Title: Corporate political analysis, state ownership of enterprises and firm performance in China

Authors: John A. Parnell; Long Zhang

Addresses: College of Business, University of North Alabama Florence, AL 35632 USA ' School of Economics and Management, China University of Geosciences (Beijing), Haidian District, Beijing, 100083, China

Abstract: This paper investigates the impact of corporate political analysis (CPA) on firm performance among Chinese firms, distinguishing between privately-owned firms (non-SOEs) and state-owned enterprises (SOEs). Uncertainty about the competitive environment was a key driver of CPA among non-SOEs firms, but not among SOEs. Differentiation was a significant performance driver for non-SOEs, but not SOEs. However, CPA had significant, negative performance implications for SOEs. Overall, the results of the multi-group analysis suggest two prominent "paths" to performance. Non-SOEs in the study perceived more considerable environmental uncertainty and pursued differentiation, whereas SOEs emphasised CPA. Implications for Chinese managers and future research are addressed.

Keywords: China; corporate political analysis; CPA; non-market strategy; NMS; strategic capabilities; strategic political emphasis; SPE; state-owned enterprises; SOE.

DOI: 10.1504/IJBEM.2020.106204

International Journal of Business and Emerging Markets, 2020 Vol.12 No.1, pp.11 - 30

Received: 23 Mar 2019
Accepted: 25 Jul 2019
Published online: 01 Apr 2020 *

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