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Managerial Political Ties and firm Performance During Institutional Transitions: An Analysis of Mediating Mechanisms
Hai Guo,Erming Xu,Mark Jacobs +2 more
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.read more
Citations
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The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields (Chinese Translation)
Paul DiMaggio,Walter W. Powell +1 more
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.
Journal ArticleDOI
Institutional drivers of high-growth firms: country-level evidence from 26 transition economies
TL;DR: In this paper, the influence of formal and informal institutions on high growth firms (HCF) prevalence in 26 transition countries over a long period comprising three panels between 1998 and 2009.
Journal ArticleDOI
State Ownership and Political Connections
Laszlo Tihanyi,Ruth V. Aguilera,Ruth V. Aguilera,Pursey P. M. A. R. Heugens,Marc van Essen,Steve Sauerwald,Patricio Duran,Roxana Turturea +7 more
TL;DR: The influence of the state on firms in the global economy is alive and well as mentioned in this paper and states have become dominant owners of companies in many countries around the world, and firms have also increasingly become increasingly establi...
Journal ArticleDOI
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.
Journal ArticleDOI
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).
References
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The iron cage revisited institutional isomorphism and collective rationality in organizational fields
Paul DiMaggio,Walter W. Powell +1 more
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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Managerial political ties and firm performance during institutional transitions: An analysis of mediating mechanisms☆
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