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Managerial Political Ties and firm Performance During Institutional Transitions: An Analysis of Mediating Mechanisms

TLDR
The authors examined the role of mediating mechanisms impacting the relationship between managers' political ties and firm performance, with a focus on institutional transitions in China, and found that organizational regulatory legitimacy building, institutional support, and institutional entrepreneurial opportunity recognition are mediating factors by which managerial political ties can result in improved firm performance.
Abstract
This study examines the role of mediating mechanisms impacting the relationship between managers’ political ties and firm performance, with a focus on institutional transitions in China. Relying on both resource dependence and institutional theories, the analysis posits that three factors: organizational regulatory legitimacy building, institutional support, and institutional entrepreneurial opportunity recognition; mediate the relationship between managerial political ties and firm performance. Using survey data collected from 195 Chinese firms, the study concludes that institutional support and institutional entrepreneurial opportunity recognition represent two significant mediating mechanisms by which managerial political ties can result in improved firm performance. But, though a reliance on political utilization enhances organizational regulatory legitimacy, the results show that regulatory legitimacy does not directly contribute to firm performance. This study also discusses theoretical contributions, implications for managers, study limitations, and suggestions for future research.

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The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields (Chinese Translation)

TL;DR: In this article, the authors argue that rational actors make their organizations increasingly similar as they try to change them, and describe three isomorphic processes-coercive, mimetic, and normative.
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Institutional drivers of high-growth firms: country-level evidence from 26 transition economies

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State Ownership and Political Connections

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Managerial ties and product innovation: The moderating roles of macro- and micro-institutional environments

TL;DR: In this paper, a nonlinear relationship between business/political ties and product innovation was proposed, and the moderating roles of a macro-institutional environment (comparing developed with underdeveloped regions where firms are located) and a micro-organizational environment (i.e., market dynamism) in the proposed relationships were examined.
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The Role of Government Support in Sustainable Competitive Position and Firm Performance

TL;DR: In this article, the influence of government financial support and non-financial support on firm performance with mediating role of the sustainable competitive position was examined in Pakistani Small and Medium Size Enterprises (SMEs).
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The iron cage revisited institutional isomorphism and collective rationality in organizational fields

TL;DR: In this paper, the authors argue that rational actors make their organizations increasingly similar as they try to change them, and describe three isomorphic processes-coercive, mimetic, and normative.
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