When political ties matter for firm performance? The role of CEO’s political utilization orientation and prosocial orientation

Yin Bai (), Yingzhao Xiao (), Jingzhou Pan (), Youchao Tan () and Cheng Zeng ()
Additional contact information
Yin Bai: Tianjin University
Yingzhao Xiao: Tianjin University
Jingzhou Pan: Tianjin University
Youchao Tan: Jinan University
Cheng Zeng: Hong Kong Polytechnic University

Asia Pacific Journal of Management, 2024, vol. 41, issue 3, No 16, 1395-1420

Abstract: Abstract This study investigates how and under which conditions political ties affect firm performance in a transition economy. Using the network-based view of social capital, we first distinguish between the two stages of accessing and mobilizing social capital in political ties, and then focus on network exploitation of political ties, proposing that government support acts as a mechanism that converts political ties into firm performance. We further examine the role of two personal traits of CEOs—political utilization orientation and prosocial orientation—in moderating this relationship. Using multi-source data from 626 small and medium-sized enterprises in China’s transition economy, we find that the effect of political ties on firm performance largely depends on the extent to which political ties can be utilized, and that the CEO’s political utilization orientation and prosocial orientation positively moderate this relationship. The implications of our findings for theory and practice are discussed.

Keywords: Political ties; Firm performance; Political utilization orientation; Prosocial orientation; China (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10490-023-09881-w 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:41:y:2024:i:3:d:10.1007_s10490-023-09881-w

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

DOI: 10.1007/s10490-023-09881-w

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 ().