Do Chinese firms benefit from government ownership following cross-border acquisitions?

Chinese firms’ increasing cross-border acquisitions (CBAs) in recent years seem to challenge the explanatory power of received theories of multinational enterprise (MNE) due to their relatively unique characteristics and the active role of the Chinese government. In this study, we seek to revisit and contextualize the OLI paradigm in conjunction with the institution-based view and examine how Chinese firms’ post-CBA long term performance is associated with government ownership. Our study shows that Chinese firms with more government ownership demonstrate better post-CBA long term performance. However, the above relationship is differentially moderated by such firm-level boundary conditions as political connections and financial slack, and the country-level institutional boundary conditions (i.e., the host country formal institutions and the home-host country cultural distance). We discuss our findings in detail and explore theoretical and practical implications for both Chinese firms and other emerging economy (EE) firms

Adapting to the Changing Environment: A Theoretical Comparison of Decision Making Proficiency of Lean and Mass Organization Systems

In this paper we examine the adaptability of the Japanese style lean organization system and the traditional American style mass organization system under changing environments. From an organizational design perspective, key structural aspects of the two organizations are modeled in a problem solving context using computational methods. Organizational-level performance in terms of decision making accuracy and severity of errors is measured as an indicator of organizational adaptability under conditions where the task environment shifts between predictable to unpredictable or vise versa. Our study shows that both organizations have their respective advantages under different task environments and that they adapt to environmental shifts in different forms. Specifically, when the time pressure is high the lean organization system’s performance is virtually identical to the mass organization system, even though the lean organization system’s members are more proactive. When the time pressure is low, the mass organization system shows a much faster adaptability when the environment shifts to a predictable one but it is also more vulnerable when the environment shifts to an unpredictable one. In contrast, the lean organization system’s response to the changing environment is characterized by its slower adaptability. When the environment shifts to an unpredictable one, the lean organization system shows a gradual improvement till reaching a high level. When the environment shifts to a predictable one, however, the lean organization system shows a gradua

The Performance Consequences of Top Management Successions -- THE ROLES OF ORGANIZATIONAL AND ENVIRONMENTAL CONTEXTS

As an exploratory step toward integrating differing views in the field of top management succession, this study takes an open system’s perspective and examines the effect of top management succession on organizational performance, in particular decision-making accuracy, under conditions where various organizational and environmental factors can interact. Through a formal computer simulation model that captures the basic behaviors of human decision making and the fundamental characteristics of organizational and environmental settings, the results show that whether top management successions may affect organizational performance, and if so, how organizational performance may be affected, depends on such contextual variables as industry environment, organizational structure, succession type, and organizational age. This study has also demonstrated the importance of moving toward a more systematic and precise contingency approach and the power of computer modeling in understanding the multilevel process of top management succession in complex and dynamic organizations