How firms' dynamic capabilities lead to their competitive advantage and improved firm performance has been a core issue and full of debates. In this research, we theorize that dynamic capabilities, which could be defined by three distinct dimensions (sensing capability, integration capability, and reconfiguration capability), facilitate different types of innovation that in turn improve firm performance. Based on a sample of 204 Chinese firms, results from partial least squares structural equation modeling analyses generally support our arguments despite some nuanced differences existing among different dimensions of dynamic capabilities. This study contributes to dynamic capabilities literature by reducing the scarcity of empirical research and by uncovering the mechanisms through which dynamic capabilities influence firm performance.

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Guanxiis one of the most popular topics in Chinese and Western scholarship concerning social ties in China. However, several problems in research onguanxipersist, and multiple debates are still ongoing without much consensus in sight. This study has two goals. First, we offer a systematic review of the current literature onguanxi, especially by differentiatingguandyads fromxinetworks. This reconceptualization ofguanxienables us to clarify the concept ofguanxiby differentiating its two dimensions. Second, based on this literature review, we propose a redirection of future research onguanxisuch thatguandyads andxinetworks are not examined in isolation; rather, their holistic and dynamic interaction is the most fruitful avenue for future research, especially the four mechanisms of their interaction. The proposed reconceptualization and redirection are our two contributions to the literature.

A large number of Chinese firms lack the resources for having competitive advantages. Under this severe constraint, such firms are forced to find new paths toward developing certain competitive advantages, including the ability to combine ordinary resources into novel competitive advantages, which is referred to as compositional capability. Such a special capability underlying novel competitive advantages is related to certain cultural factors, such as the Chinese cultural tradition in the case of China. However, the potential links between compositional capability and the Chinese cultural tradition remain poorly understood and largely unspecified. This paper responds to the call for more research on identifying relevant cultural factors by explicating the inherent connections between compositional capability and the Chinese cultural value of balanced moderation.

Purpose Community citizenship behaviors (CCBs) of employees help organizations to promote a socially conscious image. However, there is still a significant gap in the knowledge as to how to foster CCBs amongst employees. The purpose of this paper is to investigate whether ethical leadership, as a prosocial leadership approach, fosters CCBs amongst employees, both at work and when they leave the office, through enhancing their prosocial motivation. Design/methodology/approach Data were collected from 160 employees across 48 small- and medium-sized enterprises in China. Multi-level modeling using maximum likelihood estimation in MPlus was utilized to analyze the two-level model simultaneously and the significance of the multi-level indirect effects was tested using the Monte Carlo method with 20,000 replications. Findings Counter to the expectations, the authors found that although ethical leadership increased employees’ prosocial motivation, this only translated to higher levels of employees’ CCBs at work, but not once they left the office. Practical implications The findings suggest that ethical leaders play a critical role in developing the prosocial motivation of employees and encouraging them to engage in CCBs that are supported by the organization. To that end, organizations should consider hiring leaders with high levels of ethical leadership and provide ethical leadership training to senior management. Originality/value The authors make a theoretical contribution by explaining the process by which ethical leaders influence employees to engage in CCBs, addressing calls to understand how social learning theory can be used to understand how people learn to become socially responsible.