Showing papers in "Asia Pacific Journal of Management in 2012"
TL;DR: Wang et al. as discussed by the authors identified the five key institution-based barriers to innovation in China: competition fairness, access to financing, laws and regulations, tax burden, and support systems.
Abstract: Despite significant development, small and medium-sized enterprises (SMEs) in China continue to experience institution-based barriers, especially in the area of innovation. What exactly are these barriers? How do these barriers influence innovation? How about the status quo of the institutional environment for SMEs’ innovation and development? We seek to uncover these underexplored areas by developing a model characterized by a cost-risk-opportunity (CRO) innovation triangle. We then enrich this model by interviewing 82 top managers and owners at 41 SMEs. We identify the five key institution-based barriers to innovation in China: (1) competition fairness, (2) access to financing, (3) laws and regulations, (4) tax burden, and (5) support systems. These findings enhance the institution-based view of entrepreneurship by shedding light on how institution-based barriers affect innovation in SMEs.
337 citations
TL;DR: In this paper, an integrative framework of indigenous research on Chinese management has been proposed, which is consistent with, but extends beyond, the repeated calls for contextualizing management and organization research.
Abstract: It has long been recognized that indigenous research should be helpful, if not essential, for an adequate understanding of local phenomena. The indigenous approach is consistent with, but extends beyond, the repeated calls for contextualizing management and organization research. However, the challenges of indigenous research are enormous. The purpose of this article is to shed light on these challenges by providing an integrative framework of indigenous research. In particular, I seek to explicate the existing conceptual confusions and flesh out the appropriate methodological procedures for indigenous research on Chinese management. To illustrate the framework, I show the value of yin-yang thinking by developing a cognitive frame, Yin-Yang Balance, to illustrate the unique and novel features of local perspective, including its application to case study method.
224 citations
TL;DR: In this paper, the influence of political risk and cultural distance on the location patterns of large Chinese companies was analyzed and the results showed some characteristics that differ from the conventional wisdom, such as a high political risk in the host country does not discourage Chinese multinationals.
Abstract: The internationalization of Chinese enterprises is a subject that is receiving increasing attention in international business research. This paper analyzes the influence of political risk and cultural distance on the location patterns of large Chinese companies. Our results show some characteristics that differ from the conventional wisdom. A high political risk in the host country does not discourage Chinese multinationals. However, from a more conventional point of view, the presence of overseas Chinese in the host country is positively associated with Chinese outward foreign direct investment (FDI). In addition, firm size and the volume of Chinese exports to the host country have a positive influence.
224 citations
TL;DR: In this article, the authors present a meta-analysis of the relationship between board attributes and performance of Asian firms using a varied set of meta-analytical techniques on a database of 86 studies covering nine Asian countries.
Abstract: The prevalence of ownership concentration in Asian firms presents a challenge to the influential agency theory-based understanding of the role of corporate boards. In this paper we develop and test hypotheses about board attributes and firm performance that reflect Asian institutional conditions. We present the first meta-analysis of the relationship between board attributes and performance of Asian firms using a varied set of meta-analytical techniques on a database of 86 studies covering nine Asian countries. First, we find that board structure and composition preferences are influenced by the identity of the concentrated owner. Second, consistent with US data, we find very limited evidence of a direct relationship between board attributes and firm financial performance in the Asian context. Third, we find that the relationship between board structure and composition and firm performance is mediated by the revealed strategic preferences of Asian firms specifically by the level of R&D investment.
161 citations
TL;DR: In this paper, the authors proposed that prospector and analyzer strategies align better with entrepreneurial orientation to allow firms to fully benefit from their risk-taking, proactiveness, and innovativeness.
Abstract: Recent research has found an inverted U-shape relationship between entrepreneurial orientation (EO) and firm performance in the Chinese context. Building on Miles and Snow’s (1978) strategy framework and Scott’s (1995) country institutional profile, we propose that prospector and analyzer strategies align better with entrepreneurial orientation to allow firms to fully benefit from their risk-taking, proactiveness, and innovativeness. Data collected from 155 SMEs in China confirmed that prospector and analyzer strategies alleviated the curve significantly. The defender strategy enhanced the curvilinearity, yet this moderating effect was insignificant. Implications for policy-makers, international businesses, and entrepreneurial firms in China are discussed.
130 citations
TL;DR: In this paper, the authors discuss fundamental issues regarding future research on leadership in Asia and stress that instead of developing theories and measures unique to specific countries, such as China, the focus should be on the identification of moderators that explain relationships between leadership and both its antecedents and outcomes.
Abstract: The main purpose of this essay is to discuss fundamental issues regarding future research on leadership in Asia. In order to meaningfully introduce these issues, I begin with an overview of leadership research in Asia, briefly covering some of the similarities and differences between Asian and Western leadership approaches. Throughout the essay, I rely chiefly on China as an example. I stress that instead of developing theories and measures unique to specific countries, such as China, the focus should be on the identification of moderators that explain relationships between leadership and both its antecedents and outcomes. I further argue that for such an approach to be viable, future scale development efforts should include respondents from multiple cultural contexts so that relatively universal boundary conditions/domains can be identified. I further contend that assessing differences between countries, such as China compared to Western countries, will be most beneficial if cross-level research designs and analyses are employed.
125 citations
TL;DR: In this paper, the authors argue that institutions define family business characteristics such as ownership concentration and family management, and also affect the performance of family business, which contributes to a reconciliation of prior inconsistent findings and calls further attention to the embedded nature of business in institutions.
Abstract: We offer an institution-based view to the classic inquiry on the relationship between family business and firm performance, which has been dominated by traditional theories such as agency theory and the resource-based view. Specifically, we argue that institutions define family business characteristics such as ownership concentration and family management, and also affect the performance of family business. Our research contributes to a reconciliation of prior inconsistent findings and calls further attention to the embedded nature of family business in institutions.
122 citations
TL;DR: In this article, the authors argue that firms endogenously choose their level of bribery according to their environments and that the benefits and costs may differ for different types of bribery, while big firms may strategically engage in bribery.
Abstract: Does bribery help or hurt firm growth? Some suggest that bribery greases the wheel of commerce, while others believe that bribery sands the wheel of growth. We argue that firms endogenously choose their level of bribery according to their environments and that the benefits and costs may differ for different types of bribery. Specifically, small firms are more likely to be forced to engage in bribery, while big firms may strategically engage in bribery. Utilizing a large, cross-country survey sample involving 2,686 firms in 48 countries, we find that firms choose a higher level of bribery when embedded in under-developed market-supporting institutions. After controlling for endogenous bribery choices, bribery hurts firm growth for small and medium-sized firms, but not for large firms.
121 citations
TL;DR: The authors examined leader-member exchange (LMX) as a mediator of the relationship between benevolent leadership and follower task performance and extra-role performance and found that LMX partially mediates the relationship and fully mediates it.
Abstract: This study examines leader–member exchange (LMX) as a mediator of the relationship between benevolent leadership and follower task performance and extra-role performance. Using a sample of 223 leader–member dyads in a nonprofit organization in the People’s Republic of China, results indicate that benevolent leadership and LMX are positively related to follower task performance and organizational citizenship behavior towards the organization (OCBO). Findings also support that LMX partially mediates the relationship between benevolent leadership and follower task performance as well as fully mediates the relationship between benevolent leadership and OCBO. Implications for the theory and practice of leadership in Asia are discussed.
120 citations
TL;DR: In this article, the authors investigated the relationship between SBU-level transformational leadership and technological innovation, as well as the moderating effects of innovative culture and incentive compensation, and found that a stronger innovative culture is a substitute for transformational behavior for facilitating technological innovation.
Abstract: The present research investigates the relationships between SBU-level transformational leadership and technological innovation, as well as the moderating effects of innovative culture and incentive compensation. Paired data were gathered from 102 senior managers and 258 employees in 102 Taiwanese strategic business units (SBUs). The results indicate that transformational leadership behaviors promote technological innovation at the SBU level. Interestingly, a stronger innovative culture is a substitute for transformational leadership behavior for facilitating technological innovation. In addition, financial-incentive adoption neutralizes the relationship between transformational leadership and technological innovation.
100 citations
TL;DR: Li et al. as discussed by the authors examined how political connections affect corporate diversification in an emerging economy and found a strong positive relationship between political connections and corpora diversification, but the positive relationship was moderated by the state ownership in firms and the level of regional institutional development.
Abstract: Drawing upon the resource-based view, this study examines how political connections affect corporate diversification in an emerging economy. Data from a sample of 1,280 Chinese public firms over 2002–2005 show a strong positive relationship between political connections and corporate diversification. We also find that the positive relationship between political connections and corporate diversification is moderated by the level of state ownership in firms and the level of regional institutional development. Theoretical and managerial implications are discussed.
TL;DR: In this article, the authors examined the multidimensionality of TQM practices and its relationship with knowledge sharing as perceived by middle management employees in Malaysia's ISO 9001:2000 certified firms of manufacturing sectors.
Abstract: The purpose of this paper is to examine the multidimensionality of TQM practices and its relationship with knowledge sharing as perceived by middle management employees in Malaysia’s ISO 9001:2000 certified firms of manufacturing sectors. The data which were collected from a survey of 129 middle management employees in Malaysia were used to test the proposed research framework. Furthermore, confirmatory factor analysis was performed to evaluate the reliability and validity of the measurement model, and the structural analysis was used to examine the research framework. The analytical results revealed that training and development, customer focus, and teamwork showed a positive association with middle management employees’ knowledge sharing. This analysis is vital for senior managers of TQM companies that want to establish a knowledge sharing capability. Senior managers could focus their efforts on implementing TQM practices for building competitive knowledge sharing competencies.
TL;DR: Li et al. as discussed by the authors found that family CEOs, as a whole, are positively related to firm performance, as measured by both market-based and accounting-based performance, reflecting Tobin's Q and ROA.
Abstract: Family firms throughout the world commonly appoint family members as CEOs. However, the value of family CEOs is a subject of ongoing debate. This study attempts to further illuminate the debate in two ways. First, we extend this debate to China, a new and underexplored context, where family businesses are relatively new but growing rapidly. Second, drawing on both principal–agent (PA) and principal–principal (PP) perspectives of agency theory and the institution-based view, we argue that family CEOs are overall, of positive value in China where formal institutions are weak, but this positive effect varies in relative strength across family firms that have different concentrated-ownership structures. Using a sample of 913 firm-year observations for 351 Chinese listed family companies from 2004 to 2007, we find that family CEOs, as a whole, are positively related to firm performance, as measured by both market-based and accounting-based performance, reflecting Tobin’s Q and ROA. Further analyses reveal a stronger positive effect in family firms when family owners have higher ownership, when family ownership and family control are less divergent, and when the firms have multiple-large-shareholder structures.
TL;DR: Wang et al. as discussed by the authors empirically compared regional differences in the work-related values of Chinese employees, using Hofstede's cultural dimensions in terms of individualism, uncertainty avoidance, and long-term orientation.
Abstract: This paper empirically compares regional differences in the work-related values of Chinese employees, using Hofstede’s cultural dimensions In terms of individualism, uncertainty avoidance, and long-term orientation, statistically significant differences were found across regions Shenzhen scored higher on individualism and uncertainty avoidance than did Taiyuan By contrast, Taiyuan scored higher than Shenzhen on long-term orientation This regional difference with regard to individualism should not be surprising in light of China’s recent rapid economic development, as economic development is generally positively correlated with individualism Economic development in shifting from an agricultural to an industrial economy is positively correlated with uncertainty avoidance These results, as well as the fact that Shenzhen is now becoming China’s most successful economic area as the country experiences a degree of economic liberalization, in part explain Shenzhen’s higher uncertainty avoidance score In a similar vein, Taiyuan was shown to exhibit a stronger long-term orientation than Shenzhen
TL;DR: In this paper, a multilevel model of antecedents of group members' innovation was developed and tested to investigate the effects of self-leadership, constructive culture, and knowledge management on innovation among group members.
Abstract: Individual innovation and its antecedent factors, both at the group and individual level, are becoming a topic of increasing interest to entrepreneurs. However, research on this area has not yet proved adequate. This study aims to develop and test a multilevel model of antecedents of group members’ innovation. Constructive culture and knowledge management are treated as group-level antecedents. Creativity and self-leadership are treated as individual-level antecedents. Data are collected from 1,526 group members in 138 producer groups of community products in the Northeast of Thailand. Results indicate that creativity fully mediates the effects of self-leadership, groups’ constructive culture, and knowledge management on innovation among group members. Furthermore, constructive culture also moderates the effects of creativity on innovation.
TL;DR: In this paper, the effects of both transformational and gatekeeping leaderships of formal leaders on shared leadership in Japanese R&D teams are examined. And the effect of shared leadership on research team performance is examined.
Abstract: This study focuses on shared leadership in Japanese R&D teams. The effects of both transformational and gatekeeping leaderships of formal leaders on shared leadership are examined. Moreover, the effect of shared leadership on R&D team performance is examined. Hypotheses are tested with a sample of 654 researchers working in 119 R&D industrial research teams in Japan. Results show that transformational leadership has a negative effect on shared leadership through the norm for maintaining consensus such that it positively influences the norm, which in turn negatively influences shared leadership. In contrast, gatekeeping leadership has a direct as well as an indirect positive impact on shared leadership through the norm for maintaining consensus such that it negatively influences the norm, which in turn negatively influences shared leadership. In addition, this study finds that shared leadership positively influences R&D team performance. These results suggest that leadership displayed by team members and that by formal leaders significantly influences team performance. The results are discussed in the context of the unique Japanese work environment.
TL;DR: Li et al. as mentioned in this paper link leaders' social ties and knowledge acquisition capability to competitive advantage of a firm, and show that leaders' business ties and government ties have differential effects on firm competitive advantage.
Abstract: Drawing on the relational and knowledge-based views of competitive advantage, this study links leaders’ social ties and knowledge acquisition capability to competitive advantage of a firm. Specifically, it posits that leaders’ business ties and government ties have differential effects on firm competitive advantage. It further posits that the effect of leaders’ business ties on firm competitive advantage will be positively moderated by knowledge acquisition capability, and the effect of leaders’ government ties on firm competitive advantage will be negatively moderated by knowledge acquisition capability. The hypotheses are tested based on a survey of 386 firms in China. The results provide support for the hypotheses.
TL;DR: The authors examined the buffering effects of individual and social resources (emotional intelligence and the leader-member exchange relationship) on the relationship between job insecurity and employee reactions (somatic complaints and organizational commitment) and the relationships between employee reactions over time.
Abstract: The longitudinal study reported herein examines the buffering effects of individual and social resources (emotional intelligence and the leader-member exchange relationship) on the relationships between job insecurity and employee reactions (somatic complaints and organizational commitment) and the relationships between employee reactions over time. The results of this study, which was based on data drawn from 157 nurses employed by three hospitals in China, indicate that emotional intelligence moderates the relationship between job insecurity and somatic complaints at both Time 1 (T1) and Time 2 (T2) and that the leader-member exchange relationship (LMX) buffers the effects of somatic complaints at T1 on organizational commitment at T2. Overall, the findings reveal that the ability of employees to deal with their emotions and their relationships with their supervisors is an important resource that serves to protect employee outcomes when job security is uncertain.
TL;DR: In this paper, the authors examined the performance implications of this kind of leadership under the ownership structure concern and found that family leadership positively affects the effect of direct family ownership on affiliate firm performance but does not significantly affect the negative relationship between pyramidal ownership and affiliate firms performance.
Abstract: Utilizing the agency viewpoint, this research attempts to shed light on the issue of family leadership by examining ethnic Chinese family business groups in Taiwan. The study examines the performance implications of this kind of leadership under the ownership structure concern. The research results indicate that the ownership structure of the affiliate firm influences the likelihood that family leadership will be used. Specifically, if the founding family owns more direct ownership of the affiliate firm, the family will be likely to appoint a family leader at the affiliate firm. However, when the founding family has a greater degree of pyramidal ownership of an affiliate firm, family leadership will be less likely at that affiliate firm. Additionally, family leadership mediates the relationship between ownership structure and affiliate firm performance in a family business group. Family leadership positively affects the effect of direct family ownership on affiliate firm performance but does not significantly affect the negative relationship between pyramidal ownership and affiliate firm performance. The implications of these findings for future research on leadership in family business groups are discussed.
TL;DR: In contrast to existing concepts about interpersonal relationship in the literature, the dominant element of the Chinese guanxi concept is the role of obligations and social and ethical norms as discussed by the authors, and Guanxi is defined as the closeness of a relationship that is associated with a particular set of differentiated behavioral obligations.
Abstract: Despite attempts to identify Asian indigenous concepts in the past 10 years, we found that a lot of proposed concepts have not been described clearly People who are not familiar with Asian indigenous cultures may have difficulty in understanding why the concepts are distinct Using the Chinese guanxi as an example, we attempt to describe its etic and emic components In contrast to existing concepts about interpersonal relationship in the literature, the dominant element of the Chinese guanxi concept is the role of obligations and social and ethical norms Thus, we define guanxi as “the closeness of a relationship that is associated with a particular set of differentiated behavioral obligations based on social and ethical norms” The specific situation in Chinese society is described in details and agenda for future research questions is highlighted
TL;DR: A recent special issue on "Leadership in Asia" as discussed by the authors identified four emerging themes: mainstream leadership theories are applicable in Asia, a strong emphasis on families and social ties among Asian corporations highlights intriguing leadership dynamics in this part of the world, new context-specific leadership constructs are identified and discussed.
Abstract: Asia is a geographical region with a cultural emphasis on power distance, paternalism, collectivism, and social relations. Leadership in this area plays an important role in organizational processes and outcomes; however, whether this role is similar to that outlined in the mainstream leadership research and non-Asian settings is yet to be confirmed. In this Special Issue on “Leadership in Asia,” we selected six papers and identified four emerging themes. First, several mainstream leadership theories are applicable in Asia. On the other hand, we also identified processes and effects that are unique in Asia. Second, leadership in Asia affects organizational outcomes. Third, a strong emphasis on families and social ties among Asian corporations highlights intriguing leadership dynamics in this part of the world. Finally, new context-specific leadership constructs are identified and discussed. In light of these findings, we discuss the future directions of leadership research in Asia.
TL;DR: Li et al. as mentioned in this paper used a longitudinal study on a sample of 285 supervisor-subordinate dyads from a manufacturing firm in China, and found that supervisor-rated emotional intelligence of subordinates positively predicts the quality of leader-member exchange (LMX).
Abstract: There are few studies on how the perception of supervisors by their subordinates contributes to high-quality leader-member exchange (LMX). We thus propose that the trust perception of supervisors by their subordinates can help explain the development of high-quality LMX. Furthermore, the trust perception may interact with supervisor-rated emotional intelligence to influence the quality of LMX, and, consequently, work performance. Using a longitudinal study on a sample of 285 supervisor-subordinate dyads from a manufacturing firm in China, we found that (1) supervisor-rated emotional intelligence of subordinates (Time 1) positively predicts the quality of LMX (Time 2); (2) this relationship is stronger when subordinates highly trust their supervisors (Time 1); (3) LMX (Time 2) positively predicts work performance (Time 3); and (4) LMX (Time 2) fully mediates the interactive effect of emotional intelligence (Time 1) and trust in the supervisor (Time 1) on work performance (Time 3).
TL;DR: In this article, the authors summarized and discussed some of the newest literature on technological innovation of firms in China in the following three ways: (1) the influence of firms' external factors, (2) the impact of firms's internal factors, and (3) interfirm cooperation factors.
Abstract: What do we know about technological innovation of firms in China? What are the directions for future research on this topic? This paper summarizes and discusses some of the newest literature on technological innovation of firms in China in the following three ways: (1) the influence of firms’ external factors, (2) the influence of firms’ internal factors, and (3) interfirm cooperation factors. Based on the analysis of these articles, we propose a framework which highlights these influencing factors, decision-making and implementation of technological innovation and innovation performance, in the context of China’s emerging economy. This framework sheds lights on future innovation research.
TL;DR: In this article, the authors investigate how ownership concentration affects the performance and innovation implications of internationalization and find that the incentive alignment effect moderates the relation between internationalization with performance and innovations positively and the entrenchment effect moderate the relation negatively.
Abstract: Researchers in international business have long been interested in understanding the impact of internationalization on performance and innovation. However, prior studies of this research stream offer mixed results. This study contributes to this research stream by employing agency theory to investigate how ownership concentration affects the performance and innovation implications of internationalization. Specifically, we examine two primary effects of ownership concentration: the incentive alignment effect, proxied by the controlling shareholder’s cash flow rights, and the entrenchment effect, proxied by the divergence between control rights and cash flow rights of the controlling shareholder. Based on a sample of Taiwan’s publicly listed firms, we find that the incentive alignment effect moderates the relation between internationalization and performance and innovation positively and the entrenchment effect moderates the relation negatively. These findings shed light on the mixed results of the literature. In addition, most countries outside the United States and the United Kingdom have high ownership concentration; therefore, our results may be generalizable to other settings, providing insight into the role of corporate governance in internationalization.
TL;DR: In this paper, the authors examine the diffusion of a major firm strategy, unrelated diversification, among a population of Chinese listed firms during the 1991 to 2002 period and find that firms are more likely to diversify into conglomerates if they occupy a central position in the network; they have higher levels of government shareholding; and the firms with which they have network ties diversify.
Abstract: We examine the diffusion of a major firm strategy, unrelated diversifica- tion, among a population of Chinese listed firms during the 1991 to 2002 period. We propose that a firm's social network can serve as both an information disseminator and a channel of influence in the diffusion of the diversification decision. Further, we investigate how the institutional environment alters the role of a network over time. We find that firms are more likely to diversify into conglomerates if (1) they occupy a central position in the network; (2) they have higher levels of government shareholding; and (3) the firms with which they have network ties diversify. Moreover, as the institutional environment strengthens over time, the influence of a firm's network partners decreases. Consistent with these results, we contend that diversification is not only a response to economic and agency concerns, but also a function of the social and institutional context in which a firm is embedded.
TL;DR: An empirical model extended from the value-chain model is introduced to compute the R&D and the operation efficiencies for 21 of China’s high-tech businesses in a single implementation, finding thatR&D efficiency is not related to operation efficiency.
Abstract: This study constructs the research and development (R&D) and operation processes as a value-chain framework, in which R&D results in the successful applications of patents. These patents are then used to generate final outputs in the operation. We introduce an empirical model extended from the value-chain model to compute the R&D and the operation efficiencies for 21 of China’s high-tech businesses in a single implementation. The findings are presented as follows. First, R&D efficiency is not related to operation efficiency. Second, communication businesses have relatively higher performance in R&D and operation efficiencies, whereas electronics and computer businesses have high operation efficiency, but low R&D efficiency. Finally, for improving the efficiencies, the patents that do not effectively create value should be reduced.
TL;DR: In this paper, the relationship between cash flow rights and dividend payout policy of listed family firms in Taiwan, an economy characterized by a predominance of family-controlled firms, was investigated.
Abstract: This study considers an important aspect of corporate governance: the relationship between cash flow rights and dividend payout policy of listed family firms in Taiwan, an economy characterized by a predominance of family-controlled firms. Dividend payout levels are important because they are crucial to governing the firm and managing its investments. The empirical results show that at a low level of controlling families’ cash flow rights, the threat to lose control at any time makes controlling families claim more in dividends. This yields a positive relationship between dividend payout and the cash flow rights of controlling families at this level. Meanwhile, at a moderate level of controlling families’ cash flow rights, the entrenchment effect becomes more robust and creates a negative relationship with dividend payout. Finally, at the very highest level of controlling families’ cash flow rights, excessive firm-specific risk again helps to again create a positive relationship. This nonmonotonic relationship between controlling family cash flow rights and dividend payout also holds for financially mature firms that have a high earned to contributed capital mix.
TL;DR: In this paper, the authors present a new integrated framework that integrates the resource-based view and transaction cost economics to explain the phenomenon of immigrant entrepreneurship. And they extend the existing literature on immigrant entrepreneurship by identifying different types of ethnic network resources and demonstrating how these resources interact with transaction costs.
Abstract: This paper presents a new integrated framework that integrates the resource-based view and transaction cost economics to explain the phenomenon of immigrant entrepreneurship. We extend the existing literature on immigrant entrepreneurship by identifying different types of ethnic network resources and demonstrating how these resources interact with transaction costs in the context of Chinese immigrants. Thus, our study contributes to the literature by providing a theoretical framework which identifies mechanisms immigrant entrepreneurs use to strategically deploy resources to minimize costs and maximize performance outcomes.
TL;DR: In this paper, the main thrust of the argument is that a firm's choice of institutional ties needs to be congruent with the external environment and with industry characteristics, and they test their proposed framework with survey data from 308 firms in China.
Abstract: Institutional ties can contribute to a firm’s performance in emerging economies because of the existence of ambiguous laws and unclear regulations. The main thrust of our argument is that a firm’s choice of institutional ties needs to be congruent with the external environment and with industry characteristics. We test our proposed framework with survey data from 308 firms in China. The results indicate that, first, environmental uncertainty has a direct influence on institutional ties and knowledge acquisition, but second, a firm’s industry position, although it likewise has an effect on knowledge acquisition, influences institutional ties in a U-shaped manner. Third, we find that institutional ties are positively related to knowledge acquisition.
TL;DR: For example, this paper found that shared rewards can convince departments that their goals are cooperative and that this conclusion in turn leads to psychological safety, which is important for organizational psychological safety.
Abstract: Psychological safety has been shown to facilitate learning from experience that can help organizations adapt to the changing marketplace. Shared rewards and cooperative, but not competitive and independent, goals may help department members feel supported and able to discuss open-mindedly their experiences, including mistakes, and learn from them. One hundred and twenty five CEOs and 436 executives from 125 companies in China completed measures of psychological safety, goal interdependence, and shared rewards. The results of two structural equation analyses suggest that shared rewards can convince departments that their goals are cooperative and that this conclusion in turn leads to psychological safety. These results were interpreted as suggesting that shared rewards and cooperative goals are important foundations for organizational psychological safety in China and perhaps other countries as well.