This paper explores the different financial viability strategies adopted by cleantech incubators (CTIs) located in both high‐income and medium‐ and low‐income countries. More specifically, we focus on three interrelated research questions: (i) What are the most common funding sources for CTIs, and how do they differ between high‐income and medium‐ and low‐income countries? (ii) What income generation strategies do they employ to achieve financial viability? (iii) What appears to be the main influence on whether or not a CTI adapts suitable strategies to achieve financial viability? The study uses data from 71 CTIs and interviews with 11 cleantech incubator managers. Although the vast majority of the examined CTIs rely on public funding, our results suggest that high levels of fundraising and income diversification strategies are requirements for securing financial viability. In addition, higher levels of government involvement appear to correlate with fewer income diversification strategies, whereas lower levels of government involvement increase the likelihood of the incubator's proclivity to pursue different fundraising and income generation revenues.
{"title":"Cleantech incubators within the sustainable entrepreneurial ecosystem: Fundraising sources, income generation strategies, and the role of public support","authors":"Yannis Pierrakis, Anna Ivanova, Rahul Chawdhary","doi":"10.1002/jsc.2598","DOIUrl":"https://doi.org/10.1002/jsc.2598","url":null,"abstract":"This paper explores the different financial viability strategies adopted by cleantech incubators (CTIs) located in both high‐income and medium‐ and low‐income countries. More specifically, we focus on three interrelated research questions: (i) What are the most common funding sources for CTIs, and how do they differ between high‐income and medium‐ and low‐income countries? (ii) What income generation strategies do they employ to achieve financial viability? (iii) What appears to be the main influence on whether or not a CTI adapts suitable strategies to achieve financial viability? The study uses data from 71 CTIs and interviews with 11 cleantech incubator managers. Although the vast majority of the examined CTIs rely on public funding, our results suggest that high levels of fundraising and income diversification strategies are requirements for securing financial viability. In addition, higher levels of government involvement appear to correlate with fewer income diversification strategies, whereas lower levels of government involvement increase the likelihood of the incubator's proclivity to pursue different fundraising and income generation revenues.","PeriodicalId":503460,"journal":{"name":"Strategic Change","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-07-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141801723","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The frequency and scale of mergers and acquisitions (M&A) have significantly increased in the last two decades, in spite of continuous reports on their high failure rates. M&A scholars call for insights to be sought on the merger process to help understand the complexity of these operations and decrease their failure rate. M&A scholars advocate paying attention to institutional logics' configuration shaping a firm's decisions to grasp merger process complexity. Institutional studies show how specific logics have a powerful influence on the strategic decisions and priorities of organizations. Yet, few studies have empirically combined multiple levels by framing logics' configuration fostering specific strategic decisions. This study addresses this issue. Using a longitudinal case study, we analyze how institutional logics' configuration at organizational and inter‐organizational levels supports firms' strategic decisions to merge and to end the deal. We demonstrate that despite the alignment of logics at the organizational level, the multiplicity of logics at the inter‐organizational level led to deal failure.
{"title":"Toward a more complete understanding of institutional logic configuration in an merger project","authors":"Anne‐Sophie Thelisson","doi":"10.1002/jsc.2597","DOIUrl":"https://doi.org/10.1002/jsc.2597","url":null,"abstract":"The frequency and scale of mergers and acquisitions (M&A) have significantly increased in the last two decades, in spite of continuous reports on their high failure rates. M&A scholars call for insights to be sought on the merger process to help understand the complexity of these operations and decrease their failure rate. M&A scholars advocate paying attention to institutional logics' configuration shaping a firm's decisions to grasp merger process complexity. Institutional studies show how specific logics have a powerful influence on the strategic decisions and priorities of organizations. Yet, few studies have empirically combined multiple levels by framing logics' configuration fostering specific strategic decisions. This study addresses this issue. Using a longitudinal case study, we analyze how institutional logics' configuration at organizational and inter‐organizational levels supports firms' strategic decisions to merge and to end the deal. We demonstrate that despite the alignment of logics at the organizational level, the multiplicity of logics at the inter‐organizational level led to deal failure.","PeriodicalId":503460,"journal":{"name":"Strategic Change","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-07-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141648446","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Company managers are increasingly recognizing that sustainable practices are not just ethical imperatives but potential drivers of long‐term value. To determine the degree to which this is grounded in business reality, a growing body of empirical studies have examined whether higher environmental, social, and governance (ESG) performance predicts better financial performance. However, conflicting findings have emerged, with reviews highlighting the role that methodological choices, normative setting, and industry can play in moderating that relationship. Unlike other industries, health care has been the focus of only a handful of heterogeneous quantitative studies. To contribute to this evidence base for the European context, the present study comprehensively examined whether and how ESG score can influence both accounting‐ and market‐based measures of financial performance. Company data from the top health care companies listed in the STOXX 600 Index over the last decade (2012–2022) were gathered and analyzed. The analysis results confirmed that a marked heterogeneity of effects across the different ESG scores and measures of financial performance exists, which is not merely due to differences in empirical strategy, with modest positive effects being estimated in most cases. Of the three pillars, the governance score consistently predicted more positive financial performance among the sample of listed European companies. The environmental pillar score only influenced accounting‐based measures, though inconsistently, whereas the social pillar did not seem to have any predicting role for accounting‐based measures. Future research should consider replicating the proposed analytical framework in other data settings and normative contexts to strengthen the current evidence base and therefore deepen our understanding of the mechanisms underlying the investigated relationships in the health care industry.
{"title":"The influence of ESG score on financial performance: Evidence from the European health care industry","authors":"P. Candio","doi":"10.1002/jsc.2594","DOIUrl":"https://doi.org/10.1002/jsc.2594","url":null,"abstract":"Company managers are increasingly recognizing that sustainable practices are not just ethical imperatives but potential drivers of long‐term value. To determine the degree to which this is grounded in business reality, a growing body of empirical studies have examined whether higher environmental, social, and governance (ESG) performance predicts better financial performance. However, conflicting findings have emerged, with reviews highlighting the role that methodological choices, normative setting, and industry can play in moderating that relationship. Unlike other industries, health care has been the focus of only a handful of heterogeneous quantitative studies. To contribute to this evidence base for the European context, the present study comprehensively examined whether and how ESG score can influence both accounting‐ and market‐based measures of financial performance. Company data from the top health care companies listed in the STOXX 600 Index over the last decade (2012–2022) were gathered and analyzed. The analysis results confirmed that a marked heterogeneity of effects across the different ESG scores and measures of financial performance exists, which is not merely due to differences in empirical strategy, with modest positive effects being estimated in most cases. Of the three pillars, the governance score consistently predicted more positive financial performance among the sample of listed European companies. The environmental pillar score only influenced accounting‐based measures, though inconsistently, whereas the social pillar did not seem to have any predicting role for accounting‐based measures. Future research should consider replicating the proposed analytical framework in other data settings and normative contexts to strengthen the current evidence base and therefore deepen our understanding of the mechanisms underlying the investigated relationships in the health care industry.","PeriodicalId":503460,"journal":{"name":"Strategic Change","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-06-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141269339","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper explores the contribution of the banking industry to the decarbonization of the economy in the aftermath of the Paris Agreement. To this end, two complementary indicators are proposed: a carbon balance and a fossil fuel to equity ratio. The main novelty of these indicators is that, beyond traditional approaches in green finance, they take into account the parallel endeavor of banks in fossil fuel financing (so‐called “brown assets”). The results of the inquiry are presented in various maps and graphs. Both elements show that the bank‐induced process of decarbonization is lagging behind that of other industries, which creates a significant risk of financial instability. Changing this banking behavior necessarily involves a climate‐driven reform of the prudential rules on capital requirements; however, given the magnitude of the problem, this might not be enough. Nor is it the most urgent concern. Above all, what this paper makes clear is that the appropriate measurement and disclosure of financed emissions (both “green” and “brown”) is the first crucial step for the correct assessment of climate‐related risk and forms the basis for subsequent policy action.
{"title":"Addressing the climate–finance interaction in a new light: From green to brown assets disclosure in the banking industry","authors":"Francesc Relaño, E. Paulet, H. Mavoori","doi":"10.1002/jsc.2593","DOIUrl":"https://doi.org/10.1002/jsc.2593","url":null,"abstract":"This paper explores the contribution of the banking industry to the decarbonization of the economy in the aftermath of the Paris Agreement. To this end, two complementary indicators are proposed: a carbon balance and a fossil fuel to equity ratio. The main novelty of these indicators is that, beyond traditional approaches in green finance, they take into account the parallel endeavor of banks in fossil fuel financing (so‐called “brown assets”). The results of the inquiry are presented in various maps and graphs. Both elements show that the bank‐induced process of decarbonization is lagging behind that of other industries, which creates a significant risk of financial instability. Changing this banking behavior necessarily involves a climate‐driven reform of the prudential rules on capital requirements; however, given the magnitude of the problem, this might not be enough. Nor is it the most urgent concern. Above all, what this paper makes clear is that the appropriate measurement and disclosure of financed emissions (both “green” and “brown”) is the first crucial step for the correct assessment of climate‐related risk and forms the basis for subsequent policy action.","PeriodicalId":503460,"journal":{"name":"Strategic Change","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-06-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141268631","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This article applies a Bourdieusian lens to a critical analysis of global power dynamics to argue that a field framework is useful for studying praxis and (in)action in complex and dynamic global spaces of decision‐making. It is argued that individuals with global power can interact strategically to change their actions for improved social and economic justice, but it requires resisting dominant practices that may maintain existing inequalities. By exploring the interrelations between positions within the global spaces of the World Social Forum and the World Economic Forum, we offer an original contribution to the field of strategic change. We show how the actors in these global spaces have the potential to provoke greater social justice but also risk perpetuating a status quo that continues to favor the few over the many. Participants are world‐makers who wield symbolic power and can create disruption in the “rules of the game,” but the strength of those who seek to defend the status quo can perpetuate inertia. The article offers a novel contribution to the research on global spaces and elite actors by critically analyzing accounts of strategic practices therein, thus offering a more nuanced understanding of world‐making in action or inaction.
{"title":"World‐makers and social justice: Strategies of (in)action?","authors":"Victoria Pagan, Susan Kirk","doi":"10.1002/jsc.2591","DOIUrl":"https://doi.org/10.1002/jsc.2591","url":null,"abstract":"This article applies a Bourdieusian lens to a critical analysis of global power dynamics to argue that a field framework is useful for studying praxis and (in)action in complex and dynamic global spaces of decision‐making. It is argued that individuals with global power can interact strategically to change their actions for improved social and economic justice, but it requires resisting dominant practices that may maintain existing inequalities. By exploring the interrelations between positions within the global spaces of the World Social Forum and the World Economic Forum, we offer an original contribution to the field of strategic change. We show how the actors in these global spaces have the potential to provoke greater social justice but also risk perpetuating a status quo that continues to favor the few over the many. Participants are world‐makers who wield symbolic power and can create disruption in the “rules of the game,” but the strength of those who seek to defend the status quo can perpetuate inertia. The article offers a novel contribution to the research on global spaces and elite actors by critically analyzing accounts of strategic practices therein, thus offering a more nuanced understanding of world‐making in action or inaction.","PeriodicalId":503460,"journal":{"name":"Strategic Change","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-05-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141102123","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
C. Sarfo, Jing A. Zhang, Paula O’Kane, Conor O’Kane
Drawing on the entrepreneurial resourcefulness perspective, this study examines how crowdfunding engagement affects small business performance. We theorize that crowdfunding engagement serves resourcefully to enhance small business performance. Moreover, we hypothesize that exploratory and exploitative search act as effective mechanisms through which crowdfunding engagement increases small business performance. We further posit that the effects of crowdfunding engagement on small business performance are contingent on environmental dynamism. We utilize a quantitative approach, specifically partial least squares structural equation modeling (PLS‐SEM), for analyzing our data. Using a sample of 310 small businesses in Ghana, the findings from PLS‐SEM support our theorization, showing that both exploratory and exploitative search positively mediate the effects of crowdfunding engagement on small business performance, while environmental dynamism negatively moderates such effects. Our findings provide important theoretical and practical implications.
{"title":"Crowdfunding's impact on small business performance through exploitative and exploratory search strategies: An entrepreneurial resourcefulness perspective","authors":"C. Sarfo, Jing A. Zhang, Paula O’Kane, Conor O’Kane","doi":"10.1002/jsc.2584","DOIUrl":"https://doi.org/10.1002/jsc.2584","url":null,"abstract":"Drawing on the entrepreneurial resourcefulness perspective, this study examines how crowdfunding engagement affects small business performance. We theorize that crowdfunding engagement serves resourcefully to enhance small business performance. Moreover, we hypothesize that exploratory and exploitative search act as effective mechanisms through which crowdfunding engagement increases small business performance. We further posit that the effects of crowdfunding engagement on small business performance are contingent on environmental dynamism. We utilize a quantitative approach, specifically partial least squares structural equation modeling (PLS‐SEM), for analyzing our data. Using a sample of 310 small businesses in Ghana, the findings from PLS‐SEM support our theorization, showing that both exploratory and exploitative search positively mediate the effects of crowdfunding engagement on small business performance, while environmental dynamism negatively moderates such effects. Our findings provide important theoretical and practical implications.","PeriodicalId":503460,"journal":{"name":"Strategic Change","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-05-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140995792","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Based on a dual‐differential model of the number of patent applications issued by A‐share enterprises from 2014 to 2019, this article analyzes impact of Venture Capital (VC) guided by government on company's innovation and their internal mechanisms. The results show that the number of patent applications increases after enterprises are invested directly or indirectly by the government guiding fund, indicating that this kind of VC has a positive guidance on enterprise innovation. However, after further studying by subdividing patent types, it is found that enterprises pay less attention to invention patents, which hold higher technical requirements, and focus on “quantity” rather than “quality” in patent applications. This result also reflects that the investment of VC guided by government promotes the overall enterprise innovation, but the positive effect on the innovation quality is not significant. Our article not only affirms the positive influence of VC guided by government on enterprise innovation, but also puts forward some suggestions on the management of government guiding fund.
{"title":"Substantial innovation or strategic innovation? The impact of government venture capital guidance funds on corporate innovation","authors":"F. Saci, Mohamad Ahmad","doi":"10.1002/jsc.2583","DOIUrl":"https://doi.org/10.1002/jsc.2583","url":null,"abstract":"Based on a dual‐differential model of the number of patent applications issued by A‐share enterprises from 2014 to 2019, this article analyzes impact of Venture Capital (VC) guided by government on company's innovation and their internal mechanisms. The results show that the number of patent applications increases after enterprises are invested directly or indirectly by the government guiding fund, indicating that this kind of VC has a positive guidance on enterprise innovation. However, after further studying by subdividing patent types, it is found that enterprises pay less attention to invention patents, which hold higher technical requirements, and focus on “quantity” rather than “quality” in patent applications. This result also reflects that the investment of VC guided by government promotes the overall enterprise innovation, but the positive effect on the innovation quality is not significant. Our article not only affirms the positive influence of VC guided by government on enterprise innovation, but also puts forward some suggestions on the management of government guiding fund.","PeriodicalId":503460,"journal":{"name":"Strategic Change","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-05-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141005609","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Organizational ambidexterity has long been in the focus of understanding how organizations address tensions between exploitation, which implies building new competencies in order to drive radical change, and exploitation, which implies building on top of existing competencies in order to deliver persistent incremental improvements. Research has shown that, at the organizational level, established incumbent organizations tend to avoid exploration. In this paper, we focus on understanding which cognitive profiles tend to get promoted to the highest management positions in established incumbent organizations. To address this research question, we used a data set on 176 key decision‐makers at five multinational organizations. Results indicate that inherent biases in promotion decisions at the highest levels of the established incumbent organizations favor pattern‐recognition cognitive profiles of managers, thus influencing organizational preference for exploitation over exploration. Results have implications for theory, explaining neurocognitive underpinnings of preference for exploitation in case of established incumbent organizations which arise from biases in promotional decisions; and for practice, implying the importance of debiasing promotion decisions to ensure organizational ability to deliver on explorative strategies, favoring innovations and new market creation.
{"title":"Cognitive profiles of strategic decision‐makers: Implications for exploration–exploitation strategies","authors":"Goran Vlašić, Marina Dabić, Zoran Krupka","doi":"10.1002/jsc.2578","DOIUrl":"https://doi.org/10.1002/jsc.2578","url":null,"abstract":"Organizational ambidexterity has long been in the focus of understanding how organizations address tensions between exploitation, which implies building new competencies in order to drive radical change, and exploitation, which implies building on top of existing competencies in order to deliver persistent incremental improvements. Research has shown that, at the organizational level, established incumbent organizations tend to avoid exploration. In this paper, we focus on understanding which cognitive profiles tend to get promoted to the highest management positions in established incumbent organizations. To address this research question, we used a data set on 176 key decision‐makers at five multinational organizations. Results indicate that inherent biases in promotion decisions at the highest levels of the established incumbent organizations favor pattern‐recognition cognitive profiles of managers, thus influencing organizational preference for exploitation over exploration. Results have implications for theory, explaining neurocognitive underpinnings of preference for exploitation in case of established incumbent organizations which arise from biases in promotional decisions; and for practice, implying the importance of debiasing promotion decisions to ensure organizational ability to deliver on explorative strategies, favoring innovations and new market creation.","PeriodicalId":503460,"journal":{"name":"Strategic Change","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-04-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140691887","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Ying-ying Liao, Ebrahim Soltani, Abdullah Iqbal, R. van der Meer
Scholars and practitioners alike have argued that performance review is prone to destructive effects and negative outcomes in progressive work organizations with a total quality management (TQM) orientation. Despite its pervasive use and significant consequences at individual, team, and organizational levels across contemporary workplaces, it has remained inadequately explored for its current operational systems and their role in helping employees achieve job mastery and enabling organizations to attain desired quality outcomes. To address this lacuna, this study aims to explore how performance review systems can align with continuous quality improvement in contemporary workplaces that espouse a culture of continuous learning and quality improvement. Given the exploratory and broad scope of the research, it adopts a multiple case study design which offers benefits both in terms of process and outcomes. The findings are indicative of two different performance review systems with very different implications for managing employees and achieving quality outcomes in line with TQM: tactical system with a focus on employee obedience to rigid top‐down control system for achieving conformance quality measures, and a dynamic system with a focus on employee ownership of the quality process for achieving desired quality.
{"title":"The utility of performance review systems: A total quality management perspective","authors":"Ying-ying Liao, Ebrahim Soltani, Abdullah Iqbal, R. van der Meer","doi":"10.1002/jsc.2580","DOIUrl":"https://doi.org/10.1002/jsc.2580","url":null,"abstract":"Scholars and practitioners alike have argued that performance review is prone to destructive effects and negative outcomes in progressive work organizations with a total quality management (TQM) orientation. Despite its pervasive use and significant consequences at individual, team, and organizational levels across contemporary workplaces, it has remained inadequately explored for its current operational systems and their role in helping employees achieve job mastery and enabling organizations to attain desired quality outcomes. To address this lacuna, this study aims to explore how performance review systems can align with continuous quality improvement in contemporary workplaces that espouse a culture of continuous learning and quality improvement. Given the exploratory and broad scope of the research, it adopts a multiple case study design which offers benefits both in terms of process and outcomes. The findings are indicative of two different performance review systems with very different implications for managing employees and achieving quality outcomes in line with TQM: tactical system with a focus on employee obedience to rigid top‐down control system for achieving conformance quality measures, and a dynamic system with a focus on employee ownership of the quality process for achieving desired quality.","PeriodicalId":503460,"journal":{"name":"Strategic Change","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-03-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140378631","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
As an important informal system, the impact of Confucian culture on enterprise strategic change decision‐making and economic and social development is often ignored. By using the OLS method and drawing from publicly listed companies on China's Shanghai and Shenzhen stock markets from 2002 to 2020 as research samples, this article empirically analyzes the relationship between Confucian culture and enterprise strategic change from the perspective of the “golden mean” ethics (a Confucian moral standard and philosophy of conduct). The article also attends to the moderating effects of foreign culture shock and stock rights between the relationship of Confucian culture and enterprise strategic change. A key finding is that the ethical thought of “golden mean” and “harmony” contained in Confucian culture has an inhibitory effect on the initiation of enterprise strategic change. Foreign culture shock positively moderates the relationship between Confucian culture and enterprise strategic change. When “shocked” by dominant foreign cultures, the negative impact of Confucian culture on enterprise strategic change will be weakened. Moreover, unlike previous research findings based on agency theory that suggests how state ownership may retard corporate development, the authors found that in an informal institutional environment with a strong Confucian culture, stock rights can play a positive moderating role in the relationship between Confucian culture and enterprise strategic change. When an enterprise is state‐owned, the inhibitory effect of Confucian culture on enterprise strategic change will be weakened further.
{"title":"Confucian Culture and Enterprise Strategic Change from a Perspective of the Golden Mean Ethics","authors":"Chao Li, Meng Huo, Yushi Jiang, Renhuai Liu","doi":"10.1002/jsc.2581","DOIUrl":"https://doi.org/10.1002/jsc.2581","url":null,"abstract":"As an important informal system, the impact of Confucian culture on enterprise strategic change decision‐making and economic and social development is often ignored. By using the OLS method and drawing from publicly listed companies on China's Shanghai and Shenzhen stock markets from 2002 to 2020 as research samples, this article empirically analyzes the relationship between Confucian culture and enterprise strategic change from the perspective of the “golden mean” ethics (a Confucian moral standard and philosophy of conduct). The article also attends to the moderating effects of foreign culture shock and stock rights between the relationship of Confucian culture and enterprise strategic change. A key finding is that the ethical thought of “golden mean” and “harmony” contained in Confucian culture has an inhibitory effect on the initiation of enterprise strategic change. Foreign culture shock positively moderates the relationship between Confucian culture and enterprise strategic change. When “shocked” by dominant foreign cultures, the negative impact of Confucian culture on enterprise strategic change will be weakened. Moreover, unlike previous research findings based on agency theory that suggests how state ownership may retard corporate development, the authors found that in an informal institutional environment with a strong Confucian culture, stock rights can play a positive moderating role in the relationship between Confucian culture and enterprise strategic change. When an enterprise is state‐owned, the inhibitory effect of Confucian culture on enterprise strategic change will be weakened further.","PeriodicalId":503460,"journal":{"name":"Strategic Change","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-03-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140216575","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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