Showing papers in "Asia Pacific Journal of Management in 2007"
TL;DR: The authors explores general characteristics of Asian management as opposed to management elsewhere, and what the study of Asian Management and its cultural origins mean for emerging Asian multinationals and for the state of the art in management research worldwide in the twenty-first century.
Abstract: Contrary to popular opinion, the crucial elements of the management process show strong continuity over time, but differ from one country to another, as a function of the local culture. Recent research reveals fundamental differences in the goals of business leaders from different societies. The article explores general characteristics of Asian management as opposed to management elsewhere, and what the study of Asian management and its cultural origins mean for the emerging Asian multinationals and for the state of the art in management research worldwide in the twenty-first century.
449 citations
TL;DR: In this paper, a new generation of diversification research needs to address the extended question: What determines the scope of the firm, both product and geographic, over time and around the world?
Abstract: “What determines the scope of the firm?” is a fundamental question in strategy research. We argue that a new generation of diversification research needs to address the extended question: What determines the scope of the firm—both product and geographic—over time and around the world? This article has three goals: (1) to increase awareness among researchers on the necessity to add the much needed but often neglected time and geographic dimensions by introducing a new typology in diversification research, (2) to review how Asia Pacific research, including articles in this Special Issue, has contributed to our global understanding along both dimensions, and (3) to advance an institution-based view on diversification strategies that has largely been propelled by Asia Pacific research.
283 citations
TL;DR: This article reviewed the literature on venture capital in China and examined where China's venture capital industry has been and where it is likely to go in the future, and examined some specific differences between the system in China with respect to the United States.
Abstract: This article reviews the literature on venture capital in China and examines where China’s venture capital industry has been and where it is likely to go in the future. Since the 1980s, venture capital in China has grown steadily alongside the robust national economy. The future is likely to offer even greater opportunities, as entrepreneurs are encouraged and property rights improve. However, there will also be a period of transition as the market continues to mature and as new legal structures and commercial arrangements emerge. Venture capital in China has many interesting differences from that in Western countries. The venture capital industry is shaped by the institutional context and China is no exception to this. This article also examines some specific differences between the system in China and that of the United States. Future prospects for venture capital are also appraised as China continues its transition to a market economy.
200 citations
TL;DR: In this paper, a survey of Chinese employees from various industries in China were surveyed on their relationships (leadership-member relationship and personal guanxi) with American and Chinese managers, their constructive controversy with them, and the job assignments and promotions received from their managers.
Abstract: Effective open relationships with employees can help foreign managers rely upon and utilize the local knowledge of their employees. One hundred and sixty-three Chinese employees from various industries in China were surveyed on their relationships (leadership–member relationship and personal guanxi) with American and Chinese managers, their constructive controversy, that is, their constructive controversy with them, and the job assignments and promotions received from their managers. Results support the hypotheses that quality leader–member relationship and personal guanxi promoted their constructive controversy, which in turn facilitated employees receiving challenging jobs and promotions. Results suggest that leader–member relationship and Chinese value of guanxi may be important for enhancing their constructive controversy; this kind of open dialogue can be a foundation upon which American managers can develop the confidence to give their Chinese employees challenging tasks and promotions.
154 citations
TL;DR: The authors distinguish business groups from other types of firm networks based on the strategic relationships among companies, and separate business groups into three types based on their ownership: family-owned, widely-held, and state-owned.
Abstract: We clarify what business groups are and analyze their various types. We first distinguish business groups from other types of firm networks based on the strategic relationships among companies; business groups are defined as those networks that exhibit unrelated diversification under common ownership. We then separate business groups into three types based on their ownership: family-owned, widely-held, and state-owned. We argue that each type has different agency costs and diversification logics. As a result of these differences, their performance varies, with family-owned business groups outperforming widely-held ones, and these in turn outperforming state-owned business groups.
154 citations
TL;DR: In this paper, the authors apply the duality lens to social capital for an integrative model of informal exchange and develop a holistic, dynamic, and dialectic model of social capital.
Abstract: What is the unique nature of social capital that differentiates itself from other forms of capital? How should we conceptualize and operationalize social capital? What are the major drivers and outcomes of social capital? To address the three questions, I apply the duality lens—the perspective of regarding each entity as a paradox consisting of two contrasting yet interdependent components—to social capital for an integrative model of informal exchange. The focus of this paper is on the duality relationship between the content variables (social tie, social capital, social behavior along two basic dimensions: trust for tie strength and option for network structure) and the process variables (antecedent, content, process, and consequence) toward a geocentric framework of formal–informal exchange. I intend to make two contributions. First, the conceptualization and operationalization of social capital is developed from the duality lens of formal–informal exchange so as to identify the unique nature of social capital as an informal entity. Second, a holistic, dynamic, and dialectic model of social capital is provided to explore the causal links between various elements related to social capital.
142 citations
TL;DR: In this paper, the authors argue that ownership voids occur due to the lack of unambiguously specified ownership of state assets in transition economies, and that business groups emerge to serve as the direct owners of state-owned enterprises to replace such voids.
Abstract: In a transition economy, how does business group affiliation make a difference in firm performance? Under the broad label of institutional voids, what specific voids can business groups fill? This paper addresses these questions by drawing on insights from property rights theory and an institutional perspective. We argue that ownership voids, as a subset of institutional voids, occur due to the lack of unambiguously specified ownership of state assets in transition economies, and that business groups emerge to serve as the direct owners of state-owned enterprises to replace such voids. Based on a sample of 1,119 publicly-listed Chinese companies, we find that the interaction of business group affiliation and state ownership has a significant and positive effect on firm performance. Our findings point to business group’s substitution role in filling ownership voids in China’s transition economy.
137 citations
TL;DR: In this article, the authors focus on the evolution and transformation of Indian business groups (IBGs) over two economic eras (pre-reform era (pre 1991) and reform era (post 1991).
Abstract: Business groups are an important constituent of many emerging economies. In this paper, we focus on the evolution and transformation of Indian business groups (IBGs) over two economic eras — pre-reform era (pre 1991) and reform era (post 1991). To this end, we analyze IBG behavior during these periods, and explain the implications of such behavior on IBG value creation. Our conceptualization of IBG dynamics utilizes the perspectives of product relatedness and institutional relatedness, and undertakes a broad review of the extant literature.
137 citations
TL;DR: In this paper, the authors focus on the caveats when applying such theoretical foundations to emerging economies and draw on the largest emergent economy in the world, China, to illustrate these issues.
Abstract: In mature economies, technology-focused industries and the management of knowledge are widely viewed as critical to success. Increasingly, in emerging economies technology-focused industries and the management of knowledge are also viewed as important. To date, however, little is known about such activities in emerging economies. Particularly, it is not understood how knowledge management can impact efforts for corporate renewal in such environments. The literatures of the resource-based view of the firm, social capital/network theory, and real options theory are vital to providing insights for technology-focused industries and the management of knowledge in mature economies. In this paper we focus on the caveats when applying such theoretical foundations to emerging economies. To illustrate these issues we will draw on the largest emergent economy in the world, China.
132 citations
TL;DR: In this paper, a review of the literature on strategic orientation and its impact on firm performance is presented. And the authors identify important research gaps and propose to integrate institutional theory, dynamic capability perspective, and the knowledge-based view within the strategic orientation research stream for future investigations.
Abstract: As China continues to transition toward a market economy, how strategic orientation affects firm performance has received significant attention. This article reviews the extant literature with a framework that depicts contemporary work on strategic orientation, the drivers of strategic orientation, and its boundary conditions. We identify important research gaps and propose to integrate institutional theory, dynamic capability perspective, and the knowledge-based view within the strategic orientation research stream for future investigations.
129 citations
TL;DR: In this article, the authors discuss the causes of piracy, with particular reference to the factors that lead consumers to engage in piracy en masse, and explore the consequences of piracy for copyright holders.
Abstract: What should copyright holders do about the piracy of digital media? This paper first discusses the causes of piracy, with particular reference to the factors that lead consumers to engage in piracy en masse. Then it explores the consequences of piracy for copyright holders. The final section of the paper builds upon the proceeding sections to look at the different strategic responses copyright holders can adopt to deal with piracy. Given widespread digital piracy in Asia, these insights have particular relevance for the region.
TL;DR: In this article, the authors use a recent framework developed by Rodriguez, Uhlenbruck, and Eden to suggest that corruption has to be examined from two different dimensions: pervasiveness and arbitrariness.
Abstract: How does one understand the differences and similarities of corruption among various Asian countries? We use a recent framework developed by Rodriguez, Uhlenbruck, and Eden (2005) to suggest that corruption has to be examined from two different dimensions: pervasiveness and arbitrariness. Using this framework, we ask why some Asian countries are able to achieve high levels of economic growth in the midst of high level corruption while other countries suffer from economic stagnation. We specifically suggest that more firms would bribe when pervasiveness is high, while fewer firms would bribe when arbitrariness is high. We also look into the implications on foreign direct investment.
TL;DR: This paper reviewed the 180 empirical papers focusing on the Chinese context that were published in 12 leading international academic journals between 2000 and 2005, along with various rankings of journals, authors, institutions, and papers.
Abstract: China’s growing economic importance has led to a significant increase in the volume of empirical research about business and management in this country during the last few years. This study reviews the 180 empirical papers focusing on the Chinese context that were published in 12 leading international academic journals between 2000 and 2005. A summary of the methodologies used and the topics analysed is offered, along with various rankings of journals, authors, institutions, and papers.
TL;DR: In this paper, a survey of 438 usable questionnaires from China indicated that buffering and bridging strategies have a positive impact on a firm's economic performance through enhancing its social performance and adaptive capability.
Abstract: Nonmarket strategy may have positive influences on a firm’s performance. How does nonmarket strategy influence a firm’s performance? This article addresses this important question by introducing two mediators: corporate social performance and adaptive capability. The empirical results based on a survey of 438 usable questionnaires from China indicate that “buffering” and “bridging,” being two kinds of nonmarket strategies, have a positive impact on a firm’s economic performance through enhancing its social performance and adaptive capability. The article not only documents the positive effect of nonmarket strategy on firm performance in emerging economies such as China, but also explains the indirect relationship between nonmarket strategy and economic performance, which generates both theoretical and practical implications.
TL;DR: This paper examined the antecedents of felt trust, an under-explored area in the trust literature, and hypothesized that subordinates' felt trust would relate positively with their leaders' moral leadership behaviors and negatively with autocratic leadership behaviours and demographic differences between leaders and themselves.
Abstract: This paper examines the antecedents of felt trust, an under-explored area in the trust literature. We hypothesized that subordinates’ felt trust would relate positively with their leaders’ moral leadership behaviors and negatively with autocratic leadership behaviors and demographic differences between leaders and themselves. We also hypothesized the above relationships to be mediated by the leader-member value congruence. Results supported our hypotheses that value congruence mediated between autocratic leadership behaviors and demographic differences and subordinates’ felt trust, but not moral leadership behaviors, which had direct effects on subordinates’ perception of feeling trusted. Theoretical and practical implications are discussed.
TL;DR: In this article, the authors examine the moderating impact of state ownership and group control mechanisms on the relationship between diversification and performance of companies affiliated with large business groups in China and find that the state ownership has enhanced the performance of group affiliated companies when they adopted higher degrees of diversification.
Abstract: This paper examines the moderating impact of state ownership and group control mechanisms on the relationship between diversification and performance of companies affiliated with large business groups in China. We find that the state ownership has enhanced the performance of group affiliated companies when they adopted higher degrees of diversification. We also find that cash flow rights have a positive impact on the performance of companies with lower degrees of diversification while in general group control rights have a negative impact on the performance. These results suggest that a group’s control mechanisms, derived from pyramid ownership structures, enable the dominant owners to expropriate the value from minority shareholders or tunnel corporate resources for their own interest.
TL;DR: In this paper, a 40-item forced-choice instrument was developed for Chinese respondents in Hong Kong and mainland China, and the results provided clear evidence for the instrument's practical utility.
Abstract: Emotional intelligence (EI) has been an emerging topic for psychological, educational, and management researchers and consultants in recent years. However, there is a lack of scientifically valid measures of this concept, especially for those that have practical utility in the Asian context. Recently, a 40-item forced-choice instrument was developed for Chinese respondents in Hong Kong. We collected data in three studies to further test the practical utility of this instrument in Hong Kong and mainland China. The results provided clear evidence for the instrument’s practical utility. More research that uses this measure in Asian countries is required.
TL;DR: In this article, business groups played an important role in the economic development of East Asian countries Yet business groups in East Asia face an uncertain future Following the Asian crisis, foreign creditors and investors have demanded that business groups have more transparent operations and stronger corporate governance.
Abstract: Business groups played an important role in the economic development of East Asian countries Yet business groups in East Asia face an uncertain future Following the Asian Crisis, foreign creditors and investors have demanded that business groups have more transparent operations and stronger corporate governance At the same time, as governments in East Asia have loosened trade barriers, business groups have become subject to intense competition in domestic markets This paper argues that business groups can survive or even prosper by taking initiatives in corporate restructuring This paper also highlights some areas for further research on business groups in this region
TL;DR: This paper showed that the data supporting this is confined to a handful of unrepresentative case studies and also presented a bibliometric analysis which showed an overwhelming case study sample selection bias in academic studies towards this small number of unrepresented cases.
Abstract: In recent issues of this Journal a debate has raged concerning the appropriate nature of academic research in the Asia Pacific region. While we support the desire for both rigor and regional relevance in this research, we wish to demonstrate a strong commonality between the performance of large Asian firms and others from Europe and North America. This prompts us to question the need for a new theory of the MNE based on the experience of Asian firms. Like their counterparts elsewhere, the large Asian firms mostly operate on an intra-regional basis. While in the literature it has been assumed that the path to success for Asian firms is globalization, we show that the data supporting this is confined to a handful of unrepresentative case studies. We also present a bibliometric analysis which shows an overwhelming case study sample selection bias in academic studies towards this small number of unrepresentative cases.
TL;DR: Wang et al. as mentioned in this paper used Hofstede's measure for individualism and combine it with an experimental measure of cooperation to test this relationship in China and found that individuals with higher individualistic scores are more cooperative than those with higher collectivistic scores.
Abstract: A consistent theme in cross-cultural management research is that collectivists are more cooperative than individualists. We use Hofstede's measure for individualism–collectivism and combine it with an experimental measure of cooperation to test this relationship in China. In contrast to the established paradigm, we find that groups with higher individualistic scores are more cooperative than those groups with higher collectivistic scores. We attribute these results to groups being composed of outgroup members. In addition, we find that subjects from the more developed coastal area are more individualistic and cooperative than are subjects from inland China.
TL;DR: The authors argue that context is a crucial variable to explain management behavior, yet for practical reasons, it has been neglected in research published in top journals, and challenge management scholars in Asia and beyond to devise new research strategies to enhance our understanding of the contextual boundaries of our knowledge.
Abstract: “Asian Management Research Needs More Self-confidence” (Meyer, 2006) generated a surprisingly extended and diverse set of responses from Asia and beyond. In this rejoinder, I draw together a few lines of arguments that have emerged in that debate with the aim of moving the debate—and thus Asian management research agendas—forward. In particular, I argue that context is a crucial variable to explain management behavior, yet for practical reasons, it has been neglected in research published in top journals. Thus, I challenge management scholars in Asia and beyond to devise new research strategies to enhance our understanding of the contextual boundaries of our knowledge.
TL;DR: In this paper, the theory and practice of strategy in the Asia-pacific region have not gained little from incorporating culture as an explanation, despite its value in explaining some macro-and micro-phenomena, culture has not improved understanding of firm strategy or performance.
Abstract: How are the theory and practice of strategy different in the Asia Pacific? I propose that answers to this question have gained little from incorporating culture as an explanation. There is little evidence that culture-oriented research published in the Asia Pacific Journal of Management or in other management journals has substantially influenced strategy theory. Despite its value in explaining some macro- and micro-phenomena, the construct of culture has not improved understanding of firm strategy or performance. This leads to the general argument that culture has limited relevance for strategy.
TL;DR: This article investigated whether value created by business groups depends upon sharing, combining, and exchanging unique and specific resources or assets among affiliated firms, and found that technological capabilities contribute to create relational rents in terms of affiliated firms' investment in R&D and human capital.
Abstract: This research attempts to extend the discussion of business groups in emerging economies by treating business groups as a form of interorganizational network that generates relational rents among affiliated firms by creating technological and managerial capabilities. Based on the relational view, this research investigates whether value created by business groups depends upon sharing, combining, and exchanging unique and specific resources or assets among affiliated firms. Results show that technological capabilities contribute to create relational rents in terms of affiliated firms’ investment in R&D and human capital. Managerial capabilities also contributed to generating relational rents through investment in managerial knowledge acquisition for affiliated firms without R&D units and in training for affiliated firms with R&D units. However, learning by exporting and learning from imported input do not yield relational rents within business groups. Overall, these findings reveal that business groups as interorganizational networks are contingent on their internal, unique, and specific capabilities, as social capital theory argues.
TL;DR: In this article, the determinants of business groups' entry to the deregulated banking industry in Taiwan, from the perspectives of social capital and agency theory, were investigated, and the results of this study provided a valuable starting point from which to discuss the influence of internal and external personal networks on business strategy during a time of deregulation.
Abstract: This study investigates the determinants of business groups’ entry to the deregulated banking industry in Taiwan, from the perspectives of social capital and agency theory. The principal objective of deregulation is to increase the efficiency of resource utilization by introducing competition. However, the opportunities inherent in deregulation may induce a battle of strengths among interested business groups. Based on secondary data analysis, this study reveals that the managerial ties possessed by key individuals in a business group, and the degree of overlapping investment between the owner-managers, influences the likelihood of whether or not a business group will decide to enter the deregulated banking industry. The results of this study provide a valuable starting point from which to discuss the influence of internal and external personal networks on business strategy during a time of deregulation.
TL;DR: In this paper, the authors develop a series of propositions that link market failure with corporate strategy and explore the evolution of business groups and the viability of strategic choices that groups are likely to make as they navigate the emerging market terrain.
Abstract: Drawing from transaction cost economics and strategic management, this paper develops a series of propositions that link market failure with corporate strategy. In doing so, the paper focuses on both vertical and horizontal strategies as strategic approaches that could be used to address different types of market failure. The significant contribution of the paper lies in its deconstruction of the various types of market failure and developing a theoretically grounded set of propositions that identifies appropriate corporate strategic responses that can be used to ameliorate the negative consequences of each type of failure. In doing so it also explores the evolution of business groups and the viability of strategic choices that groups are likely to make as they navigate the emerging market terrain.
TL;DR: This paper examined the influence of economic and political factors that contribute to the convergence and/or divergence in value priorities of five East Asian societies (China, Hong Kong, Singapore, South Korea, and Taiwan).
Abstract: This study examines the influence of economic and political factors that contribute to the convergence and/or divergence in value priorities of five East Asian societies—China, Hong Kong, Singapore, South Korea, and Taiwan. We find that political and social-economic factors influence the values orientations of managers within this region. However, economic development level is an insufficient explanation for values convergence without consideration of the societal context and cultural traditions in which that development occurred.
TL;DR: Ahlstrom et al. as discussed by the authors provided commentary on the analysis of venture capital in China by Ahlstrom, Bruton, and Yeh, and compared the Chinese VC context with those in Western Europe and Central and Eastern Europe.
Abstract: This article provides commentary on the analysis of venture capital in China by Ahlstrom, Bruton, and Yeh (Venture capital in China: Past, present, and future. Asia Pacific Journal of Management, 2007). The article considers issues relating to the scope of venture capital and private equity, the nature of venture capital and private equity organizations, the life-cycle process of VC investing, internationalization, and foreign venture capital firms. The paper identifies areas for future research and compares the Chinese VC context with those in Western Europe and Central and Eastern Europe.
TL;DR: In this paper, the authors consider the effect of national culture and corporate culture differences on the management of international strategic alliances (ISAs), based on the perceptions of a relatively large sample of Chinese partner firms in ISAs with foreign partners.
Abstract: We consider the effect of national culture and corporate culture differences on the management of international strategic alliances (ISAs). Findings are based on the perceptions of a relatively large sample of Chinese partner firms in ISAs with foreign partners. We find that differences in national culture and corporate culture have contributed to a similar extent to differing views on ISA management. However, findings indicate that differences in national culture and corporate culture have a differential impact on aspects of ISA management. Perception of national culture and corporate culture differences and the contribution of those differences to differing views on the management of ISAs are greater in relatively younger ISAs compared with older ISAs. Managers in equity-based ISAs report fewer problems with culture related impediments to managing ISAs than managers in non-equity-based ISAs.
TL;DR: In this paper, an in-depth analysis of the strategy of the Salim Group, one of the largest ethnic Chinese conglomerates in the Asia-Pacific region, supports the view that the strategy can be understood as moving between the extremes of crony capitalism and the existing Western norms for multinational business (the market-based model).
Abstract: As institutional transitions in emerging economies intensify, the basis for competition is theorised to move from relationship-based to market-based. An in-depth analysis of the strategy of the Salim Group, one of the largest ethnic Chinese conglomerates in the Asia-Pacific region, supports the view that the strategy of this conglomerate can be understood as moving between the extremes of crony capitalism (the relationship-based model) and the existing Western norms for multinational business (the market-based model). Both models are essential for its success, but the former, relationship-based model seems more important in early times and the latter, market-based model becomes more significant during recent institutional changes. We also find evidence that the strategic movement between those extremes takes the form of irregular oscillatory dynamics.
TL;DR: In this paper, the authors develop and test the thesis that corporate social performance constitutes a socially constructed and shared strategic asset, which is not only influenced by factors specific to a firm, but also by the social performance of firms in its industry and inter-corporate network.
Abstract: We develop and test the thesis that corporate social performance (CSP) constitutes a socially constructed and shared strategic asset, which is not only influenced by factors specific to a firm, but also by the social performance of firms in its industry and inter-corporate network. Using variance decomposition, we analyze data from 130 large Japanese firms and find that both firm-specific and industry-level factors account for significant variance in CSP, but network-level factors do not.