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The effect of business ties and government ties on new IT venture growth: an empirical examination in China

Author

Listed:
  • Xueling Li

    (Jilin University)

  • Jia Shen

    (Jilin University)

  • Wenjie Ma

    (Fudan University)

  • Weiyong Zhang

    (Old Dominion University)

Abstract

The advancement of information technology in the past three decades is tremendous, and much of the advancement can be attributed to numerous new IT ventures that invent and commercialize a variety of information technologies. But new IT venture growth has not been sufficiently addressed by IS/IT researchers. In this research, we synthesized the literature on entrepreneurship, strategy, and management to develop a model linking business ties and government ties to new IT venture growth, while considering the effect of two contextual factors, firm size and legitimacy. We then collected empirical data from new IT ventures in China (N = 457). Regression analyses showed that both business ties and government ties positively affect new IT venture growth, and their effect is moderated by firm size and legitimacy. These insights contribute to both the literature and practices.

Suggested Citation

  • Xueling Li & Jia Shen & Wenjie Ma & Weiyong Zhang, 2016. "The effect of business ties and government ties on new IT venture growth: an empirical examination in China," Information Technology and Management, Springer, vol. 17(3), pages 245-261, September.
    • Handle: RePEc:spr:infotm:v:17:y:2016:i:3:d:10.1007_s10799-015-0233-5
    DOI: 10.1007/s10799-015-0233-5
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    5. Mengmeng Wang & Shufeng (Simon) Xiao, 2022. "How Do Political and Business Ties Matter for Supply Chain Management Capability? An Empirical Test of an Integrative Framework," Sustainability, MDPI, vol. 15(1), pages 1-14, December.

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