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

Xueling Li (), Jia Shen (), Wenjie Ma () and Weiyong Zhang ()
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Xueling Li: Jilin University
Jia Shen: Jilin University
Wenjie Ma: Fudan University
Weiyong Zhang: Old Dominion University

Information Technology and Management, 2016, vol. 17, issue 3, No 4, 245-261

Abstract: 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.

Keywords: New IT venture growth; Information technology; Business ties; Government ties; Firm size; Legitimacy (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (5)

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DOI: 10.1007/s10799-015-0233-5

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