Entrepreneur’s political involvement and inter-organizational conflict resolution in China’s transition economy

Abstract

PurposeThis paper aims to explore the influence of entrepreneur’s political involvement on private-own enterprises’ (POEs’) selection of two inter-organizational conflict resolutions approaches (private approach and public approach), in the context of China’s transition economy.Design/methodology/approachDrawing on a sample of POEs operating in China’s transition economy in the year 2000, this study investigates the possible association between the entrepreneur’s political involvement and the approach chosen to resolve inter-organizational conflicts. A further step is taken to look into the implications of such a choice.FindingsThe empirical study reveals that those POEs with greater entrepreneurial political involvement have the propensity to rely on public approach. In general, POEs are more satisfied with the private approach than the public approach when managing conflicts. Besides, the study shows that the positive effects derived from the entrepreneur’s satisfaction on private approach will be weakened in more established institutions.Originality/valueThis paper has its unique contribution in highlighting the significance of how entrepreneurs’ political involvement interferes with inter-organizational conflict resolution.