Economics at your fingertips  

Political rotations and cross-province firm acquisitions in China

Yulia Muratova (), Jakob Arnoldi (), Xin Chen () and Joachim Scholderer ()
Additional contact information
Yulia Muratova: Aarhus University
Jakob Arnoldi: Aarhus University
Xin Chen: Shanghai Jiao Tong University
Joachim Scholderer: Norwegian University of Life Sciences

Asian Business & Management, 2018, vol. 17, issue 1, No 3, 37-58

Abstract: Abstract The underdeveloped institutional framework and trade barriers between China’s provinces make cross-province acquisitions challenging. We explore how Chinese firms can mitigate this problem. Drawing on social network theory we propose that cross-province rotation of political leaders—a key element of the promotion system of political cadres in China—is a mechanism enabling growth through cross-province acquisitions. We conceptualize rotated leaders as brokers between two geographically dispersed networks. We contribute to the literature on the characteristics of Chinese social networks, the effect of political connections on firm strategy, and the impact of political rotations on firm growth in China’s provinces.

Keywords: China; Acquisitions; Political rotations; Local government (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link) 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:

Ordering information: This journal article can be ordered from

DOI: 10.1057/s41291-018-0029-7

Access Statistics for this article

Asian Business & Management is currently edited by Fabian Jintae Froese

More articles in Asian Business & Management from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla ().

Page updated 2020-08-08
Handle: RePEc:pal:abaman:v:17:y:2018:i:1:d:10.1057_s41291-018-0029-7