The moderating role of context in managerial ties--firm performance link: a meta-analytic review of mainly Chinese-based studies

Through a meta-analysis of 7748 firm samples reported in 29 studies (21 Chinese-based studies and 8 other country-based studies), we test the prediction of resource-based theory and institutional theory in the context of managerial ties--firm performance relationship. We examine whether contextual factors, including culture type (individualism vs. collectivism), industry setting (manufacturing vs. service), firm size (small and medium enterprises (SMEs) vs. non-SMEs), and measurements influence the managerial ties--firm performance link. Meta-analysis findings illustrate a positive and significant effect between managerial ties and firm performance, and business ties have a stronger positive effect on firm performance than political ties. The contextual moderators of cultural type, industry setting and firm size partially explain significant variance in effect sizes across studies. The result of meta-regression also suggests that the importance of political ties will decline over time. Finally, our analysis suggests that the measurement of managerial ties is not the reason for previous inconsistent findings in managerial ties--firm performance link. Drawing on these findings, we propose practical implications to managers and future research directions to scholars.