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The purpose of this study is to explore the relationships among business strategy, market competition and earnings management.

This paper uses 2,037 Chinese A-share listed firms from 2010 to 2012 to test the research questions using regression analyses.

The firms that follow cost leadership strategy (cost leaders) are more likely to have a higher level of real earnings management. The firms that follow differentiation strategy (differentiators) are less likely to use real earnings management. For cost leaders, the market competition further increases the level of real earnings management, whereas the level of earnings management of differentiators is not significantly impacted by the market competition.

Results of this study indicate the feasibility of differentiation strategy in China and suggest that management should be encouraged to use such a strategy or to use a hybrid strategy to achieve its operational and financial goals.

The study contributes to the research of earning management by providing evidence on that business strategy has significant impacts on earnings management. It also shows an incremental influence of market competition on earnings management through its impacts on business strategy.

The purpose of the papers included in this issue is to cover a broad range of contemporary issues in Chinese corporate financial management and therefore provide the readers with important insights into Chinese financial markets as well as the social and economic consequences of firm behavior in the Chinese context.

The first part of this issue is a special section on “Corporate Finance and Corporate Social Responsibility”, which includes three papers that explore various aspects of corporate social responsibility (CSR) from a finance perspective – including the relationship between CSR and the cost of equity, the “insurance-like effect” of CSR and competition in corporate philanthropy. The remainder of the issue includes seven further papers that cover a wide range of finance-related topics, including currency and equity, monetary policy, cross-border mergers and acquisitions, earnings management, overseas investment, information disclosure, social capital and cosmopolitanism. All of the papers included in this issue are based on empirical research that draws on primary and secondary data from Chinese financial markets and from the information disclosures of Chinese enterprises.

The authors are confident that such in-depth discussions and analysis will help researchers and practitioners to develop a better understanding of the issues faced by Chinese managers in the context of China’s economic transformation. The findings reported in this issue will help inform and develop Chinese management theories based on a wide range of Chinese management practices.

Each paper in this issue reports on different aspects of finance, reporting and management in the Chinese context, discussing findings that have both relevance and significance beyond China.

The purpose of this paper is to provide an organizing lens for viewing the distinct contributions to knowledge production from those research communities addressing the impact of competitive strategy on company performance in general, and the influence of cost leadership and differentiation strategy on organizational performance in detail.

The research methodology was based on the PRISMA review, and thematic analysis based on an iterative process of open coding was analyzed and then the sample was analyzed by illustrating the research title, objectives, method, data analysis, sample size, variables and country.

The main factor that influenced the competitive strategy is strategic growth; strategic growth has a significant influence on competitive strategy. Furthermore, competitive strategy will boost firm network, performance measurement and organization behavior. In the same way, the internal goal factor will enhance organizational effectiveness. Also, a differentiation strategy will support management practice factors, strategic positions, product price, product characteristics and company performance.

This study contributes to the literature by identifying a framework of competitive strategy factors, company performance factors, cost leadership strategy factors, differentiation strategy factors and competitive strategy with global market factors. This study provides a complete picture and description of the resulting body knowledge in competitive strategy and organizational performance.

The “Internet of Things (IoT)” is a platform for involving smart devices via the Internet at a worldwide scale. It supports the “supply chain (SC)” and “information and communication technology (ICT)” infrastructure to be well integrated into an organization and externally with customers and suppliers. The “sustainable supply chain (SSC)” is currently unavoidable if a company seeks to satisfy the aggressive change in its customers' requirements. Numerous studies have confirmed that manufacturing firms have to accelerate the shift of their focus toward sustainability and the implementation of novel technologies, such as IoT, to accomplish their organizational goals most effectively. Although the literature consists of many theoretical approaches to IoT and numerous studies that have extremely concentrated upon the IoT technology and its potential applications, it lacks research with a focus on the challenges that arise when applying IoT to the “sustainable supply chain management (SSCM)”.

The present study proposes an integrated framework using the “Criteria Importance Through Intercriteria Correlation (CRITIC)” and “VlseKriterijumska optimizcija I kaompromisno resenje in Serbian (VIKOR)” models and employs to evaluate the IoT challenges to implement the SSCM. For estimating the criteria weights, the CRITIC tool is utilized. The organization's prioritization is obtained by the VIKOR procedure, which delivers simple mathematical procedures with precise and consistent outcomes.

To exhibit the practicality of the introduced model, a case study is taken to evaluate the IoT challenges to implement the SSCM within the “q-Rung Orthopair Fuzzy Sets (q-ROFSs)” environment. Moreover, the authors exhibit a sensitivity investigation over given parameter values, examining the stability of developed approach. Finally, the authors draw attention to a comparison between developed q-ROF-CRITIC-VIKOR decision-making approach with an existing q-ROF-TOPSIS method to show its superiority and potency.

The outcome of the study lies in observing the top benefits of individual businesses, and their entire SSCs can be found by implementing IoT. This paper investigates the most important challenges that individual firms and entire SSCs might while applying IoT. It provides a deep insight regarding the effects of IoT upon SSCM and the issues every firm need to contemplate when it is to apply IoT solutions.

This paper aims to understand the relationship between the National Innovation Demonstration Zone policy and city innovation capability and the underlying mechanisms.

This paper collects panel data of 283 Chinese cities from 2006 to 2018 for the quasi-natural experiment of National Independent Demonstration Zone (NIDZ) policy. It applies the difference-in-difference (DID) method to study the impact of NIDZ policy on city innovation capability and its underlying mechanism to enhance it.

The empirical result indicates that the establishment of NIDZ significantly enhances the city's innovation capability, which was verified through a series of robustness tests. The mechanism analysis shows that the NIDZ promote the inflow and outflow of knowledge, which implies NIDZ enhances the innovation capability of cities by facilitating the innovation sharing impact. Heterogeneity analysis indicates that the higher degree of digitalization, the higher the government service level induce a more favourable policy effect. The policy effect is more significant in the cities with a higher marketization or the eastern developed region.

This study’s empirical findings suggest that it is essential to improve the digital infrastructure to accomplish the digital transformation and upgrading of NIDZ. The government should improve the service efficiency and reshape the city market environment to ensure the fair competition of science and technology enterprises.

The paper first proposed and empirically tested that innovation sharing is an important mechanism that can significantly enhance the city innovation capability. The authors analyse the heterogeneity of NIDZ from four aspects: digitalization level, marketization level, government service level, and regional development and expanded research boundaries.

This paper aims to examine consumers’ adoption of mobile technology to facilitate their banking services and activities, and to investigate the factors influencing their adoption and engagement.

An online survey is used to test proposed relationships between factors and consumers’ mobile banking adoption. Structural equation modeling is performed to analyze consumers’ intentions toward mobile banking.

Traditional technology acceptance model factors – perceived usefulness and perceived ease of use – are identified as effective factors in influencing consumers to adopt mobile technology for facilitating banking services. Moreover, technology safety concerns, including reliability and privacy factors, are found to play an important role in motivating consumers to embrace mobile banking. The “fun” feature of the technology and consumers’ innovativeness characteristics are considered important in influencing mobile banking adoption. Trust in the banks has its predominant role in mobile technology adoption for banking services.

A bank gaining trust from its clients is key to active adoption of mobile banking technology. Bankers are advised to pay more attention to reliability and privacy features when designing and promoting mobile banking technology to consumers. Moreover, advertisements to bank clients should stress the “fun” aspects of the mobile banking apps to attract them to the use of mobile banking technology.

This paper investigates the factors influencing bank consumers to adopting mobile banking apps to facilitate their banking services. Nine key factors in the technology adoption area are examined to provide a comprehensive understanding of bank clients’ use of mobile banking apps, which advances the understanding of mobile technology applied in the banking industry in the literature.

This study aims to investigate the impact of cross-border charitable activities on host- and home-country consumers based on the social identity theory.

Through an extensive literature review and two experimental designs, this study establishes the research framework and hypothesises the relationships between the constructs.

National power moderates the impact of cross-border charitable activities on host- and home-country consumers. In particular, compared to countries with high national power, countries with low national power undertaking cross-border charitable activities will receive more positive reactions from the host-country consumers, and, conversely, more negative reactions from the home-country consumers.

From the consumer perspective, this study finds that brand cross-border charitable activities have different influences on consumers in different countries because of an identity transformation mechanism that exists between the “insiders” and the “outsiders”, which is different from the assumptions of western theories.

The findings provide insights for undertaking brand cross-border charitable activities.

Previous studies, which are based on social identity categorisation, assume that cross-border charitable activities have a more positive impact on home-country consumers than host-country consumers. However, this study adopts the research paradigm of social identity relationisation and draws an opposite conclusion, which not only expands the theory of local intergroup interaction, but also clarifies how brand cross-border charitable activities influence Chinese consumers.

The technical level of aircraft failure analysis plays a special role in ensuring the safety of civil aviation flight. Using appropriate methods for functional failures analysis can provide a reliable reference for aircraft safety. The purpose of this paper is to provide a new and comprehensive measure based on conventional functional hazard analysis (FHA) and grey system theory to analysis and evaluate the class that each failure belongs to.

This paper integrates multiple methods including the FHA, the fixed weight cluster, the Delphi method and the analytic hierarchy process (AHP). To begin with, use FHA method to sort out the corresponding failure states of a certain system from the perspective of function and determine the evaluation index. And then using group decision and AHP, determine the expert weight and index weight in the fixed weight cluster. The fixed weight cluster function is used to determine the grey class to which a certain functional failure belongs in the complex system.

In the past, the risk assessment of aircraft was mostly dominated by the subjective judgment of the experts, but it was not possible to give an objective observation score for each failure state. This paper addresses the problem efficiently as well as the feature of “little data, poor information.” The risk degree of each failure state can ultimately be replaced by a quantitative value.

This paper uses the idea of clustering in grey system theory to evaluate the risk of landing gear system. In the expert evaluation stage, different experts evaluated the impact degree of the aircraft's failure caused by its functions, so the final risk classification is subjective to some extent.

This study analyzed the different conditions of the landing gear, including the front wheel steering, front wheel damping, front wheel steering system, brake system fault information and so on. It can effectively divide the different failure states and their effects, which is helpful to improve the safety of aircraft landing gear system and provide some useful methods and ideas for studying the safety of aircraft systems.

Based on the FHA analysis process and the grey system theory, this paper determines various potential risks and their consequences of various functions according to the hierarchy, so as to carry out further detailed analysis on the risks that may occur under various functional conditions and take certain measures to prevent them. It is helpful to improve the risk management and control ability of aircraft in the actual flight process and to guarantee the safety of people's lives and property.

This paper is a pioneer in integrating the FHA method and the grey system theory, which exactly can be used to address the problem with the character of “little data, poor information.” The model established in this paper for the defects of FHA can effectively improve the accuracy of FHA, which is of great significance for the study of safety. In this paper, a case about landing gear system is given to illustrate the effectiveness of the model.

Based on the background of enterprise digital transformation, this paper aims to examine the impact of digitization on the cooperative behavior and environmental performance of green technology innovation.

By constructing a model of quantity competition between the two enterprises, this paper examines the impact of digitization on the cooperative behavior and environmental performance of green technology innovation from the micro level. It uses Shanghai and Shenzhen A-share-listed companies as research samples. An unbalanced panel data set from 2011 to 2018 was constructed to empirically test the effect of digital transformation on the environmental performance of enterprises.

The findings reveal the following. First, digital transformation can significantly improve the environmental performance of enterprises. Second, green technological innovation sharing plays an intermediary role between digital transformation and enterprise environmental performance. Third, when the level of digitization is high, the sharing effect of green technology innovation brought about by digital technology is stronger and enterprises tend to carry out cooperative green technology innovation. Lastly, the level of development of regional science and technology finance plays a positive regulatory role in digital transformation and enterprise environmental performance.

This paper first proposes that green technology innovation-sharing is an important mechanism that can significantly improve enterprises' environmental performance. The authors empirically examine the mechanism and analyze the heterogeneity of the impact of digitalization level on enterprises' environmental performance. The authors also discuss the moderating effect of regional technology and finance development levels on the relationship between digitalization and enterprises' environmental performance.