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Ties that matter: Effects of domestic political ties and foreign ties on emerging market firm performance

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  • Chen, Yisheng
  • Tan, Qun
  • Zhou, Chenxi

Abstract

Emerging market firms (EMFs) establish social ties to address institutional weaknesses and navigate environmental uncertainty in their home countries. This study examines the effects of two critical managerial social ties—domestic political ties (DPTs) and foreign ties (FTs)—on EMF performance using panel data from 1,754 Chinese-listed private firms (2012–2020). Interestingly, we find that FTs enhance firm value more effectively than DPTs; however, DPTs more effectively mitigate firms’ systematic risk than FTs. Moreover, the effects of these social ties on firm value are contingent on strategic marketing levers, such as relative strategic emphasis and social marketing engagement. Our study offers insights into the effective allocation of non-market resources in diverse strategic contexts.

Suggested Citation

  • Chen, Yisheng & Tan, Qun & Zhou, Chenxi, 2026. "Ties that matter: Effects of domestic political ties and foreign ties on emerging market firm performance," Journal of Business Research, Elsevier, vol. 204(C).
    • Handle: RePEc:eee:jbrese:v:204:y:2026:i:c:s0148296325006861
    DOI: 10.1016/j.jbusres.2025.115863
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