This paper examines the influences from the political sector on international expansion of Chinese firms. In analyzing the political sector, we distinguish between ‘formal institutional influences from the government’ and ‘informal relational influences from elite politicians.’ We argue that the government can pressure emerging-market firms to expand abroad despite the risk when outbound globalization is the national policy. However, networks with powerful politicians can discourage international expansion since sufficient domestic returns provided by the political connections can lead to lower motivation for internationalization. The governmental pressures toward internationalization can be moderated by firm size and relational networks with powerful politicians.
All Science Journal Classification (ASJC) codes
- Business and International Management
- Sociology and Political Science
- Political Science and International Relations
- Strategy and Management