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Recognition of entrepreneur’s social ties and firm innovation in emerging markets: explanation from the industrial institutional environment and survival pressure

Author

Listed:
  • Wenting Chen

    (Dongbei University of Finance and Economics)

  • Chunjia Han

    (University of Greenwich)

  • Lei Wang

    (Dongbei University of Finance and Economics)

  • Petros Ieromonachou

    (University of Greenwich)

  • Xiaochen Lu

    (Dongbei University of Finance and Economics)

Abstract

Despite the extensive attention to the role of entrepreneurs’ business or political ties, few studies have distinguished the basis of those social ties. The aim of this study is to explore the different roles of the entrepreneurs’ personalized and formal social ties on the firms’ innovation performance. Based on renqing and formal rules, this study extends the social ties’ typology into four categories, namely, transactional business ties, transactional political ties, guanxi business ties, and guanxi political ties. Using data collected from 209 Chinese firms, we further identify the distinctive contributions of the different ties on the entrepreneurial firm’s innovation performance under different institutional environments and entrepreneurs’ survival pressure. This paper will help researchers and managers better understand the function of social ties in innovation in emerging markets, such as China.

Suggested Citation

  • Wenting Chen & Chunjia Han & Lei Wang & Petros Ieromonachou & Xiaochen Lu, 2021. "Recognition of entrepreneur’s social ties and firm innovation in emerging markets: explanation from the industrial institutional environment and survival pressure," Asia Pacific Journal of Management, Springer, vol. 38(2), pages 491-518, June.
    • Handle: RePEc:kap:asiapa:v:38:y:2021:i:2:d:10.1007_s10490-019-09680-2
    DOI: 10.1007/s10490-019-09680-2
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    Cited by:

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    3. Wang, Zhiqiang & Chen, Xiaoli & Zhang, Shanshan & Yin, Ying & Zhao, Xiande, 2022. "The impact of political ties on firm innovativeness: Testing a mediation and moderation model," Journal of Business Research, Elsevier, vol. 144(C), pages 523-534.

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