Speaker: Kevin Zhou, Associate Professor, The University of Hong Kong

Time: 10:00-11:30 am. April, 28, 2011

Place:Room 216, New Building, Guanghua School of Management

Title: The Evolving Role of Managerial Ties and Firm Capabilities in China

ABSTRACT:

As the Chinese economy experiences unprecedented changes in its social,legal, and economic institutions, on what should firms focus more to overcome the challenges: network-based resources such as managerial ties or market-based capabilities? Building on social capital theory and institutional economics, we examine the evolving roles of managerial ties and firm capabilities as well as their interaction effects in China. Based on a longitudinal survey of 166 Chinese firms, we find that over time, the positive role of ties with the government (i.e., political ties) declines,

the positive effect of ties with the business community (i.e., business ties) sustains; marketing capability has a persistent effect and technology capability gains a stronger effect on performance. Moreover, as the market progresses, political ties complement technology capability whereas business ties complement marketing capability in fostering performance.