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The mechanism of politically-connected managers on technological innovation for small and medium high-tech enterprises - empirical evidence from listed firms in Chinese SMEs stock market

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  • Zhenyi Wang
  • Jinjian Yang
  • Huqin He
  • Li Su

Abstract

It is a widespread phenomenon of enterprises in many countries to seek and establish certain contact with the government. This study selects high-tech enterprises listed in the small board as samples, 2007-2010 as inspection interval, using structural equation modelling to explore the mechanism of political connections on technological innovation for small and medium high-tech enterprises. The results show that politically-connected managers can play a positive role on technological innovation for small and medium high-tech enterprises. External financing and entry barriers play indirect role of conduction of political connections on technological innovation, that is to say, political connections affect technological innovations of enterprises via external financing and entry barriers indirectly. Government subsidies play no indirect conduction of political connections on technological innovation of enterprises.

Suggested Citation

  • Zhenyi Wang & Jinjian Yang & Huqin He & Li Su, 2013. "The mechanism of politically-connected managers on technological innovation for small and medium high-tech enterprises - empirical evidence from listed firms in Chinese SMEs stock market," International Journal of Service and Computing Oriented Manufacturing, Inderscience Enterprises Ltd, vol. 1(2), pages 178-195.
    • Handle: RePEc:ids:ijscom:v:1:y:2013:i:2:p:178-195
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    Cited by:

    1. Yu-Hong Ai & Di-Yun Peng & Huan-Huan Xiong, 2021. "Impact of Environmental Regulation Intensity on Green Technology Innovation: From the Perspective of Political and Business Connections," Sustainability, MDPI, vol. 13(9), pages 1-23, April.

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