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Article
Publication date: 22 July 2021

Siyue Chen, Gengzhi Huang, Hongou Zhang, Yuyao Ye and Qitao Wu

Institutional factors play an important and complex role in Chinese outward foreign direct investment (OFDI) location choices that do not seem to be influenced by a host…

Abstract

Purpose

Institutional factors play an important and complex role in Chinese outward foreign direct investment (OFDI) location choices that do not seem to be influenced by a host country’s high political risks. Moreover, the location choice for OFDI is key to corporate strategic decision-making on internationalization. Therefore, this study aims to examine the direct investments of Chinese multinational enterprises (MNEs) in Laos.

Design/methodology/approach

Combining the purposive sampling strategy and snowball sampling method, the authors interviewed nine market- and resource-seeking Chinese enterprises in Laos. Drawing from the mainstream eclectic paradigm and the theory of new institutional economics, the authors analyzed two key variables – enterprise investment motivation and enterprise heterogeneity.

Findings

Chinese MNEs are not insensitive to the regressive institutional quality of host countries; the relationship effect and institutional distance are the location decision pathways along with which institutional factors influence Chinese multinationals’ investments in Laos; political stability is necessary for Chinese-funded enterprises to invest in Laos and the degree of corruption is an overestimated institutional preference factor.

Originality/value

The relationship effect is introduced into the analysis framework as an intermediate variable that influences the decision of MNEs to invest in countries with underdeveloped institutions. It verifies the significant roles of bilateral political relations and network relations in the OFDI location decisions of state-owned and private enterprises, respectively.

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-4408

Keywords

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Article
Publication date: 19 May 2020

Yi Li, Feng Wei, Siyue Chen and Yushan Yan

First, this paper aims to explore how CEO humility and relationship conflict in entrepreneurial teams affect the firm-level performance of new ventures. Second, it…

Abstract

Purpose

First, this paper aims to explore how CEO humility and relationship conflict in entrepreneurial teams affect the firm-level performance of new ventures. Second, it investigates the moderating effect of CEO political skills on the indirect association between CEO humility and entrepreneurial performance through relationship conflict in entrepreneurial teams.

Design/methodology/approach

A questionnaire survey was administered to CEOs and their entrepreneurial team members in 171 start-ups in Shanghai, China. The data obtained from the survey were subjected to multiple regression analysis using the SPSS PROCESS macro and confirmatory factor analysis using Mplus.

Findings

The findings are as follows. First, CEO humility can reduce relationship conflict in entrepreneurial teams. Second, CEO political skills moderate the link between CEO humility and relationship conflict in entrepreneurial teams. The weaker the CEO political skills, the stronger the effect of CEO humility on relationship conflict, and the stronger the CEO political skills, the weaker the effect of CEO humility on relationship conflict. Third, relationship conflict in entrepreneurial teams is negatively related to entrepreneurial performance. Finally, CEO political skills moderate the mediating effect of entrepreneurial team relationship conflict on the CEO humility – entrepreneurial performance link.

Practical implications

The findings of this study offer guidance for entrepreneurs seeking to improve firm performance. The findings suggest that entrepreneurs should adopt a humble leadership style that cultivates their strengths and minimizes their weaknesses. To improve the centripetal force and cohesion of the entrepreneurial team, they should focus on the team, affirm the contribution of subordinates and accept subordinates’ advice.

Originality/value

The study reveals that CEO humility has a positive effect on entrepreneurial performance, which enriches research on the effectiveness of humble leadership at the firm level. From the perspective of team relationship conflict, the study also explores the mechanism underlying the effect of CEO humility on entrepreneurial performance, opening the “black box” of CEO humility and entrepreneurial effectiveness. In addition, the study reveals the boundary conditions of the influence of CEO humility, enriching the theoretical literature on humble leadership, political skills and resource conservation.

Details

International Journal of Conflict Management, vol. 31 no. 3
Type: Research Article
ISSN: 1044-4068

Keywords

Content available
Article
Publication date: 4 June 2020

Renhuai Liu, Steven Si, Song Lin, Dean Tjosvold and Richard Posthuma

Abstract

Details

International Journal of Conflict Management, vol. 31 no. 3
Type: Research Article
ISSN: 1044-4068

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