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

Shen, Lu; Zhou, Kevin Zheng; Wang, Kui; Zhang, Chuang

doi:10.1002/joom.1203

Cited by 26 publications

(11 citation statements)

References 87 publications

(226 reference statements)

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“…The figure serves as additional support for the findings obtained from the moderated regression analysis (Aiken and West, 1991). To reduce the risk of multicollinearity, we mean-centered the independent variable and moderating variables before generating their interaction terms (Shen et al. , 2023).…”

Section: Analyses and Resultsmentioning

confidence: 99%

How local dealers benefit from their international participation: evidence from Africa

Zhang,

Wang,

Zhang

et al. 2024

IMR

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PurposeAlthough the prior literature has identified the relevance of dealer participation for multinational enterprises (MNEs), it is unclear whether such participation could also be an important means for local dealers to learn from MNEs. By adopting local firms’ viewpoint, our study draws on organizational learning theory to examine how local dealers benefit from their participation with foreign suppliers in Africa.Design/methodology/approachThe empirical setting is a combinative dataset of secondary data and primary survey of 164 small- and medium-sized local dealers with nine subsidiaries of a Chinese motorcycle company in six countries of Sub-Saharan Africa.FindingsThis research shows that dealer participation is positively associated with dealer performance, and this positive effect is stronger when local dealers operate in regions with low government corruption and high government support. However, the positive relationship is weaker when local dealers use the local tongue extensively but becomes stronger when their foreign suppliers have a high dealer coverage.Originality/valueBy taking a local-participant perspective, our study extends the participation literature to show how firms from a resource-constrained region may benefit from their proactive participation with foreign counterparts. Additionally, we identify the boundary conditions of institutional factors and strategic choices of local dealers and foreign suppliers, providing a nuanced understanding of firm behaviors in complex and uncertain markets.

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Section: Analyses and Resultsmentioning

confidence: 99%

How local dealers benefit from their international participation: evidence from Africa

Zhang,

Wang,

Zhang

et al. 2024

IMR

Self Cite

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show abstract

“…Developing economies like China have been undergoing an institutional transition from a network-centered to a market-centered transaction structure, but the transition cannot get rid of the former (Peng, 2003). Top managers tend to cooperate with the government to build political ties to acquire the necessary resources to deal with market competition (Shen et al. , 2023; Sheng et al ., 2011).…”

Section: Discussionmentioning

confidence: 99%

Technology-pushed, market-pulled, or government-driven? The adoption of industry 4.0 technologies in a developing economy

Zhou

2023

JMTM

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PurposeThis study aims to investigate the motivations for the adoption of Industry 4.0 technologies among manufacturing firms in developing economies. Specifically, the effects of relative advantage of the technologies, competitive pressure, and government support on the adoption are explored. Moreover, the mediating role of top management support between environmental factors (government support and competitive pressure) and the adoption of Industry 4.0 technologies is examined.Design/methodology/approachA research model is developed based on the technology-organization-environment (TOE) framework strengthened by institutional theory. Structural equation modeling (SEM) approach is employed to evaluate the model using data obtained from 215 manufacturing firms through a cross-industry survey. Additionally, a post-hoc analysis is conducted using cluster analysis and ANOVA.FindingsThe results show that competitive pressure and government support significantly promote top management support, which in turn contributes to the adoption of Industry 4.0 technologies. Relative advantage of the technologies is not significantly related to the adoption.Research limitations/implicationsThis study does not explore the relationship between technology type and the specific needs of manufacturing firms. Future researchers can conduct a more comprehensive analysis by examining how different technology types align with the unique needs of individual companies.Practical implicationsThe findings of this study have implications for both policymakers and managers. Policymakers can leverage these insights to understand the underlying motivations behind manufacturing firms' adoption of Industry 4.0 technologies and develop promoting policies. In turn, managers should keep an eye on government policies and utilize government support to facilitate technology adoption.Originality/valueThis study uncovers the underlying motivations—government support and competitive pressure—for the adoption of Industry 4.0 technologies among manufacturing firms in developing economies. Meanwhile, it complements previous research by showing the mediating role of top management support between environmental factors (government support and competitive pressure) and the adoption of Industry 4.0 technologies.

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“…Their research illuminated the various categories of initiatives based on suppliers' ownership characteristics and alignment with stakeholders' values. Similarly, Shen et al (2023) unveiled the negative association between political ties and operational efficiency in Chinese private firms and found variations based on regional factors and industry competitiveness.…”

Section: Theoretical Background and Literature Reviewmentioning

confidence: 98%

Growing, learning, and connecting: Deciphering the complex relationship between government customer concentration and firm performance

Falcone,

Fugate,

Waller

2024

J Supply Chain Manag

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The interplay between a firm's customer portfolio and the firm's performance presents a theoretical conundrum that challenges traditional supply chains. In particular, the role of government customer concentration—how extensively a firm incorporates government entities as part of its customer base—emerges as a pivotal factor with the potential to both bolster and burden firm performance. Analyzing 3,643 firm‐year observations from the U.S. Federal Procurement Data System‐Next Generation, Compustat, and FactSet Revere reveals an inverse U‐shaped relationship between government customer concentration and firm performance. Excessive or insufficient government customer concentration adversely impacts performance, suggesting that a strategic balance is essential. Firm size, absorptive capacity, and network embeddedness are crucial in navigating this complex relationship, guiding a firm toward optimizing its government customer portfolio. This research advances the discourse on customer base management, underscoring the essential strategic considerations for firms interacting with government buyers.

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

Cited by 26 publications

References 87 publications

How local dealers benefit from their international participation: evidence from Africa

How local dealers benefit from their international participation: evidence from Africa

Technology-pushed, market-pulled, or government-driven? The adoption of industry 4.0 technologies in a developing economy

Growing, learning, and connecting: Deciphering the complex relationship between government customer concentration and firm performance

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