Abstract
Purpose
This study aims to answer few questions, such as which factors influence the local government’s choice of private firm investments; what factors influence private firms’ choice of specific local government to make a local investment; and why do some private firms gain a competitive edge by choosing a stakeholder management model of “running the government” in the context of the Chinese transition economy.
Design/methodology/approach
Using a case study approach, this paper provides an in-depth analysis of the Daqing–Geely Case, 2010, and explains why Geely chose Daqing considering the firm perspective and why the Daqing city Government chose Geely considering the local governments’ perspective.
Findings
This study highlights the concept of “co-beneficial” cooperation between government–business by virtue of the institutional innovation of the quasi-property system. In addition, it reveals that the private firms and local governments in the “Daqing–Geely mode” work together for mutual benefits by putting fair negotiation and contract mechanisms in place. Resultantly, private firms secure the commercial interests, and the local governments bring in improved efficiency.
Originality/value
This study consolidates the theory of stakeholders, thereby strengthening the current understanding of “special offer” and “universal offer.”
Details
Keywords
Abstract
Purpose
This study aims to investigate the role of network in affecting private firms’ internationalization decision. Specifically, it investigates the way that business ties, political ties and status influence an internationalization decision.
Design/methodology/approach
On the basis of the survey data collected from Chinese private firms, this study distinguishes business ties from political ties and introduces network status. Binary logistic regression is used to test the hypotheses.
Findings
Results show that private firms that have business ties are more likely to internationalize, whereas private firms that have political ties are less likely to internationalize. High-status private firms are more likely to internationalize. Political ties negatively moderate the relationship between business ties and internationalization. High-status firms with political ties are more likely to internationalize.
Originality/value
This study provides theoretical and practical contributions. Results complement previous research on social networks in the context of Chinese private firms and have implications for managers who exert effort to internationalize their firms.