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, political connections and resource acquisition in Chinese publicly listed private sector firms

Author

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  • Han Yu
  • Abraham Y. Nahm
  • Zengji Song

Abstract

In this study, we examined the role of guanxi as entrepreneurs’ resource-obtaining mechanism in private sector firms, using a data-set of 184 publicly listed firms in China. We found that guanxi indeed played a positive role that helped private sector firms gain easier access to resources. We also found that guanxi exerted even a greater positive effect on private sector firms’ resource obtaining compared to entrepreneurs’ political participation, due to being the lifeblood of business conduct and social interaction in Chinese culture.

Suggested Citation

  • Han Yu & Abraham Y. Nahm & Zengji Song, 2017. ", political connections and resource acquisition in Chinese publicly listed private sector firms," Asia Pacific Business Review, Taylor & Francis Journals, vol. 23(3), pages 336-353, May.
    • Handle: RePEc:taf:apbizr:v:23:y:2017:i:3:p:336-353
    DOI: 10.1080/13602381.2016.1161889
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    Cited by:

    1. Xiaotang Zhang & Haili Zhang & Michael Song, 2019. "Does Social Capital Increase Innovation Speed? Empirical Evidence from China," Sustainability, MDPI, vol. 11(22), pages 1-22, November.
    2. Cheng, Louis T.W. & Chan, Ricky Y.K. & Leung, T.Y., 2018. "Impact of perk expenditures and marketing expenditures on corporate performance in China: The moderating role of political connections," Journal of Business Research, Elsevier, vol. 86(C), pages 83-95.
    3. Dan Li & Li-Qun Wei & Qing Cao & Deqiu Chen, 2022. "Informal institutions, entrepreneurs’ political participation, and venture internationalization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 1062-1090, August.
    4. Baili Yang & Abraham Nahm & Zengji Song, 2022. "Succession, political resources, and innovation investments of family businesses: Evidence from China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(2), pages 321-338, March.
    5. Yan, Hongmin & Hu, Xiaowen & Liu, Yulong, 2020. "The international market selection of Chinese SMEs: How institutional influence overrides psychic distance," International Business Review, Elsevier, vol. 29(4).
    6. Zhao Wang & Xiaobing Liu & Qinhua Liu, 2019. "Study of the Relationship between Political Connections and Corporate Re-Entrepreneurial Performance," Sustainability, MDPI, vol. 11(15), pages 1-28, July.

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