The Effects of Business and Political Ties on Firm Performance: Evidence from China

• DOI: 10.1509/jm.75.1.1
• Publication Date: 2019-01-04T19:39:52Z
• Authors: Shibin Sheng; Kevin Zheng Zhou; Julie Juan Li
• Keywords: 05 social sciences; 1. No poverty; Guanxi; Social ties; institutional environment; guanxi; 950; Institutional theory; Emerging economy; social ties; Business & Economics; emerging economy; 8. Economic growth; 0502 economics and business; Business; relational governance; Institutional environment; Relational governance; institutional theory

Despite increasing attention to the role of social ties in emerging economies, few studies have explicitly distinguished differential roles business versus political ties. Drawing on relational governance and institutional theories, this study offers a contingent view China. The findings from survey 241 Chinese firms indicate that stronger positive effect performance than ties, both effects depend market environments. Business are more beneficial when legal enforcement is inefficient technology changing rapidly, whereas lead greater general government support weak technological turbulence low. These operating China should be cautious their use adapt tie utilization