A socioemotional wealth and social capital perspective on demonstrating how government ties and cooperation affect the entrepreneurship of family firms

Based on the socioemotional wealth and social capital perspectives, this study offers insights into the implications of managerial ties for corporate entrepreneurship (CE) by focusing on business and political ties in the context of emerging markets. Moreover, the mediating effects of cooperation among firms on the relationship between business (or political) ties and CE are examined, and the moderated mediation effects of family governance on the above mediating relationships are then further examined. Data were collected from a questionnaire survey and the Taiwan Economic Journal database. All hypotheses were examined by employing regression analysis and Hayes's PROCESS macro model on a dataset of 173 Taiwanese public companies. The findings show that (1) business and political ties increase CE; (2) cooperation among firms positively mediates the influences of business and political ties on CE; (3) family governance enhances the positive indirect effect of business ties on CE via cooperation; however, the adverse influence of firms' political ties on their cooperation with others in family governance, which subsequently reduces CE. Solidarity within social networks promotes conspiracies and unethical behaviour. These findings support our predictions.