International Journal of Economic Behavior and Organization

| Peer-Reviewed |

Executive Political Connections, Strategic Behavior and Industrial Upgrading - Empirical Research Based on the Pearl River Model in China

Received: Sep. 03, 2018    Accepted: Jan. 03, 2019    Published: Jan. 28, 2019
Views:       Downloads:

Share This Article

Abstract

Based on top talents bottleneck problem in the processing of industrial upgrading of the Pearl River Model and the importance and decisive role of political connections and strategic behavior in industrial upgrading in Small and Medium-sized Enterprise(SME), from the angle of microscopic investigation, the article regards political connections and strategic behavior as the main influence factors research object, and uses Logistic regression model and probability statistic to measure influence degree of various influencing factors of executives in the Pearl River Model industrial upgrading. The result shows that executives' political connections, strategic behavior, and the inherent characteristics effect significantly on the industrial upgrading of SME in Pearl River Delta, and the executive's higher political connections may stimulate the probability of enterprise process upgrading and supply chain upgrading, the product upgrading is more influenced by executive's radical strategy in strategy behaviors, furthermore, the research shows that the supply chain upgrading needs executives some personal traits such as higher education, longer working years etc. In the environment of limited top talents resources, enterprises need to make effective structural talents matching according to the content of industrial upgrading and improve the success rate of industrial upgrading.

DOI 10.11648/j.ijebo.20180604.11
Published in International Journal of Economic Behavior and Organization ( Volume 6, Issue 4, December 2018 )
Page(s) 69-78
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Political Connections, Strategic Behavior, Logistic Model, Industry Upgrading

References
[1] Jiang Hai Long (2006). A study on the evolution of small and medium-sized enterprises with Chinese characterristic. Unpublished doctoral dissertation, ChangChun: South China normal university. 35-40.
[2] Liu ZiBin, &Liu YingQiu (2014). Small and medium-sized enterprises in 2014 in China-economic transformation and the development of small and medium-sized enterprises. BeiJing:China Sevelopment Press. 83-84.
[3] Tang Song, &Sun Zheng (2014). Political connection, executive compensation and future performance. Management World. 5:93-105.
[4] Huang JianXin, &LiXiaoHui(2014). Political connection, executive compensation and corporate performance based on the experience of private listed companies. Soft Science, 11(28):6-14.
[5] Cyant, March. A(1963). Behaviioral theory of the firm [M], New York:Prentice-Hall. 1963, 100-200.
[6] Cheng Hong, & Song FeiFei (2016). The decline of business performance in the new normal: based on the explanation of entrepreneur mind -the experience evidence from matching survey about enterprises and employees of industry in GuangDong. Journal of WuHan University-Philosophy and Social Science, 1(69):60-71.
[7] Chen Hong, Liu SanJiang, &Luo LianFa (2016). Basic situation and path choice of transformation and upgrading of Chinese enterprises analysis of survey data for 570 companies and 4794 employees. Management World, 2:57-70.
[8] Faccio, M. (2006). Politically Connected Firms. Social Science Electronic Publishing. 96(1):369-386.
[9] Claessens, S., Feijen, E., & Laeven, L. (2008). Political Connections And Preferential Access To Finance: The Role Of Campaign Contributions. Social Science Electronic Publishing. 88 (3):554-580.
[10] Siegel, J. (2007). Contingent Political Capital And International Alliances:Evidence From South Korea. Administrative Science Quarterly. 52 (4):621-666.
[11] Den JianPing, &Zeng Yong (2009). Can political connection improve the performance of private enterprise? China Industrial Economy. 2: 98-108.
[12] Li Jian, Chen ChuanMing, &Sun JunHua (2012). Political connection of entrepreneurs, competitive selection and enterprise value-An empirical study based on dynamic panel data of listed companies. NanKai Management Review. 15(6):147-157.
[13] Du XingQiang, Zeng Quan, &Du YinJie (2011). Political Connection, overinvestment and corporate value-Enpirical Evidence based on state-owned listed companies. Financial Research. 8:93-110.
[14] [14] Xu NianXing, & Jiang XuanYu (2013). Does political connection affect the efficiency of law enforcement of investor protection? Economics (Quaterly). 12 (1):373-406.
[15] Gu ZhenHua, & Shen Yao (2017). Can political association and promotion mechanism of officials affect production safety?-Evidence from Chinese listed companies. Economics (Quaterly). 1:209-229.
[16] Li Li, & Gao HongLi (2013). Study on the entry choice and performance of private enterprises from the perspective of political relevance: based on the empirical test of private listed enterprises from 2005 to 2010. NanKai Management Review. 16(4):94-105.
[17] Li Chuntao, & Song Min (2010). Innovation activities of Chinese manufacturing enterprises: ownership and the role of CEO motivation. Economic Research. 5:135-137.
[18] Zhang Min, Zhang Sheng, & Shen HuiHui (2010). Political association and credit resource allocation efficiency -Empirical evidence from China's private listed companies. Management World. 22 (11):143-153.
[19] He XiaoGang, & Zhang YuanFei (2013). Political association and enterprise value -comparative analysis of private enterprises and state-owned enterprises. China industrial economy. 1:103-115.
[20] Tian LiHui, & Zhang Wei (2013). Three effects of political association on the long-term performance of China's listed companies. Economic Research, 11:71-86.
[21] Fisman, R., & Wang, Y. (2013). Trading Favors within Chinese Business Groups [J]. American Economic Review, 100 (2):429-433.
[22] Jia Ming, & Zhang Zhe (2010). Do senior executives' political connections affect corporate philanthropy?. Management World. 4:99-113.
[23] Pan HongBo, & Xia XinPing (2008). Government intervention, political connections and merger of local state-owned enterprises. Economic Research.(4):41-52.
[24] Yuan JianGuo, Hou QinSong, & ChenChen(2015). Curse effect of corporate political resources -investigation based on political association and enterprise technological innovation. Management World. 1:139-155
[25] Bohman, H.,& Lindfors M. (1998). Management for change: On strategic change during Recession. Journal of Business Research, 41 (1):57-70.
[26] DAveni, R., & Gunther R. (2007). Hypercompetition:managing the dynamics of strategic maneuvering. Gabler, 21 (1):83-93.
[27] Ewan, &Ferlie(1996). The New public management in action. Oxford University Press, 30 (1):145-146.
[28] Luo Min (2012). Research review of corporate strategic behavior. Foreign economy and management. 5:35-43.
[29] Li CunFang (2015). An empirical study on the transfer location selection of resource-depleted enterprises in China. Beijing: Science Press. 50-70.
[30] Lan HaiLin (2014). Interpretation of Chinese corporate strategic behavior: a conceptual framework for integrating situation-enterprise characteristics. Journal of Management. 5:653-658 of company. Management World, 5, 93-10.
[31] Huang GuoQun (2016). Discussion of bayes method for measurement of enterprise strategic behavior. Statistics and Decision-making. 8:10-13.
[32] Reuber, A., & Fischer, E. (1999). Understanding The Consequences Of Founders' Experience. Social Science. Electronic Publishing. 37-47.
[33] Ye Fei, Wu Jia, Yu Hui,& Xu XueJun (2011). Research on the mechanism of executive personal relationship on supplier information sharing- taking trust between organizations as the intermediary. Science of Science and Science and Technology Management. 6(32):140-149.
[34] Mao YunShi,& Wang JianCheng (2006). Research on independent innovation path based on product upgrading. Management World. 5:114-120.
[35] Su JingQin, & Liu Jing (2011). Choice of independent innovation path guided by product upgrade: theory and case. Science of Science and Technology Management, 11(32):65-71.
[36] Xiao Gao, & Liu JingJiang (2007) Improvement of independent innovation capacity of advanced manufacturing enterprises: key approaches and case analysis. Scientific Research Management. 28(3):13-18.
[37] Tang QinQuan, & Yi Cui (2010). Risk preference of executive stock ownership and motivation of R&D investment. Contemporary Economic Management, 2:20-25.
[38] Hua Tang, Wang LuPing,& Wang Na (2011). CEO incentive and corporate R&Dstrategy-evidence from China's listed companies. Soft Science, 10:17-26.
[39] Liu YanXiu, Ma JingTing,& Li HaoKun (2016). Research on the impact of executive compensation incentive on enterprise independent innovation-based on the empirical data of listed high-tech companies. Economic and Management Review. 4:67-78.
[40] Liu Lei (2016). Promoting effect of political association on independent technological innovation-based on the demonstration of manufacturing A-share listed companies. Finance and Communications. 2:43-45.
Cite This Article
  • APA Style

    Zhihong Wang, Xiaozhou Chen. (2019). Executive Political Connections, Strategic Behavior and Industrial Upgrading - Empirical Research Based on the Pearl River Model in China. International Journal of Economic Behavior and Organization, 6(4), 69-78. https://doi.org/10.11648/j.ijebo.20180604.11

    Copy | Download

    ACS Style

    Zhihong Wang; Xiaozhou Chen. Executive Political Connections, Strategic Behavior and Industrial Upgrading - Empirical Research Based on the Pearl River Model in China. Int. J. Econ. Behav. Organ. 2019, 6(4), 69-78. doi: 10.11648/j.ijebo.20180604.11

    Copy | Download

    AMA Style

    Zhihong Wang, Xiaozhou Chen. Executive Political Connections, Strategic Behavior and Industrial Upgrading - Empirical Research Based on the Pearl River Model in China. Int J Econ Behav Organ. 2019;6(4):69-78. doi: 10.11648/j.ijebo.20180604.11

    Copy | Download

  • @article{10.11648/j.ijebo.20180604.11,
      author = {Zhihong Wang and Xiaozhou Chen},
      title = {Executive Political Connections, Strategic Behavior and Industrial Upgrading - Empirical Research Based on the Pearl River Model in China},
      journal = {International Journal of Economic Behavior and Organization},
      volume = {6},
      number = {4},
      pages = {69-78},
      doi = {10.11648/j.ijebo.20180604.11},
      url = {https://doi.org/10.11648/j.ijebo.20180604.11},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.ijebo.20180604.11},
      abstract = {Based on top talents bottleneck problem in the processing of industrial upgrading of the Pearl River Model and the importance and decisive role of political connections and strategic behavior in industrial upgrading in Small and Medium-sized Enterprise(SME), from the angle of microscopic investigation, the article regards political connections and strategic behavior as the main influence factors research object, and uses Logistic regression model and probability statistic to measure influence degree of various influencing factors of executives in the Pearl River Model industrial upgrading. The result shows that executives' political connections, strategic behavior, and the inherent characteristics effect significantly on the industrial upgrading of SME in Pearl River Delta, and the executive's higher political connections may stimulate the probability of enterprise process upgrading and supply chain upgrading, the product upgrading is more influenced by executive's radical strategy in strategy behaviors, furthermore, the research shows that the supply chain upgrading needs executives some personal traits such as higher education, longer working years etc. In the environment of limited top talents resources, enterprises need to make effective structural talents matching according to the content of industrial upgrading and improve the success rate of industrial upgrading.},
     year = {2019}
    }
    

    Copy | Download

  • TY  - JOUR
    T1  - Executive Political Connections, Strategic Behavior and Industrial Upgrading - Empirical Research Based on the Pearl River Model in China
    AU  - Zhihong Wang
    AU  - Xiaozhou Chen
    Y1  - 2019/01/28
    PY  - 2019
    N1  - https://doi.org/10.11648/j.ijebo.20180604.11
    DO  - 10.11648/j.ijebo.20180604.11
    T2  - International Journal of Economic Behavior and Organization
    JF  - International Journal of Economic Behavior and Organization
    JO  - International Journal of Economic Behavior and Organization
    SP  - 69
    EP  - 78
    PB  - Science Publishing Group
    SN  - 2328-7616
    UR  - https://doi.org/10.11648/j.ijebo.20180604.11
    AB  - Based on top talents bottleneck problem in the processing of industrial upgrading of the Pearl River Model and the importance and decisive role of political connections and strategic behavior in industrial upgrading in Small and Medium-sized Enterprise(SME), from the angle of microscopic investigation, the article regards political connections and strategic behavior as the main influence factors research object, and uses Logistic regression model and probability statistic to measure influence degree of various influencing factors of executives in the Pearl River Model industrial upgrading. The result shows that executives' political connections, strategic behavior, and the inherent characteristics effect significantly on the industrial upgrading of SME in Pearl River Delta, and the executive's higher political connections may stimulate the probability of enterprise process upgrading and supply chain upgrading, the product upgrading is more influenced by executive's radical strategy in strategy behaviors, furthermore, the research shows that the supply chain upgrading needs executives some personal traits such as higher education, longer working years etc. In the environment of limited top talents resources, enterprises need to make effective structural talents matching according to the content of industrial upgrading and improve the success rate of industrial upgrading.
    VL  - 6
    IS  - 4
    ER  - 

    Copy | Download

Author Information
  • Business Administration Department, Guangdong University of Finance, Guangzhou, China

  • Business Administration Department, Guangdong University of Finance, Guangzhou, China

  • Section