Research On Relationship Between Political Connection And Enterprise’s Performance: The Influence Of CEO’s Leadership Style

As the transition period the system environment’s construction is relatively backward, the political connection phenomenon are common in the enterprises of our country. How politics affects business performance associated with enterprise growth theoryhas become a new hotspot. Based on RBV and institutional theory, enterprise performance depends not only on internal decision-making, as well as by the impact of external funding and environment. Political connection may serve as a positive alternative protection mechanisms to deal with market failures and legal controls failures.It isan important factor affecting business performance. Some studies suggest that association with government, can effectively improve the business environment, significantly improve the business performance; However, some studies have found the existence ofa political association, played a " grabbing hand " effect, reducing the company’sperformance; to present So far, the study of political association performance of a firm is still relatively few, but has not yet reached the same conclusion. Visible, theestablishment of political connection for enhancing corporate performance actually is apositive role or a negative factor need for further testing.This paper describes the selection and construction of a suitable model, a measure of the relationship between corporate political connection and corporate performancequantitative research methods, and thus determine the impact of political connection toenterprise performance. Firstly, according to the literature associated with the background of the political decision, to study proposed between political connection to enterprise performance in two dimensions: a feature of financial performance and innovationperformance, at the same time, leadership style as a key figure in the model of corporate political connection between corporate performance,there are six assumptions toexplore the political impact of the case on corporate performance.In summing up the basis of previous work performance and its influencing factors related to research, literature analysis, open-ended surveys and questionnaires and other methods, to build political connection included as independent variables, leadership style as moderator, business performance as the dependent variable to set up the basic research framework, the corresponding hypotheses and the overall research designof this study. On the basis of a questionnaire prepared and empirical research. Finally, This paper’s main conclusions are as follows::(1) political connection influence firm performance positively;(2) charismatic leadership plays a positive regulatory r ole between political connenction with corporate financial performance and innovationperformance, that is charismatic leadership is stronger, the higher the degree of political connection business to business performance;(3) laissez-faire leadership are nota regulatory role between political connenction with corporate financial performance and innovation performance.