Effects of business and political ties on product innovation performance: evidence from China and India

Zhang, Min; Qi, Yinan; Wang, Zhiqiang; Zhao, Xiande; Pawar, Kulwant

Abstract

This study investigates the joint effects of business and political ties, cognitive capital, and institutional support on product innovation performance in China and India. The hypotheses are empirically tested using bootstrap and multiple group structural equation modeling methods, and data collected from 300 Chinese and 200 Indian manufacturers. The results reveal that cognitive capital mediates business ties' impacts on product innovation performance in both China and India and that institutional support mediates the effects of business and political ties on product innovation performance only in China. The study also finds that political ties increase institutional support in India and that the effect of cognitive capital on product innovation performance is significantly stronger in India than in China. This study clarifies the mechanisms through which business and political ties enhance product innovation performance and generalizes the results in two emerging markets. The crosscountry comparison sheds light on the influences of cultural and institutional environments on such mechanisms and provides insights into how to utilize managers' business and political ties for product innovation in China and India.

Citation

Zhang, M., Qi, Y., Wang, Z., Zhao, X., & Pawar, K. (2019). Effects of business and political ties on product innovation performance: evidence from China and India. Technovation, 80-81, 30-39. https://doi.org/10.1016/j.technovation.2018.12.002

• Journal Article Type: Article
• Acceptance Date: Dec 17, 2018
• Online Publication Date: Jan 2, 2019
• Publication Date: 2019-02
• Deposit Date: Jan 8, 2019
• Publicly Available Date: Jan 3, 2021
• Journal: Technovation
• Print ISSN: 0166-4972
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 80-81
• Pages: 30-39
• DOI: https://doi.org/10.1016/j.technovation.2018.12.002
• Keywords: business ties, political ties, cognitive capital, institutional support, product; innovation performance, China, India; 2
• Public URL: https://nottingham-repository.worktribe.com/output/1449704
• Publisher URL: https://www.sciencedirect.com/science/article/pii/S0166497216302887
• Additional Information: This article is maintained by: Elsevier; Article Title: Effects of business and political ties on product innovation performance: Evidence from China and India; Journal Title: Technovation; CrossRef DOI link to publisher maintained version: https://doi.org/10.1016/j.technovation.2018.12.002; Content Type: article; Copyright: © 2018 Elsevier Ltd. All rights reserved.