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    28 October 2017, Volume 29 Issue 10 Previous Issue    Next Issue

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    A Survey on the Work of Richard H. Thaler——Nobel Prize Winner in Economic Sciences in 2017
    Zhao Lin
    2017, 29 (10):  3-8. 
    Abstract ( 277 )   PDF (1070KB) ( 481 )  

    The Royal Swedish Academy of Sciences decided to award the Prize in Economic Sciences in Memory of Alfred Nobel for 2017 to American economist Richard H. Thaler for his distinguished contribution to Behavioral Economics. Richard Thaler incorporated psychological regularity into economic analysis, and justified that psychological factors are fundamentally important in the decision process. His extensive theoretic, empirical and experimental studies reveal that personal characteristics ignored in the traditional analysis have significant economic consequences in various contexts, and because of his pioneering attempt, behavioral economics was quickly accepted by mainstream economists. His work yields profound insights into microeconomics, macroeconomics, and public policymaking. In this paper, we briefly summarize the academic contribution of Richard Thaler, and discuss some related research directions worthy of attention.

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    Study on Deposit Insurance Coverage Limit for Bank Risk-taking Minimization
    Zhao Shangmei, Liu Na, He Jiang, Chang Yiming
    2017, 29 (10):  9-20. 
    Abstract ( 198 )   PDF (1163KB) ( 403 )  

    From the perspective of minimizing bank risk-taking, this paper studies the determination of explicit deposit insurance coverage limits. The results show that there is a U-shaped relationship between bank risk-taking and coverage limit and the relationship will be more pronounced in countries with higher household saving rate or lower interest spreads. Further analysis shows that the bank risk-taking is higher when the deviation between actual coverage limits and bank risk-minimizing ones is higher. China has a RMB 500,000 limit which is higher than the RMB 290,000 limit that the model predicts and is bad for the bank risk-taking.

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    Analysis of the Double Threshold Effect of Industrialization and Urbanization in the Proceed of Environment Economic Aggregation
    Liu Manfeng, Xie Hanjin
    2017, 29 (10):  21-33. 
    Abstract ( 271 )   PDF (1894KB) ( 632 )  

    In this paper, through establishing the threshold effect model of industrialization and urbanization and analyzing the spatial effect of environment economic aggregating, the "N-shaped" Environment Kuznets Curve between economic agglomeration and pollution agglomeration is verified, and the double threshold effect existing between industrialization and urbanization is also found. When the industrialization rate is between 41.67% and 44.89% or urbanization rate is above 88.50%, the economic agglomeration causes the lowest negative effect, the improving "turning point" is smaller and the deteriorating "turning point" is bigger in Environment Kuznets Curve. It means that economic development can quickly step over the "turning point" of the stage where faster development produces more pollution and step into a stage where faster development produces less pollution, thus putting off the arrival of next "turning point". By analyzing each province's current situation, future trend and characteristics of "turning point" between industrialization and urbanization in the "12th Five-year Plan" period, this paper offers some corresponding suggestions for each province to harmonize economic development and environmental pollution in the "13th Five-year Plan" period. To be specific, it is advised to prioritize the coordinated development of Jiangsu, Zhejiang and Shanghai, take the regional advantage of Beijing and Tianjin to drive the integrative development of Beijing-Tianjin-Hebei economic zone, promote the collaborative development of Guangdong and Fujian and deepen their cooperation as a part of the broader cooperation in Pan-Pearl River Delta region, and rely on the location advantage of Circum-Bohai Sea economic zone and Beijing-Tianjin-Hebei economic zone to realize the harmonious development of Shandong and Liaoning and break through the development bottleneck of Northeastern China.

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    The Impact of Price Shocks on the Issuance of Chinese National Debt
    Meng Qingbin, Fan Wei, Wu Cong, Shi Qian
    2017, 29 (10):  34-41. 
    Abstract ( 244 )   PDF (1080KB) ( 414 )  

    In this paper, we select the 7-year and 10-year bonds issued between 2010 and 2014 to study the impact cost generated by the issuance of treasury bonds, and explain its reasons. Firstly, by the event study method we find that there is a "V"-shape price shock in the national debt issuance; then the degree of shock is calculated by constructing arbitrage portfolio; thirdly, through the shock on the bond between the adjacent bonds, we find that the price shock does not exist when the bond is issued, which rules out the "supply shocks" hypothesis; lastly, by studying the relationship between price shocks and repurchase market collateral repo rate changes and bond price volatility, we prove that the shock of bond issuance is mainly derived from the hedging behavior of primary dealers.

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    Entrepreneurial Orientation, Family Involvement and Growth of New Family Ventures
    Liu Xiaoyuan, Lin Song, Li Hanjun
    2017, 29 (10):  42-57. 
    Abstract ( 185 )   PDF (1259KB) ( 558 )  

    This study focuses on the entrepreneurial orientation (EO) of new family ventures. Based on the framework of the relationship between EO and firm performance, this paper empirically studies the influence of EO on firm growth, using a sample of 407 new family ventures in Beijing-Tianjin-Hebei region. The result indicates that EO has a positive effect on the growth of new family ventures. Moreover, this study uses the theory of socioemotional wealth to construct the theoretical logic of the influence of family involvement (FI) on the relationship between EO and growth, and then conducts an empirical test. The results also show that family involvement negatively moderates the relationships between EO and growth, in such a way that a firm's EO will have less intense influence on growth when family involvement is higher. Specifically, a firm's proactiveness is positively related to its growth, and FI negatively moderates the relationship between innovativeness and growth and the relationship between risk-taking and growth. Based on above conclusions, this study also provides some management implications for new family ventures and entrepreneurs.

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    Research on the Identification of Great Opportunities for Innovative Enterprises in Their Sustainable Innovation Process
    Duan Yunlong, Yu Yiyong, Zhang Ying, Liu Yongsong, Yang Lisheng, Zhou Wei
    2017, 29 (10):  58-72. 
    Abstract ( 144 )   PDF (1406KB) ( 484 )  

    Given the key role that innovation-driven development strategy and opportunities play in innovation-oriented enterprises, this paper points out the importance of identifying key opportunities for innovation-oriented enterprises. Based on this, the paper analyzes the influencing factors of the innovation of innovative enterprises, constructs the hypothesis set of innovation and innovation opportunities of innovation enterprises, puts forward the hypothesis of adjusting behavior of decision maker in opportunity recognition, and uses factor analysis and multiple regression model to innovate opportunity factors hypothesis set and the behavior of the decision maker to verify the role of innovation, and finally derives significant opportunity factors in the innovation process of innovation-oriented enterprises. The research shows that the environmental opportunities and technical opportunities of enterprises have great influence on their potential achievements, and decision makers' decision-making behavior preference plays a role in the identification of the important opportunities of enterprises.

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    The Relationship between Firms' Virtual Brand Community Engagement Activities and Consumers' Community Commitment
    Liao Junyun, Huang Minxue, Peng Jie
    2017, 29 (10):  73-83. 
    Abstract ( 218 )   PDF (1175KB) ( 576 )  

    With the proliferation of social media, an increasingly number of firms begin proactively creating a virtual brand community and engage in it as an effort to strengthen the connection with consumers. However, there is a potential conflict between the business orientation of firms and the social interaction orientation of their brand communities, thus resulting in instability of consumers' engagement in communities. Previous researches mainly adopt a consumer perspective to investigate their engagement and its consequences whereas ignoring the effect of firms' participation. To fill this gap, this paper first identifies the most common community activities from firms, namely (i) content contribution, (ii) community regulation, (iii) activities organization, and then examines their effect on consumers' community commitment. The analysis indicates that "content contribution" and "activities organization" exert a positive impact on the formation of consumers' community commitment, but the effect of "community regulation" shows an inverted U-shape. Besides, it is also suggested that consumers with different engagement vintage respond to firms' activities variously. Our research has important implication for practical businesses.

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    The Impact of Product-harm Crisis on Consumer Brand Attitude in Network Environment——Based on the Accessibility-Diagnosticity Theory
    Wu Jianlin
    2017, 29 (10):  84-94. 
    Abstract ( 215 )   PDF (1194KB) ( 461 )  

    During product harm crisis, the internet media has more and more impact on consumers and enterprises. Based on the accessibility-diagnosticity theory, this study explores the impact of country-of-origin effect and information credibility on consumer brand attitude during product-harm crisis in the network environment. The results of 207 samples show:country-of-origin effect and information credibility significantly impact the decrease of consumer brand attitude. Health consciousness moderates the relationship between country-of-origin effect and the decrease of consumer brand attitude. The relationship is weaker when health consciousness is high.

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    Factors Affecting the Perceived Usefulness of Online Reviews
    Min Qingfei, Qin Liang, Zhang Keliang
    2017, 29 (10):  95-107. 
    Abstract ( 300 )   PDF (1477KB) ( 1485 )  

    Our model focuses on the effect of system manipulation, social network of reviewer and characteristics of review on the perceived usefulness (PU) of online reviews. This paper uses the data collected from Pconline.com to empirically validate our model. The result reveals that the direct manipulation of the system will significantly affect the PU of online reviews. Meanwhile, except for the number of fans, the quality of fans should also be highlighted which will eventually impose a nuanced influence on the PU. Considering the individual characteristics and overall characteristic of online review, we find that the overall characteristic of online reviews will moderate the effect of individual characteristics on PU. The effect of two-sided reviews on the PU is stronger in the review set of positive balance (the ratio of positive to negative reviews).

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    An Exploration into the Relationship among Organizational Trust, Psychological Safety and Work Stress
    Han Ping, Liu XiangTian, Chen Xue
    2017, 29 (10):  108-119. 
    Abstract ( 292 )   PDF (1248KB) ( 820 )  

    With a totally new perspective to explore some issues in organization trust and work stress, the study focuses on the function of psychological safety in their relationship. Based on the questionnaire survey to 329 employees of Chinese enterprises, an empirical research is conducted to explore the influence of organizational trust on work stress, and the mediating effect of psychological safety. The conclusions are as follows:work stress is related to trust in system and leaders; work stress has a significantly negative correlation with trust in leaders; interpersonal psychological safety in psychological safety plays a mediating role between work stress and the trust from leaders and colleagues. Among them, psychological safety plays a partially mediating role between the trust in leaders and work stress, while psychological safety plays an entirely mediating role between the trust in colleagues and work stress.

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    The Impact of Union-Management Relations on Organizational Commitment:Study from the Perspective of Heterogeneity
    Wu Jinhong, Hu Enhua, Wang Lingyun, Shan Hongmei
    2017, 29 (10):  120-131. 
    Abstract ( 224 )   PDF (1538KB) ( 403 )  

    In this paper, Union-Management Relations (UMRs) in China are divided into three types:confrontation, cooperation and complete follow. And then we described an agent-based computational model to obtain the key evolutional characteristics of employees' commitment from the perspective of heterogeneity. The experimental data show that UMRs do have a meaningful impact on organizational commitment, and the analysis based on heterogeneity can more effectively foresee the behavior of employee and the development of organization. Employee's commitment based on cooperation UMR is higher in comparison with that based on confrontation and complete follow UMRs. All the confrontation and complete follow UMRs will tend to die in the future. The difference is that complete follow UMR has a longer stable development period, while confrontation UMR has a faster convergence speed. The paper points out that we should strengthen the application of cooperation UMR in China, and develop a scientific and reasonable compensation system to enhance the competitiveness and performance of organization.

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    A Research into the Effects of Psychological Contract Breach on Customer Incivility:From the Perspective of Self-control
    Zhan Xiaojun, Cao Yuankun, Li Zhicheng
    2017, 29 (10):  132-142. 
    Abstract ( 214 )   PDF (1199KB) ( 422 )  

    In recent years, customer incivility has been increasingly paid attention by domestic and foreign scholars. However, existing researches mainly focus on negative consequences of customer incivility, without enough attention to its antecedents. Drawing on ego depletion theory, we investigate how psychological contract breach induce customer incivility from employees' perspective and specifically, pay attention to the mediating role of customers' state of self-control and moderating role of relationship quality between customers and employees. By a sample of 231 customer-employee dyads, we find that employee psychological contract breach has a significant positive effect on customer incivility; state self-control mediates the association between psychological contract breach and customer incivility; relationship quality between customers and employees not only negatively moderates the association of psychological contract breach and customer incivility, but also negatively moderates the mediation mechanism of psychological contract breach-state self-control-customer incivility. This study firstly empirically examines the inducement mechanism of customer incivility from employees' perspective, enriches the existing workplace incivility researches, and provides a theoretical reference for service companies.

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    Study on the Relationship between Telework Permission and Production Deviance:Influencing Mechanism and Boundary Conditions
    Qi Xin, Liu Hong, Lin Yanmei
    2017, 29 (10):  143-156. 
    Abstract ( 190 )   PDF (1325KB) ( 722 )  

    Telework is widely applied, but its effectiveness of remains controversial. Especially, results of studies on the relationship between telework permission and production deviance have been somewhat mixed. This study analyzes the mediating effect of employees' perceptions of insider status and job autonomy, the moderating effect of telework intention, and the influencing mechanism and boundary conditions linking telework permission to production deviance. Through the empirical analysis, it is found that telework permission decreases production deviance through affecting employees' job autonomy positively. Meanwhile, telework permission cannot influence production deviance through enhancing employees' perceptions of insider status. Besides, telework permission decreases production deviance via the dual mediation of job autonomy and perceptions of insider status. Employees' telework intention moderates the above-mentioned three influencing mechanisms and activates the relationship between telework permission and production deviance. That is, when the telework intention varies from low to high, the relationship comes into existence. The conclusions are enlightening for managers to intervene production deviance behavior.

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    A Research on the Relationship between Product Variety and Service Quality:The Perspective of Scope Economy
    Zeng Fue, Wang Kewei, Yu Jinjun
    2017, 29 (10):  157-167. 
    Abstract ( 197 )   PDF (1153KB) ( 760 )  

    Improving service quality in terms of provision of diversified products to customers is one of the most critical objectives of enterprises. However, few studies have an insight into the relationship between product variety and service quality. Applying the perspective of scope economy and data of life insurance market in China from 2010 to 2012, this study investigates the relationship between product variety and service quality, and the relevant influential mechanism. Results indicate that enterprises' service quality is damaged by excessive product variety, and their market position is a mediating mechanism. Results further demonstrate that the degree of relationship is determined by the magnitude of competition intensity.

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    Research on the Matching Relationship between Servitization Strategy and Organizational Factors in Manufacturers
    Chen Juhong, Wang Rong, Ma An'ni, Zhang Yaqi
    2017, 29 (10):  168-179. 
    Abstract ( 199 )   PDF (1234KB) ( 609 )  

    With the shrink of product margins and rise of service economy, more and more manufacturers have begun to implement servitization strategy and change themselves from product providers to service providers. This paper explains the scientific nature of dichotomy of servitization strategy through literature analysis, and defines four key organizational elements related to servitization strategy with depth interview. And then an empirical research based on the data of 258 manufacturers of service transformation proves our opinion and finds that product-centered servitization strategy matches high organizational clarity, high service-oriented corporate values, functional capabilities and system services design and other organizational elements dimensions; customer-centered servitization strategy matches high organizational clarity and separation, high service-oriented corporate values and employee behavior, comprehensive capabilities and integrated design and other organizational elements dimensions. The results provide a theoretical basis and practical guidance for manufacturers' service transformation.

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    The Moderating Effect of Government Quality Award on the Relationship between Quality Management Practice and Firm Performance:Based on the Neo-institutional Theory
    Zeng Zhen, Wang Zongjun
    2017, 29 (10):  180-197. 
    Abstract ( 240 )   PDF (1749KB) ( 415 )  

    Many researches on quality management practice and firm performance reflects a contingent perspective of the firm, dealing primarily with central issues of the task environment. The neo-institutional perspective on the influences of the institutional environment regarding the effects of such factors is conspicuously absent in the empirical quality literature. This study aims to address this research gap by investigating the institutional factor of Government Quality Award on quality management practice and firm performance based on the neo-institutional theory. Firstly, a model of quality management practice and firm performance is proposed and then the data from a survey of 349 firms that implement the performance excellence model is used to test the relationship. Secondly, the moderating effect of Government Quality Award is examined by using multi-group structural equation model, including 89 award-winning firms and 260 non-winning firms. The empirical results demonstrate that the effects of each factor of quality management practices on firm performance are strong, the factor of leadership appears significant. And the moderating effect of Government Quality Award on the relationship between quality management practice and firm performance also exists. A major implication of this research is that winning Government Quality Award will position a firm in a better legitimate status, which is helpful to its quality management practice. In addition, the research is a constructive attempt to enrich the theory of quality management.

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    CEO Power, Risk-taking and Corporate Growth——An Empirical Study of China's Listed Companies
    Li Haixia
    2017, 29 (10):  198-210. 
    Abstract ( 278 )   PDF (1158KB) ( 884 )  

    Based on the data of China's A-share listed companies, we conduct some empirical studies and reach the following conclusions on the relationship among CEO power, risk-taking and corporate growth:(1) the more power a CEO has, the higher risk his company companies will face; (2) the effect of CEO power on corporate risk-taking in state owned companies is higher than that in non-state owned companies; (3) further, the risk-taking has a significant drag effect on corporate growth, that is to say, the higher risk a company faces, the worse its growth will be; (4) the negative effect of corporate risk-taking on corporate growth in state owned companies is more significant than that in non-state owned companies. This study provides some theoretical basis and solutions for listed companies, especially listed SOEs, to effectively prevent the over-centralization of CEO's power, take reasonable control of corporate risk-taking and improve corporate growth.

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    SOEs That Reach out Overseas:A Study of Their Post-acquisition Management Model
    Wang Qingde, Qiao Fu
    2017, 29 (10):  211-222. 
    Abstract ( 269 )   PDF (1439KB) ( 1112 )  

    Based on some relevant researches and drawing upon the management and control action implemented by ZH Industrial Motor Group after its acquisition of the NX company, this paper develops a new management mode, "nominating and authorizing-responsibility centers classifying-corporate-level strategy controlling", for state-owned enterprise groups to control their well-managed foreign subsidiary companies after acquisition. To compare with the other existing subsidiaries of the group, this kind of target companies have stronger complementarity, rather than similarity in terms of resources, and are market leaders in their respective sectors. This mode consists of the following 3 parts:(1) The decentralization of financial control, which highlights the supervision of cash flow more than other financial results at the group level, is the key of the mode. Enterprise group should divide itself into different "responsibility centers" to allocate its financial power in a favorable way, thus it can bring subsidiary companies' operation in line with its own overall strategy through investment programs. (2) The HR management and control is a guarantee. The members of subsidiary board should be dispatched by the head office and the authorization mechanism should be improved to ensure that the "responsibility centers" are well-operated and represent the group's interests. More autonomy should be granted in recruitment of managers and other stuffs to maintain the stability and diversity of a team. (3)The strategic control over subsidiary companies is supposed to be constrained in the range of corporate-level major matters. Excessive control over subsidiary company's daily operation should be avoided.

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    Diversification, Bank Credit and Trade Credit Offering——The Effect of Financing Constraints and Economic Cycle
    Wu Haomin, Wang Jie, Mai Sheng
    2017, 29 (10):  223-233. 
    Abstract ( 173 )   PDF (1123KB) ( 403 )  

    Using the indexes of Herfindahl-Hirschman Index, Entropy Index(HHI, EI)and the Logarithmic number of cross-industry(ln(N))as the measures for diversification, we empirically test the effect of diversification on the trade credit of listed companies in China. The results shows that the firms that access to bank more easily provide more trade credit and diversification improves the offering of trade credit by increasing the company access to bank credit. In addition, this paper finds that the increasing effect generated by diversification is more significant in firms with higher financing constraints and in recession period. This study will not only have great significance for understanding the relationship between bank credit and the trade credit offering in diversified companies, but also provide evidence for explaining why financing constraints of diversified companies tend to reduce.

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    Product Market Competition and Accounting Information Comparability
    Yuan Zhizhu, Zhang Xiaoman, Yu Xuehang
    2017, 29 (10):  234-247. 
    Abstract ( 267 )   PDF (1221KB) ( 593 )  

    The paper measures the accounting information comparability of Chinese listed companies from 2002 to 2012 and then examines the effect of product market competition on accounting information comparability. The empirical results indicate:product market competition and accounting information comparability is negatively correlated, namely, fierce market competition will lead to the management to provide accounting information of low comparability. Consequently, compared to the corporate governance effect, the effect of proprietary cost effect and earnings pressure effect on accounting information comparability plays a leading role. Further examination finds that more R&D expenses will strengthen the proprietary cost effect, low audit quality will strengthen the earnings pressure effect and when the degree of investor protection is strong or in the case of a non state-owned company, the corporate governance effect is weak. Under these three types of circumstances, the negative correlation between product market competition and accounting information comparability is more significant. It also achieves the recognition of proprietary cost effect, earnings pressure effect and corporate governance effect. The results finally pass the robustness test of accounting standards change.

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    Research on the Model of Retail Enterprise Ecosystem Based on the Case of FOOK
    Cai Qiang, Wang Shouyang, Tian Xin, Ding Yuzhang, Peng Xiaorong, Luo Chunlin
    2017, 29 (10):  248-257. 
    Abstract ( 221 )   PDF (2295KB) ( 576 )  

    Traditional retail business models put much focus on optimizing information flow and logistics, while pay less attention to capital flow. How to integrate capital flow management with existing business model is becoming the key to enhancing the overall value of retail supply chain. This paper aims to study how a retail enterprise based on information system, logistics system and supply chain finance builds a multilateral transaction platform in order to integrate internal and external resources and capabilities with reasonable transaction structures and the distribution mechanism of the interests. The business model changes from the virtual retail enterprise model to the retail ecosystem enterprise model which achieves the integrated optimization and management of capital flow, information flow and logistics. The results of the case study show that the financing services provided by the third-party supply chain finance platform can effectively shorten the account period of the retail supply chain, and improve the inventory turnover rate and working capital turnover rate of the retail supply chain, and then enhance the profitability. Under the reasonable interest coordination mechanism, risk sharing and management mechanism, financial institutions, supply chain finance platform, suppliers, retail enterprises, franchisees can achieve win-win situation, so as to form a multi-lateral transaction platform where retail enterprise is the core player.

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    Evolution of Public Trust in Government from Online Collective Behaviors:Findings from a Multi-case Study
    Hou Jundong, Xiao Renbin
    2017, 29 (10):  258-272. 
    Abstract ( 285 )   PDF (1404KB) ( 512 )  

    In the current era where interpersonal interaction occurs both virtually and realistically, the increasingly frequent online collective behaviors have made it difficult for the government to react in an effective manner and as a result, the government is suffering from the evolution of public trust. A question is why the evolution occurs and what drives it. This paper aims to explore the evolution process and mechanism through a multi-case study from the comprehensive perspective of incident (process)-perception (mental)-action (participant). The finding is that six core factors play a significant role in evolution of public trust in government, including trigger context, social cognition, group structure, group efficacy, response recovery and mental energy, but they act in different ways. On this basis, we build a context-perception-action model of public trust evolution mechanism in relation to online collective behaviors. The conclusions are not only helpful for the government to maintain, restore and enhance its level of public trust, but also enlightening for governmental innovation and the establishment of a crisis management system.

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