Management Review

Deposit Insurance System, Risk-taking and Bank Performance——From the Perspective of Risk Transfer

Wang Xiaobo, Liu Wei, Xin Feifei

2021, 33 (8): 3-16.

Abstract ( 372 )

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In terms of commercial bank risk transfer, the bank shareholders, depositors and creditors would lead to moral hazard behaviors due to deposit insurance system. But existing literature has not fully given attention to this subject. This paper selects 289 banks in 17 countries of Euro-zone from 2000 to 2015 for the research. The research framework consists of bank shareholders, depositors and creditors, combines the change of deposit insurance system in times of crisis, and uses the dynamic panel regression method (GMM) to test the relationship between risk-taking and the bank performance under deposit insurance system. The results show,that:(1) the Euro-zone banks have the behavior of transferring risk to creditors. During the time of crisis, the behavior of government guarantee could strengthen the market expectation of implicit guarantee. (2) Also due to the weakening of risk constraint over shareholders, creditors are willing to put up with risks. (3) The improvement of deposit insurance system has no significant influence on bank performance. (4) In terms of countries implementing government guarantee in the crisis, there is significant positive correlation between the ratio of non-deposit debt and the shareholder returns. The behavior of government could improve the return of bank shareholders on investment through reducing its return on capital, which also reflects the weakening price constraint over banks by non-deposit creditors. Based on the research findings, we expand the research area of deposit insurance system on commercial banks' moral hazard. It could help to identify risk-taking behavioral logicality of the market participants under deposit insurance system. And it also has important practical significance for establishing improved deposit insurance system and developing more targeted risk-control strategies in China.

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Optimal Emissions Implementation and Enterprises' Abatement Investment Competition under the Carbon Tax Tool

Wang Mingxi, Hu Yi, Guo Dongmei, Cao Jie

2021, 33 (8): 17-28.

Abstract ( 294 )

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China's economic development has entered a new normal, meaning Chinese low-carbon transition meets new challenges. This implies that the Chinese government must seek a suitable policy option to solve such challenges. In this setting, the carbon tax, as a market-based emission reduction measurement, formally got into China's tax law system and became a research focus in the academic area. In this paper, the regional government, being taken as an independent player, is introduced into the state-enterprise game model. It is found that the individual emission decision level of the regional government strictly deviates from the optimal emission of the whole nation. To correct the non optimal decision-making behavior of the regional government, this paper puts forward an alternative carbon tax policy with differential tax rate on the basis of the carbon emission externality. Moreover, the effects of the carbon tax on enterprises' abatement investment and product competition are examined, respectively. The results show that:for the enterprise with low emission reduction cost, the carbon tax can not only correct the non optimal emission behavior of the regional government, but also encourage enterprises to invest in emission abatement and reduce the consumption of carbon-based energy, and improve the market competitiveness of enterprise products as well; yet, for the enterprise with high emission reduction cost, the carbon tax tool is a double-edged sword, restraining the abatement investment of the enterprise, especially high energy consumption enterprises; but, the long-term implementation of the carbon tax policy is conducive to the low-carbon transition of China's economy. Finally, based on the results, some policy recommendations are suggested.

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Cooperation Mechanisms and Pricing Decision for “Social Enterprise + Farmers” Contract Mode Based on Variety and Land Improvement

Liu Luhao, Xie Jiaping, Liang Ling, Zhang Guangsi

2021, 33 (8): 29-40.

Abstract ( 203 )

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Based on the "social enterprise + farmers" contract mode formed through farmer-oriented productive service and innovation, this paper establishes an operation mechanism in which social enterprises and farmers share both cost and revenue. The cooperation contractual modes are divided into three types, including dispersed contract, tight contract and centralized contract, according to the contents of productive service provided by agricultural social enterprise to farmers. The influence of pricing decision on profits under different cooperation contractual modes of agricultural social enterprises and farmers in face of channel conflict is discussed by applying the operation system into dual-channel environment.

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Environmental Protection, Promotion of Local Officials and Enterprise Financing

Feng Zhihua

2021, 33 (8): 41-52.

Abstract ( 314 )

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After the reform and opening up, China has achieved tremendous economic success. To explain this phenomenon, scholars have developed two different theories. The first is Fiscal Federalism Theory, and the second is Promotion Tournament Theory. Along with its high-speed economic growth, China faces the problem of dramatic environmental deterioration. To solve this problem, Organization Department of the CPC Central Committee promulgates a regulation about the performance evaluation of subnational government officials, which includes environmental protection indexes in it. What is the effect of the regulation? This paper makes an analysis of it. Using Difference-in-Differences method (DID) and panel data of Chinese listed companies over the period of 2010-2016, we find that the change of performance evaluation indexes of local officials will affect the behaviors of local officials, and then affect the operating activities of enterprises. Compared with low-polluting enterprises, debt financing in high-polluting enterprises decreases significantly after the regulation. We use a rich set of tests to show that the baseline results are robust to endogeneity and reverse causality. Then we test whether economic development level and regional pollution degree affect the regulation. Empirical results show that the regulation is more effective in developed provinces and in high-polluted provinces. This conclusion provides an empirical support for the Promotion Tournament Theory.

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Research on the Impact of Risk Reallocation on Private Sector's Behavior in PPP Projects——The Multiple Mediating Effects of Perceived Justice

Chen Haitao, Xu Yongshun, Chi Ming

2021, 33 (8): 53-65.

Abstract ( 205 )

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Risk reallocation in PPP projects has an important impact on private sector's behavior. Based on the contract reference point effect and social exchange theory, this paper constructs a conceptual model including risk reallocation in PPP projects as antecedent variable, perceived justice as the mediating variable and private sector's behavior as result variable. Through a questionnaire survey, 214 pieces of valid data are obtained and the model is tested by using structural equation model, Bootstrap and PRODOCLIN methods. The results show that reasonable risk reallocation has a significant positive effect on both in-role behavior and extra-role behavior of private sector. Risk reallocation has significant positive effects on procedural justice, distributive justice and interactive justice. Perceived justice plays partial mediating role between risk reallocation and private sector's behavior while the mediating effect of each dimension is different. Among them, the distributive justice has the largest mediating effect while the procedural justice has the least intermediary effect between risk reallocation and in-role behavior in private sector. Moreover, the mediating effect of interaction justice is the largest and the one of procedural justice is the least between risk reallocation and extra-role behavior in private sector.

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Influence Mechanism of Environmental Regulation on Enterprise Profitability: Evidence from Sugar Firms in Guangxi Zhuang Autonomous Region, China

Ge Jingfang, Si Wei, Meng Ting

2021, 33 (8): 66-77,138.

Abstract ( 244 )

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To investigate the mechanism of how environmental regulation affects enterprise economic performance in depth, this paper builds a cost-minimization model to explore how firms comply with environmental regulation and its impact on profitability via economic factor allocation and technology innovation. Based on the panel data of sugar firms in Guangxi Zhuang Autonomous Region of China during 2008-2016, the panel linear model and threshold model are employed for empirical analysis. Results confirm an inverted-N threshold effect (i.e., suppress→promote→suppress) of formal environmental regulation and a suppressing effect of non-formal regulation (i.e., education) on enterprise's profitability when technological innovation exists; while formal environmental regulation has a linear negative effect when there is no technological innovation. Further heterogeneity analyses show that formal regulation has a significant positive effect on larger and non-state owned sugar enterprises. As for non-formal regulation, only the instrument of education promotes the larger enterprise's profitability. This research extends the mechanism discussion of the relationship between environmental regulation and enterprise economic performance, and provides valuable insights on the formulation and the implementation of environmental regulation policies and programs.

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How Critical Thinking and Creative Thinking Influence Radical Innovation Behavior? A Mediated Moderation Model

Tu Xingyong, Liu Leijie, Peng Yaya, Lin Chenglu, Jiang Jing

2021, 33 (8): 78-89.

Abstract ( 283 )

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An increasing number of organizations realize that thinking is a key element in helping the organization to get competitive advantage and an important prerequisite for employees to promote their innovation behavior. Although existing researches suggest critical thinking and creative thinking can help employee promote innovation behavior, the effect of critical thinking and creative thinking on employees' radical innovation behavior fails to be fully explained. Empirical studies show mixed results and these relationships have remained ambiguous. This study proposes and tests a mediated moderation model in which critical thinking and creative thinking influence employee radical innovation behavior, with creative work involvement as a mediator and goal clarity as a moderator. By analyzing the data of two time points, the regression results show that:critical thinking and creative thinking are positively related to creative work involvement, creative work involvement partially mediates the relationship between critical thinking (and creative thinking) and radical innovation behavior, goal clarity moderates the relationship between critical thinking (and creative thinking) and creative work involvement, that is, the higher the goal clarity is, the stronger the mediated relationship will be. Our research indicates that a mediated moderation model can better explain the influence mechanism of critical thinking and creative thinking on employee radical innovation behavior, which not only enriches and extends the scope of related management, but also provides a beneficial enlightenment to the employee's radical innovation behavior management practices.

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Does Failure Tolerance of the Board of Directors Affect Corporate Innovation?

Chen Xiude, Li Huiyang, Ma Wencong, Wu Xiaoman

2021, 33 (8): 90-103.

Abstract ( 383 )

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Based on the new theoretical perspective of failure tolerance, the executive compensation stickiness is considered as a hallmark of the board's ability to tolerate failures of executive team management decisions. In this paper, the compensation stickiness of CEO and the top three executives with the highest salary are used to measure the degree of failure tolerance of the board of directors in both individual and team directions. And then, the Panel Data Analysis Model, Propensity Matching Score Model (PSM) and interflex analysis method are comprehensively used to examine the impact of failure tolerance on corporate's R&D investment, as well as the heterogeneity of the above-mentioned impact effects under different property rights, technology types, and marketization levels within data collated from Shanghai and Shenzhen A-share listed companies in China during 2008 to 2016. The results show that:(1) The failure tolerance of the board of directors has a significant positive impact on the innovation investment of the company, namely, when the board of directors is more tolerant of failure, the senior executives of the company tend to carry out more researches and innovation investments. (2) Compared with state-owned enterprises and high-tech enterprises, the failure tolerance of the board of directors has a stronger positive effect on the R&D investment of non-state-owned enterprises and non-high-tech enterprises. (3) The lower the degree of marketization in the province where the company is located, the stronger the incentive effect of innovation in failure tolerance of board of directors. The findings of this research not only add a new empirical evidence form China's capital market for the failure tolerance theory proposed by Manso (2011), but also have important theoretical implications for building and perfecting the fault-tolerant mechanism of senior executives in consideration of innovation incentives for Chinese enterprises in transitional period.

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Internal Capital Transaction, Market Dependence and Subsidiary Innovation

Zheng Li, Chen Zhijun, Xu Yingjie

2021, 33 (8): 104-115.

Abstract ( 175 )

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How does internal capital transaction impact subsidiaries' competition advantage? Based on the conflicts of internal capital market availability and unavailability, we employ the perspective of information asymmetry to study the relationship between internal capital transaction and subsidiary innovation. Using the samples of listed subsidiaries from 2009 to 2017, the empirical results show that:the internal capital transaction has an inverted U-shaped effect on subsidiary innovation; the dependence on internal capital market is adverse to fostering innovation capability of subsidiaries, and weakens the internal capital transaction-subsidiary innovation linkages; the dependence on external capital market is benefit to subsidiary innovation, and also weakens the inverted U-shaped relationship between internal capital transaction and subsidiary innovation. Further study shows that dependence of SOE' subsidiaries on internal capital market is adverse to fostering innovation capability, but subsidiaries of private business groups can depend on both internal and external capital markets to improve innovation performance.

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Research on the Mediating Effect of Organizational Cultural Intelligence on the Relationships between Innovation and Total Quality Management

Zhang Ying, Liu Mengxiao, Hu Rui, Zhang Lili, Zhou Wei

2021, 33 (8): 116-127.

Abstract ( 299 )

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Previous studies have focused on the role of mediation variables in the relationship between innovation and TQM, but the connotation and interrelationships among them are still very vague. Taking 24 Chinese multinational corporations as our sample, this paper employs the mediating role of organizational cultural intelligence to explore the relationships between innovation and TQM. We obtain the following research findings:(i) Total quality management has a significant, inverted U-shaped relationship with incremental innovation; i.e., total quality management has an optimal point, and incremental innovation exhibits an increasing and then decreasing trend. (ii) Total quality management has a significantly positive correlation with organizational cultural intelligence. (iii) Organizational cultural intelligence has significantly positive correlations with incremental and radical innovation respectively. (iv) Organizational cultural intelligence plays a partial mediating role between organizational cultural intelligence and incremental innovation, while total mediating effect is found between total quality management and radical innovation.

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Can P2P Online Loan Platforms Play the Role of Pure Information “Intermediary”?——Based on Evolutionary Game Model and Simulation Analysis

He Jue, Mei Guoping, Ji Kaiwen

2021, 33 (8): 128-138.

Abstract ( 246 )

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The brutal growth of P2P online loan platforms has led to intensive exposure of risks in China's online loan industry. Taking the P2P online loan platform as a pure information intermediary service as a starting point, this paper constructs an evolutionary game model between the P2P online loan platform and financial regulatory agencies, study the strategic choices of the two players in the game process, and use Matlab software to simulate different situations the equilibrium point of the evolutionary stability strategy. The study finds that when the incentives provided by online loan platforms for providing pure information intermediary services are less than the other net benefits obtained by providing non-pure information intermediary services, and the regulatory benefits under the strong supervision of financial regulatory authorities are greater than the regulatory costs, P2P online lending platforms can provide pure information intermediary services, and the equilibrium point between the evolution of the two reaches an "ideal" state. The study also finds that increasing the "rent-seeking" costs of online loan platforms, increasing the penalties for providing non-pure information intermediary services on online loan platforms, and increasing the regulatory revenues of financial regulatory authorities can effectively make the system away from the "worst", "invalid" and "bad" states and graudally toward the "ideal" state, realizing a double Pareto improvement of P2P online loan platforms and financial regulatory authorities.

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Residential Mobility, Linguistic Extremity and Information Sharing Intention

Shi Ting, Chen Jie, Zhong Jialing

2021, 33 (8): 139-147,159.

Abstract ( 295 )

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Mobile social networks provide a communication platform for migrants who are unable to integrate into urban social networks, so that they can share information with others, thereby establishing social connections and gaining social recognition. Not sufficient researches examine the antecedents to online information sharing from the novel perspective of social influence. Thus, the research on the effect of residential mobility, the frequency individual moves, on online information sharing with different linguistic expressions provides a new perspective for information sharing theory. This paper studies the joint impact of residential mobility and linguistic extremity on the willingness of information sharing and the mechanism behind this effect. Studies shows that compared to individuals with low residential mobility, individuals with high residential mobility are more willing to avoid high linguistic extremity information from sharing out of the need to belong. In detail, when linguistic extremity is high, individuals with high residential mobility have lower sharing intention of information, compared to individuals with low residential mobility. When linguistic extremity is low, there is no difference in the sharing intention of information between individuals with high residential mobility and individuals with low residential mobility (Study 1 and 2). The effect is mediated by need to belong (Study 3).

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Place Cultural Confidence Strategy, Brand Trust and Host Country Consumers' Acceptance: The Perspective of Cognitive Legitimacy

Zhao Weihong, Xie Shengcheng

2021, 33 (8): 148-159.

Abstract ( 263 )

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Transnational place brands often find it difficult to enter the minds of consumers in the host country (e.g., trust and acceptance) due to trade barriers and cultural distance. Based on the perspective of cognitive legitimacy, this paper proposes and tests a predictive model and situational conditions that place cultural confidence strategies (inheritance internalization and innovation diffusion) affect trust and acceptance of place brands by consumers in the host country. Empirical results from 932 valid sample respondents who have purchased foreign place brands show that transnational place brands can promote trust and acceptance of consumers in the host country by implementing inheritance internalization strategy and innovation diffusion strategy. Among them, the implementation of inheritance internalization strategy through continuing to share, advocating and maintaining, and edifying internalization, and the implementation of innovation diffusion strategy through organizational learning, culture creating, and trend leading, can promote trust and acceptance of place brand by consumers in the host country. Compared with the innovation diffusion strategy, the inheritance internalization strategy of place culture has a stronger impact on place brand trust. In addition, the matching between brand product type and regional economic pattern, and place cultural distance(magnitude and direction) have different moderating effects on the influence of place cultural confidence strategies on the place brand trust of consumers in host country. These research conclusions may provide some managerial implications for transnational place brands to develop internationalization strategies based on cultural confidence.

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Using Eye Tracking to Understand the Effects of Buy-Key Locations and Distance on Buy-Key Click Intention towards an Ad

Zhou Shoujiang, Wang Hong, Li Shan, Ke Ge, Zhou Rui

2021, 33 (8): 160-170.

Abstract ( 242 )

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Interface direct-touch advertising, which is widely used in business practice, has changed the contemporary advertising. The current study aims to explore the effects of buy-key locations and distance upon consumers' buy-key click intention when they are browsing an interface direct-touch advertisement, and investigates the impacts of product type and autotelic NFT. To provide more reliable evidence for findings, an eye-tracker device is employed in this study. The results show that the ad will work effectively when the buy-key is located on lower-right and near the central, whereas the upper-right is the worst. This effect is influenced by the nature of product and the degree of consumers' autotelic NFT. This study contributes to expanding the theory of the haptic marketing, and explore the important factors and mediation of the relationship between buy-key and click intention. Further, this study provides theoretical implications for advertisers and designers.

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The Premium Effect of the Handmade Products: Based on a Model of Multiple Mediators

Liu Jianxin, Fan Xiucheng, Zhang Chenghu

2021, 33 (8): 171-184.

Abstract ( 548 )

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With the continuous innovation of production technology and the rapid development of production mode, the mechanized or intelligent production mode with higher efficiency, lower cost and stronger flexibility has held the dominant position, leaving the handmade mode on the edge of disuse. Both observations and researches show that consumers have different cognition and affect toward the products produced by the two production modes, and then have different feedback and purchase willingness. Unfortunately, existing researches hold that the more favor that the handmade products gain from consumers than the machine-made products derive from "love". Obviously this explanation falls short of justifiability and also involves cross-culture issue. In view of this, the research holds that, compared with machine-made products, handmade products are better able to arouse consumers' mental imagery, which evokes consumers' psychological ownership and psychological security and finally turn into the premium effect. Across 3 experiments, the findings indicate that (1) the handmade products generate more easily the premium effect than the machine-made products; (2) the premium effect of the handmade products derives from a mechanism of multiple mediators, for example, from mental imagery to psychological ownership and from mental imagery to psychological security. Meanwhile, traditional culture identity's alternative explanation is also eliminated effectively; (3) the cognitive resource will moderate the influence of the handmade products on mental imagery, which in turn influences psychological ownership and psychological security, and finally influences the premium effect of the handmade products. These conclusions have not only an important theoretical signification in deepening or improving such some important theories as the handmade effect, mental imagery, psychological ownership, psychological security and so on, but also an important managerial implication for manufacturees to change the production mode in order to promote sale of handmade products, and for consumers to rationally treat the handmade products.

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Guanxi-based Resource Allocation and Leader Status: A Mediated Moderation Model

Wei Xuhua, Zhang Lianghua, Li Lifei

2021, 33 (8): 185-195.

Abstract ( 317 )

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Guanxi-based resource allocation is a decision-making scenario often faced by Chinese organizational leaders. Existing studies mainly focus on the potential effect of leaders' guanxi-based resource allocation on subordinates, but pay little attention to the negative impact of guanxi-based resource allocation on leaders. Based on moral virtue theory, this study examines the relationship between guanxi-based resource allocation and leader status through a 2×2 between-subjects factorial design and explores a mediated moderating mechanism in this relationship. Results indicate that guanxi-based resource allocation has a significant negative impact on leader status and the guanxi beneficiary's performance moderates this relationship. The higher the performance of the guanxi beneficiary, the weaker the negative impact of the guanxi-based resource allocation on leader status. Further analysis of mediated moderation effects shows that the interaction effect of the guanxi beneficiary's performance and the guanxi-based resource allocation on leader status is fully mediated by justice perception. Our findings can provide some implications for the resource allocation decision of Chinese managers.

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Top Executives Power Gap and Corporate Investment Efficiency

Duan Mengran, Wang Yutao, Xu Ruiyao

2021, 33 (8): 196-210.

Abstract ( 414 )

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Chairman-CEO separation is the important governance structure of listed companies. While the studies about power allocation between chairman and CEO are relatively insufficient. This paper attempts to describe the power distribution between the chairman and CEO from the perspective of power gap, and then investigate its impact on enterprise investment efficiency. The empirical results show that when the power gap between the chairman and CEO is larger, the investment efficiency is higher. Among the three dimensions of the power gap, the influence of the prestige power gap is the largest, followed by the ownership power gap, while the influence of the expert power gap is the weakest. Further, the effect of power gap on invest efficiency is more significant in non-state-owned enterprises, enterprises whose chairman receive compensation from listed companies and enterprises exposed to less government intervention. This paper enriches the literatures of corporate governance and investment efficiency from the perspective of power gap and also provides some reference for top management team construction.

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The Double-edge Sword Effects of Ambidextrous Leadership——An Integrated Model of Two Approaches Based on Cognitive Strain and Vitality at Work

Zhao Hongdan, Guo Limin, Luo Jinlian

2021, 33 (8): 211-223.

Abstract ( 723 )

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Ambidextrous leadership refers to leaders who solve conflicts and tensions with paradox thinking. Although abundant studies have demonstrated the positive impact of ambidextrous leadership on employees' behaviors and performance, the negative consequences of ambidextrous leadership have been neglected. Based on the cognitive-affective system theory of personality (CAPS), the present paper aims to explore the process and boundary condition of how ambidextrous leadership influences employees' task performance from both the cognition and affective perspectives. Specifically, we investigate the mediating roles of employees' cognitive strain and vitality at work in the ambidextrous leadership-task performance association. Employing a two-wave questionnaire survey, 278 valid data are obtained from full-time employees of enterprises located in Shanghai, Beijing, Gansu, and Henan. Consistent with hypotheses, the analysis results based on bootstrapping method show that:(1) there is a significant multiple indirect effect of employees' cognitive strain and vitality at work in the mechanism of how ambidextrous leadership influences employees' task performance; (2) with respect to the affective process, ambidextrous leadership could enhance employees' vitality at work and consequently task performance; (3) with respect to the cognition process, ambidextrous leadership increases employees' cognitive strain, which in turn diminishes employees' task performance; (4) the total indirect effect of ambidextrous leadership on employees' task performance via cognition path (cognitive strain) and affective path (vitality at work) is significant and positive; (5) Chinese traditionality not only moderates the relationship between ambidextrous leadership and employees' vitality at work, but also moderates the indirect effect of ambidextrous leadership on employees' task performance (via vitality at work), such that the relationship is stronger under low Chinese traditionality than under high. However, Chinese traditionality has no moderating effect on the ambidextrous leadership-employees' cognitive strain association. With these findings, the present study extends the research concerning the effects of ambidextrous leadership, further clarifies the process and boundary condition under which the ambidextrous leadership affects task performance, and offers practical implications for organizations to utilize ambidextrous leadership flexibly and effectively.

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Is It All about the Bottom Line? A Review and Prospects of Bottom-line Mentality Research in Organizational Management

Zhan Xiaojun, Yang Wei, Lu Na

2021, 33 (8): 224-233.

Abstract ( 732 )

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Bottom-line mentality refers to one-dimensional thinking that revolves around securing bottom-line outcomes to the neglect of competing priorities. At present, the existing literature has made some progress, but there are few systematic review studies. This paper introduces the concept and measurement of bottom-line mentality, and then systematically analyzes and summarizes the antecedents, consequences and influence mechanisms of bottom-line mentality based on previous empirical studies, and then constructs an integrated analysis framework and puts forward some directions of future research. We find that most of the existing research mostly focuses on the impact of bottom-line mentality in the Western context, and pay little attention to its antecedents and the impact in the Chinese context. Therefore, the present paper proposes some directions for future research, including clarifying the connotation and characteristics of bottom-line mentality in Eastern contexts, optimizing the structural dimensions and measurement of bottom-line mentality, exploring more antecedents and consequences of bottom-line mentality, and extending multilevel consequences of bottom-line mentality. This paper provides an important reference for deepening the research and practice of the bottom-line mentality.

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The Relationship between Newcomers' I-deals and Coworkers' Ostracism and Self-improvement: The Mediating Role of Envy and the Moderating Role of Organizational Overall Justice

Wang Linlin, Long Lirong, Zhang Yong

2021, 33 (8): 234-244.

Abstract ( 332 )

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With the increasing talents competition in today's knowledge economy, idiosyncratic deals have received considerable attention as a mean of HRM practices. I-deals provide special employment arrangements which are tailored to demands of valued employees. A few of empirical studies have demonstrated that i-deals are positively related to the attitudes and behaviors of the recipients. Despite the increasing interests in i-deals, few studies to date have studied i-deals from the third part (i.e., coworkers) perspective. In this study, we propose a process model based on social comparison theory to explore how and when newcomers' i-deals affect coworkers' emotion and behaviors. Specifically, we first investigate the effects of newcomers' i-deals on coworkers' envy. Second, we examine the mediating roles of envy in the relationships between newcomers' i-deals and self-improvement and ostracism. Finally, we test the moderating effects of organizational overall justice on the mediation relationships between newcomers' i-deals and coworkers' output via envy.
Empirical data is collected from 204 employees in 25 different enterprises. The results show that the relationship between newcomers' i-deals and coworkers' envy is significant, and envy is positively related to coworkers' self-improvement and ostracism. The mediation analyses reveal that envy mediates the positive relationship between newcomers' i-deals and self-improvement and ostracism. Finally, the moderated mediation analyses show that organizational overall justice moderates the indirect relationship between newcomers' i-deals and self-improvement and ostracism, such that when organizational overall justice is high, the indirect effect of newcomers' i-deals on self-improvement via envy is more positive, whereas the indirect effect of newcomers' i-deals on ostracism via envy is less positive.
Our findings contribute to the i-deals literature in three ways. First, drawing from the third part perspective,we concern with the perception and reaction of coworkers to newcomers' i-deals. Second, we reveal the mechanism of why newcomers' i-deals facilitates differential reactions of coworkers by identifying envy as an important mediator in linking newcomers' i-deals with both self-improvement and ostracism. Finally, our study contributes to the i-deals literature by demonstrating organizational overall justice as a crucial boundary condition under which envy may or may not stimulate varying degrees of self-improvement and ostracism.

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Foreign Shareholding, Negative Gaps and Enterprise Internationalization Process

Zhong Xi, Song Tiebo, Chen Weihong, Weng Yimin

2021, 33 (8): 245-255,313.

Abstract ( 263 )

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Under the background of economic globalization, international expansion of enterprises has become a common phenomenon, but existing literature discusses little about whether and foreign shareholding will play a role in the decision-making of the enterprise internationalization process. In view of this, using empirical data of Chinese listed companies from 2007 to 2016, this paper focuses on exploring the logical relationship between foreign shareholding and the decision-making of the enterprise internationalization process, as well as the moderating effect of negative performance gaps and negative forecast gaps between them. The research comes to the following coclusions. First, foreign shareholding has a significant positive effect on both internationalization pace and the irregular internationalization rhythm, but does not have a significant effect on internationalization scope. Second, with the expansion of negative performance gaps (gap), the positive effect of foreign shareholding on internationalization pace and the irregular internationalization rhythm will strengthen. Third, as negative forecast gaps extend, the positive effect of foreign shareholding on internationalization pace and the irregular internationalization rhythm will weaken.

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Customer Relationship Management, Internal Control and Merger and Acquisition Performance——Analysis of Multivariate Linear Regression Model

Chen Xiaojun, Ji Fuxing

2021, 33 (8): 256-262.

Abstract ( 355 )

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Corporate merger and acquisition (M&A) is a complicated process, which has a far-reaching impact on the current and future performance of both acquirers and acquirees. The traditional methods of M&A performance evaluation are mainly from the financial perspective, which has significant limitations. From the perspective of value-driven capital, there are complex and multiple factors influencing the performance of M&A, among which customer value and control ability are crucial to the realization of M&A value. Therefore, this paper constructs evaluation indicators from the dimensions of enterprise customer relationship management and internal control, effectively measures the potential variables, and studies the impact of both on enterprise M&A performance from the perspective of empirical research. The results show that the multi-dimensional M&A performance evaluation system designed in this paper can better and more comprehensively measure the M&A performance. Internal control and customer relationship management are significantly positively correlated with the M&A performance, and customer relationship management has a greater impact on M&A performance. Customer relationship management is the foundation of business performance of enterprises, and internal control is a systematic guarantee project. It is necessary to strengthen the management of customers, internal control, finance and other aspects at the same time, in order to give better play to the synergies and economies of scale.

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The Discounted Value of Accounts Receivables in State-owned Enterprises: Evidence and Mechanism Explanation

Ying Qianwei, Liu Jinsong

2021, 33 (8): 263-277.

Abstract ( 329 )

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Using non-state-owned listed companies as a benchmark, this paper estimates the market value of the accounts receivable of the state-owned listed companies in China. We find that SOEs' accounts receivables in China do have significantly lower market value and lower quality than these of non-SOEs. Further, we provide evidence that low market value of accounts receivables for SOEs is attributed to the severer agency problems in SOEs. We find that the value of accounts receivables is significantly lower in SOEs with lower supervision from audits, with lower proportion of non-state-owned shares, with CEO duality, and with more media coverage, as well as with lower proportion of institutional investor shares. Also, we find the value of accounts receivables is significantly lower in SOEs with lower relative monetary compensation and with lower management shareholding proportion. Based on perspective of accounts receivables, our paper provides new evidences of the agency conflicts, and provides new enlightenments for the anti-corruption and regulation of SOEs.

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A Study on the Strictness of IPO Application Examination and the Industry Effect of IPO Approval Announcements

Tang Xiaoyan, Huang Lianghua

2021, 33 (8): 278-289.

Abstract ( 260 )

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A-share market implements the IPO approval system in China. Before IPO, the company needs to undergo a strict examination by the issuance examination committee (IEC) and a series of procedures by CSRC. Therefore, after the investors know that the IPO application of a company has been approved, there will be several months that the company can issue its new shares to the investors. By using the listing companies' data on Chinese A-share market from 2006 to 2012, we study the industry effect of the IPO approval announcements. The empirical test result shows that there is a significant negative industry effect of IPO application approval announcements. At the day of IPO approval announcements, the listing companies in the same industry will get -0.37% abnormal return on average. When the IPO application is exanimated more strictly, the industry effect of IPO approval announcements is more significant. Especially for the high competitive industry, no matter whether the IPO application is examined strictly, there is more significant industry effect of IPO approval announcements than for the monopolized industry. The results support CSRC's decision to suspend IPO application when the market is in a bear situation and also expand the influence range of IPO application examination.

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The Effect Mechanism of Service Supply Chain External Integration on Operational Performance: A Moderated Mediation

Jian Zhaoquan, Zeng Jinglian, Liu Yan

2021, 33 (8): 290-301.

Abstract ( 226 )

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Under the increasingly competitive and dynamic complex environment, improving the operational performance through service supply chain external integration (SSCEI) has become a common concern in the theoretical and practical circles. This paper constructs a moderated mediation model to explore the micro-mechanism that SSCEI does to operational performance (OP). Based on a survey data from 227 service firms, the empirical analysis shows that both CI and SI have a significantly positive effect on OP; IQ plays a partial mediating role in the relationship between SSCEI and OP. In addition, environmental uncertainty (EN) not only positively moderates the relationship between SSCEI and IQ, but also enhances the mediating effects of EN, that is, there is a moderated mediation.

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Study on Procurement Contract Design of Emergency Medical Supplies

Lin Qi, Zhao Qiuhong, Yan Yingchen

2021, 33 (8): 302-313.

Abstract ( 248 )

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COVID-19 outbreak has highlighted the importance of production capacity reserve in response to major public health emergencies. Considering characteristics of the production of emergency medical supplies, this paper studies how to guide a manufacturer to truly report its productivity which is its private information and to act as a buyer expects through contract design. First, without considering information asymmetry, the wholesale price contract is designed. Then, taking information asymmetry into account, the menu contract is designed based on the screening model. Further, the two-part tariff contract is proposed to adapt to the situation where the manufacturer's production input is non-contractible. Finally, the contracts are compared and analyzed numerically. This paper provides a decision-making basis and management insights for pricing production capacity reserve and optimizing emergency response for major public health emergencies.

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The Value of Priority Pricing of Downstream Firms in the Supply Chain with R&D Collaboration

Wang Hui, Wang Qian

2021, 33 (8): 314-325.

Abstract ( 184 )

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As R&D becomes more and more difficult and supply chain awareness is deep into companies' heart, supply chain R&D collaboration is becoming common. The downstream partner can price prior to competitors but the value of priority pricing has not received the attention from the academic. This paper focuses on a competitive supply chain with an upstream firm and two downstream firms, and analyzes the priority pricing's value and influencing factors under R&D collaboration. The study finds that priority pricing reduces upstream manufacturer's and the downstream partner's revenue in the decentralized decision; priority pricing increases alliance benefits but decreases overall supply chain's revenue in the centralized decision. And the priority pricing's influence under R&D cooperation will increase with the increase of the market size, the decrease of production costs and the increase of the competition.

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The Value Co-creation Mechanism of International Social Entrepreneurship——A Case Study Based on the Perspective of Social Network

Hao Chen, Zhang Weiguo, Li Mengya

2021, 33 (8): 326-340.

Abstract ( 402 )

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The international social ventures are the main force to solve current global social problems, and value co-creation is the core logic embedded in the process of international social entrepreneurship. Based on the perspective of social network and through a profound case-study on BYD, this paper discusses the value co-creation mechanism of international social entrepreneurship from the three levels of social network and the three stages of value co-creation. The research findings are as follows:(1) The formation of government networks, market networks, and technological networks are the prerequisites for realizing the value co-creation of international social entrepreneurship, and the elements in the multi-network are the factors that form the main dimensions of each stage of value co-creation; (2) In the value co-creation process of international social entrepreneurship, the conceptional consensus stage includes decision consensus, seeking market consensus and technical consensus, the value symbiosis stage includes co-building a business environment, seeking common market development and jointly researching and developing new products, and the value sharing stage includes balancing, and aligning the interests between public and private sectors, and thereby sustaining mutual benefits; (3) The logical integration of each stage dimension of value co-creation enables enterprises and stakeholders to establish a strong relationship network whereby alliance being shared, and forms a value co-creation mechanism, so as to solve international social problems in a more efficient way. This paper not only advances the interdisciplinary research of international social entrepreneurship and social network theory, but also enriches the research context of international social entrepreneurship and expands the theoretical research of value co-creation process. The research conclusions have practical guiding significance for enterprises to learn how to build social networks in international social entrepreneurship and how to achieve the goal of value co-creation with stakeholders.

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How Start-up Companies Achieve the Evolution of Dynamic Capabilities——A Case Study Based on the Perspective of Coordination between Multi-Level Cognition and Behavior

Zhang Lu, Liang Lina, Su Jingqin, Chang Qing, Zhang Qiang

2021, 33 (8): 341-352.

Abstract ( 295 )

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How to achieve the evolution of the dynamic capability to help the enterprise to co-evolve with the environment has become a core issue of strategic theory research. This paper takes M-Grass Ecology as a typical case to analyze the internal cooperation mechanism of each level of managers, then explores the coordination mechanism of internal cognitive mode and behavioral mode, and finally further sumarizes the mechanism of the generation and the evolution of enterprise dynamic capabilities. The findings are as follows:(1) During the rapid process of enterprises development, the mutual promotion and support relationship of the cognitive models at each level of the managers are the key to aligning corporate strategic intentions and behaviors. (2) The structural focus of primary managers, the situational communication of intermediate managers and the leadership integration of senior managers coordinate the organizational action level's assignment of recognition results, which can drive the enterprise to generate dynamic capabilities and play an important role in the evolution.

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