Public-Private Hybrid Strategy and Entrepreneurial Investment: Evidence from China’s Transition Economy

• In Event: 117 - Regular Session. Economic Sociology: Embeddedness, Hybridity and Economic Performance in Asian Capitalisms

Abstract

Public-private hybrid strategy is a strategy that many entrepreneurs adopted during gradual market transition. Under this strategy, an entrepreneur registers his/her private firm as a public firm or rents a public firm. This study examines the effect of this strategy on entrepreneurial reinvestment based on the rapidly growing private entrepreneurship in China. I argue that this strategy could facilitate entrepreneurial reinvestment because the legitimacy benefits of this strategy outweigh its costs during gradual reform. Yet, its effect may decrease and even turn negative during legal and market development. The hypotheses are supported by large scale national survey data.

Author

• Wubiao Zhou, Chinese University of Hong Kong