Publication: Political rotations and cross-province firm acquisitions in China
Political rotations and cross-province firm acquisitions in China
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Muratova, Y., Arnoldi, J., Chen, X., & Scholderer, J. (2018). Political rotations and cross-province firm acquisitions in China. Asian Business & Management, 17, 37–58. https://doi.org/10.1057/s41291-018-0029-7
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The underdeveloped institutional framework and trade barriers between China’s provinces make cross-province acquisitions challenging. We explore how Chinese firms can mitigate this problem. Drawing on social network theory we propose that cross-province rotation of political leaders—a key element of the promotion system of political cadres in China—is a mechanism enabling growth through cross-province acquisitions. We conceptualize rotated leaders as brokers between two geographically dispersed networks. We contribute to the literatur
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Muratova, Y., Arnoldi, J., Chen, X., & Scholderer, J. (2018). Political rotations and cross-province firm acquisitions in China. Asian Business & Management, 17, 37–58. https://doi.org/10.1057/s41291-018-0029-7