Using recent substantive results on China and the West, we highlight some virtues to Mill's method of residues for comparative network research. The result is research that combines the emic-etic approaches discussed by Leung (2009) with the spirit of Whetten's (2009: 49) efforts to make ‘theory borrowing more context sensitive’. We draw on recent comparative research about the competitive advantage enjoyed by network brokers, trust facilitated by embedding a relationship in a closed network, the subset of Chinese relations that constitute guanxi, the idea of American and European guanxi, different business environments maintained by the same network mechanism, cocoon networks, small-world networks, the longer history apparent in Chinese networks, and job search via colleagues, friends, and family. We also illustrate the value of data graphs for the expository value of the method of residuals in comparative network analyses.

Unlike previous research that has largely focused on the influence of national institutions on human resource management practices in China, our study taps into the role of sub-national institutions. We demonstrate, via a qualitative configurational analysis, that foreign subsidiaries of multinational corporations still adapt HQ compensation practice to the local context despite low regulatory pressure and low mobility of skills at the sub-national level. This adaptation is facilitated by a decentralized structure in the multinational corporation. Our study also shows that high regulatory pressure and high portability of skills at the sub-national level alone are sufficient to induce local adaptation of compensation practice. Our explanation points to the significant role played by sub-national institutions in large and rapidly changing emerging economies and contributes to research on local adaptation of HRM practice in China. It offers an insight into forms of institutional agency by political and economic actors at local levels of governance as they attempt to influence the skills and human resources available for MNCs through regulatory means.

India began the process of market liberalization that opened it to significant interactions with the world economy in 1991. In this essay, we provide an overarching view of the country's journey toward integration with the global innovation and entrepreneurship network. Major nodes in this global network have two major components that may be metaphorically referred to as ‘pillars and ivy’. Globally connected multinational enterprises (MNEs) form the pillars. Agile startups are the ivy, and their success (metaphorically, the height to which they can climb) depends on their symbiotic connections with the pillar MNEs. Both components are essential and reinforce each other. Without MNEs, the scaling of startups is hampered. Without a vibrant population of startups, MNEs’ interest in a location remains driven by cost, rather than capability and creativity. MNEs (mainly foreign) provided the initial sparks for the formation of the Indian innovation and entrepreneurship ecosystem. We chart the subsequent growth of India's startups. They began in the information technology (IT) sector but now cover a much wider range of industries. Today, India's innovation and entrepreneurship ecosystem is one of the largest in the world, with global integration in terms of technology, financing, human capital, and administration.

We explore the meaning of parochialism (xiao nong yi shi, 小农意识) to explain certain paradoxical Chinese managerial behaviors. We discuss how cultural, political, and economic traditions in China formed a salient context to cultivate parochialism. Qualitative data from Chinese and American managers reveal that the conceptual framework of parochialism includes a cognitive dimension of closed-mindedness, a behavioral dimension of self-protection, and a relational dimension of in-group focused social relationship. Parochialism hampers effective globalization of Chinese firms because it negatively impacts key facets of organizational culture: employee development, communication, customer orientation, social responsibility, strategic planning, and innovation. The study offers theoretical and practical implications for Chinese management research and the development of global competence.

Drawing on the experience of firms of various sizes from Francophone Africa, we explore how the internationalization trajectories of frontier economy firms may vary from those predicted by theory. The firms studied followed social, linguistic, cultural, and institutional gradients to internationalize first to France, rather than to neighboring countries, and did so in search of not only markets and resources but also legitimacy. In turn, the sales, resources, and legitimacy acquired in France supported further international expansion, sometimes even to neighboring countries. Although our insights derive from the experience of Francophone firms from Africa, we argue that for firms from all former colonies, the internationalization trajectory leads through the colonial center. Our findings underline the roles of legitimacy-seeking and network ties in the internationalization of frontier market firms and serve as a salutatory reminder of the lingering influence of colonial ties on international business.

Size is an important antecedent of firm survival, and several studies theoretically sustain and empirically support a ‘liability of middleness’. Indeed, it is widely believed that companies should act strategically to either become large or remain small and occupy a niche position, because mid-sized firms face the strongest market selection pressures. This study challenges that logic in renewable natural resource industries. Measuring size as product-line scale and firm-level portfolio breadth, we argue that in industries characterized by cost competition, the lack of product differentiation, large capital investments, and sharp price oscillation, scale and breadth have a curvilinear effect on survival that favors mid-sized firms rather than penalizing them. An empirical analysis of the US pulp and paper (P&P) industry over the period 1970–2000 strongly supports our arguments. This study is particularly relevant for emerging economies, in which natural resource industries represent an important portion of the total economic activity.

This article addresses the question of how the emergence of a cluster in a global innovation system is influenced by early entrants. It does so by presenting an explorative study of the emerging digital creative industries cluster in Bangalore. I find that MNE entrants develop production and technological capabilities comparatively fast within a narrow range of value chain activities with limited spillovers to the cluster. In comparison, local entrants develop such capabilities more slowly, but within a broader range of value chain activities and with higher spillovers of skills and knowledge, as well as higher participation to building a local entrepreneurial ecosystem. I propose that these effects are moderated by the size of national consumer markets as well as industry context in the guise of project lengths and technological modularity. I also point to the role of global connectivity, proposing that local entrants, in particular, leverage international personal relationships for development of not only relational, but also production capabilities.

Nowadays social entrepreneurship is recognized as a two-way process, addressing both social and economic concerns that can bring social inclusion, equity, and development to disadvantaged groups in society. This aspect is particularly important and desirable within emerging economies. In these markets, which are constantly faced with profound economic and social challenges, we see the growing importance of social entrepreneurs as they take upon themselves the provision of welfare services and progressive activities. However, our understanding of the mechanisms underlying the creation of social and economic values in social enterprises, and the factors contributing to the establishment of these value creation objectives, is still rather fragmented. Our article contributes to this gap in the literature by decoding the process via which for-profit social entrepreneurs from China and India create social and economic value. In addition, by combining a deductive and an inductive approach of analysis, we offer novel insights into the context-dependent processual patterns deciphered within the two countries. A new entrepreneurial process framework that reflects the contextualized social value creation process by social entrepreneurs is thus provided.

We argue that vertical interlocks in Chinese state-owned business groups are important mechanisms for coordination and information exchange between the apex firm and affiliated firms, and that they are also mechanisms for government owners of the business groups to exercise control. By combining resource dependence theory with elements from transaction cost economics and agency theory, we propose that the need for interlocks increases the higher the level of government ownership. The central government is therefore more likely to use vertical interlocks than the provincial governments, which again are more likely to use vertical interlocks than the municipal governments. We develop three hypotheses based on these arguments. A regression analysis of a hand-collected data set finds strong support for our hypotheses. Our results shed light on coordination and governance issues within the state-owned sector in China and on an important means for mitigating these issues used by the government owners and firms affiliated with state-owned groups.