The Relation Study Of Corporate Political Strategy And Political Performance In China

With the enhancement of the global economic integration, Epstein(1969)argued that "political competition follows in the wake of economic competition", and that the government and government policies may be viewed as a competitive tool to expand the living space of enterprises, and to create the environment most favorable to their competitive efforts. There is a substantial interdependence between firm competitive environment and government policy. The uncertainty of government policy results in the increase of transaction costs, but whether firms apply political power to receive private gain has a direct relation with their business and competitiveness. When they formulate competitive strategies to win the product market, all of firms will develop and execute political strategies, and obtain all kinds of government resources by influencing government decision process, thus to improve their political performance, which has become a central task in the field of strategy management. In fact, corporate political strategy means that firms influence the formulation and execution of government policy and regulation to obtain the environment favorable to their competitive efforts, and the action in the course that firms implement the above-mentioned strategies is called corporate political action. Additionally, corporate political performance means the relationship between the political resources and political benefits in the course that firms formulate and implement political strategies to influence government policy. Therefore, the author of this dissertation argues that in order to achieve their political goal, firms apply all kinds of political resources and capabilities, and influence the government decision-making process by formulating and implementing political strategies, thus obtain a lot of political and economic benefits, which indicates that there is a certain relationship between corporate political strategy and corporate political performance in a way.This paper explains the incentives of corporate political strategy and action from different disciplines such as political science, economics, management science and enterprise's theory, etc., and commented the current research status quo on corporate political strategy and action at home and abroad. However, strategy management theory argues that these theoretical and empirical studies are all based on a underlying proposition——"corporate political activity has a significant and positive effect on firm performance". Thus it can see the beginning research of the relation between corporate political strategy and corporate political performance. This paper is mainly divided two parts into theoretical and empirical study: the former one analyzes the relationship between corporate political strategy and corporate political performance, and puts forward two theoretical models by integrating relevant literature; the latter one collects relevant datum by means of interview, questionnaire and enterprises' web, and tests the relationship among all kinds of variables of theoretical study.In theoretical study, this paper firstly believes that as a proactive strategy, corporate political action has become a part of firm overall strategy. Firms that have decided to formulate and develop political strategy usually face three sequential political decisions: (1) approach to political strategy (relational and transactional); (2) participation level (individual and collective); (3) specific strategy (direct participation, prolocutor, information consultation, mobilization public, business political relation, financial incentive, system innovation). Moreover, all kinds of factors in three aspects such as industry structure character, degree of product diversification, organization resources, political experience, etc. have an effect on the process of corporate political strategy formulation. Based on this analysis, this paper provides a decision-tree model of political strategy. Secondly, this paper thinks corporate political strategy and action can create pol...