Wining and Dining Government Officials: What Drives Political Networking in Chinese Private Ventures?

Zhang, Jianjun; Sun, Pei; Qiao, Kunyuan

doi:10.1017/mor.2020.37

Cited by 18 publications

(15 citation statements)

References 61 publications

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“…The ability to identify production and business model problems is difficult to acquire from the market (Saemundsson & Candi, 2017). However, with connection to other firms, the focal corporation can gather ‘timing, relevance, and quality of information’ through informal channels (Zhang, Sun, & Qiao, 2020). This approach encourages firms' willingness to engage in pollution prevention eco‐innovation by allowing focal firms to better detect business and production threats without compromising SEW (Chrisman et al, 2015).…”

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

What to green: Family involvement and different types of eco‐innovation

2022

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Research on the relationship between family involvement and eco-innovation presents conflicting results. To address this issue, this study explores the role of family involvement in eco-innovation by dividing it into pollution prevention and cleaner production types. We propose that family involvement positively relates to pollution prevention eco-innovation, but negatively relates to cleaner production eco-innovation. Moreover, we explore the boundary conditions of the proposed relationships.We also contend that internal social capital positively moderates the relationship between family involvement and eco-innovation in both types of eco-innovation, while external social capital exhibits positive and negative moderating impacts on pollution prevention and cleaner production, respectively. Data from Chinese listed firms from 2007 to 2019 support these arguments. This study adds to the family business research and eco-innovation literature by providing a more comprehensive view of the role of family engagement in eco-innovation.

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Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

What to green: Family involvement and different types of eco‐innovation

2022

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“…Consistent with these arguments, an emerging body of empirical work has shown that political ties can have an insignificant (Okhmatovskiy, 2010; Sheng et al, 2011) or even negative impact on firms' financial performance (Fan et al, 2007; Hadani & Schuler, 2013). Given such findings, recent studies have underscored “the necessary costs of such linkage” (Zhang, Marquis, & Qiao, 2016, p. 1307) and noted that it is a “rational, strategic choice (rather) than a necessity” for firms to establish political ties (Zhang et al, 2020, p. 1085).…”

Section: Conceptual Developmentmentioning

confidence: 99%

“…The benefits acquired from political ties may cause senior executives to overemphasize them and downplay the role of market mechanisms (Albino‐Pimentel et al, 2018). Thus, they may divert managerial attention to searching for ways to maintain and extend their political ties, distracting them from operations management (Wang et al, 2021; Zhang et al, 2020; Zhang, Marquis, & Qiao, 2016). Such a focus of top executives will decrease the search for cutting‐edge operational technologies or practices, leading to lower operational efficiency.…”

Section: Conceptual Developmentmentioning

confidence: 99%

“…The question merits managerial attention because in emerging economies, it is widely believed among practitioners that political ties are necessary for achieving superior performance (Zhang et al, 2020; Zheng et al, 2015). However, recent research has explored their downsides, suggesting that political ties may oblige firms to carry political water, subject them to politicians' rent seeking, and make them vulnerable when a politician falls out of favor (Hadani & Schuler, 2013; Okhmatovskiy, 2010; Shou et al, 2016).…”

Section: Introductionmentioning

confidence: 99%

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Do political ties facilitate operational efficiency? A contingent political embeddedness perspective

Shen

Zhou

Wang

et al. 2022

J of Ops Management

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Although the significance of relational ties with supply chain partners to firms' operations management has been frequently studied, it is unclear how political ties, which represent another form of relational ties that is especially important in emerging economies, relate to operational efficiency. Drawing on the political embeddedness perspective, we propose a negative association between political ties and operational efficiency and examine how this association is moderated by environmental and firm‐level factors. Using panel data of listed private firms in China, we show that political ties are negatively correlated with operational efficiency. In addition, this negative relationship is stronger when firms operate in regions with less developed factor markets and in highly competitive industries. However, the negative relationship is weaker for firms with high levels of foreign shareholding and customer concentration. These findings caution against the downsides of political ties for operations management and highlight strategies for reducing their negative effect.

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“…Chinese companies are more likely to use implicit political networking as a way to take advantage of certain informal institutions (e.g. Guanxi) because of the underdeveloped formal mechanisms in facilitating government–business interactions (Wang et al , 2003; Zhang et al , 2020). Therefore, the validity of the results of company-level tax research in China is questionable in the absence of consideration of corporate political connections (He et al , 2019b).…”

Section: Literature Reviewmentioning

confidence: 99%

Implementing environmental protection tax in China: an alternative framework

Cai

Bai

Davey

2022

PAR

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Purpose The purpose of this study is to better understand the nexus between environmental taxes and other environmental management systems (EMSs) and to propose an alternative framework for implementing environmental protection tax (EPT) in China. Design/methodology/approach The study uses a multimethod approach encompassing document analysis and comparative analysis. The archival data covers laws, reports, regulations, guidelines and standards related to the EPT and EMS sub-systems in China. Findings The study identifies several institutional features of environmental taxes that have not been fully explored in past tax research. In addition, the study reveals that information-sharing mechanisms are key to addressing the risks and uncertainties associated with the implementation of an environmental tax and that the mechanisms are grounded in the nexus among EPT and two EMS sub-systems. Research limitations/implications The findings of this study have implications for the understanding of China’s environmental tax system, the Environmental Impact Assessment system and the pollutants discharge permit (PDP) system. The construction of an alternative framework provides insights for approaches to environmental taxation. A limitation of this study is that the application of the framework might be undermined by the inaccurate manual sampling, as some pollutants may be non-replicable. Practical implications The findings of this study are relevant to policymakers who are designing, improving or abandoning environmental taxes for alternate solutions to environmental issues. Social implications The insights gained from this study may be of assistance to lower the risks and uncertainties associated with the implementation of an environmental tax. Originality/value The study contributes to approaches to environmental taxes by constructing an alternative framework that connects an environmental tax system with two EMSs. The framework lays the groundwork for some promising research opportunities. Additionally, the study extends the tax accounting literature (Hanlon and Heitzman, 2010) by connecting accounting and environmental knowledge and developing a transdisciplinary approach. The study also contributes to the emerging body of literature that addresses the challenges in implementing environmental taxes in China.

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Wining and Dining Government Officials: What Drives Political Networking in Chinese Private Ventures?

Cited by 18 publications

References 61 publications

What to green: Family involvement and different types of eco‐innovation

What to green: Family involvement and different types of eco‐innovation

Do political ties facilitate operational efficiency? A contingent political embeddedness perspective

Implementing environmental protection tax in China: an alternative framework

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