Corporate Political Strategy and Their Effectiveness for Foreign Firms in Shanghai

Abstract:

Based on convenient sample and questionnaire survey,an analysis is made of the corporate political strategies and its effectiveness for foreign firms in Shanghai.The study shows that corporate political strategies are paid much attention to and implemented well by foreign firms in Shanghai.Firm level factor and managers’ individual personal level factors influence prominently the corporate political strategies.Big firms are more likely to take active political strategies.Managers with longer working years tend to keep closer relationship with government.Managers’ education level is negatively related in this regard.Three generic political strategies (information,financial incentive and constituency building) proposed by Hillman and Hitt are believed to be effective strategies among foreign firms.