| In transition economy,it is common for Chinese firms to establish political connections with the government by various channels and ways.In the meantime,whether political connections promotes firm performance has triggered a controversy in the relevant research area.From the perspective of resource-based view,resource dependence theory,social capital theory,rent-seeking theory and over-embeddedness,it has accordingly arrived at different conclusion that the correlation between political connection and firm performance in China is positive,negative,inverted-U curve or irrelevant.In our research,the method of meta-analysis is adopted to explore the relationship between Chinese firm political connections and firm performance and to find the potential moderator that affect the relationship.Through the search,filter,elimination and coding of the literature,92 papers were obtained,and a total of 180 effect values were used for meta-analysis.After the data analysis through Stata,it was found that there is a positive correlation between Chinese firm political connections and performance and the research method plays a role in moderating the relationship.In conclusion,the study demonstrates in transition economy,the political connection between Chinese firm and government will promote firm performance,but the difference in the research methods will exert an impact on the study result.Specifically,compared to the use of second-hand data,through the questionnaire survey,Chinese firm political connections have a stronger impact on firm performance.These conclusions support resource dependence theory and institutional theory that as an alternative mechanism of informal system and an effective mechanism of management environment uncertainty,political connection can bring legitimacy and institutional support to the firm and thus enhance firm performance.However,only if this connection is discovered and fully utilized,it will have a stronger impact on firm performance. |
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