Are Collective and Private Political Actions Substitutes or Complements? Empirical Evidence from China's Private Sector

Strategic Management Journal, Forthcoming

44 Pages Posted: 12 Oct 2012 Last revised: 4 Jan 2013

See all articles by Nan Jia

Nan Jia

University of Southern California - Marshall School of Business

Date Written: January 3, 2013

Abstract

This paper examines the circumstances under which collective and private corporate political actions are more likely to be substitutes or complements. Using data based on a series of nationwide surveys conducted on privately owned firms in China, I find that firms that are engaged in collective political actions are more likely to pursue private political actions. This positive relationship is stronger in less economically developed provinces and when there are greater opportunities for the state to redistribute economic resources in product and capital markets. Meanwhile, this relationship is weaker in the presence of heavier regulatory burdens and for firms in which the state has some equity or owned by individuals who had prior political careers. These findings contribute to the corporate political action (CPA) literature.

Keywords: Corporate Political Action, Collective Political Action, Complements, Substitutes, China

Suggested Citation

Jia, Nan, Are Collective and Private Political Actions Substitutes or Complements? Empirical Evidence from China's Private Sector (January 3, 2013). Strategic Management Journal, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2160964 or http://dx.doi.org/10.2139/ssrn.2160964

Nan Jia (Contact Author)

University of Southern California - Marshall School of Business ( email )

701 Exposition Blvd
Los Angeles, CA 90089
United States

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