The Research On The Relationship Among Top Management Team Cognition,Vertical Integration And Political Relationship

Since the development of the Internet,the domestic market has changed rapidly and the market competition has become increasingly fierce.Traditional business models have gradually been replaced by emerging companies.Faced with such a severe market environment,some Chinese companies have chosen industrial chain integration strategies and tried to increase their competitiveness by extending their control over the industry.And because China is a developing country in a period of transitional economy,the market system is not mature enough.Companies' operations need to follow the command of the government system.State-owned enterprises are like government tools.The state and government attach great importance to the development of state-owned enterprises.China's planned economic system largely depends on Chinese state-owned enterprises.In addition,the existing research ignores the role of senior management teams,and related research is mainly limited to demographic characteristics.However,demographic characteristics could not fully reflect the perceptions of top management teams.At present,management researchers from domestic or abroad have begun to study senior management's perceptions,values,and other issues from the perspective of sociology and psychology,but there is limited empirical research on the influence of top management team perceptions on corporate strategic choices,and the theoretical system is not yet perfect.And it lacks corresponding research in the context of Chinese culture.In summary,this paper draws on existing domestic and foreign research results and combines the realistic background of Chinese companies,selecting 2012-2016 A-share 875 manufacturing companies in China's Shanghai and Shenzhen stock markets as research subjects,and in-depth discussion of senior management teams.The relationship between cognition(including government cognition and market cognition)and corporate vertical integration strategy.Considering that corporate strategic decisions also have their applicable scope and context,we have introduced political associations to explore its regulatory role.This research uses the research software QSR NVIVO 8.0 and Stata to test the hypothesis.The results show that: First,the political relationship has an important impact on the integration of the industry chain.Second,the perception of the senior management team will influence the strategic choice of the company.Among them,the top management team's government has a significant positive impact on the integration of the industry chain.Third,under different degrees of marketization,the interaction between the cognitive and political connections of the senior management team of the company has different effects on the strategic choice of the integration of the industrial chain of the company.Among them,when the degree of marketization is high,the market cognition of the senior management team of the company is positively related to the integration of the industrial chain,and the political association has a positive adjustment effect;when the degree of marketization is low,the enterprise executive team recognizes the government and vertical integration is negatively related,and political relationship has a positive regulatory effect on it.This study not only enriches the theory of high-level echelons,provides ideas for the study of cognitive and corporate strategy choice,but also extends the study of corporate executive team cognition,which has important theoretical and practical significance.