Recently, the latest research "A theory of host country sentiments: An illustration in cross-border acquisitions" by Associate Professor Tian Xiaocong from the School of Management was published online in the Academy of Management Journal. This journal is one of the top 24 academic journals of business schools selected by the University of Texas at Dallas (UTD 24). It enjoys a high academic reputation in the international management community and is a globally recognized top academic journal in the field of organization and management research. Associate Professor Xiaocong Tian, the co-corresponding author of this paper, is affiliated with Shandong University. This research was funded by the National Natural Science Foundation of China.

Operating across national boundaries with political and sociocultural differences, MNEs are increasingly under strict scrutiny of local public stakeholder activism and governance primed by geopolitics, the rise of social movements, as well as social media support and boycotts. Host country sentiments are, indeed, significant forces shaping MNEs’ strategic behaviors and outcomes in local marketplaces. Capitalizing on massive sentiment diffusion and mobilization aided by mass media and social media nowadays, this paper introduces a general theory of host country sentiments to illuminate the granular, context-situated, and time dynamic power of social sentiments. It posits that host country is a value-laden context wherein a foreign entity’s strategic action stimulates host country stakeholders’ social sentiments and engagement in systems of discourses (“sentiment arousal”), mobilizes social sentiments toward the foreign entity (“sentiment competence”), and legitimizes social sentiments and the strategic action of the foreign entity (“sentiment resonance”). Highlighting the patterns of host country sentiment dynamics, it employs a context of inward acquisitions by emerging market firms in an advanced economy, and showcases how sentiment volatility, wavelength, and augmentation exert heterogeneous effects on deal completion.

This paper sheds new light on the embryonic literature of collective sentiments and emotions and institutional works by integrating collective emotion arousal, competence, and resonance. In addition, it synthesizes past related theories on social sentiments, such as ritual interactionist, sensemaking, social constructionist, and institutional perspectives, by integrating situational, interactional, motivational, and cognitive elements of social sentiments in the examination of social sentiments on firm outcome. The conceptual and empirical differentiation of host country sentiment dynamics (volatility, wavelength, and augmentation) is a great leap forward to elucidate the heterogeneous, granular effects of social sentiments.

In recent years, the School of Management has actively fostered a scholarly atmosphere characterized by far-reaching goals and high-quality innovation. The school continuously explores and endeavors in organized research and supporting the growth of young faculty. In 2023, young faculty members from the school were honored with 13 projects from the National Natural Science Foundation of China, and high-level research achievements continue to emerge. The publication in the Academy of Management Journal marks a significant breakthrough for the School of Management in producing noteworthy outcomes with high visibility and impact.

Tian Xiaocong, Associate Professor at the School of Management, Shandong University, primarily focuses on research areas such as international business and corporate governance. She has led and participated in several projects funded by the National Natural Science Foundation of China, and her research findings have been published in high-impact international journals, including theAcademy of Management Journal, Journal of International Business Studies, Journal of World Business, and International Business Review.

Web link:https://journals.aom.org/doi/10.5465/amj.2022.0239