. Based on a panel of Chinese outward-investing manufacturing firms, our empirical analyses show that a marginal positive effect of TMT functional diversity on a firm's FDI ambidexterity is strengthened by the social faultline presence in the firm's TMT, but is weakened by the development of formal institutions in the firm's external environment.

Extant spillover literature explains domestic firms' productivity change mainly by the presence and attributes of foreign direct investment. In contrary, this paper, by adopting a routine-based model of absorptive capacity, intends to explore how domestic firms absorb spillovers over time. Based on a qualitative study of a domestic firm in China's silicone adhesive industry, the findings show that unbounded by geographical constraints, domestic firms enact their external absorptive capacity routines to actively search for spillovers from multinational enterprises (MNEs) at both national and international levels. Moreover, rather than searching for what is available, domestic firms are selective for spillovers that are coherent with their business strategies. The most unexpected finding is that domestic firms diligently acquire spillovers from MNEs and from local competitors in combination. Spillovers acquired from local competitors are used to increase the inferential accuracy of spillovers acquired from MNEs about strategic successes. Further, instead of absorbing spillovers from MNEs which pose moderate technology gaps, domestic firms target at MNEs which exhibit wider technology gaps, and undertake organizational learning and develop complementary assets to enhance their internal absorptive capacity routines. Socially enabling mechanisms are found to facilitate domestic firms' absorption of spillovers by employee turnover.

Henrich R. Greve, joined here by Sheen S. Levine, calls for presenting empirical data in more graphical forms than currently is the standard in management journals. This would benefit the advancement of science in many ways: showing the potential importance of the phenomenon under study to allowing a visual understanding of its relationships, thus connecting the reader to the evidence beyond the statistics shown. Do we have here a beast or a star? Without following the recommendations to start graphing as put forward by Greve and Levine, the reader would never know.

Modern portrayals of human action are overwhelmingly in a calculative and consequentialist tradition. Consequentialist reasoning is the basis for most of modern social and behavioral science and preeminently for economics. Action is seen as choice, and choice is seen as driven by anticipations, incentives, and desires. These ideas trace their roots at least to the Greeks, owe substantial parts of their modern manifestation to the formulations of Jeremy Bentham, and derive much of their contemporary power from the geniuses of L. J. Savage and John von Neumann.