Management and Organization Review

VOLUME 12 ISSUE 1 MARCH 2016

ISSN: 1740-8776 Management and Organization Review Review Management Organization and Management and Organization Review Sponsored By Peking University and Th e Hong Kong University of Science and Technology Management and Organization Review CONTENTS Volume 12 Issue 1 Letter from Editor Arie Y. Lewin 1 Perspective Paper Mie Augier, Jerry Guo, and harry Rowen Th e Needham Puzzle Reconsidered: Organizations, Organizing, and Innovation in China 5 Commentaries Gordon Redding Th e Needham Question Today 27 Shyhnan Liou, Letty Yan-Yee Kwan, and Chi-Yue Chiu 2016 1 MARCH 12 ISSUE VOLUME Historical and Cultural Obstacles to Frame-Breaking Innovations in China 37 Regular Articles Wei Shen, Qiong Zhou, and Chung-Ming Lau Empirical Research on Corporate Governance in China: A Review and New Directions for the Future 43 Nan Jia Political Strategy and Market Capabilities: Evidence from the Chinese Private Sector 77 Xingqiang Du and Jin-hui Luo Political Connections, Home Formal Institutions, and Internationalization: Evidence from China 105 Lingxin Hao and Yucheng Liang Th e Spatial and Career Mobility of China’s Urban and Rural Labor Force 137 Sarosh Kuruvilla and Hao Zhang Labor Unrest and Incipient Collective Bargaining in China 161 Steen Thomsen Th e Nordic Corporate Governance Model 191 Dialogue, Debate, and Discussion Usha C. Haley and George T. Haley with Introduction by Liisa V¨alikangas IACMR Th ink Local, Act Global: A Call to Recognize Competing, Cultural Scripts 207

Cover image ‘Th e Spring of Xuanwu’ by Qiming Pang. Printed with artist’s permission.

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117408776_12-1.indd17744008877766__1122-1-1.in.inddd 22 222/03/162/033/3/1/166 4:3645:3:161 PPMPMM MANAGEMENT AND ORGANIZATION REVIEW

Volume 12 Issue 1 March 2016

Letter from Editor

ARIE Y. L EWIN 1 Perspective Paper

MIE AUGIER,JERRY GUO,andHARRY ROWEN The Needham Puzzle Reconsidered: Organizations, Organizing, and Innovation in China 5 Commentaries

GORDON REDDING The Needham Question Today 25 SHYHNAN LIOU,LETTY YAN-YEE KWAN,andCHI-YUE CHIU Historical and Cultural Obstacles to Frame-Breaking Innovations in China 35 Regular Articles

WEI SHEN,QIONG ZHOU,andCHUNG-MING LAU Empirical Research on Corporate Governance in China: A Review and New Directions for the Future 41 NAN JIA Political Strategy and Market Capabilities: Evidence from the Chinese Private Sector 75 XINGQIANG DU and JIN-HUI LUO Political Connections, Home Formal Institutions, and Internationalization: Evidence from China 103 LINGXIN HAO and YUCHENG LIANG The Spatial and Career Mobility of China’s Urban and Rural Labor Force 135 SAROSH KURUVILLA and HAO ZHANG Labor Unrest and Incipient Collective Bargaining in China 159 STEEN THOMSEN The Nordic Corporate Governance Model 189 Dialogue, Debate, and Discussion

USHA C. HALEY and GEORGE T. H ALEY WITH INTRODUCTION BY LIISA VALIKANGAS¨ Think Local, Act Global: A Call to Recognize Competing, Cultural Scripts 205

C 2016 The International Association for Chinese Management Research ISSN 1740-8776 Downloaded from https://www.cambridge.org/core. IP address: 170.106.35.229, on 27 Sep 2021 at 22:55:11, subject to the Cambridge Core terms of use, available at https://www.cambridge.org/core/terms. https://doi.org/10.1017/mor.2016.7 EDITOR-IN-CHIEF FOUNDING EDITOR-IN-CHIEF Arie Y. Lewin,DukeUniversity,USA Anne S. Tsui, University of Notre Dame, USA, and Peking University, China DEPUTY EDITORS-IN-CHIEF EDITOR FOR DIALOGUE, DEBATE, AND DISCUSSION Chi-Yue Chiu, Chinese University of Hong Kong, China Klaus E. Meyer, CEIBS, China Liisa Valikangas,¨ Aalto University and Hanken School of Economics, Finland DEPUTY EDITOR FOR RESEARCH OUTREACH Challenge orthodoxy; emerging economies transforming views of management; debates and discourses on resilient Sheen S. Levine, University of Texas at Dallas, USA and/or generative new thinking; draw on humor, or even irony, to shut down or engage important neglected DEPUTY EDITOR FOR ARTWORK AND management realities; invites to transformative dialogues ABSTRACT TRANSLATION on theory and practice Tony Fang, Stockholm Business School, Sweden

SENIOR EDITORS Mie Augier, US Navy Postgraduate School, USA trust; disruptive innovation; entrepreneurial Organizations and strategic management; developing imagination an interdisciplinary and cross cultural framework for Xiaohui Liu, Loughborough University, UK understanding organizational decision making; International business; human mobility; organizational economics; cultural influences on international knowledge spillovers; innovation in organizational decision making and strategy; history emerging economies; internationalization strategies of and future of business schools and management firms from emerging economies; knowledge acquisition education, in particular in China and all other emerging economies Jiangyong Lu, Peking University, China Entrepreneurship; innovation; venture capital Chao C. Chen, Rutgers University, USA, and Nanjing investment; international business University, China Indigenous management theories; organizational Xiaowei Rose Luo,INSEAD,France justice; Chinese guanxi and social networking; business Institutional theory; family business; corporate ethics; cross-cultural management governance; corporate social responsibility; cross-cultural variation in organizational (George) Zhen Xiong Chen, Australian National practices University, Australia Leadership; voice; organizational commitment; Stephan Manning, University of Massachusetts, Boston, organizational behavior in the Chinese context and USA cross-cultural concepts Global outsourcing; geographic cluster development in global value chains; social entrepreneurship in Africa; Bor-Shiuan Cheng, National Taiwan University, sustainability standards Taiwan Organizational behavior in the Chinese context; Silvia Massini,UniversityofManchester,UK leadership; team processes; organizational culture Offshoring of innovation and knowledge intensive business services; economics and management of Alvaro Cuervo-Cazzura, Northeastern University, USA innovation; evolutionary and behavioral theories; Emerging market multinationals; corruption in adoption and diffusion in innovation; knowledge international business; global strategy; creation and management internationalization process Gerald A. McDermott, University of South Carolina, Carl F. Fey, Aalto University, Finland USA Russia; Eastern Europe; organizational culture; strategic Innovation; institutions; Latin America; Eastern human resource management; foreign market entry; Europe; networks mergers and acquisitions; knowledge transfer Johann Peter Murmann, University of New South Ray Friedman, Vanderbilt University, USA Wales, Australia Negotiation; dispute resolution; Chinese culture and Strategic management; innovation; evolutionary management; diversity in organizations; labor theories in management and economics; comparative relations firm and industry studies; business history Yaping Gong, Hong Kong University of Science and Bent Petersen, Copenhagen Business School, Denmark Technology, China Internationalization of firms; global sourcing; value Employee creativity; goal orientation; strategic and creation logics; real options and entry modes; strategic international human resource management management Thomas Hutzschenreuter, Technische Universitat Carine Peeters, Vlerick Business School, Belgium Munchen, Germany International business; strategy; global sourcing; Internationalization strategy; foreign direct investment; offshoring; outsourcing panel data analysis Shameen Prashantham, CEIBS, China Jing Li, Simon Fraser University, Canada Born global; China-India comparison; innovation; International investment strategies; emerging market internationalization; international entrepreneurship; multinational enterprises; international joint ventures; international new venture; network relationships; social innovation in emerging markets capital; strategy as practice Peter Ping Li, Xian Jiaotong-Liverpool University, Mooweon Rhee,YonseiUniversity,Korea China Organizational learning; organizational status; Emerging multinational firms; indigenous research on corporate reputation; social networks; Asia-based Chinese management; organizational and inter-cultural theories of organization

MANAGING EDITOR SPECIAL PROJECTS COORDINATOR Tina Minchella, Arizona State University, USA Stefanie McAdoo, Duke University, USA

EDITORIAL ADVISORY BOARD Herman Aguinis, Indiana University, USA Michael Morris, Columbia University, USA Paul Beamish, University of Western Ontario, Canada Ram Mudambi, Temple University, USA Peter Buckley, University of Leeds, UK Rajneesh Narula, University of Reading, UK Ming-Jer Chen, University of Virginia, USA Victor Nee, Cornell University, USA John Child, University of Birmingham, UK Seung Ho Park, CEIBS, China Stewart Clegg, University of Technology, Sydney, Australia Ravi Ramamurti, Northeastern University, USA Timothy M. Devinney, University of Leeds, UK Gordon Redding, INSEAD, France Charles Dhanaraj, IMD, Switzerland Oded Shenkar, Ohio State University, USA Giovanni Dosi, Sant’Anna School of Advanced Studies, Debra L. Shapiro, University of Maryland, USA Italy Jitendra V.Singh, Hong Kong University of Science and Yves Doz, INSEAD, France Technology, China Jiing-Lih (Larry) Farh, Hong Kong University of Science Jose de la Torre, Florida International University, USA and Technology, China Sushil Vachani, IIM, India Nikolay B. Filinov, Higher School of Economics, Russia Henk Volberda, Erasmus University, The Netherlands Mauro F. Guillen, University of Pennsylvania, USA Mary Ann Von Glinow, Florida International University, Michael Hitt, Texas A&M University, USA USA Martin Kenney, University of California, Davis, USA Andrew Walder, Stanford University, USA Tarun Khana, Harvard University, USA Gordon Walker, Southern Methodist University, USA Bruce Kogut, Columbia University, USA Malcolm Warner, University of Cambridge, UK Yadong Luo, University of Miami, USA Axel V.Werder, Technische Universitat¨ Berlin, Marjorie Lyles, Indiana University, USA Germany James March, Stanford University, USA Weiying Zhang, Peking University, China Marshall W. Meyer, University of Pennsylvania, USA Shuming Zhao, Nanjing University, China Maurizio Zollo, Bocconi University, Italy

EDITORIAL REVIEW BOARD

Samuel Aryee, King’s College London, UK Jeanne M. Brett, Northwestern University, USA Neal M. Ashkanasy, University of Queensland, Australia Lance Eliot Brouthers, Kennesaw State University, USA Yuntao Bai, Xiamen University, China Jean Chen, Xi’an Jiaotong-Liverpool University, China Ellie R. Banalieva, Northeastern University, USA WeiRu Chen, INSEAD, Singapore William Barnett, Stanford University, USA Wenhong Chen, University of Texas, Austin, USA Bat Batjargal, Nottingham University Business School, Sally Siu-Yin Cheung, Hong Kong Baptist University, China China Gabriel R. G. Benito, BI Norwegian Business School, Roy Yong-Joo Chua, Harvard University, USA Norway Aichia Chuang, National Taiwan University, Taiwan Olivier Bertrand, SKEMA Business School, France Chi-Nien Chung, National University of Singapore, Suresh Bhagavatula, IIMB, India Singapore Brian K. Boyd, City University of Hong Kong, China Lin Cui, Australian National University, Australia Daniel J. Brass, University of Kentucky, USA Douglas Cumming, York University, UK

Downloaded from https://www.cambridge.org/core. IP address: 170.106.35.229, on 27 Sep 2021 at 22:55:11, subject to the Cambridge Core terms of use, available at https://www.cambridge.org/core/terms. https://doi.org/10.1017/mor.2016.7 Ping Deng, Cleveland State University, USA Zhiang (John) Lin, University of Texas at Dallas, USA Nick Dew, Naval Postgraduate School, USA Wu Liu, Hong Kong Polytechnic University, China Desislava Dikova, Vienna University of Economics & Jun Liu, Renmin University, China Business, Austria Yipeng Liu, University of Birmingham, UK Carolyn Egri, Simon Fraser University, Canada Jane Lu, National University of Singapore, Singapore Grace Fan, University of British Columbia-Okanagan, Steven Lui, University of New South Wales, Australia Canada Jar-Der Luo, Tsinghua University, China Tony Fang, Stockholm Business School, Sweden Dali Ma, Drexel University, USA Jeanne Ho-Ying Fu, City University of Hong Kong, China Li Ma, Peking University, China Ping-Ping Fu, City University of Hong Kong, China J. P. MacIntosh, University College London, UK Peter Gammeltoft, Copenhagen Business School, Anoop Madhok, York University, Canada Denmark Mona Makhija, Ohio State University, USA Barry Gerhart, University of Wisconsin, USA Shige Makino, Chinese University of Hong Kong, China Elisa Giuliana, University of Pisa, Italy Melody Manchi Chao, Hong Kong University of Science Yundan Gong, Aston University, UK and Technology, China Qian (Cecilia) Gu, Georgia State University, USA Robert M. McNab, Naval Postgraduate School, USA Jerry Guo, Carnegie Mellon University, USA Hemant Merchant, University of South Florida- St. Igor Gurkov, Higher School of Economics, Russia Petersburg, USA Jungpil Hahn, National University of Singapore, Dana Minbaeva, Copenhagen Business School, Denmark Singapore Michael J. Mol, Copenhagen Business School, Denmark Xu Han, University of Pennsylvania, USA Guido Mollering,¨ Jacobs University Bremen, Germany Yulan Han, Shanghai University of Finance & Economics, Felipe Monteiro, INSEAD, France China Janet Y. Murray, University of Missouri-St. Louis, USA Bhavna Hariharan, Stanford University, USA Aldo Musacchio, Brandeis University, USA Niron Hashai, Hebrew University of Jerusalem, Israel Kok Yee Ng, Nanyang Technological University, Singapore Ying Hong, Fordham University, USA Quyen Nguyen, University of Reading, UK Ying-yi Hong, Chinese University of Hong Kong, China Na Ni, Hong Kong Polytechnic University, China Robert E. Hoskisson, Rice University, USA Ilya Okmatovskiy, McGill University, Canada Xu Huang, The Hong Kong Polytechnic University, China Paola Perez-Aleman, McGill University, Canada Helen Wei Hu, University of Melbourne, Australia Wai-Ching Poon, Monash University, Malaysia Chun Hui, University of Hong Kong, China K. Skylar Powell, Western Washington University, USA Kwang-Kuo Hwang, National Taiwan University, Taiwan Shameen Prashantham, CEIBS, China Andrew Inkpen, Thunderbird, USA Sheila Puffer, Northeastern University, USA Peter D. Ørberg Jensen, Copenhagen Business School, Pushyarag Puthusserry, Queen’s University Belfast, UK Denmark Cuili Qian, City University of Hong Kong, China Hong Jiang, Renmin University, China David A. Ralston, University of Oklahoma, USA Kaifeng Jiang, University of Notre Dame, USA Abdul Rasheed, University of Texas, Arlington, USA Runtian Jing, Shanghai Jiao Tong University, China Valerie Rosenblatt, San Francisco State University, USA Eugene Kang, Nanyang Technological University, Roberto Santiago Vassolo, Universidad Austral, Argentina, Singapore and Pontiﬁcia Universidad Catolica´ de Chile, Chile Sung-Choon Kang, Cornell University, USA Roger Schweizer, University of Gothenburg, Sweden Liena Kano, University of Calgary, Canada Wei Shen, Arizona State University, USA Amit Karna, IIMA, India Yongjiang Shi, Cambridge University, UK Lisa Keister, Duke University, USA Shung Jae Shin, Portland State University, USA Scott Kennedy, Indiana University, USA Arjen Slangen, Eramus University Rotterdam, Minyoung Kim, University of Kansas, USA Netherlands Sunghoon Kim, University of New South Wales, Australia Zahra (Ayeh) Solouki, ESADE, Spain Tae-Yeol Kim, CEIBS, China Lynda Jiwen Song, Renmin University, China Tohyun Kim, Sungkyunkwan University, Korea Andrew Spicer, University of South Carolina, USA Young-Choon Kim, National University of Singapore, Yu-Shan Su, National Taiwan Normal University, Singapore Taiwan Ingo Kleindienst, Aarhus University, Denmark SunnyLiSun,UniversityofMissouriatKansasCity,USA Thorbjoern Knudsen, Syddansk Universitet, Denmark Florian Taeube, EBS Business School, Germany Rajiv Kozhikode, Simon Fraser University, Canada Danchi Tan, National Chengchi University, Taiwan K Kumar, IIMB, India Justin Tan, York University, Canada Valentina Kuskova, Higher School of Economics, Russia Yi Tang, Hong Kong Polytechnic University, China Catherine K. Lam, City University of Hong Kong, China Sverre Tomassen, BI Norwegian Business School, Marcus M. Larsen, Copenhagen Business School, Norway Denmark Wei-Chi Tsai, National Chengchi University, Taiwan Bobai Li, Peking University, China Herman Tse, Grifﬁth University, Australia Haiyang Li, Rice University, USA Ramakrishna Velamuri, CEIBS, China Julie Li, City University of Hong Kong, China Liangding Victor Jia, Nanjing University, China Sali Li, University of South Carolina, USA Hinrich Voss, University of Leeds, UK Shaomin Li, Old Dominion University, USA Catherine Wang, University of London, UK Shu-Ping Li, National University of Singapore, Singapore Chengang Wang, Bradford University, UK Weiwen Li, Sun Yat-Sen University, China Danqing Wang, INSEAD, France Xu-Hong Li, Fudan University, China Hui Wang, Peking University, China Neng Liang, CEIBS, China Xiao-Hua (Frank) Wang, Renmin University, China Jian Liang, Shanghai Jiao Tong University, China Yingqi Wei, University of Leeds, UK Leigh Anne Liu, Georgia State University, USA Steven White, Tsinghua University, China

Best Senior Editor Award Starting in 2015, MOR recognizes Senior Editors for their exceptional and noteworthy performance in helping authors realize the ‘jewel’ in their papers. The recent winners are listed below. The winners receive a certiﬁcate and public recognition at the annual MOR reception.

2015 Best Senior Editor Award Winners Yaping Gong, Hong Kong University of Science and Technology Eric W. K. Tsang, University of Texas at Dallas Alain Verbeke, University of Calgary and University of Brussels

Best Reviewer Award Every year MOR recognizes members of the Editorial Review Board who have exempliﬁed the spirit and mission of MOR by providing developmental, conscientious, and timely reviews. The recent winners are listed below. The winners receive a certiﬁcate and public recognition at the annual MOR reception.

2015 Best Reviewer Award Winners Sam Aryee, King’s College London Grace Fan, University of British Columbia-Okanagan Leigh Anne Liu, Georgia State University Torsten Wulf, Phillips-University Marburg Hongjin Zhu, McMaster University

Best Paper in Chinese Theory of Management Award The ‘theory of Chinese management’ approach (adapting imported theories for the Chinese context) and the ‘Chinese theory of management’ approach (developing original theories for the Chinese context) are both necessary and valuable. To promote original theorizing to account for management phenomena that are particularly salient or unique in China, Peking University Press (PUP) has set up the PUP-MOR Best Paper in Chinese Theory of Management Award. The award aims to recognize the best paper published in MOR that addresses new research questions, identifies new concepts, and/or develop new theories from the ‘Chinese theory of management’ perspective. The Awards Committee identified three finalists among the papers published in MOR for at least five years and judged to be exemplary of the spirit of this award. The three finalist papers can be found on the 2014 IACMR conference website on the ‘Awards’ page. The inaugural award was presented at the 2014 IACMR conference on June 19, 2014 in Beijing. Congratulations to the authors of the two finalists and the winning article.

2014 PUP-MOR Award Winner Nee, V., & Yang, C. 2005. Market transition and the ﬁrm: Institutional change and income inequality in urban China. Management and Organization Review, 1(1): 23–56.