IDEAS home Printed from https://ideas.repec.org/a/bla/jomstd/v62y2025i2p632-665.html
   My bibliography  Save this article

The Dynamic Role of Subnational Regions in Firm Performance

Author

Listed:
  • Haibing Shu
  • V. Brian Viard

Abstract

This study investigates dynamics of subnational regions in determining firm performance over time and by ownership type. We explain theoretically how subnational regions affect firm performance over time in the context of path dependence and the institution‐based view and test these predictions using annual data of manufacturing firms in China from 2000 to 2014 – before and after a major negative institutional shock (2008 financial crisis). Consistent with path dependence, regional institutional quality diverges across regions before 2008, a pattern that is disrupted post‐2008. Firm performance is increasing in institutional quality so that location effects are increasingly important before the financial crisis but less so post‐crisis. These effects are greater for private‐ than state‐owned enterprises consistent with differences in organizational objectives under the institution‐based view.

Suggested Citation

  • Haibing Shu & V. Brian Viard, 2025. "The Dynamic Role of Subnational Regions in Firm Performance," Journal of Management Studies, Wiley Blackwell, vol. 62(2), pages 632-665, March.
    • Handle: RePEc:bla:jomstd:v:62:y:2025:i:2:p:632-665
    DOI: 10.1111/joms.13066
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/joms.13066
    Download Restriction: no
    File URL: https://libkey.io/10.1111/joms.13066?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jomstd:v:62:y:2025:i:2:p:632-665. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-2380 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.