Jae Chul Jung

Purpose: Previous research suggests that female leaders, who generally demonstrate higher levels of empathy toward employees than their male counterparts, are more likely to steer their firms away from layoffs. However, female leaders may also struggle with more significant resource constraints, potentially increasing the likelihood of layoffs in their firms. To reconcile these conflicting predictions, we develop a contingency model that considers the impact of the COVID-19 pandemic and country-level institutions on how top manager gender affects layoffs. Design/methodology/approach: We use a combined dataset of the World Bank’s Enterprise Survey and the COVID-19 Pandemic Survey, which generates 1,283 firm observations across ten countries. Findings: We found that, before the pandemic, the gender of top managers did not significantly affect layoffs in their firms, but during the pandemic, female-led firms experienced significantly higher layoff rates. Further, during the pandemic, the quality of country-level formal institutions attenuated the positive relationship between female top managers and layoffs, but country-level empathy (as an informal institution) did not have a significant effect on this relationship. Originality/value: Overall, this pattern of findings highlights the importance of a contingency approach to understanding the roles of women in leadership.

Prior studies assert that social trust may positively influence the economic performance of countries and firms (within those countries). This paper proposes a more nuanced mechanism whereby corporate social responsibility (CSR) mediates the relationship between country‐level social trust and firm‐level financial performance. Anchored in neo‐institutional theory, we theorize that social trust instills norms of trustworthiness and willingness to trust others guiding individual and corporate behaviors. In order to comply with such norms and gain legitimacy, firms in high‐trust society are more likely to commit to CSR activities that serve the interests of stakeholders. CSR activities, in turn, can positively influence financial performance by enabling firms to access stakeholders' resources and capabilities and to decrease transactions costs in the stakeholder relationships. We tested our theory by analyzing 9818 firm‐year observations across 34 countries, during the 2006 to 2015 period. Our analysis shows the expected CSR mediation in the relationship between social trust and firm‐level financial performance. Our findings are robust across different models addressing the concerns of endogeneity, alternative measures, and potential moderators.

Purpose: Assuming that supplier knowledge can either strengthen the partnership by nurturing the commitment and trust between partners or allow the buyer to be more calculative, this study aims to propose two types of knowledge sharing in supplier relationship – a type benefiting the partnership and another privately benefiting only one partner.Design/methodology/approach: Using structural equation modeling and a surveyed dataset from 352 buyer–supplier partnerships, this study tested the research model of dual mechanism, where two types of knowledge sharing co-exist and have opposite effects on partnership longevity.Findings: This study found that the two types of knowledge sharing create divergent effects on partnership continuation. For a buyer firm developing supplier knowledge, its supplier firm reciprocates by sharing knowledge with the buyer. While relation-specific knowledge promotes partnership longevity through developing trust, institutionalized knowledge hampers partnership longevity.Research limitations/implications: Findings overall indicate that knowledge plays a more instrumental role in sharing knowledge in a buyer–supplier relationship, and alternative forces simultaneously work in the partnership. Although this study explicates two mediating mechanisms for the effect of supplier knowledge, there remain many unknown aspects of the effect.Practical implications: From the buyer’s perspective, it is possible its institutionalized knowledge can facilitate its relationship with a current supply chain partner so that it can gain more benefits from the relationship. From the supplier’s perspective, caution should be exercised in selecting the type of knowledge to share.Social implications: This study may have a broad impact on public policy by theorizing and testing why some partnerships last longer/shorter than others in association with the dynamics of the relationship initiated by one’s relational knowledge and the other’s knowledge sharing.Originality/value: What this study contributes to involves the theorizing and testing the effects of the dual mechanism of knowledge sharing on partnership longevity. This study provides an example of a private investment in knowledge that is reciprocated with each type of knowledge – benefiting the partner and also benefiting the focal buyer firm.

The discovery in 2015 that car maker Volkswagen (VW) had installed “defeat devices” into its diesel engines to lower emissions during testing exposed a corporate scandal and resulted in a 40% drop in the company's share price in 2 weeks. Although industry analysts questioned whether VW would survive the fallout, its sales quickly rebounded, and in 2017 the firm was the world's largest auto manufacturer. Although this unexpected surge led some to say that the scandal had blown over, there are indicators that VW has not yet fully recovered from the affair, and several issues stemming from it remain to be resolved. An examination of several reports issued as the crisis unfolded highlights the impact on VW and offers lessons for the firm's leaders and public policy makers.

Synopsis: The Wanda Case offers an overview of Wanda Group’s transition from a real estate firm in China to a global leader in the movie industry. Wanda Group, a Chinese conglomerate headquartered in Beijing, caused a major commotion in the US movie industry when it acquired AMC Entertainment in 2012. The AMC acquisition was the largest acquisition by a Chinese firm in the USA up to that time, costing $2.6 billion. Following that, a series of acquisitions had made Wanda Group the largest movie theater company, respectively, in the USA, Europe, and the World by the end of 2016. In order to fully comprehend the transition of the Wanda Group, the case begins by introducing the group’s origins and its original business model. It then discusses the challenges in the Chinese real estate market and factors that played a role in Wanda Group’s shift toward the movie industry. The authors further introduce the trends in movie theaters/production, recognized on a global scale in China and the USA, including key competitors in the industry. Last, the authors discuss Wanda Group’s global expansion efforts through major acquisitions in the USA and Europe, and the challenges that Wanda Group faced.Research methodology: The case was written with publicly available information, such as newspaper articles, databases and corporate websites. The authors did not disguise any details.Relevant courses and levels: This case can fulfill various learning goals in international business and strategy courses. First, this case offers detailed information about the diversification process of Wanda Group. It first diversified from real estate development into the movie cinema and production business in China (i.e. product diversification). More recently, Wanda Group diversified into the USA and Europe (i.e. geographical diversification). With the information provided in the case, students will be able to evaluate the costs and benefits of diversification strategies. Second, students can examine pros and cons of available entry modes for international expansions. Particularly, students will be able to evaluate the costs and benefits of acquisitions to Wanda Group’s international expansion. The authors also believe that this case can be used for introducing a relatively less-known emerging-market conglomerate, especially from China. Last, considering the rich information this case contains, the authors may use it as an exam case to evaluate students’ comprehensive knowledge gained from the course.Theoretical bases: The case discusses corporate strategy, particularly diversification, the resource-based view, and institutional theory.