Managing corporate crisis in China : Sentiment, reason, and law

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review

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Detail(s)

Original languageEnglish
Pages (from-to)193-201
Journal / PublicationBusiness Horizons
Volume58
Issue number2
Publication statusPublished - 1 Mar 2015

Abstract

Why has the incidence of corporate crisis risen markedly in China? Why are foreign firms frequently targeted by the Chinese authorities and how should they deal with it? Addressing these pivotal questions is essential for effective management of corporate crisis in the Chinese market. Herein, we describe the background of relevant institutional and market environments in China. Then we introduce three prominent principles deeply rooted in Chinese thinking and business practice-sentiment, reason, and law-and pinpoint how they relate to crisis management. Several cases drawn from well-known corporate crises are utilized to illustrate the dynamic relationships among these three fundamental principles. We proceed to highlight the importance of sentiment and emphasize the delicate balance between sentiment and law. Finally, we elaborate how different forms of institutional capital and social media can be employed to manage sentiment, reason, and law so as to curtail and tackle corporate crisis.

Research Area(s)

  • Corporate crisis in China, Institutional capital, Law, Reason, Sentiment, Social media

Citation Format(s)

Managing corporate crisis in China : Sentiment, reason, and law. / Yang, Zhilin; Jiang, Ling Alice.

In: Business Horizons, Vol. 58, No. 2, 01.03.2015, p. 193-201.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review