As the largest and fastest growing transition economy in the world, China's entrance onto the global stage has been swift and dramatic. As such, almost every facet of entrepreneurship, from the identification of nascent opportunities to the challenges of managing triple-digit growth to the transformation of firms from dying to emerging industries, can be studied as natural experiments. The four papers in this issue are dedicated to exploring entrepreneurial innovation in the Chinese private economy. They include two clinical studies, one on the impact of the Beijing Olympics on entrepreneurship, and the other on the co-evolution of guanxi networks and entrepreneurial growth. Two studies test theories explaining the organizational drivers of innovation and entrepreneurship. In the best traditions, these four studies offer theoretical insights on the broader implications of entrepreneurship research in the Chinese context. We locate the findings offered by these four papers in the systems, organizational and social contexts of creativity, innovation, and entrepreneurship research. Finally, we offer some suggestions for future research and ways in which advances in the theoretical conversation should proceed.

This Editors' Forum – ‘Creativity East and West’ – presents five papers on the question of cultural differences in creativity from the perspective of different research literatures, followed by two integrative commentaries. The literatures represented include historiometric, laboratory, and organizational studies. Investigation of cultural influences through country comparisons and priming manipulations, focusing on how people perform creatively and how they assess creativity. This introduction notes parallels in the findings across these research perspectives, suggesting some cultural universals in creativity and some systematic differences. Many differences can be explained in terms of the model that creativity means a solution that is both novel/original and useful/appropriate, yet that Western social norms prioritize novelty whereas Eastern norms prioritize usefulness – an account which predicts cultural differences would arise in contexts that activate social norms. The commentaries elaborate this argument in terms of processes – at the micro cognitive level and at the macro societal level – through which creativity occurs.

What are the fundamental factors that promote highly influential creativity? How do these factors differ in Western and Far Eastern civilizations? Many researchers have addressed these questions using historiometrics, a method that tests nomothetic hypotheses about human behaviour by subjecting historical and biographical data to objective and quantitative analyses. These investigations may entail either aggregate-level analyses (e.g., generational time series of creative activity) or individual-level analyses (e.g., cross-sectional studies of creative achievement). Moreover, the empirical findings in each of these two approaches fall into two categories of East-West comparisons: (i) shared variables and convergent results and (ii) shared variables and divergent results. After reviewing representative findings in each of these categories, we discuss what the results imply about the nature of high-impact creativity in the East and West and also explore areas of potential future historiometric research.

The resource-based view of the firm has previously been expanded by including relational rents and rent from network and alliance participation. This paper extends the Dyer-Singh-Lavie synthesis by considering the special circumstances arising from the relationships, alliances, and networks of a mega-event, using the Beijing Olympics as a case for our analyses. The mega-event that is organized as a cartel increases the pricing power of the participants, produces relational rent, and is an ideal venue to introduce innovations. We discuss six factors that can influence the rent creation and capture from a mega-event and offer related propositions: periodicity (Proposition 1), event location (Proposition 2), governance structure (Proposition 3), media coverage (Proposition 4), network connectivity (Proposition 5), and membership rules (Proposition 6). We identify four innovation types associated with such mega-events and contend that the same factors can affect the entrepreneurial rent creation and capture within these innovation types (Proposition 7).

A long-standing debate has taken place in the organizational sociology and social network literatures about the relative advantages of network closure versus structural holes in the generation of social capital. There is recent evidence that these advantages differ across cultures and between East Asia and the West in particular, but existing network models are unable to explain why or address cultural variation in general. This paper seeks to provide a solution by integrating a culture-embedded rational model of action into the social network model of structure, using this not only to re-examine the closure versus structural hole debate, but also to tie it to the literature on Confucian capitalism and the ‘East Asian Model’ of the firm. We argue that this integrated approach allows us to systematically analyse the relationship between culture and behaviour in networks and, more specifically, to explain why closure has been a more powerful source of productivity in East Asia than the West.

This study examines how firms use organizational controls in the knowledge exploitation process to enhance endogenous innovation. Some past studies have shown that controls restrict the flexibility needed in innovation, whereas others have shown that controls enhanced innovation by directing the efforts of research and development professionals. Thus, we extend the theoretical development of organizational control theory to examine how different types of organizational controls (clan, behaviour, and output controls) play different roles at different points in the innovation process. First, we propose that codifying knowledge enhances its level of exploitation, with clan control serving as a moderator. Next, we propose that knowledge exploitation enhances endogenous innovation with behaviour and output controls serving as moderators. Our results from a sample of 607 Chinese manufacturing firms show that clan control moderated the knowledge codification–exploitation relationship positively. Behaviour control moderated the knowledge exploitation–innovation relationship positively, but output control had an inverse U-shaped moderating influence in this relationship. The results indicate that examining different types of organizational controls at different points in the knowledge management process provides a more comprehensive understanding for the role of controls in innovation.

The present article aims to answer the question of whether creativity is universal or culture-specific. We develop a conceptual framework that expands the existing knowledge in two ways. First, it distinguishes between the two dimensions of creativity – novelty and usefulness, and their relationship to culture. Second, it clarifies how the social context moderates the relationship between culture and creativity. We focus on the social context where cultural differences are likely to be more salient because of the presence of others, relative to the private work context where no one observes whether a person performs in a normative or a unique way. In addition, we propose that task structure, whether a task is tightly or loosely structured, is an important contextual characteristic that moderates the relationship between culture and creativity. Lastly, we offer several propositions to guide future research.

This study compares East Asians' evaluations of task and maintenance inputs in reward allocation decisions and examines the effects that inequity in various types of inputs and rewards have on fairness judgements. Based on a sample of 587 employees from various organizations in Hong Kong, Japan, and South Korea, we find that Hong Kong Chinese and South Korean employees are more likely to want their organizations and supervisors to emphasize maintenance inputs, while Japanese employees value task inputs in reward allocation. Results also show that there are significant country differences in fairness judgements associated with various types of inputs. For example, the positive relationship between pay level and perceived fairness of pay is significantly stronger when task contributions are high rather than low among Japanese employees but not among Hong Kong and South Korean employees. The concept of independent self-construal (similar to individualism at the societal level) seems to provide an adequate account of the country differences in choice of input preferences but not fairness judgements.

Bicultural individuals vary in the degree to which their two cultural identities are integrated. Among Asian-Americans, for instance, some experience their Asian and American sides as compatible whereas others experience them as conflicting. Past research on judgments finds this individual difference affects the way bicultural individuals respond to situations that cue their cultures. Asian-Americans with high bicultural identity integration (BII) assimilate to norms of the cued culture (e.g., they exhibit typically American judgments when in situations that cue American culture), whereas Asian-Americans with low BII do the opposite, contrasting against the cue (e.g., they exhibit typically Asian judgments when in American situations). We investigated whether this dynamic similarly affects creative performance, which differs cross-culturally in that novelty is encouraged more by American than East Asian norms. In two experiments, we found that cues to American (vs. Asian) culture increase the novelty of solutions in divergent thinking tasks for Asian-Americans with high BII (assimilative response) yet decrease it for Asian-Americans with low BII (contrastive response). We discuss theoretical implications for culture and creativity research and practical implications for firms seeking to foster creativity.

What is the relationship between individual members' organizational citizenship behaviours (OCB) and team-level performance? Using a social cognitive perspective, the current study proposes that the relationship is mediated by a team's cohesion and collective efficacy. We collected data at two points in time from three sources with a sample of 462 salespersons representing 62 teams (62 branches) of a financial institute in Taiwan. The results support the theoretical argument that OCB positively influences organizational performance. Furthermore, group cohesion and collective efficacy fully mediated the direct effects of OCB towards individuals and the organization on team performance. Theoretical and practical implications of the results are discussed.

In this paper, we theoretically and empirically investigate factors that contribute to product innovation by firms in emerging markets. Combining the innovation literature with the latecomer literature on ‘catch-up’ strategies of firms in newly industrialized economies, we posit that access to foreign knowledge is essential for fostering product innovation. In particular, we investigate how innovation clusters formed by inward foreign direct investments in an emerging market and export activities of a firm are effective channels for acquiring foreign knowledge. We also suggest firms that invest in research and development and marketing activities benefit further from access to foreign knowledge due to increased absorptive capacity. Empirically, we employ information on over 160,000 indigenous manufacturing firms in China in 2005–2006. We find strong empirical support for our theoretical framework and conclude by discussing the implications for both theory and managerial practice.

Guanxi networks are critical for achieving entrepreneurial success in China. Informed by the literatures on network-based entrepreneurship and guanxi, this study used a multiple-case method to examine the development of Chinese entrepreneurs' guanxi networks in the entrepreneurial process. Data induction based on within- and cross-case analyses of six entrepreneurial firms revealed three major findings. First, guanxi network dynamics in terms of network structure, governance mechanisms, and network content change systematically across the stages of the entrepreneurship process. Second, the usefulness of guanxi ties (such as family, business associates, or government officials) is contingent on the stage of the entrepreneurial process as well as on industrial-level factors. Third, in knowledge-intensive industries, cultivating and maintaining guanxi can be achieved through knowledge and information exchange rather than traditional gift-giving or favours. The overall conclusion is that guanxi is still of paramount importance for Chinese entrepreneurs in the midst of China's transformation from a centrally planned to a socialist market economy. We propose a stage model of guanxi network development in the entrepreneurial process and discuss implications for future research.

In this article, we first review cross-cultural research, especially that concerning similarities and differences between East Asian and Western cultures, on creativity using laboratory tasks and tests. On the basis of this review, we then propose some directions for future cross-cultural research on creativity in the workplace. We emphasize the need to theorize why cultural differences make a difference in creativity and directly investigate, rather than assume, effects of contextual factors on creativity. In this regard, two literatures on creativity – cross-cultural studies using laboratory tasks and organizational studies of employee creativity – can benefit tremendously from integration. We also call for more empirical research examining effects of culture on creativity in the workplace, especially in China.

Drawing on institutional theory, this study empirically examines the relationship between a firm's levels of ownership concentration and product innovation and the mediating effect of learning orientation, using a sample of 351 Chinese firms. Does ownership concentration hinder or promote firm innovation? Perspectives on this relationship are divergent. This study examines the link between ownership concentration and product innovation and further examines whether and how ownership influences firm innovation through organizational learning. The results suggest that ownership concentration has an inverse U-shaped relationship to product innovation and to learning orientation. In addition, learning orientation mediates the curvilinear relationship between ownership concentration and product innovation. We discuss the study's contributions, managerial implications and directions for future research.

This article explores the dynamic interactions between entrepreneurs and politicians in transitional China through the lens of management buyouts. Specifically, we identify two contrasting outcomes of entrepreneur–politician alliances: privatization buyouts by entrepreneurs implying sustainable original alliances and failed management buyouts implying the collapse of the original alliances. Drawing on the rent appropriation literature, we treat Chinese management buyouts as bargaining, clarification, and redistribution of organizational rent between entrepreneurs and the government agencies represented by local politicians. We further develop a model of entrepreneur–politician bargaining that identifies the determinants of varying rent bargaining and management buyout outcomes.

Laboratory studies of culture and creativity typically rely upon measures of divergent thinking while studies of creativity in organizational settings explicitly define creativity and use subject matter experts as assessors to account for the influence of culture on the assessment of creativity. Yet, little is known about what specific characteristics of a creative idea are considered when creativity is assessed by communities of experts (the field) in different spheres of creative activities (domain). In this article, we review, conceptually analyse, and illustrate using original interview data the influence of culture on the assessment of two commonly examined dimensions of overall creativity, novelty, and usefulness. Using the context of expatriates, we propose a framework, along with propositions, that integrates cultural experience, creativity criteria, and assessor perspectives on creativity assessment. Finally, we discuss ways in which a focus upon the processes underlying creativity assessments could help advance research on culture and creativity.

This article discusses how organizations exchange with one another in China, focusing on the type of organizational ownership and the form of governance mechanism. The theoretical foundation builds on institutional theory, resource dependence theory, agency theory, and evolutionary theory. Given the three main forms of organizations in China – state-owned enterprises, privately owned enterprises, and foreign-invested enterprises - we show how these organizations choose between two types of governance mechanisms, contracts and guanxi, to manage interorganizational exchanges. We then analyze the possible modes of interaction between organizational forms. We argue that the relative importance of guanxi is likely to decline or that guanxi will shift from being primary in some organizations to complementary in all organizations with the progress of market transition. This conceptual framework is expected to help provide the momentum for further theoretical exploration and empirical study in this area.