Effects of Top Managers' Emotions on Cross-Regional Integration in China's Family Firms

摘要

Market fragmentation, a Chinese institutional characteristic, has been regarded as an important determinant of top managers' strategic decisions in Chinese firms. This paper explores how individual affective traits of top managers in family firms affect their strategy formulation process when facing market fragmentation and cross-regional integration. Affective traits of top managers are found to be significantly related to firm strategic choices. There is also evidence showing that market fragmentation is caused mainly by government power division and institutional differentiation.