Abstract
By using the three theories of social network theory: the strong and weak tie theory, the structural hole theory and the social capital theory, analyzing the influence mechanism of political connection on enterprise performance, the study found that, regardless of whether enterprise is in a dense or a sparse relationship zone, the political connection can help enterprise to obtain more resources. The influence mechanism of political connection on enterprise performance is mainly to help enterprises to obtain the heterogeneity resources and to broaden the enterprises’ channels to obtain resources. In addition, the political connection is mainly related to the acquisition of resources, but when the tie between the enterprise and the government continues to strengthen, the political connection will affect resources allocation of enterprise. The paper provides explanation for the diversified conclusion of the research about the influence of political connection on the enterprise performance in a certain degree.
Highlights
In recent years, China’s comprehensive strength continues to rise; the politics, economy, culture, institution and other environments are changing
Ramarz and Schoar made the relevant research by taking French companies as the sample, the results show that the political connection will do harm to enterprise performance [19]
From the perspective of social network, it is found that the establishment of political connection is beneficial to the improvement of performance
Summary
China’s comprehensive strength continues to rise; the politics, economy, culture, institution and other environments are changing. Zhu is economic entity of a country can adapt to the changes of environment is related to development of enterprise and has an important influence on economy of country. Political connection is an important tool for enterprises to adapt to institution environment and its influence cannot be ignored for the development of enterprises. There are a great many of studies on influence of political connection on enterprise performance. By combing the existing literature we found that research about the influence of political connection on the performance of enterprises can be seen as hundred schools. The study by the related theory to analyze the general influence mechanism of political connection on enterprise performance is still relatively less, and this kind of research can explain the variation in the existing research on the relationship of political connection and enterprise performance, and could fill the gaps in the theoretical research, and is very beneficial to explain the influence mechanism of political connection on enterprise performance and to guide enterprises
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