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Governance Mechanisms and New Venture Performance in China

Author

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  • 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
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    References listed on IDEAS

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    2. 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).
    3. 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.
    4. Li Da Xu, 2013. "Introduction: Systems Science in Industrial Sectors," Systems Research and Behavioral Science, Wiley Blackwell, vol. 30(3), pages 211-213, May.
    5. 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.
    6. 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.
    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.

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