Abstract: Taking the 10th survey of the private enterprises by National Association of Industry and Commerce in 2012 as sample, this study empirically analyzed how private entrepreneurs’ different levels of political association influence enterprise's strategic choice with OLS regression model. Moreover, the moderating effect of entrepreneur human capital and degree of regional marketization on the relation between political connection level and enterprise strategic choice has also been investigated. The result of this research showed that, entrepreneurs political connection level have a promoting effect on both enterprises’ short-term speculation and technology innovation. Furthermore, the choice of these two behaviors depends on the moderating effect of entrepreneurs’ individual human capital and the degree of marketization. When the degree of human capital and marketization is high, entrepreneurs with political connection tend to choose technology innovation, and vice versa. This research put out a ‘political connection – enterprise decision-making’ model in Chinese specific economic system.

Key words: political connection level, opportunistic, technological innovation, private enterprise