Study of the Relationship between Political Connections and Corporate Re-Entrepreneurial Performance

Zhao Wang, Xiaobing Liu and Qinhua Liu
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Zhao Wang: Faculty of Management and Economics, Dalian University of Technology, Dalian 116024, China
Xiaobing Liu: Faculty of Management and Economics, Dalian University of Technology, Dalian 116024, China
Qinhua Liu: Faculty of Management and Economics, Dalian University of Technology, Dalian 116024, China

Sustainability, 2019, vol. 11, issue 15, 1-28

Abstract: Based on both resource-based theory and institution-based theory, this study places political connections, acquisition of entrepreneurial resources, institutional environment, and corporate re-entrepreneurial performance into the same research framework. Using data from 223 real estate companies in China as a sample and with the help of the statistical tools SPSS 22.0 and Mplus 7.0, the study examines the internal influence mechanism of political connections on corporate re-entrepreneurial performance as well as the mediating effect of acquisition of entrepreneurial resources and the moderating effect of institutional environment. The empirical results show that both explicit political connections and implicit ones have positive impacts on corporate re-entrepreneurial performance through the mediating effect of acquisition of entrepreneurial knowledge resources and entrepreneurial asset resources. Meanwhile, institutional environment positively regulates the relationship between political connections and corporate re-entrepreneurial performance. The results of the study suggest that political connections have positive impacts on corporate re-entrepreneurial performance under the circumstances of China’s transitional economy, but the impacts are restricted by institutional environment to a large extent.

Keywords: political connections; entrepreneurial resource acquisition; re-entrepreneurship; institutional environment; corporate performance (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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