Abstract
From the resource-based view (RBV) of the firm, this study investigates the mechanisms through which CEO political connections function as valuable firm resources and thus enhance firm performance. CEO political connections can enable firms gain favorable public policies, valuable resources, and unique information. These benefits can surpass the costs of political connections due to the characteristics of transition economies (e.g., government role of controlling resources and decreased government intervention in business activities), thus leading to a positive relationship between political connections and firm performance. Moreover, the effect of CEO political connections varies depending on the level of CEO managerial expertise, firm strategies (e.g., internationalization and differentiation), and external environmental conditions. Finally, the benefits and costs of political connections may vary with the types (government officials vs. legislators) and levels (central vs. local government) of the connections. Using a sample of Chinese listed firms during the period 1999-2007, the hypotheses are largely supported.
| Original language | English |
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| Publication status | Published - 6 Aug 2010 |
| Event | 2010 Academy of Management Annual Meeting - Montreal, Canada Duration: 6 Aug 2010 → 10 Aug 2010 |
Conference
| Conference | 2010 Academy of Management Annual Meeting |
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| Country/Territory | Canada |
| City | Montreal |
| Period | 6/08/10 → 10/08/10 |