The role of managers' political networking and functional experience in new venture performance: Evidence from China's transition economy
Drawing upon the resource‐based view and transaction cost economics, this study aims to
examine how various types of managerial resources (ie, 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 …
examine how various types of managerial resources (ie, 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 …
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.