Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Between Legitimacy and Socioemotional Wealth: Family Ownership and the Party Branches Building of Chinese Private Enterprises

Between Legitimacy and Socioemotional Wealth: Family Ownership and the Party Branches Building of... ABSTRACT Since 2012, a large-scale Party branches building campaign intending to regain political influence in the private sector has been sweepingly promoted. Drawing on the Chinese Private Enterprise Survey conducted in 2008, 2012, and 2018, this study investigates private enterprises’ strategies in response to the intensified political pressure by integrating socioemotional wealth theory and neo-institutional theory. It is found that (1) private enterprises with high family ownership tend not to establish Party branches until political pressure is very high; (2) enterprises with high family ownership are more likely to adopt a decoupling strategy of evading the Party's political and social goals; and (3) the owners’ perceptions of a better market and legal environment weaken the negative effect of family ownership on the establishment of Party branches. These results reveal the key logic of preserving the socioemotional wealth and ‘embedded agency’ of Chinese private enterprises when they confront institutional legitimacy mandates. This study also sheds new light on the causes of the decoupling phenomenon and the dynamic interactions between institutional environment and organizational behaviors. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Management and Organization Review Cambridge University Press

Between Legitimacy and Socioemotional Wealth: Family Ownership and the Party Branches Building of Chinese Private Enterprises

Management and Organization Review , Volume 18 (2): 28 – Apr 1, 2022

Loading next page...
 
/lp/cambridge-university-press/between-legitimacy-and-socioemotional-wealth-family-ownership-and-the-IIfABZRjxi

References

References for this paper are not available at this time. We will be adding them shortly, thank you for your patience.

Publisher
Cambridge University Press
Copyright
Copyright © The Author(s), 2022. Published by Cambridge University Press on behalf of The International Association for Chinese Management Research
ISSN
1740-8784
eISSN
1740-8776
DOI
10.1017/mor.2021.67
Publisher site
See Article on Publisher Site

Abstract

ABSTRACT Since 2012, a large-scale Party branches building campaign intending to regain political influence in the private sector has been sweepingly promoted. Drawing on the Chinese Private Enterprise Survey conducted in 2008, 2012, and 2018, this study investigates private enterprises’ strategies in response to the intensified political pressure by integrating socioemotional wealth theory and neo-institutional theory. It is found that (1) private enterprises with high family ownership tend not to establish Party branches until political pressure is very high; (2) enterprises with high family ownership are more likely to adopt a decoupling strategy of evading the Party's political and social goals; and (3) the owners’ perceptions of a better market and legal environment weaken the negative effect of family ownership on the establishment of Party branches. These results reveal the key logic of preserving the socioemotional wealth and ‘embedded agency’ of Chinese private enterprises when they confront institutional legitimacy mandates. This study also sheds new light on the causes of the decoupling phenomenon and the dynamic interactions between institutional environment and organizational behaviors.

Journal

Management and Organization ReviewCambridge University Press

Published: Apr 1, 2022

Keywords: decoupling; family ownership; institutional environment; socioemotional wealth; 制度环境; 家族所有权; 社会情感财富; 脱耦

References