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Purpose

This paper aims to examine how a firm’s capability affects its political networking in emerging economies and how the institutional environment influences the relationship between a firm’s capability and its political networking.

Design/methodology/approach

The authors test the theoretical model by analyzing a database from a World Bank survey in China.

Findings

The results show a nonlinear (U-shaped) relationship between a firm’s capability and its efforts in political networking. The relationship between a firm’s capability and political networking is contingent on the institutional environment, as reflected in institutional development and industry regulation.

Originality/value

This study elucidates political networking in emerging economies and contributes to research on corporate political strategy.

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