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12
Entrepreneurial Authority Formation Mechanism in China:
A Grounded Theory Study Based on Liu Chuanzhis Data
Zhang Xiaofeng1, Shang Yufan1, Li Guiquan2, Xi Youmin1,3, Ge
Jing1, Li Lei1
1. School of Management, Xian Jiaotong University; 2. Business
School, Nankai University; 3. Xian Jiaotong-Liverpool University
Abstract As an old country with several thousand years civiliza-
tion, traditional culture plays a deep-rooted role, along with the great
changes in economy and society since reform and opening up, the
traits, behaviors and decision-making mechanisms of Chinese local
leaders manifest specific cultural factors and brands of economy
transformations. Therefore, this study focused on the evolution pro-
cess of Chinese enterprise leaders, and with the purpose of finding out
how an ordinary newly-established firm leader develops step by step
into a real top leader and achieves the status of legitimacy in the well-
known enterprise, we cannot avoid the concept of leader authority.
Based on constructivist grounded theory, this article investigates the
formation mechanism of entrepreneurial authority in China based on
that the formation process of leader authority contains two aspects,
which are exceptional management activities conducting and position
power exercising. Specific conclusion as follows: (1) In the process
of enterprise development, there are plenty of activities that guided
and completed by leaders, but cannot be implemented only by lead-
ers position power, and they are named of exceptional management
activities. In the evolution path of authority formation, leaders con-
tinually consolidate and improve their authority through two classes
of exceptional management activities that are emergency rescue
and promotion activities. The successful realization of exceptional
management activities benefits from leaders management experience
accumulation and relationship maintenance with the government. (2)
In the design path of authority formation, leaders consolidate and
improve their authority through exercising their position power, which
directly embodies leaders initiative planning. Leaders legitimacy
are reflected through making strategic decision and demonstrating
the discretionary of position power. Additionally, inspiring lead-
ers thoughts and ideas into organization members is accomplished
through the construction of organization culture, institutionalization
and convention. The theory comparison with existing research results
and the future research directions are discussed in the end.
Key Words Constructivist Grounded Theory; Leadership Authority;
Formation Mechanism; Evolution; Design
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