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Article
Publication date: 10 July 2023

Ahmed Adel Tantawy, Joseph Amankwah-Amoah and Pushyarag Puthusserry

This paper identifies the development of and gaps in knowledge in various management disciplines, including international marketing in relation to political ties in emerging…

Abstract

Purpose

This paper identifies the development of and gaps in knowledge in various management disciplines, including international marketing in relation to political ties in emerging markets, based on a systematic review of the related literature. The paper develops a synthesized integrative framework and provides a research agenda and pathways for future research.

Design/methodology/approach

The study adopts the systematic literature review protocol to investigate the ways in which political ties have been examined in the management literature in various disciplines, such as international business, marketing, entrepreneurship, strategy, innovation, and organization. In total, 114 articles published in peer-reviewed journals from 2000 to 2022 were analyzed.

Findings

The authors believe that studying the impact of political ties on firm outcomes is timely and important as interest in this area of research is growing rapidly. The review reveals that the diverse conceptual and methodological approaches adopted in different management disciplines have resulted in inconclusive and mixed findings on the relationship between political ties and performance.

Originality/value

This is one of the few systematic literature reviews of political ties and firm performance in emerging markets. The authors clarify some of the ambiguities around the subject and offer a path forward for developing current understanding and insights. The study also highlights the major perspectives in management and clarify the similarities and differences in the conceptualization of political ties. In addition, the authors develop an integrative framework of the political ties–performance link in emerging markets.

Details

International Marketing Review, vol. 40 no. 6
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 13 July 2022

Adnan Ali, Xu Jiang and Afzaal Ali

The purpose of this study is to examine how social ties (i.e. business ties and political ties) affect the adoption of green innovation in the context of emerging economies…

Abstract

Purpose

The purpose of this study is to examine how social ties (i.e. business ties and political ties) affect the adoption of green innovation in the context of emerging economies, separately and comparatively. In addition, this study also seeks to examine how absorptive capacity shapes the relationships between social ties and the adoption of green innovation.

Design/methodology/approach

A theoretical model with hypothesized relationships is proposed and tested using regression in SPSS. This study’s sample consists of a dataset covering 272 Chinese firms (based on a total of 544 respondents) operating in various industries with two key informants in each firm.

Findings

The authors find that business ties and political ties both facilitate the adoption of green innovation, whereas business ties influence the adoption more strongly than political ties do. This study’s findings also show that absorptive capacity strengthens the positive relationships between the two types of social ties and the adoption of green innovation.

Originality/value

Although scholarship has amply documented the role that social ties play in influencing corporate performance, few studies have considered how and under what conditions these ties can impact the adoption of green innovation. Overall, the authors add value to the environmental management and social capital literature by providing novel insights into the differential roles that business ties and political ties play in the adoption of green innovation under the influence of absorptive capacity.

Details

International Journal of Manpower, vol. 44 no. 2
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 10 November 2022

Li Wang, Longwei Wang and Min Zhang

Based on social capital theory and the institutional theory, this paper aims to explain how a firm’s business ties and political ties affect contractual governance in an interfirm…

Abstract

Purpose

Based on social capital theory and the institutional theory, this paper aims to explain how a firm’s business ties and political ties affect contractual governance in an interfirm cooperation, and under which institutional conditions they can play a better role.

Design/methodology/approach

This study tests conceptual model using questionnaire survey data collected from 227 firms in China. Hierarchical regression analysis is used to test the hypotheses.

Findings

This study finds that business ties have significant effect on contract completeness, while political ties have significant effect on contract enforcement. Moreover, these effects are contingent on some institutional factors. Market information transparency strengthens the effect of business ties on contract completeness and weakens the effect of political ties on contract completeness. Legal system completeness weakens the effect of political ties on contract enforcement.

Practical implications

This study suggests that managers could actively and selectively use their managerial ties to enhance contractual governance in an interfirm cooperation.

Originality/value

This study adds to the current understanding of how an interfirm cooperation is shaped by the firm’s social capital derived from external network relationships and extends the research on what social antecedents affect contractual governance. Moreover, this study sheds new light on when managerial ties can play a more beneficial role in emerging economies.

Details

Journal of Business & Industrial Marketing, vol. 38 no. 9
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 9 November 2018

Zebin Yan and Jiangyong Lu

Although the differential roles of political and business ties are recognized in the literature, the interplay between political and business ties remains unclear. This study aims…

Abstract

Purpose

Although the differential roles of political and business ties are recognized in the literature, the interplay between political and business ties remains unclear. This study aims to explore how political ties affect the formation of business ties with unfamiliar partners by analyzing how a buyer’s political ties affect the market-based selection of suppliers, an important channel through which the buyer forms business ties with unfamiliar suppliers.

Design/methodology/approach

A survey of 204 Chinese manufacturing firms was conducted to elucidate the relationship between political ties and the market-based selection of suppliers.

Findings

The findings suggest that buyers with strong political ties are more likely to engage in the market-based selection of suppliers; this positive relationship is diminished when social control is preferred over contractual control in the buyer’s supplier governance and is enhanced when technological uncertainty is high.

Originality/value

First, this study sheds light on the interplay between political and business ties by revealing how the buyer’s political ties affect the formation of business ties with unfamiliar suppliers, as represented by the market-based selection of suppliers. Second, it uncovers the boundary conditions of the effect of political ties by revealing the moderating effect of social control preference and technological uncertainty. Third, it extends the interorganizational governance structure literature from its focus on the complement-substitute debate on social control and contractual control to examine the contingent effect of a hybrid governance structure.

Details

Journal of Business & Industrial Marketing, vol. 34 no. 6
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 1 June 2015

Yiyuan Mai, Chan Xiong and Xiaobin He

This study aims to examine, by drawing upon resource dependence theory and upper echelon theory, how entrepreneurs’ socioeconomic statuses and political characteristics influence…

Abstract

Purpose

This study aims to examine, by drawing upon resource dependence theory and upper echelon theory, how entrepreneurs’ socioeconomic statuses and political characteristics influence the establishment of formal political ties by new ventures, and how these relationships are moderated by new ventures’ degrees of innovation and internationalization.

Design/methodology/approach

An empirical research approach is used in this paper. This is because this model evaluates the interaction effects between the socioeconomic statuses and political characteristics of entrepreneurs and the market strategies of their new ventures. Moderated multiple regression models were used to test our hypotheses with data from 2,297 new ventures in China.

Findings

Using a questionnaire survey about new ventures in China, it was found that entrepreneurs’ socioeconomic statuses and political characteristics are positively related to the establishment of formal political ties by new ventures. It was also found that this positive relationship is stronger when new ventures have a higher degree of internationalization, while the relationship between the socioeconomic statuses of entrepreneurs’ and the establishment of formal political ties by new ventures is weaker when new ventures have a higher degree of innovation.

Research limitations/implications

This research provides a deeper insight into the personal roles that are played in the establishment of formal political ties and it advances the research into new ventures’ competitive strategies.

Practical implications

This study reveals the situations in which formal political ties are connected with new-venture advantages in China, and it will help entrepreneurs establish and use formal political ties strategically to correspond with the different strategies of new ventures.

Originality/value

This research distinguishes the effects of two types of personal status on the establishment of formal political ties by new ventures, and it contributes to an understanding of the situations under which entrepreneurs should establish formal political ties. The findings will also be helpful for entrepreneurs who are choosing how to combine their market and non-market strategies.

Article
Publication date: 31 January 2018

Henry F.L. Chung and Tsuang Kuo

This study aims to present two new contingent frameworks that hypothesize the moderation role of managerial ties (MTs) in the international competitive strategy-export financial…

1691

Abstract

Purpose

This study aims to present two new contingent frameworks that hypothesize the moderation role of managerial ties (MTs) in the international competitive strategy-export financial and strategic performance framework. The purposes of this study are to explore whether a common standardized or individual customized conceptualization consisting of MTs, international competitive strategy and performance can be used to achieve export financial and strategic performance; to offer contingent factors for the current international competitive strategy-export performance framework; and to generalize the roles of MTs in the developed vis-à-vis developing region.

Design/methodology/approach

This study uses the experience of 114 exporting firms operating in the European Union region to test its theoretical frameworks. MTs include both business and political ties.

Findings

Business and political ties have completely different moderation effects on the relation between international differentiation/low-cost strategy and export financial/strategic performance. Business ties have a positive influence on the international differentiation strategy-export strategic performance and international low-cost strategy-export financial performance dyads, but a negative effect in the international low-cost strategy-export strategic performance framework. In contrast, political ties are revealed to have a negative effect on the international differentiation/low-cost strategy-export financial performance framework.

Originality/value

This research advances extant international competitive strategy-export performance literature by revealing the bright and dark sides of business ties and the down side of political ties in the framework. Performance should be investigated in terms of financial and strategic performance. The moderation effect of business ties is more complex than that reported in the developing region; thus, a cross-regional generalization on these ties’ effects is more difficult to establish. In contrast, the dark side effect of political ties is consistent across developed and developing regions; a cross-regional generalization on these ties is more viable. Collectively, the results show that a standardized process for achieving both export financial and export strategic performances is not feasible, while a customized process for each export performance is needed.

Article
Publication date: 23 December 2021

Zhu Zhang, Jiaqi Xue and Baoxin Qi

This study aims to investigate the role of network in affecting private firms’ internationalization decision. Specifically, it investigates the way that business ties, political

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.

Details

Chinese Management Studies, vol. 17 no. 1
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 24 June 2019

Parinaz Sami, Farajollah Rahnavard and Alireza Alavi Tabar

The purpose of this study is to investigate the mediator role of product innovation in the relationship between political and business ties (independent variables) and firm…

Abstract

Purpose

The purpose of this study is to investigate the mediator role of product innovation in the relationship between political and business ties (independent variables) and firm performance (dependent variable).

Design/methodology/approach

In this study, research hypotheses were tested using the structural equation modeling method.

Findings

The findings from 267 manufacturing companies in Iran show that business ties have an effect on firm performance through product innovation, while the role of innovation is not proved as a mediating variable in the relationships between political ties and firm performance. In addition, business ties have an effect on product innovation and firm performance, whereas political ties have no such effect.

Practical implications

These results provide useful points for developing economies, theoretically and practically.

Originality/value

Despite the increasing attention to the role of managerial ties (political and business ties) in improving product innovation and firm performance, there is no study conducted on the mediating role of product innovation in the relationship between managerial ties and firm performance.

Article
Publication date: 31 May 2023

Mohammad Alghababsheh

The COVID-19 pandemic outbreak has created disruptions across the supply chain that are beyond the resources of small and medium-sized enterprises (SMEs) to effectively deal with…

Abstract

Purpose

The COVID-19 pandemic outbreak has created disruptions across the supply chain that are beyond the resources of small and medium-sized enterprises (SMEs) to effectively deal with. This study aims to examine the idea that top managers' business and political ties can play direct roles in enhancing SCR in SMEs during COVID-19 by providing access to valuable resources. The study further investigates integrative capability as an underlying mechanism through which the effects of business and political ties can be transformed into enhanced SCR.

Design/methodology/approach

Responses from 217 SMEs in the country of Jordan were received via an online survey. The measurement and structural models were tested using the partial least squares structural equation modelling (PLS-SEM) technique.

Findings

The study found that business and political ties are positively related to SCR. However, integrative capability fully mediates the relationship between business ties and SCR, whereas it partially mediates the relationship between political ties and SCR.

Research limitations/implications

The study examined only the direct and indirect impacts of business and political ties on SCR. It could be extended by exploring the conditions under which they influence SCR.

Originality/value

The study explicates the role of top managers' business and political ties on improving SCR in a developing country context. It further examines the mediating role of integrative capability in the relationships between business and political ties and SCR.

Details

Business Process Management Journal, vol. 29 no. 5
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 6 August 2021

Muhammad Farrukh, Ali Raza and Abdul Waheed

Based on the social network theory, this study investigates the impact of political ties on innovation performance. Besides, this study also tests a mediation role of absorptive…

Abstract

Purpose

Based on the social network theory, this study investigates the impact of political ties on innovation performance. Besides, this study also tests a mediation role of absorptive capacity (AC) and a moderation role of technology turbulence.

Design/methodology/approach

A hypothetico-deductive approach is adopted to test the hypotheses. Data were collected from the small and medium enterprises (SMEs) managers/owners through a structured questionnaire.

Findings

Partial least square structural equation modeling technique is used to analyze the hypothesized relationships; the findings showed that political ties significantly impact the innovation performance, and this relationship is mediated by AC. Moreover, technological turbulence moderated the relationship between political ties and innovation performance.

Originality/value

Despite the increasing attention to the role of networking in improving innovation, there is a scarcity of studies on the role of political ties, AC and technology turbulence in fostering organizational innovation; thus, this study is a unique contribution to literature.

Details

European Journal of Innovation Management, vol. 26 no. 1
Type: Research Article
ISSN: 1460-1060

Keywords

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