Mangers' Political Networking And Government Regulated Industries In Transition Economics

Since the reform and opening up, managers'political networking is important to enterprise, because it can substitute for insufficient institutional infrastructure. Managers'political networking is important strategic resources in transition economics, which can build competitive advantage. Previous studies in this area are limited to the impact on performance or diversified, yet little is known about how managers'political networking impacts the performance, in transition economics.Using data from a sample of 307 Chinese private enterprises that on public between 2006 and 2007, we demonstrate the following arguments:In transition economics, managers'political networking effectively helps enterprise to enter the government regulated industries and obtain monopoly profits. Relative to central political network, local government network has a bigger role. With the deepening market-oriented, the effect of managers'political networking is becoming smaller, functional experience is more important.This research has certain exploratory:First, we adopt assignment way to measure political networking, avoid some shortcomings as dumb variable.Second, we divide managers'political networking into central political network and local government network.Third, this study contributes to the contingent resource-based view.