Social exchange theory has provided the dominant basis for understanding exchange relationships in organizational settings. Despite its predominance within the management field, there are a number of unaddressed issues. This special issue seeks to further social exchange research in work settings. We differentiate social from economic exchange and highlight the moderating role of cultural and individual differences in explaining the outcomes associated with social exchange relationships. We introduce the ideas of content, process, and mixed models of exchange to reflect the different emphases given to the amount and type of resources exchanged, the quality of the relationship, and a combination of both. The five papers in this special issue illustrate these models. We discuss the applicability of social exchange theory across cultural contexts and present suggestions for future research.

Over two decades, research in Chinese management has exploited existing questions, theories, constructs, and methods developed in the Western context. Lagging are exploratory studies to address questions relevant to Chinese firms and to develop theories that offer meaningful explanations of Chinese phenomena. Framed as a debate between pursuing a theory of Chinese management versus a Chinese theory of management, this forum, through the voices of thirteen scholars, provides an analysis of the reasons for the current status of Chinese management research and offers alternatives to shape the future of Chinese management studies. Based on the principle of autonomy of inquiry and heeding the warning of the constraint of normal science, the Chinese management research community can shape its own future by engaging in research that may contribute to global management knowledge and address meaningful local management problems.

We address the institutional voids hypothesis, which suggests affiliation with a business group will improve a firm's performance in circumstances of poor-quality institutions and extensive market failures. We hypothesize that initial positive effects of group affiliation should decline as the quality of market institutions improves. Further, we hypothesize that differences in state and private ownership will influence the value and persistence of firm affiliation. Using data on 476 publicly listed firms in 1999 and 467 matched firms in 2004, we find support for a temporal hypothesis that affiliation with a business group improves performance, but the value of group affiliation declines over time. We also find support for a state ‘helping hand’ hypothesis that suggests firms with high levels of state ownership initially experienced an amplified value effect from their group affiliation, which disappeared by 2004. The results suggest that China's policy makers are beginning to establish an institutional and market infrastructure that is conducive to entry by unaffiliated, freestanding firms.

Using a social exchange perspective and responding to prior calls to separate resources exchanged from the relationship between parties, we develop a relationship typology based on rights and responsibilities arguments. We begin with the idea that various levels and types of rights and responsibilities are the exchange currency utilized by the employer and employee, respectively. Further, the degree to which an organization grants rights to an individual and the degree to which the individual voluntarily accepts responsibilities results in four distinct organizational membership profiles (i.e., peripheral, associate, detached, and full). We believe this membership typology is an important theoretical mechanism that may be used to link the exchange between the employee and employer (as represented by psychological contracts) to psychological attachment (as represented by perceived membership) between these two parties. Specifically, members in each profile will tend to have certain kinds of psychological attachments to the organization, causing them to (i) perceive membership in certain ways and (ii) behave in a manner consistent with that perception. The article concludes by discussing the implications of the propositions for both researchers and practitioners, as well as making suggestions for future research efforts.

Two approaches to the evolution of Chinese scholarship are possible. The first – developing a theory of Chinese management – focuses on applying and refining theories developed elsewhere in a Chinese context. In this sense, the emergence of the Chinese economy represents an important natural experiment for the test and refinement of general management theories. The second – developing a Chinese theory of management – focuses on creating explanations for the existence of Chinese management phenomena that are uniquely Chinese. This approach rejects a research agenda created by Western scholars in favour of a research agenda created by Chinese scholars in order to understand Chinese phenomena. The implications of choosing either of these approaches for the future of Chinese management research and possible relationships between them are discussed.

This study examines the role of human resources in strategy formulation processes in China's emerging market. Employing a qualitative data driven thematic analysis, we present evidence collected from six comparative case sites of Spanish firms in China. Our findings suggest that high performing firms use a dynamic adaptive logic while lower performing firms use a static structural logic. A dynamic adaptive model of strategic human resource management is identified, emphasizing a fluid and informal process between strategy, human resources and international management.

This paper expands recent appeals for more context sensitive organizational research to include organizational theory. It does this by systematically examining the interface between theory and context, characterized herein as contextualizing theory (theories in context) and theorizing about context (theories of context). The results of this analysis challenge recent criticisms of Chinese organizational scholarship for relying too much on Western theory. As an alternative to discontinuing the practice of cross-context theory borrowing, ways of making this borrowing more context sensitive are explored. The use of context effects to explain organizational phenomena, as well as their essential contribution to all forms of cross-context scholarship, is also examined. In addition, specific suggestions are offered for overcoming the obstacles facing scholars engaged in cross-context theorizing, especially scholars in new research contexts interested in using and improving ‘mainstream’ theory.

This study concerns balance in exchange relationships as described in the psychological contract literature about employees’ and employers’ promises and fulfilment of these promises. Balance is investigated, firstly, in relation to temporary versus permanent employment and, secondly, in relation to employees’ attitudes (fairness, job satisfaction, and intention to quit). Analyses were based on a Dutch sample of 290 temporary and 489 permanent workers. Regarding balance in mutual promises, we found that temporary workers were more likely to have psychological contracts with few mutual promises than permanent workers, while permanent workers were more likely to have psychological contracts with many mutual promises compared to temporary workers. Regarding balance in the fulfilment of promises, we found the opposite pattern, namely, that fulfilment was higher in temporary workers compared to permanent workers. Furthermore, only mutual high fulfilment of promises was associated with higher job satisfaction and fairness and with lower intentions to quit.

Drawing on perceived organizational support (POS) theory and employee-organizational relationship theories, this research investigated the association between POS and knowledge sharing as well as the potential moderating effects of perceived job security. Study participants were 255 information technology professionals and their supervisors working in the information technology industry in China. Findings showed that POS was positively related to knowledge sharing, and, as expected, perceived job security moderated the association. More specifically, the positive association between POS and employee knowledge sharing held only for employees who perceived higher job security from their organization. In contrast, POS was not significantly associated with knowledge sharing when employees perceived their job security to be relatively low. This latter result is consistent with contentions from employee-organizational relationships theories that limited investment by employers is likely to lead to lower contributions from employees. The findings are also congruent with arguments from social exchange theory that meaningful reciprocity is built on a history of open-ended exchanges whose development may be inconsistent with a shorter-term employment horizon.

In this paper, I accept Whetten's (2009) view that it is necessary to investigate Chinese management in a way that takes account of its context in order to assess the extent to which its features are context-specific or context-bounded. The first requirement, therefore, is to develop a way of conceptualising and measuring that context. A framework articulating material, ideational and institutional contextual features is offered to that end. Second, I argue that both ‘outside in’ and ‘inside out’ approaches to the study of Chinese management require comparison between China and other countries. Even a theory that claims uniqueness for China needs to have that claim tested through external comparison. We, therefore, have to employ a methodology that allows for valid comparisons between context and management in China and other countries. This paper focuses on these two issues of context and methodology with reference to comparative research. It examines them in turn and closes by arguing that the choice Barney and Zhang (2009) pose – between a Chinese theory of management and a theory of Chinese management – needs to be reframed within a more dynamic evolutionary perspective.

The assumption of strategy approaches like the resource based view is that, despite environmental constraints, ample room remains for organizations to differentiate on the basis of organizational culture (together with related human resource practices) to achieve sustained competitive advantage. In contrast, other perspectives assume that management practice and organizational culture mirror, or are constrained by, national culture. To the degree that such a constraint exists, within-country variance in culture should be small and between-country variance large. In statistical terms, the first question is: what is the magnitude of the effect size for country? The larger the effect, the more likely it is a constraint. Second, what portion of the country effect size is due to differences in national culture? My review finds that most of the variance in organizational cultures is not explained by country; of the variance that is explained by country, only a minority is due to national culture differences. As such, there may be more room for organizational differentiation than typically recognized. Third, under what circumstances will country and national culture effects be larger or smaller? I present a model suggesting more room for differentiation in countries having greater individual level variance in cultural values and related variables.

Based on social exchange theory, we propose and test the mediating role of formal and informal contracts in linking cooperation characteristics of prior ties and shared values among partners to cooperation success in the public—private partnership context. Results from a survey of 244 partners in public—private partnerships in the medical and healthcare fields in China revealed that both formal and informal contracts mediate the relationship between cooperation characteristics and cooperation success. We discuss the theoretical and managerial implications for public-private partnership research and practice with a specific focus on the Chinese context.

This paper elaborates theories of organizational knowledge creation by exploring the implications of institutional change for organizational knowledge creation in Chinese organizations of different ownership forms. Using a dynamic institutional perspective, we discuss prominent characteristics of the Chinese context and develop propositions about knowledge creation patterns in different organizational forms. We also theorize about the effects of increasing institutionalization on patterns of organizational knowledge creation in China and the consequent implications for innovation. We conclude with a discussion of the theoretical implications of this model and suggestions for further research.

We use the parable of the blind men and the elephant to suggest that Barney and Zhang (2009) and Whetten (2009) analogously touch on only a part of the Chinese management research puzzle. Their analyses remind us of many attempts at anchoring the research purpose – etic versus emic approaches, exploration versus exploitation approaches, rigor versus relevance scenarios – touched on by the many commentators in this issue. We suggest researchers first answer the ‘purpose’ questions before embarking on the research design. The research design should fit the purpose of the knowledge, which is either to improve the performance of Chinese organizations (meeting the relevance criterion) or to replicate, extend or refine a theory developed in the US (meeting the rigour criterion). We believe the strength of applied management research allows us to create knowledge that can meet the criteria of both rigour and relevance. We support the use of academic international research teams and dialectic debate as tools to move the field of Chinese management research forward.

We develop a three-dimensional concept of supervisor-subordinate guanxi. This concept includes affective attachment, personal-life inclusion, and deference to supervisor. Based on this concept, we conducted three studies to develop and validate a three-dimensional supervisor-subordinate guanxi measure and to examine its relationship with related constructs, such as leader-member exchange. Results from Study 1 and Study 2 provide evidence of convergent and discriminant validity of the scale, while Study 3 demonstrates the scale's incremental validity and replicates results from Study 2. Furthermore, in Study 3, we found that the three dimensions of supervisor-subordinate guanxi had different significant effects on commitment, turnover intention, and procedural justice, providing further evidence of criterion-related validity. Overall, these empirical results provide support for our three-dimensional model of supervisor-subordinate guanxi.

This study presents and tests a framework that links leader—member exchange (LMX) with two different forms of employee–organization exchange: organizational social exchange and organizational economic exchange. We propose that these two forms of employee exchange with the organization would be the main mechanisms through which LMX affects employees’ affective commitment and intention to leave. We used structural equation modelling to analyze the data collected from 239 employees in a foreign-invested enterprise in China. Results showed that both organizational social exchange and organizational economic exchange acted as full mediators in the relationships between LMX and the two outcome variables but in different directions. Theoretical and practical implications are discussed.

To complement Barney and Zhang's as well as Whetten's articles in this issue of Management and Organization Review, we offer ways to develop indigenous management theory to explain unique Chinese management phenomena. We first briefly review the imbalance of developing theories of Chinese management versus developing Chinese theories of management in Chinese research societies. We then describe a five-step research process that uses an indigenous research approach to theory development: discovery of interesting phenomena, field observations, construction of the theoretical framework, empirical examination, and theory refinement. This process may be useful not only in the Chinese context, but also in any other context. We identify several challenges in both Chinese and international academic societies that must be overcome to facilitate learning across the two approaches proposed by Barney and Zhang: the need for high quality journals in the Chinese language, international journals' efforts to ease the imbalance between the two approaches, and collaboration between Chinese and Western management schools.

This commentary reviews Chinese management research since its beginning more than thirty years ago and considers the emerging paths that contemporary scholars may follow. Following Barney and Zhang's (2009) article as well as Whetten's article (2009) in this issue, we first clarify what the two paths (a theory of Chinese management and a Chinese theory of management) would mean for the Chinese scholar. We then discuss the possible interplay between these two paths and suggest it is time to take the road less travelled rather than to over-travel the more popular road. We conclude that practice will prove the final judge on the paths pursued and that the insights from the Barney and Zhang and Whetten articles help sharpen our understanding of the challenges.