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The role of managers' political networking and functional experience in new venture performance: Evidence from China's transition economy
Author(s) -
Li Haiyang,
Zhang Yan
Publication year - 2007
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.605
Subject(s) - transaction cost , dysfunctional family , china , politics , business , sample (material) , resource (disambiguation) , new ventures , industrial organization , database transaction , competition (biology) , marketing , entrepreneurship , transition economy , economics , market economy , finance , psychology , political science , computer network , ecology , chemistry , chromatography , computer science , law , psychotherapist , biology , programming language
Abstract Drawing upon the resource‐based view and transaction cost economics, this study aims to examine how various types of managerial resources (i.e., political networking and functional experience) can be beneficial to new ventures in a transition economy. Using survey data from a sample of new ventures in China's high‐technology industries, we demonstrate that managers' political networking and functional experience are positively related to new venture performance. We also find that the positive relationship between functional experience and new venture performance is moderated by the type of ownership of the ventures and the level of dysfunctional competition in their environments. Theoretical and managerial implications are discussed. Copyright © 2007 John Wiley & Sons, Ltd.