The roles of political and business ties in new ventures: Evidence from China

This study investigates how political and business ties affect new-venture performance in China. Findings from the archival data of 105 Chinese new ventures indicate that political ties positively relate to new-venture performance, whereas business ties do not. More importantly, this research presen...

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Bibliographic Details
Published in:Asian business & management Vol. 13; no. 5; pp. 411 - 440
Main Authors: Lin, Ya-Hui, Chen, Chung-Jen, Lin, Bou-Wen
Format: Journal Article
Language:English
Published: London Palgrave Macmillan UK 01.12.2014
Palgrave Macmillan
Subjects:
Asian Culture
Business
Business and Management
Business government relations
China
Economic growth
Economic performance
Externalities
Hypotheses
International Business
Investigations
Joint ventures
Organizational effectiveness
Original Article
Politics
Small and medium sized enterprises
Social capital
Startups
Studies
Ventures
China
outward growth orientation
new venture
political ties
business ties
ISSN:1472-4782, 1476-9328
Online Access:Get full text
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Summary:This study investigates how political and business ties affect new-venture performance in China. Findings from the archival data of 105 Chinese new ventures indicate that political ties positively relate to new-venture performance, whereas business ties do not. More importantly, this research presents a contingent view of political and business ties and offers evidence that these ties can lead to greater new-venture performance when the new venture has a higher level of outward growth orientation. The external ties/new-venture performance links emerge as more complex than prior studies have shown.
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ISSN:1472-4782
1476-9328
DOI:10.1057/abm.2014.14