Ties, status, and internationalization of Chinese private firms
ISSN: 1750-614X
Article publication date: 23 December 2021
Issue publication date: 2 January 2023
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.
Keywords
Acknowledgements
This paper is supported by the National Natural Science Foundation of China (71902027, 71772009), Science Foundation of Ministry of Education of China (20YJA630075), Beijing Social Science Foundation (17GLC040).
Citation
Zhang, Z., Xue, J. and Qi, B. (2023), "Ties, status, and internationalization of Chinese private firms", Chinese Management Studies, Vol. 17 No. 1, pp. 27-45. https://doi.org/10.1108/CMS-03-2020-0107
Publisher
:Emerald Publishing Limited
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