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

Min Zhang (First Author), Xiande Zhao (Participant Author), Zhiqiang Wang (Participant Author), Yinan Qi (Participant Author), Kulwant S. Pawar (Participant Author)

Research output: Contribution to journalJournal

50 Citations (Web of Science)

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 cross-country 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.
Original languageEnglish
Pages (from-to)30-39
JournalTechnovation
Volume80-81
DOIs
Publication statusPublished - 2019

Corresponding author email

zhangmin_79@yahoo.com

Keywords

  • Business ties
  • China
  • Cognitive capital
  • India
  • Institutional support
  • Political ties
  • Product innovation performance

Indexed by

  • ABDC-A
  • SCIE
  • Scopus
  • SSCI

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