Temporal Dynamics and Dual Modes in Constructing Leading Organizational Identity: A Comparative Study

As emerging markets rise, some incumbent firms that once occupied follower positions are now striving for industry leadership, surpassing competitors to become new frontrunners. These firms must overcome both competitive barriers and organizational identity (OI) challenges, constructing a leading organizational identity (LOI) that aligns with their new roles. This study delves into these transformations through the temporality lens of OI, using a comparative analysis of two Chinese firms, and identifies two distinct modes: progressive evolution and radical change. The progressive evolution mode adopts a more gradual, layer-by-layer iterative transition, whereas the radical change mode follows a ‘break and (re)build’ logic to identity structure. Both modes demonstrate a ripple effect of OI’s three structural layers, radiating outward from the core. Temporal dynamics play a pivotal role: the progressive evolution mode aligns with a more stable environment and a future-oriented, long-term temporal perspective, while the radical change mode is linked to a dynamic, unstable environment and a past-oriented, short- and long- term interactive temporal pattern. This study highlights how temporal orientation and temporal horizon shape the construction of an LOI, advancing research on OI construction and its temporal dynamics while providing insights into high-position leaps in emerging markets.