Formal And Informal Cpas On Business Strategy And Performance

Purpose - The purpose of this paper is to examine corporate political activities (CPA) by migrant entrepreneurs to improve business performance in a host developing country.Design/methodology/approach - The authors use a cross-sectional analysis of 97 Chinese migrant entrepreneurs with business operations in a host developing economy.Findings - A significant positive relationship was found between formal CPAs and performance.Research limitations/implications - To further deepen the examination of CPAs, new quantification methodologies have to be applied to properly measure CPA relational strength, investment intensity and diversity.Practical implications - The results enable migrant entrepreneurs to make a more educated decision on the type of CPAs to pursue and to what intensity.Social implications - The results could motivate migrant entrepreneurs to adapt rapidly to the host country's formal customs to facilitate socio-economic adaptation.Originality/value - This study contributes to literature by examining both formal and informal CPAs, their inter-relationship and their effects on migrant businesses, which have not been examined previously.