Journal of Service Science and Management

Volume 9, Issue 4 (August 2016)

ISSN Print: 1940-9893   ISSN Online: 1940-9907

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A Study of Influence Mechanism of Political Connection on Enterprise Performance— Based on the Perspective of Social Network Theory

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DOI: 10.4236/jssm.2016.94038    1,548 Downloads   2,230 Views  
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ABSTRACT

By using the three theories of social network theory: the strong and weak tie theory, the structural hole theory and the social capital theory, analyzing the influence mechanism of political connection on enterprise performance, the study found that, regardless of whether enterprise is in a dense or a sparse relationship zone, the political connection can help enterprise to obtain more resources. The influence mechanism of political connection on enterprise performance is mainly to help enterprises to obtain the heterogeneity resources and to broaden the enterprises’ channels to obtain resources. In addition, the political connection is mainly related to the acquisition of resources, but when the tie between the enterprise and the government continues to strengthen, the political connection will affect resources allocation of enterprise. The paper provides explanation for the diversified conclusion of the research about the influence of political connection on the enterprise performance in a certain degree.

Cite this paper

Zhu, Y. (2016) A Study of Influence Mechanism of Political Connection on Enterprise Performance— Based on the Perspective of Social Network Theory. Journal of Service Science and Management, 9, 331-341. doi: 10.4236/jssm.2016.94038.

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