Depend on whom? : the interplay between political networks and CEO core self-evaluation (CSE) on firm product innovation

Abstract

Political networking has been suggested as an effective non-market strategy frequently adopted by firms in emergent economics to achieve competitive advantage. Effective political networks help firms gain more novel information and institutional support thus reducing the uncertainties and ambiguities associated with product innovation. However, the effects of political networking can also be affected by CEOs' psychological characteristics. This study investigates how a CEO's hyper-level of Core Self-evaluation (CSE) affect the effects of political networks on new product innovation. Drawing upon upper echelons perspective and the resource-dependence Theory (RDT), I propose that the effects of political networking on firm product innovation would be bounded by CEO CSE. Partial predications are supported based on a survey of 381 Chinese firms conducted in 2014.