Optimal or rational decision making is not possible due to informational constraints and limits in computation capability of humans (March & Simon, 1958; March, 1978). This bounded rationality serves as a filtering process in decision making among business executives (Hambrick & Mason, 1984). In this study, we propose the concept of CEO reflective capacity as a behavior-oriented cognitive capability that may overcome to some extent the pervasive limitation of bounded rationality in executive decision-making. Following Hinkin's (1998) method and two executive samples, we developed and validated a three-dimensional measure of CEO reflective capacity. Based on two-wave surveys of CEOs and their executive-subordinates in 213 Chinese small-medium sized firms, we tested and confirmed three hypotheses on how CEO reflective capacity is related to a firm's sustainability performance (including economic, societal, and environmental dimensions) through the mediating mechanisms of strategic decision comprehensiveness and CEO behavioral complexity. We discuss the contribution of this study to the literature on the upper echelons and information processing perspectives. We also identify the implications for future research on strategic leadership and managerial cognition in complex and dynamic contexts.

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This study explores the implications of CEO entrepreneurial orientation for firm performance through corporate dynamic capabilities. It explores the moderating effects of firm industry type on the above indirect effect. Based on 188 matched sample data collected from vice chief executive officers (CEOs) of Chinese firms, this study found that CEO entrepreneurial orientation was positively related to corporate dynamic capabilities and firm performance and that corporate dynamic capabilities mediated the positive relationship between CEO entrepreneurial orientation and firm performance. Firm industry type moderated the direct effect of CEO entrepreneurial orientation on corporate dynamic capability, and the indirect effect of CEO entrepreneurial orientation on firm performance through corporate dynamic capability. Both direct and indirect effects were stronger in manufacturing enterprises. The findings enrich the CEO entrepreneurial orientation literature by extending the existing knowledge on its underlying mechanism and its impact on firm performance, as well as its boundary conditions.

Strategic human resource management (HRM) research considers HRM systems a potential source of competitive advantage due to their positive effects on performance outcomes. However, previous research has not paid enough attention to how peer companies' use of HRM systems is associated with the adoption and the effects of HRM systems of a focal company. Specifically, drawing upon the institutional theory, we propose that a focal company's adoption of high-investment human resource systems (HIHRS) will be positively related to the level of HIHRS used in its peer companies. We also argue that the extent to which a focal company's HIHRS use is associated with organizational outcomes is contingent on the adoption of HIHRS in peer companies. Using a sample of 912 publicly traded companies in the U.S. stock market from 2002 to 2015, we found a positive relationship between the average HIHRS use of peer companies in the previous year and the change in focal company's HIHRS use. We also found that a focal company's HIHRS use is more likely to enhance financial performance (e.g., sales growth and profit growth) when the adoption of HIHRS is low in peer companies. However, HIHRS use is more positively related to employer certifications received by a focal company when the adoption of HIHRS is high in peer companies. These findings suggest that peer companies play an important role in understanding the adoption and the effects of HIHRS use of a focal company.

Purpose Conflict between work and family is a significant issue for entrepreneurs. The purpose of this study is to explore the effect of entrepreneurial failure on both family–work conflict (FWC) and work–family conflict (WFC) and the moderating role of perceived control of time and organizational slack based on conservation of resources (COR) theory. Design/methodology/approach This study used a questionnaire to explore the relationship between entrepreneurial failure, FWC/WFC, perceived control of time and organizational slack. Data were collected from the Chinese context in 2018 and as a result received 318 valid questionnaires, obtaining a response rate of 63.6 per cent. Findings The study finds that entrepreneurial failure has a significant relationship with FWC but a nonsignificant relationship with WFC and that perceived control of time and organizational slack moderate the relationship between entrepreneurial failure and FWC/WFC. Originality/value This study aligns the field of family–work (work–family) conflict and entrepreneurial failure. It addresses a research gap in the conflict literature by introducing one form of resource loss: entrepreneurial failure as a source of conflict between work and family based on COR theory and the work–home resources model. The study also enriches the literature on the social cost of entrepreneurial failure by exploring the crossover effect of entrepreneurial failure on conflicts in the family domain. Furthermore, the study advances the understanding of managing conflict between work and family after entrepreneurial failure.