What is the benefit of TMT's governmental experience to private-owned enterprises? Evidence from China

Haizhen Wang; Jie Feng; Xinmei Liu; Ruoyong Zhang

doi:10.1007/s10490-009-9167-y

What is the benefit of TMT's governmental experience to private-owned enterprises? Evidence from China

Haizhen Wang, Jie Feng, Xinmei Liu, Ruoyong Zhang

Research output: Contribution to journal › Article › peer-review

23 Scopus citations

Abstract

In China, the phenomenon of government officials entering business (xiahai)-government officials leave government organizations to enter into private-owned enterprises (POEs)-gives rise to an intriguing question: Why do POEs invite the participation of former government officials? Based on a sample of 100 Chinese POEs, our findings indicate that both the mean number of years of top management team's (TMT) governmental experience and the number of top managers with governmental experience in a TMT are positively related to a POE's political networking, which in turn contributes to POE performance. By doing so, this study adds governmental experience to the literature on TMT experience, and identifies the mechanism of governmental experience effect. Overall, we provide an underlying mechanism of the phenomenon of government officials entering business.

Original language	English (US)
Pages (from-to)	555-572
Number of pages	18
Journal	Asia Pacific Journal of Management
Volume	28
Issue number	3
DOIs	https://doi.org/10.1007/s10490-009-9167-y
State	Published - Sep 2011
Externally published	Yes

All Science Journal Classification (ASJC) codes

Business and International Management
Economics, Econometrics and Finance (miscellaneous)
Strategy and Management

Keywords

Firm performance
Governmental experience
Political networking
Top management team (TMT)

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10.1007/s10490-009-9167-y

Cite this

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abstract = "In China, the phenomenon of government officials entering business (xiahai)-government officials leave government organizations to enter into private-owned enterprises (POEs)-gives rise to an intriguing question: Why do POEs invite the participation of former government officials? Based on a sample of 100 Chinese POEs, our findings indicate that both the mean number of years of top management team's (TMT) governmental experience and the number of top managers with governmental experience in a TMT are positively related to a POE's political networking, which in turn contributes to POE performance. By doing so, this study adds governmental experience to the literature on TMT experience, and identifies the mechanism of governmental experience effect. Overall, we provide an underlying mechanism of the phenomenon of government officials entering business.",

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AU - Wang, Haizhen

AU - Feng, Jie

AU - Liu, Xinmei

AU - Zhang, Ruoyong

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AB - In China, the phenomenon of government officials entering business (xiahai)-government officials leave government organizations to enter into private-owned enterprises (POEs)-gives rise to an intriguing question: Why do POEs invite the participation of former government officials? Based on a sample of 100 Chinese POEs, our findings indicate that both the mean number of years of top management team's (TMT) governmental experience and the number of top managers with governmental experience in a TMT are positively related to a POE's political networking, which in turn contributes to POE performance. By doing so, this study adds governmental experience to the literature on TMT experience, and identifies the mechanism of governmental experience effect. Overall, we provide an underlying mechanism of the phenomenon of government officials entering business.

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What is the benefit of TMT's governmental experience to private-owned enterprises? Evidence from China

Abstract

All Science Journal Classification (ASJC) codes

Keywords

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