The impact of political ties on firm innovativeness: Testing a mediation and moderation model

Wang, Zhiqiang; Chen, Xiaoli; Zhang, Shanshan; Yin, Ying; Zhao, Xiande

doi:10.1016/j.jbusres.2022.02.031

Cited by 9 publications

(17 citation statements)

References 78 publications

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“…In addition, we calculated the t-statistics of the first and last 20 responses to compare the differences in the key variables used in this study. The results showed no significant differences between the early and late responses, indicating that nonresponse bias was not a major concern in this study (Wang et al. , 2022).…”

Section: Methodsmentioning

confidence: 56%

“…AC from customers enables firms to understand customers' preferences and future demand and develop creative applications (Schoenherr and Swink, 2015), which results in enhanced firm innovativeness. AC from U&RIs enables firms to gain access to the relatively different knowledge of these organizations, understand the underlying connections across knowledge pieces and reduce the number of trial and error processes needed to apply externally sourced knowledge and thus generate successful innovation (Ahuja and Katila, 2004;Un et al, 2010); this leads to the improvement of firm innovativeness (Wang et al, 2022). Therefore, we hypothesize the following in relation to the mediating role of AC: H1.…”

Section: Hypothesis Developmentmentioning

confidence: 98%

“…Different from knowledge from suppliers and customers, knowledge from U&RIs can enrich the understanding of cutting-edge, basic and radical knowledge and the causal links among knowledge pieces (Ahuja and Katila, 2004), enabling the development of truly new ideas and products (Un and Asakawa, 2015). Wang et al (2022) find that boundary-spanning learning from U&RIs contributes to firm innovativeness. Thus, we include another type of AC, AC from U&RIs, which pertains to a firm's capability to acquire and apply knowledge from U&RIs (Schoenherr and Swink, 2015).…”

Section: Absorptive Capacity In the Supply Chainmentioning

confidence: 99%

“…Manufacturers should also invest in collaborative projects and relationships that help them obtain and integrate technological knowledge from supply chain partners. For instance, political ties help manufacturers engage in boundaryspanning learning from universities and research institutes (Wang et al, 2022). A firm's intellectual capital can enhance its knowledge integration from both suppliers and customers (Wang et al, 2019).…”

Section: Managerial Implicationsmentioning

confidence: 99%

“…These outcomes are more directly linked to technological knowledge than other innovation outcomes (e.g. product innovation performance) (Wang et al, 2022) and play vital roles in enabling competitive advantage (Li et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Impacts of R&D investment on absorptive capacity and firm innovativeness: contingent roles of dysfunctional competition

Zhang

Wang

Zhao

et al. 2022

IJOPM

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PurposeDrawing upon relative absorptive capacity (AC) perspective, this study proposes a research model connecting R&D investment, three types of supply chain AC—AC from suppliers, customers and university and research institutes (U&RIs)—and firm innovativeness and investigates the contingent effects of dysfunctional competition on the link between R&D investment and supply chain AC.Design/methodology/approachThe authors used data collected from 262 manufacturers in three areas of China to empirically examine the conceptual model. The corresponding hypotheses were tested with structural equation modeling and regression analysis.FindingsThe empirical results demonstrate that AC from customers and AC from U&RIs play significant mediating roles in the relationship between R&D investment and firm innovativeness. Moreover, R&D investment has a significantly greater effect on AC from U&RIs under high levels of dysfunctional competition.Originality/valueFirst, by conceptualizing AC from a relative view, this study discloses the unique roles of knowledge from different supply chain partners in realizing the benefits of R&D investment in innovation. Second, the exploration of the contingent roles of dysfunctional competition in the emerging economy of China enriches insights on the roles of institutional environment on knowledge absorption and the knowledge on relative AC in emerging economies.

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Section: Methodsmentioning

confidence: 56%

Section: Hypothesis Developmentmentioning

confidence: 98%

Section: Absorptive Capacity In the Supply Chainmentioning

confidence: 99%

Section: Managerial Implicationsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Impacts of R&D investment on absorptive capacity and firm innovativeness: contingent roles of dysfunctional competition

Zhang

Wang

Zhao

et al. 2022

IJOPM

Self Cite

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Inward FDI and local firms' political connections in emerging markets: Evidence from China

Dong,

Ma,

Cui

2024

Global Strategy Journal

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Research SummaryResearch on the spillover effects of foreign direct investment (FDI) into emerging markets has primarily focused on local firms' productivity or innovation outcomes while overlooking their nonmarket strategies. Based on the resource dependence theory, we propose that inward FDI has a U‐shaped impact on local firms' political connections. This is because when FDI is at a low to medium level, its spillover benefits substitute for local firms' dependence on government resources. As FDI further increases, its competitive threats outweigh spillover benefits, driving local firms to a greater dependence on the government to neutralize the threats. This relationship is contingent on external and internal factors altering resource similarity between FDI and local government. Our analyses of Chinese listed firms support our predictions.Managerial SummaryThis study delves into how firms in emerging markets respond to inward FDI, particularly focusing on the role of political connections as a nonmarket strategy. Our findings offer valuable insights for both local firms and governments, providing a holistic view of the opportunities and challenges associated with inward FDI. We advise local firms to adopt a balanced approach by integrating both market and nonmarket strategies to maximize benefits, as relying solely on political connections may not be the most effective way to address the challenges posed by inward FDI. Additionally, our research emphasizes the importance of evaluating the resources provided by inward FDI against those provided by local governments, as the similarity of these resources alters the role of inward FDI as perceived by local firms.

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When political ties matter for firm performance? The role of CEO’s political utilization orientation and prosocial orientation

et al. 2023

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The impact of political ties on firm innovativeness: Testing a mediation and moderation model

Cited by 9 publications

References 78 publications

Impacts of R&D investment on absorptive capacity and firm innovativeness: contingent roles of dysfunctional competition

Impacts of R&D investment on absorptive capacity and firm innovativeness: contingent roles of dysfunctional competition

Inward FDI and local firms' political connections in emerging markets: Evidence from China

When political ties matter for firm performance? The role of CEO’s political utilization orientation and prosocial orientation

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