Value creation and value maintenance: Investigating the impact of firm capability on political networking
ISSN: 1750-614X
Article publication date: 30 November 2018
Issue publication date: 3 June 2019
Abstract
Purpose
This paper aims to examine how a firm’s capability affects its political networking in emerging economies and how the institutional environment influences the relationship between a firm’s capability and its political networking.
Design/methodology/approach
The authors test the theoretical model by analyzing a database from a World Bank survey in China.
Findings
The results show a nonlinear (U-shaped) relationship between a firm’s capability and its efforts in political networking. The relationship between a firm’s capability and political networking is contingent on the institutional environment, as reflected in institutional development and industry regulation.
Originality/value
This study elucidates political networking in emerging economies and contributes to research on corporate political strategy.
Keywords
Acknowledgements
The research was supported by the Natural Science Foundation of China under grant no. 71272136 and Shaanxi University Humanities and Social Science Talent Plan.
Citation
Chen, J., Yao, X. and Liu, L. (2019), "Value creation and value maintenance: Investigating the impact of firm capability on political networking", Chinese Management Studies, Vol. 13 No. 2, pp. 318-341. https://doi.org/10.1108/CMS-06-2018-0583
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited