Entrepreneurial attention to deregulations and reinvestments by private firms: Evidence from China

Weiqi Dai () and Mingqing Liao ()
Additional contact information
Weiqi Dai: Zhejiang University of Finance & Economics
Mingqing Liao: South China University of Technology

Asia Pacific Journal of Management, 2019, vol. 36, issue 4, No 12, 1250 pages

Abstract: Abstract To increase the understanding of entrepreneurship in China and contribute to the view that deregulation facilitates the rapid development of the private sector in transitional economies, we examine the positive relationship between entrepreneurial attention to deregulation (formal institution at the country level) and reinvestment by Chinese private firms. We supplement this main aim by identifying two moderating factors: the entrepreneurs’ political connections (informal institution) and the regional institution development (formal institution at the regional level). We also explore how the interaction of political connections and regional institution development moderate the “entrepreneurial attention to deregulation-reinvestment” link. We find support for our hypotheses from survey data on 3,284 private firms in China. This paper contributes to the research on the relationship between institution and entrepreneurship in general and the association of deregulation and reinvestment in particular by considering two categories of institutional arrangements (formal and informal institutions; national and regional institutions) simultaneously and by exploring the antecedent of reinvestment from a fresh perspective—the attention-based view, highlighting the importance of “noticed” or “perceived” deregulation that influences entrepreneurial decision-making.

Keywords: Reinvestment; Deregulation; Attention-based view; Institutional theory; Political connections; Regional institutions (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://link.springer.com/10.1007/s10490-018-9574-z Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:asiapa:v:36:y:2019:i:4:d:10.1007_s10490-018-9574-z

Ordering information: This journal article can be ordered from
http://www.springer. ... 29/journal/10490/PS2

DOI: 10.1007/s10490-018-9574-z

Access Statistics for this article

Asia Pacific Journal of Management is currently edited by Jane Lu

More articles in Asia Pacific Journal of Management from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().