Entrepreneur Political Connection, Strategy Network And Enterprise Innovation Performance

Entrepreneur’s political connection as an emerging research field, especially in China’s institutional background, political connection as social relations and political power by combining a ubiquitous implied contractual transaction form, it is legal and concealed by undercover rule and translate the social capital into economic resources. The government as the main stakeholder, based on the theory of mutual exchange, enterprise will support and investment with the government`s policy as an investment of obtaining political capital and advantage for the market competition. At now, the existing research is more about the relationship between corporate financing cost and political connection. But the study of political connection effects the enterprise strategic network and innovation performance is relatively less. This article is based on the perspective of enterprise strategic networks, combines with the theory of empirical analysis of the impact of political connection on the performance of enterprise innovation.This paper selects the A shares of listing Corporation 247 enterprises from 2007 to 2012, panel data, using theoretical analysis and empirical analysis of the combination, using dynamic structure model to construct the enterprise strategic network analysis method, text analysis method and the social network UCNET software, at the same time the use of listing Corporation financial statements disclosure information acquisition corporate board members of political identity. Analysis of the relationship between political connections, enterprise innovation performance and strategic network through the empirical study, and further distinguish the impact of differences between enterprises of different ownership structure. Through theoretical analysis and empirical test to draw the following conclusions:(1) Enterprises political connection positive effect on innovation performance, compared to the enterprise with the local political connection, connection of central political enterprise with more capable of promoting enterprise innovation performance.(2) Enterprise strategic network structure has moderating effect on the positive relation between political connection enterprises and innovation performance, the strategic network centrality, network scale degree of positive correlation between political connections and innovation performance has a positive role in promoting, and the enterprise strategic network structure hole has a negative regulatory role.The conclusion of this study not only further proves the relationship between political connections and performance of enterprise innovation, and analysis shows that enterprise should keep the balance between external environment and internal structure to maximized the profit of political connection. The conclusion of this study also open the black box of political connection and innovation performance, and provides a new analytical framework.Based on existing research, this study has achieved some progress in two aspects:(1) From the enterprise strategic network structure as a starting point, analysis of the impact of strategic network on political connections and innovation performance, found the strategic network structural holes exist "information dissipation" phenomenon.(2) Improved the political connection measure, combined with the present our country administrative set up, on political association index not only from the longitudinal administrative level and horizontal sectors dividing weight difference, at the same time as the relevant position on the number of years for the time value of cumulative metering. Make a foundation for the further quantitative analysis.