TITLE:
The “Close” and “Unsullied” New Government-Business Relationship and Entrepreneurial Orientation: Empirical Research from Listed Firms in China
AUTHORS:
Lin Zhou, Xiaoqing Wang
KEYWORDS:
The New Government-Business Relationship, Entrepreneurial Orientation, Institutional Theory
JOURNAL NAME:
Open Journal of Business and Management,
Vol.12 No.3,
May
23,
2024
ABSTRACT: Establishing a new government-business relationship with “close” and “unsullied” as the core characteristics aimed to provide a good institutional environment for enterprise economic activities, but there were few researches which focused on the impact of the new government-business relationship on the entrepreneurial orientation of enterprises. This paper took A-share listed companies in Shanghai and Shenzhen from 2016 to 2019 as the research object, and empirically analyzed the impact of the new government-business relationship with “close” and “unsullied” as the core characteristics on the entrepreneurial orientation (EO) of enterprises based on institutional theory. The results showed that the new government-business relationship can stimulate the EO of enterprises by providing them with abundant innovation resources and accurate and timely market information. After refining the new government-business relationship, it was found that both “close” and “unsullied” of the new government-business relationship can effectively promote the EO strategy of enterprises. Further research showed that compared with state-owned enterprises, the new government-business relationship had a more significant impact on the EO of private enterprises. The new government-business relationship can promote the EO of enterprises through government subsidies and tax incentives. This study helped to understand the boundary between enterprises and government, and provided empirical evidence for promoting the development of new government-business relations and promoting the EO strategy of enterprises more effectively.