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Formal and informal CPAs on business strategy and performance

Author

Listed:
  • Menita Liu Cheng
  • Jianfeng Wu
  • Jianjun Zhang

Abstract

Purpose - The purpose of this paper is to examine corporate political activities (CPA) by migrant entrepreneurs to improve business performance in a host developing country. Design/methodology/approach - The authors use a cross‐sectional analysis of 97 Chinese migrant entrepreneurs with business operations in a host developing economy. Findings - A significant positive relationship was found between formal CPAs and performance. Research limitations/implications - To further deepen the examination of CPAs, new quantification methodologies have to be applied to properly measure CPA relational strength, investment intensity and diversity. Practical implications - The results enable migrant entrepreneurs to make a more educated decision on the type of CPAs to pursue and to what intensity. Social implications - The results could motivate migrant entrepreneurs to adapt rapidly to the host country's formal customs to facilitate socio‐economic adaptation. Originality/value - This study contributes to literature by examining both formal and informal CPAs, their inter‐relationship and their effects on migrant businesses, which have not been examined previously.

Suggested Citation

  • Menita Liu Cheng & Jianfeng Wu & Jianjun Zhang, 2013. "Formal and informal CPAs on business strategy and performance," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing Limited, vol. 7(3), pages 245-273, August.
    • Handle: RePEc:eme:jecpps:v:7:y:2013:i:3:p:245-273
    DOI: 10.1108/JEC-12-2011-0037
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