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Governments’ new policy frequency and firms’ performance in an emerging industry: the difference between family and non-family firms

Author

Listed:
  • Li Cai

    (School of Business and Management, 204, Jilin University)

  • Xin Gao

    (School of Business and Management, 204, Jilin University)

  • Yan Ling

    (Oakland University)

  • Franz W. Kellermanns

    (University of North Carolina at Charlotte & WHU (Otto Beisheim School of MGMT))

Abstract

We examine how new policy frequency affects performance in the new-energy automobile companies from the industry’s inception to the present in China and distinguish the performance implication between family and non-family firms. We argue and find support that an inverted U-shaped relationship exists between new policy frequency, including the three sub-dimensions of economic and financial instruments (EFI), soft instruments (SI), and regulatory instruments (RI), and firm performance; in addition, this relationship is in general moderated by family firm status. We contribute to the institutional theory by adopting a dynamic view that tracks policies over time and showing differential effects of institutional changes on firms with and without family firm status. Implications for theory and policy are discussed.

Suggested Citation

  • Li Cai & Xin Gao & Yan Ling & Franz W. Kellermanns, 2023. "Governments’ new policy frequency and firms’ performance in an emerging industry: the difference between family and non-family firms," International Entrepreneurship and Management Journal, Springer, vol. 19(4), pages 1707-1737, December.
    • Handle: RePEc:spr:intemj:v:19:y:2023:i:4:d:10.1007_s11365-023-00864-3
    DOI: 10.1007/s11365-023-00864-3
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