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.
The authors test the theoretical model by analyzing a database from a World Bank survey in China.
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.
This study elucidates political networking in emerging economies and contributes to research on corporate political strategy.
