{"title":"The impact of political ties on firms’ innovation capability: Evidence from China","authors":"Kui Wang, Qiyuan Zhang, Danqing Wang, Defeng Yang","doi":"10.1007/s10490-023-09885-6","DOIUrl":null,"url":null,"abstract":"<p>Though the benefits of political ties in emerging markets are well-documented, their potential negative impact on firms' innovation capabilities (i.e., the efficiency of transforming resource inputs into innovative outputs) has not been thoroughly explored. Building on the upper echelons theory, we propose that political ties hinder innovation capabilities by diverting executives’ focus away from innovation transformation. We also suggest that the detrimental effect of political ties is weakened for firms with executives having R&D backgrounds or overseas experience. Our findings based on publicly listed private manufacturing firms in China from 2008 to 2017 confirm our predictions, after correcting for endogeneity. These findings offer a new theoretical lens to explain political ties’ dark side and a nuanced understanding on how to leverage political ties effectively in emerging markets.</p>","PeriodicalId":8474,"journal":{"name":"Asia Pacific Journal of Management","volume":"41 3","pages":"1481 - 1513"},"PeriodicalIF":4.9000,"publicationDate":"2023-04-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Asia Pacific Journal of Management","FirstCategoryId":"91","ListUrlMain":"https://link.springer.com/article/10.1007/s10490-023-09885-6","RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"MANAGEMENT","Score":null,"Total":0}
引用次数: 0
Abstract
Though the benefits of political ties in emerging markets are well-documented, their potential negative impact on firms' innovation capabilities (i.e., the efficiency of transforming resource inputs into innovative outputs) has not been thoroughly explored. Building on the upper echelons theory, we propose that political ties hinder innovation capabilities by diverting executives’ focus away from innovation transformation. We also suggest that the detrimental effect of political ties is weakened for firms with executives having R&D backgrounds or overseas experience. Our findings based on publicly listed private manufacturing firms in China from 2008 to 2017 confirm our predictions, after correcting for endogeneity. These findings offer a new theoretical lens to explain political ties’ dark side and a nuanced understanding on how to leverage political ties effectively in emerging markets.
期刊介绍：
The Asia Pacific Journal of Management publishes original manuscripts on management and organizational research in the Asia Pacific region, encompassing Pacific Rim countries and mainland Asia. APJM focuses on the extent to which each manuscript addresses matters that pertain to the most fundamental question: “What determines organization success?” The major academic disciplines that we cover include entrepreneurship, human resource management, international business, organizational behavior, and strategic management. However, manuscripts that belong to other well-established disciplines such as accounting, economics, finance, marketing, and operations generally do not fall into the scope of APJM. We endeavor to be the major vehicle for exchange of ideas and research among management scholars within or interested in the broadly defined Asia Pacific region.Key features include:
Rigor - maintained through strict review processes, high quality global reviewers, and Editorial Advisory and Review Boards comprising prominent researchers from many countries.
Relevance - maintained by its focus on key management and organizational trends in the region.
Uniqueness - being the first and most prominent management journal published in and about the fastest growing region in the world.
Official affiliation - Asia Academy of ManagementFor more information, visit the AAOM website:www.baf.cuhk.edu.hk/asia-aom/ Officially cited as: Asia Pac J Manag
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