IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v68y2015i6p1157-1165.html
   My bibliography  Save this article

CEO characteristics and corporate entrepreneurship in transition economies: Evidence from China

Author

Listed:
  • Wei, Li-Qun
  • Ling, Yan

Abstract

Corporate entrepreneurship leads a path to competitive advantages for firms in transition economies such as China. To better understand how corporate entrepreneurship can be developed, we design this study to examine the importance of CEOs' institution-related characteristics, which reflect their human and relational capital, for corporate entrepreneurship in transition economies. Integrating the upper echelons and corporate entrepreneurship literature, this study proposes and tests CEOs' appointment modes, their work experience, and their network ties as antecedents of the level of corporate entrepreneurship in Chinese firms. It also examines whether the effect of CEO characteristics on corporate entrepreneurship tends to be stronger when firm-level and environmental conditions allow the CEOs greater managerial discretion. Results from a survey in 198 Chinese firms indicate that CEOs who are openly recruited and have foreign experiences are more associated with corporate entrepreneurship. Moreover, both the political focus of a CEO's network ties and his/her focus on ties outside the industry more positively relate to CE when he/she has more discretion. Our findings have both theoretical and practical implications, especially to the research on the role of corporate leaders in corporate entrepreneurship and the practices of CEO recruitment and selection.

Suggested Citation

  • Wei, Li-Qun & Ling, Yan, 2015. "CEO characteristics and corporate entrepreneurship in transition economies: Evidence from China," Journal of Business Research, Elsevier, vol. 68(6), pages 1157-1165.
    • Handle: RePEc:eee:jbrese:v:68:y:2015:i:6:p:1157-1165
    DOI: 10.1016/j.jbusres.2014.11.010
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296314003531
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2014.11.010?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yan Zhang & Haiyang Li, 2010. "Innovation search of new ventures in a technology cluster: the role of ties with service intermediaries," Strategic Management Journal, Wiley Blackwell, vol. 31(1), pages 88-109, January.
    2. Lin, Justin Yifu & Cai, Fang & Li, Zhou, 1998. "Competition, Policy Burdens, and State-Owned Enterprise Reform," American Economic Review, American Economic Association, vol. 88(2), pages 422-427, May.
    3. Bai, Chong-En & Liu, Qiao & Lu, Joe & Song, Frank M. & Zhang, Junxi, 2004. "Corporate governance and market valuation in China," Journal of Comparative Economics, Elsevier, vol. 32(4), pages 599-616, December.
    4. Michael Lubatkin & Zeki Simsek & Yan Ling & John F. Veiga, 2006. "Ambidexterity and Performance in Small-to Medium-Sized Firms : The Pivotal Role of Top Management Team Behavioral Integration," Post-Print hal-02311781, HAL.
    5. Fan, Joseph P.H. & Wong, T.J. & Zhang, Tianyu, 2007. "Politically connected CEOs, corporate governance, and Post-IPO performance of China's newly partially privatized firms," Journal of Financial Economics, Elsevier, vol. 84(2), pages 330-357, May.
    6. Naresh Khatri & Eric W K Tsang & Thomas M Begley, 2006. "Cronyism: a cross-cultural analysis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(1), pages 61-75, January.
    7. Zhang, Jianjun & Keh, Hean Tat, 2010. "Interorganizational Exchanges in China: Organizational Forms and Governance Mechanisms," Management and Organization Review, Cambridge University Press, vol. 6(1), pages 123-147, March.
    8. Wang, Yue & Tanaka, Akira, 2011. "From hierarchy to hybrid: The evolving nature of inter-firm governance in China's automobile groups," Journal of Business Research, Elsevier, vol. 64(1), pages 74-80, January.
    9. Yan Ling & Zeki Simsek & Michael Lubatkin & John F. Veiga, 2008. "The impact of transformational CEOs on the performance of small- to medium-sized firms : Does organizational context matter?," Post-Print hal-02312589, HAL.
    10. Li-Qun Wei & Chung-Ming Lau, 2008. "The impact of market orientation and strategic HRM on firm performance: the case of Chinese enterprises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(6), pages 980-995, September.
    11. Lin, Cyril, 2001. "Corporatisation and Corporate Governance in China's Economic Transition," Economic Change and Restructuring, Springer, vol. 34(1-2), pages 5-35.
    12. Haiyang Li & Yan Zhang, 2007. "The role of managers' political networking and functional experience in new venture performance: Evidence from China's transition economy," Strategic Management Journal, Wiley Blackwell, vol. 28(8), pages 791-804, August.
    13. Bing‐Sheng Teng, 2007. "Corporate Entrepreneurship Activities through Strategic Alliances: A Resource‐Based Approach toward Competitive Advantage," Journal of Management Studies, Wiley Blackwell, vol. 44(1), pages 119-142, January.
    14. Mike W. Peng & Shujun Zhang & Xinchun Li, 2007. "CEO Duality and Firm Performance during China's Institutional Transitions," Management and Organization Review, The International Association for Chinese Management Research, vol. 3(2), pages 205-225, July.
    15. Tarun Khanna & Krishna Palepu, 2000. "Is Group Affiliation Profitable in Emerging Markets? An Analysis of Diversified Indian Business Groups," Journal of Finance, American Finance Association, vol. 55(2), pages 867-891, April.
    16. Shanxing Gao & Kai Xu & Jianjun Yang, 2008. "Managerial ties, absorptive capacity, and innovation," Asia Pacific Journal of Management, Springer, vol. 25(3), pages 395-412, September.
    17. Kelley, Donna, 2011. "Sustainable corporate entrepreneurship: Evolving and connecting with the organization," Business Horizons, Elsevier, vol. 54(1), pages 73-83.
    18. Max Boisot & John Child, 1999. "Organizations as Adaptive Systems in Complex Environments: The Case of China," Organization Science, INFORMS, vol. 10(3), pages 237-252, June.
    19. Yan Ling & Zeki Simsek & Michael Lubatkin & John F. Velga, 2008. "Transformational Leadership's Role in Promoting Corporate Entrepreneurship : Examining the CEO - TMT Interface," Post-Print hal-02276697, HAL.
    20. Thomas Dalziel & Richard J. Gentry & Michael Bowerman, 2011. "An Integrated Agency–Resource Dependence View of the Influence of Directors' Human and Relational Capital on Firms' R&D Spending," Journal of Management Studies, Wiley Blackwell, vol. 48, pages 1217-1242, September.
    21. David Smallbone & Friederike Welter, 2006. "Conceptualising entrepreneurship in a transition context," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 3(2), pages 190-206.
    22. Luo, Xueming & Zhou, Lianxi & Liu, Sandra S., 2005. "Entrepreneurial firms in the context of China's transition economy: an integrative framework and empirical examination," Journal of Business Research, Elsevier, vol. 58(3), pages 277-284, March.
    23. Julie Juan Li & Kevin Zheng Zhou & Alan T Shao, 2009. "Competitive position, managerial ties, and profitability of foreign firms in China: an interactive perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(2), pages 339-352, February.
    24. Kiran Ismail & David Ford & Qingsheng Wu & Mike Peng, 2013. "Managerial ties, strategic initiatives, and firm performance in Central Asia and the Caucasus," Asia Pacific Journal of Management, Springer, vol. 30(2), pages 433-446, June.
    25. Peng, Mike W. & Zhang, Shujun & Li, Xinchun, 2007. "CEO Duality and Firm Performance during China's Institutional Transitions," Management and Organization Review, Cambridge University Press, vol. 3(2), pages 205-225, July.
    26. Kelley, Donna, 2011. "Sustainable corporate entrepreneurship: Evolving and connecting with the organization," Business Horizons, Elsevier, vol. 54(1), pages 73-83, January.
    27. Daphne W. Yiu & Chung–Ming Lau, 2008. "Corporate Entrepreneurship as Resource Capital Configuration in Emerging Market Firms," Entrepreneurship Theory and Practice, , vol. 32(1), pages 37-57, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hongjuan Zhang & Rong Han & Liang Wang & Runhui Lin, 2021. "Social capital in China: a systematic literature review," Asian Business & Management, Palgrave Macmillan, vol. 20(1), pages 32-77, February.
    2. Hongjuan Zhang & Rong Han & Liang Wang & Runhui Lin, 0. "Social capital in China: a systematic literature review," Asian Business & Management, Palgrave Macmillan, vol. 0, pages 1-46.
    3. Lutz Göcke & Kristina Hülsebusch & Matthias Menter, 2022. "The legitimacy of corporate entrepreneurship: a structured literature review," Management Review Quarterly, Springer, vol. 72(2), pages 385-416, June.
    4. Jianghua Zhou & Rui Wu & Jizhen Li, 2019. "More ties the merrier? Different social ties and firm innovation performance," Asia Pacific Journal of Management, Springer, vol. 36(2), pages 445-471, June.
    5. Jing Zhang & Justin Tan & Poh Wong, 2015. "When does investment in political ties improve firm performance? The contingent effect of innovation activities," Asia Pacific Journal of Management, Springer, vol. 32(2), pages 363-387, June.
    6. Ljungqvist, Alexander & Chen, Donghua & Lu, Haitian & Jiang, Dequan & Zhou, Mingming, 2015. "State Capitalism vs. Private Enterprise," CEPR Discussion Papers 10423, C.E.P.R. Discussion Papers.
    7. Zhao, Hongxin & Lu, Jiangyong, 2016. "Contingent value of political capital in bank loan acquisition: Evidence from founder-controlled private enterprises in China," Journal of Business Venturing, Elsevier, vol. 31(2), pages 153-174.
    8. Jiang, Xu & Liu, Heng & Fey, Carl & Jiang, Feifei, 2018. "Entrepreneurial orientation, network resource acquisition, and firm performance: A network approach," Journal of Business Research, Elsevier, vol. 87(C), pages 46-57.
    9. Gang Wang & Xu Jiang & Chang-Hong Yuan & Ya-Qun Yi, 2013. "Managerial ties and firm performance in an emerging economy: Tests of the mediating and moderating effects," Asia Pacific Journal of Management, Springer, vol. 30(2), pages 537-559, June.
    10. Anup Banerjee & Mattias Nordqvist & Karin Hellerstedt, 2020. "The role of the board chair—A literature review and suggestions for future research," Corporate Governance: An International Review, Wiley Blackwell, vol. 28(6), pages 372-405, November.
    11. Hongjin Zhu & Yue Pan & Jiaping Qiu & Jinli Xiao, 2022. "Hometown Ties and Favoritism in Chinese Corporations: Evidence from CEO Dismissals and Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 176(2), pages 283-310, March.
    12. Oehmichen, Jana, 2018. "East meets west—Corporate governance in Asian emerging markets: A literature review and research agenda," International Business Review, Elsevier, vol. 27(2), pages 465-480.
    13. Yan Ling & Michelle Hammond & Li-Qun Wei, 2022. "Ethical leadership and ambidexterity in young firms: examining the CEO-TMT Interface," International Entrepreneurship and Management Journal, Springer, vol. 18(1), pages 25-48, March.
    14. Xie, Sujuan & Lin, Bingxuan & Li, Jingjing, 2022. "Political Control, Corporate Governance and Firm Value: The Case of China," Journal of Corporate Finance, Elsevier, vol. 72(C).
    15. Chen, Shimin & Sun, Zheng & Tang, Song & Wu, Donghui, 2011. "Government intervention and investment efficiency: Evidence from China," Journal of Corporate Finance, Elsevier, vol. 17(2), pages 259-271, April.
    16. He, Yan & Chiu, Yung-ho & Zhang, Bin, 2015. "The impact of corporate governance on state-owned and non-state-owned firms efficiency in China," The North American Journal of Economics and Finance, Elsevier, vol. 33(C), pages 252-277.
    17. Paul McGuinness & Kevin Lam & João Vieito, 2015. "Gender and other major board characteristics in China: Explaining corporate dividend policy and governance," Asia Pacific Journal of Management, Springer, vol. 32(4), pages 989-1038, December.
    18. Ruey-Jer ‘Bryan’ Jean & Rudolf R. Sinkovics & Stefan Zagelmeyer, 2018. "Antecedents and Innovation Performance Implications of MNC Political Ties in the Chinese Automotive Supply Chain," Management International Review, Springer, vol. 58(6), pages 995-1026, December.
    19. Qingqing Tang & Longwei Wang & Hao Shen, 2021. "How do SOEs and FIEs affect POEs’ performance in emerging economies? Moderating effects of managerial ties," Asia Pacific Journal of Management, Springer, vol. 38(2), pages 767-788, June.
    20. Liu, Chunyan & Uchida, Konari & Yang, Yufeng, 2012. "Corporate governance and firm value during the global financial crisis: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 21(C), pages 70-80.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:68:y:2015:i:6:p:1157-1165. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.