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Can High-Tech Ventures Benefit from Government Guanxi and Business Guanxi ? The Moderating Effects of Environmental Turbulence

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  • Dejin Su

    (School of Business Administration, Nanjing Audit University, # 86, Yushan West Road, Jiangpu Street, Pukou District, Nanjing 211815, China
    School of Business, Nanjing University, # 22, Hankou Road, Gulou District, Nanjing 210093, China)

  • Qixia Du

    (School of Health Economics and Management, Nanjing University of Chinese Medicine, # 138, Xianlin Road, Qixia District, Nanjing 210023, China)

  • Dongwon Sohn

    (College of Business Administration, Inha University, # 253 Yonghyun-Dong, Nam-Gu, Incheon 402751, Korea)

  • Libo Xu

    (School of Business Administration, Nanjing Audit University, # 86, Yushan West Road, Jiangpu Street, Pukou District, Nanjing 211815, China)

Abstract

The construct of guanxi has become an interesting topic for analyzing how to do business more effectively and successfully in China’s economic transition period. Drawing on the guanxi strategy theory, this study examines when government guanxi ( guanxi with the government and its officials) and business guanxi ( guanxi with the business sectors) matter to new venture performance under two typical turbulent environments (institutional turbulence and market turbulence). According to empirical results using original data from 146 new ventures in clusters driven by China’s local governments, both government guanxi and business guanxi were positively related to new venture performance, and market turbulence was an important contextual factor influencing performance benefits of guanxi . However, the results reveal no moderating effects of institutional turbulence on direct relationships. Furthermore, the study provides a better conceptual and empirical understanding of why market turbulence is a double-edged sword for performance implications of guanxi in the rapidly changing business environment.

Suggested Citation

  • Dejin Su & Qixia Du & Dongwon Sohn & Libo Xu, 2017. "Can High-Tech Ventures Benefit from Government Guanxi and Business Guanxi ? The Moderating Effects of Environmental Turbulence," Sustainability, MDPI, vol. 9(1), pages 1-17, January.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:1:p:142-:d:88211
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    2. Linh, Nguyen Thi Thuy & Lab, SDAG, 2019. "Factors influencing on salesperson performance in information service industry," Thesis Commons ugcre, Center for Open Science.
    3. Chen, Yongyu & Peng, Zihao & Peng, Caodie & Xu, Wanli, 2023. "Impact of new government–business relations on urban digital economy: Empirical evidence from China," Finance Research Letters, Elsevier, vol. 58(PA).

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