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Richard et al.'s (2021) recent AMJ article aims to demonstrate that matching levels of racial diversity in upper management and lower management (i.e., racial diversity congruence) leads to optimal firm productivity. In this study, we point out several flaws in their study. For instance, it is premature to theorize a match between upper management racial diversity (UMRD) and lower management racial diversity (LMRD) as the locus of optimal firm productivity. Their empirical testing is also flawed. We then integrate the upper echelons theory and the holistic perspective of congruence to build a refined theory of racial diversity congruence. Specifically, we theorize that a slight mismatch between UMRD and LMRD with UMRD slightly exceeding (leading) LMRD leads to optimal firm productivity. We also propose the boundary condition of this congruence effect. We test and provide empirical support for our refined theory using Richard et al.'s (2021) published data. Our study not only offers a refined way to expand the upper echelons theory, but also calls for revising or abandoning many conclusions drawn in Richard et al.'s study, thereby improving the theoretical and practical implications of their study. [ABSTRACT FROM AUTHOR]

Product innovation in different cultural contexts has become more important in the increasingly globalized market, and it is essential to examine how cultural context affects the relationship between product innovation activities and firm performance in the global market. Based on the analysis on more than one thousand manufacturing companies that have been involved in innovative activities in China, this study compares the effects of product innovation strategies and institutional factors on firm performance for international joint ventures and domestic firms in China. The results show that supportive innovation policies, high-level of infrastructure, well-developed local talent market, and large R&D investment all positively affect a firm's product innovation performance in China's domestic companies, but a defender innovation strategy is negatively related to their innovation performance. When international joint ventures are considered, only R&D investments and the level of infrastructure are positively related to international joint ventures' product innovation performance, in part due to high cultural context in China. Implications of the results are then discussed. [ABSTRACT FROM AUTHOR]

Congruence research has progressed from the difference score (D) model to the X-Y polynomial regression & response surface methodology (XYPR&RSM) model. Both models, however, are still insufficient to support a comprehensive nomological network of congruence; nor are they as methodologically rigorous as expected. In this article, we develop a difference and mean (D-M) approach to synthesize these two existing models. The proposed D-M model advances congruence research by integrating the effects of the difference (i.e., defined as the signed difference between two constructs), the effects of the mean (i.e., representing the absolute level of the two components), and the difference-and-mean interaction to form a comprehensive nomological network of congruence. The D-M model can help scholars develop more robust theories, offer accurate solutions to address research questions of interest to the XYPR&RSM model, enable knowledge-accumulation in congruence research, and resolve the empirical issues associated with existing models. We then elaborate the contributions of this new model using empirical examples. The results of this study suggest that although previous models both have made important contributions to the literature, it may be the time to explore a new line of research, and research opportunities on the new D-M model have yet to be discovered. [ABSTRACT FROM AUTHOR]

An abstract of the article "Host Market's Institutional Environment and Emerging Market Firm's Innovation Performance: Evidence from China" by Jie Wu and Zhenzhong Ma is presented.

Innovation productivity differs across economies and latecomer countries are working hard to close their gap with developed countries. This study is to explore what affects national innovative capacity by incorporating international trade and inward foreign investment as two key determinants of country-level production of international patents. An investigation of 80 countries during the years 1981-2010 shows that four major variables account for the variation in international patenting activities across countries: patent stocks, levels of R&D manpower, industrial specialization, and quality of linkage. We also find that both high-tech related international trade and inward foreign direct investment significantly contributes to emerging countries' ability to produce cutting-edge technologies, although this effect does not exist for leading innovator countries. Moreover, although strong intellectual property rights (IPRs) protection is highly correlated with international patenting activities in leading innovator countries, it is found to have a negative impact on emerging innovator countries' national innovative capacity. This study thus helps better understand the role of international economic activities and IPRs in enhancing national innovative capacity, especially for emerging countries to catch up with leading innovator countries. [ABSTRACT FROM AUTHOR]