IDEAS home Printed from https://ideas.repec.org/a/bla/srbeha/v30y2013i3p383-397.html
   My bibliography  Save this article

Governance Mechanisms and New Venture Performance in China

Author

Listed:
  • Chen Chen
  • Xiumei Zhu
  • Jiayue Ao
  • Li Cai

Abstract

Despite increasing attention have been paid to the role of external relationship management, some studies have been concerned about established firms’ relationship management; however, only few studies have explicitly discussed the role of relationship management for new venture performance in a transition economy. Trust and contracts are two kinds of governance mechanisms to manage external relationship. This research focuses on trust and contracts and examines their impacts on new ventures’ performance. Moreover, we argue that resource acquisition mediates the relationship between governance mechanisms and new venture performance. By using survey data from 188 questionnaires, this study finds that trust and contracts are positively associated with relationship performance and economic performance. New ventures also obtain more relationship and economic performance through resource acquisition. In addition, trust and contracts are substitutable that affect economic performance, but the interaction is not associated with relationship performance. Copyright © 2013 John Wiley & Sons, Ltd.

Suggested Citation

  • Chen Chen & Xiumei Zhu & Jiayue Ao & Li Cai, 2013. "Governance Mechanisms and New Venture Performance in China," Systems Research and Behavioral Science, Wiley Blackwell, vol. 30(3), pages 383-397, May.
    • Handle: RePEc:bla:srbeha:v:30:y:2013:i:3:p:383-397
    DOI: 10.1002/sres.2178
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/sres.2178
    Download Restriction: no
    File URL: https://libkey.io/10.1002/sres.2178?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mouzas, Stefanos & Ford, David, 2012. "Leveraging knowledge-based resources: The role of contracts," Journal of Business Research, Elsevier, vol. 65(2), pages 153-161.
    2. Arwin van Buuren & Frank Boons & Geert Teisman, 2012. "Collaborative Problem Solving in a Complex Governance System: Amsterdam Airport Schiphol and the Challenge to Break Path Dependency," Systems Research and Behavioral Science, Wiley Blackwell, vol. 29(2), pages 116-130, March.
    3. Jones, Gary K. & LanctotJR., Aldor & Teegen, Hildy J., 2001. "Determinants and performance impacts of external technology acquisition," Journal of Business Venturing, Elsevier, vol. 16(3), pages 255-283, May.
    4. Helena Yli‐Renko & Erkko Autio & Harry J. Sapienza, 2001. "Social capital, knowledge acquisition, and knowledge exploitation in young technology‐based firms," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 587-613, June.
    5. Akbar Zaheer & Bill McEvily & Vincenzo Perrone, 1998. "Does Trust Matter? Exploring the Effects of Interorganizational and Interpersonal Trust on Performance," Organization Science, INFORMS, vol. 9(2), pages 141-159, April.
    6. Si, Steven X. & Bruton, Garry D., 2005. "Knowledge acquisition, cost savings, and strategic positioning: effects on Sino-American IJV performance," Journal of Business Research, Elsevier, vol. 58(11), pages 1465-1473, November.
    7. Norman, Patricia M., 2004. "Knowledge acquisition, knowledge loss, and satisfaction in high technology alliances," Journal of Business Research, Elsevier, vol. 57(6), pages 610-619, June.
    8. Wang, Longwei & Yeung, Jeff Hoi Yan & Zhang, Min, 2011. "The impact of trust and contract on innovation performance: The moderating role of environmental uncertainty," International Journal of Production Economics, Elsevier, vol. 134(1), pages 114-122, November.
    9. Helle Neergaard & John Parm Ulhøi, 2006. "Government Agency and Trust in the Formation and Transformation of Interorganizational Entrepreneurial Networks," Entrepreneurship Theory and Practice, , vol. 30(4), pages 519-539, July.
    10. Julie Juan Li & Laura Poppo & Kevin Zheng Zhou, 2010. "Relational mechanisms, formal contracts, and local knowledge acquisition by international subsidiaries," Strategic Management Journal, Wiley Blackwell, vol. 31(4), pages 349-370, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Siqing Shan & Cangyan Li & Wei Yao & Jihong Shi & Jie Ren, 2014. "An Empirical Study on Critical Factors Affecting Employee Satisfaction," Systems Research and Behavioral Science, Wiley Blackwell, vol. 31(3), pages 447-460, May.
    2. Xiaoyu Yu & Yi. Chen & Bang Nguyen, 2014. "Knowledge Management, Learning Behavior from Failure and New Product Development in New Technology Ventures," Systems Research and Behavioral Science, Wiley Blackwell, vol. 31(3), pages 405-423, May.
    3. Wenan Tan & Senbo Chen & Jingxian Li & Lingxia Li & Tong Wang & Xiaoming Hu, 2014. "A Trust Evaluation Model for E‐Learning Systems," Systems Research and Behavioral Science, Wiley Blackwell, vol. 31(3), pages 353-365, May.
    4. van der Valk, Wendy & Lumineau, Fabrice & Wang, Wenqian, 2019. "Research on contracting in supply chain management and related disciplines: A synthesis of scholarly recommendations and a discussion of future opportunities," Other publications TiSEM 55901a88-7fc5-4808-a47a-e, Tilburg University, School of Economics and Management.
    5. Li Da Xu, 2013. "Introduction: Systems Science in Industrial Sectors," Systems Research and Behavioral Science, Wiley Blackwell, vol. 30(3), pages 211-213, May.
    6. Bibeau, Jean & Meilleur, Roxane & St-Jean, Étienne, 2024. "To formalize, or not to formalize, business incubators’ networks: That is not the question," Technovation, Elsevier, vol. 130(C).
    7. Joanita Kataike & Xavier Gellynck, 2018. "22 Years of Governance Structures and Performance: What Has Been Achieved in Agrifood Chains and Beyond? A Review," Agriculture, MDPI, vol. 8(4), pages 1-32, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yan Tian & Yuan Li & Zelong Wei, 2013. "Managerial Incentive and External Knowledge Acquisition Under Technological Uncertainty: A Nested System Perspective," Systems Research and Behavioral Science, Wiley Blackwell, vol. 30(3), pages 214-228, May.
    2. Yunhui Zhao & Chuanli Zhao & Yi Guo & Hongyan Sheng & Taiwen Feng, 2021. "Green supplier integration and environmental innovation in Chinese firms: The joint effect of governance mechanism and trust," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 169-183, January.
    3. Jiang, Xu & Bao, Yongchuan & Xie, Yan & Gao, Shanxing, 2016. "Partner trustworthiness, knowledge flow in strategic alliances, and firm competitiveness: A contingency perspective," Journal of Business Research, Elsevier, vol. 69(2), pages 804-814.
    4. Ozlem Ozen, 2024. "Social Capital and Entrepreneurship: Impact of Trust and Social Interaction on Entrepreneurship Trial," Istanbul Business Research, Istanbul University Business School, vol. 53(1), pages 23-39, April.
    5. Fang, F., 2019. "When performance shortfall arises, contract or trust? A multi-method study of the impact of contractual and relational governances on performance in public – private partnerships," Other publications TiSEM 473840ee-6945-4a93-9326-5, Tilburg University, School of Economics and Management.
    6. Weber, Clarissa E. & Maurer, Indre, 2023. "Knowledge acquisition from host-country partners: The interplay of trust and legal safeguards," Journal of World Business, Elsevier, vol. 58(2).
    7. Liu, Chia-Ling (Eunice) & Ghauri, Pervez N. & Sinkovics, Rudolf R., 2010. "Understanding the impact of relational capital and organizational learning on alliance outcomes," Journal of World Business, Elsevier, vol. 45(3), pages 237-249, July.
    8. Efrat, Kalanit & Øyna, Stine, 2021. "An interaction orientation approach to SME-Intermediaries relationships," European Management Journal, Elsevier, vol. 39(4), pages 508-520.
    9. Han, Shaojie & Su, Jingqin & Lyu, Yibo & Liu, Qing, 2022. "How do business incubators govern incubation relationships with different new ventures?," Technovation, Elsevier, vol. 116(C).
    10. Judit Oláh & Yusmar Ardhi Hidayat & Zdzisława Dacko-Pikiewicz & Morshadul Hasan & József Popp, 2021. "Inter-Organizational Trust on Financial Performance: Proposing Innovation as a Mediating Variable to Sustain in a Disruptive Era," Sustainability, MDPI, vol. 13(17), pages 1-18, September.
    11. Kim, Yusoon & Choi, Thomas Y., 2021. "Supplier relationship strategies and outcome dualities: An empirical study of embeddedness perspective," International Journal of Production Economics, Elsevier, vol. 232(C).
    12. Guo, Shiau-Ling, 2023. "The governance implication of the geographic concentration of franchise activities for franchise relationships," Journal of Business Research, Elsevier, vol. 157(C).
    13. Huang, Ming-Chang & Chiu, Ya-Ping, 2020. "A knowledge tension perspective on management control and performance in international joint ventures," Journal of International Management, Elsevier, vol. 26(4).
    14. Weber, Clarissa E. & Chahabadi, Dominik & Maurer, Indre, 2020. "Antecedents and performance effect of managerial misperception of institutional differences," Journal of World Business, Elsevier, vol. 55(1).
    15. Sjoerd Beugelsdijk & Ton Van Schaik, 2005. "Differences in social capital between 54 Western European regions," Regional Studies, Taylor & Francis Journals, vol. 39(8), pages 1053-1064.
    16. Liwen Wang, 2023. "The interplay of contracts and trust: untangling between- and within-dyad effects," Post-Print hal-03944358, HAL.
    17. Wenhua Hou & Xiaoqi Peng & Lin Wang, 2024. "The Influence of Contractual and Relational Governance on the Sustainable Performance of Public-Private Partnership Projects: Findings from PLS-SEM and fsQCA," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 10826-10852, September.
    18. Tzu-Hsin Liu & Yung-Chang Hsiao, 2019. "Fitting cooperative mode in inter-organizational strategic alliance: a perspective from innovative and financial performances," The Journal of Technology Transfer, Springer, vol. 44(1), pages 73-96, February.
    19. Mia Hsiao-Wen Ho & Pervez N. Ghauri & Mario Kafouros, 2019. "Knowledge Acquisition in International Strategic Alliances: The Role of Knowledge Ambiguity," Management International Review, Springer, vol. 59(3), pages 439-463, June.
    20. De Clercq, Dirk & Belausteguigoitia, Imanol, 2015. "Intergenerational strategy involvement and family firms’ innovation pursuits: The critical roles of conflict management and social capital," Journal of Family Business Strategy, Elsevier, vol. 6(3), pages 178-189.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:srbeha:v:30:y:2013:i:3:p:383-397. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1111/1092-7026 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.