IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v9y2017i1p142-d88211.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/9/1/142/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/9/1/142/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Chen, Ming-Huei & Chang, Yu-Yu & Lee, Chia-Yu, 2015. "Creative entrepreneurs' guanxi networks and success: Information and resource," Journal of Business Research, Elsevier, vol. 68(4), pages 900-905.
    2. Yadong Luo & Ying Huang & Stephanie Lu Wang, 2012. "Guanxi and Organizational Performance: A Meta-Analysis," Management and Organization Review, The International Association for Chinese Management Research, vol. 8(1), pages 139-172, March.
    3. M. Tina Dacin & Christine Oliver & Jean‐Paul Roy, 2007. "The legitimacy of strategic alliances: an institutional perspective," Strategic Management Journal, Wiley Blackwell, vol. 28(2), pages 169-187, February.
    4. Chenting Su & Ronald K. Mitchell & M. Joseph Sirgy, 2007. "Enabling Guanxi Management in China: A Hierarchical Stakeholder Model of Effective Guanxi," Journal of Business Ethics, Springer, vol. 71(3), pages 301-319, March.
    5. Matthew O. Jackson, 2014. "Networks in the Understanding of Economic Behaviors," Journal of Economic Perspectives, American Economic Association, vol. 28(4), pages 3-22, Fall.
    6. Seung Ho Park & Yadong Luo, 2001. "Guanxi and organizational dynamics: organizational networking in Chinese firms," Strategic Management Journal, Wiley Blackwell, vol. 22(5), pages 455-477, May.
    7. Haiyang Li & Yan Zhang, 2007. "The role of managers' political networking and functional experience in new venture performance: Evidence from China's transition economy," Strategic Management Journal, Wiley Blackwell, vol. 28(8), pages 791-804, August.
    8. Elitsa R. Banalieva & Kimberly A. Eddleston & Thomas M. Zellweger, 2015. "When do family firms have an advantage in transitioning economies? Toward a dynamic institution-based view," Strategic Management Journal, Wiley Blackwell, vol. 36(9), pages 1358-1377, September.
    9. Steve Lovett & Lee C Simmons & Raja Kali, 1999. "Guanxi Versus the Market: Ethics and Efficiency," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 30(2), pages 231-247, June.
    10. Julie Juan Li & Laura Poppo & Kevin Zheng Zhou, 2008. "Do managerial ties in China always produce value? Competition, uncertainty, and domestic vs. foreign firms," Strategic Management Journal, Wiley Blackwell, vol. 29(4), pages 383-400, April.
    11. Chao C. Chen & Xiao-Ping Chen & Shengsheng Huang, 2013. "Chinese Guanxi: An Integrative Review and New Directions for Future Research. 中国人的关系: 综合文献回顾及未来研究方向," Management and Organization Review, The International Association for Chinese Management Research, vol. 9(1), pages 167-207, March.
    12. Liang-Hung Lin, 2011. "Cultural and Organizational Antecedents of Guanxi: The Chinese Cases," Journal of Business Ethics, Springer, vol. 99(3), pages 441-451, March.
    13. Cao, Qing & Baker, Jeff & Schniederjans, Dara, 2014. "Bullwhip effect reduction and improved business performance through guanxi: An empirical study," International Journal of Production Economics, Elsevier, vol. 158(C), pages 217-230.
    14. Chun Guo & Jane K. Miller, 2010. "Guanxi Dynamics and Entrepreneurial Firm Creation and Development in China," Management and Organization Review, The International Association for Chinese Management Research, vol. 6(2), pages 267-291, July.
    15. Anderson, Brian S. & Eshima, Yoshihiro, 2013. "The influence of firm age and intangible resources on the relationship between entrepreneurial orientation and firm growth among Japanese SMEs," Journal of Business Venturing, Elsevier, vol. 28(3), pages 413-429.
    16. Zhongfeng Su (苏中锋) & Jisheng Peng (彭纪生) & Hao Shen (沈灏) & Ting Xiao (肖婷), 2013. "Technological Capability, Marketing Capability, and Firm Performance in Turbulent Conditions. 技术能力、市场能力与企业绩效：基于环境不确定性的研究," Management and Organization Review, The International Association for Chinese Management Research, vol. 9(1), pages 115-137, March.
    17. Alfred Wong & Sofia Fang & Dean Tjosvold, 2012. "Developing business trust in government through resource exchange in China," Asia Pacific Journal of Management, Springer, vol. 29(4), pages 1027-1043, December.
    18. Bu, Nailin & Roy, Jean-Paul, 2015. "Guanxi Practice and Quality: A Comparative Analysis of Chinese Managers’ Business-to-Business and Business-to-Government Ties," Management and Organization Review, Cambridge University Press, vol. 11(2), pages 263-287, June.
    19. Kuo-Jui Wu & Ching-Jong Liao & Ming-Lang Tseng & Pei-Jay Chou, 2015. "Understanding Innovation for Sustainable Business Management Capabilities and Competencies under Uncertainty," Sustainability, MDPI, vol. 7(10), pages 1-35, October.
    20. Boso, Nathaniel & Story, Vicky M. & Cadogan, John W., 2013. "Entrepreneurial orientation, market orientation, network ties, and performance: Study of entrepreneurial firms in a developing economy," Journal of Business Venturing, Elsevier, vol. 28(6), pages 708-727.
    21. Shou, Zhigang & Chen, Jun & Zhu, Wenting & Yang, Lihua, 2014. "Firm capability and performance in China: The moderating role of guanxi and institutional forces in domestic and foreign contexts," Journal of Business Research, Elsevier, vol. 67(2), pages 77-82.
    22. Chen, Chao C. & Chen, Xiao-Ping & Huang, Shengsheng, 2013. "Chinese Guanxi: An Integrative Review and New Directions for Future Research," Management and Organization Review, Cambridge University Press, vol. 9(1), pages 167-207, March.
    23. Wang, Kung-Jeng & Lestari, Yuliani Dwi, 2013. "Firm competencies on market entry success: Evidence from a high-tech industry in an emerging market," Journal of Business Research, Elsevier, vol. 66(12), pages 2444-2450.
    24. Keng‐Hsiang Cheng & Yu‐Ching Chiao & Hsin‐Yu Shih & Tai‐Yu Lee & Ta‐Shun Cho, 2011. "Agglomeration and Competition among Chinese Cities: An Investigation of Taiwanese High‐Tech Foreign Direct Investment," Growth and Change, Wiley Blackwell, vol. 42(4), pages 517-548, December.
    25. Guo, Chun & Miller, Jane K., 2010. "Guanxi Dynamics and Entrepreneurial Firm Creation and Development in China," Management and Organization Review, Cambridge University Press, vol. 6(2), pages 267-291, July.
    26. Wade M Danis & Dan S Chiaburu & Marjorie A Lyles, 2010. "The impact of managerial networking intensity and market-based strategies on firm growth during institutional upheaval: A study of small and medium-sized enterprises in a transition economy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(2), pages 287-307, February.
    27. Luo, Yadong & Huang, Ying & Wang, Stephanie Lu, 2012. "Guanxi and Organizational Performance: A Meta-Analysis," Management and Organization Review, Cambridge University Press, vol. 8(1), pages 139-172, March.
    28. Yongrok Choi & Di Gao, 2014. "The Role of Intermediation in the Governance of Sustainable Chinese Web Marketing," Sustainability, MDPI, vol. 6(7), pages 1-17, June.
    29. Yongrok Choi & Jingwen Jin, 2015. "Is the Web Marketing Mix Sustainable in China? The Mediation Effect of Dynamic Trust," Sustainability, MDPI, vol. 7(10), pages 1-21, October.
    30. Su, Zhongfeng & Peng, Jisheng & Shen, Hao & Xiao, Ting, 2013. "Technological Capability, Marketing Capability, and Firm Performance in Turbulent Conditions," Management and Organization Review, Cambridge University Press, pages 115-138.
    31. Yi Zhang & Zigang Zhang, 2006. "Guanxi and organizational dynamics in China: a link between individual and organizational levels," Journal of Business Ethics, Springer, vol. 67(4), pages 375-392, September.
    32. Söderblom, Anna & Samuelsson, Mikael & Wiklund, Johan & Sandberg, Rickard, 2015. "Inside the black box of outcome additionality: Effects of early-stage government subsidies on resource accumulation and new venture performance," Research Policy, Elsevier, vol. 44(8), pages 1501-1512.
    33. Su, Zhongfeng & Peng, Jisheng & Shen, Hao & Xiao, Ting, 2013. "Technological Capability, Marketing Capability, and Firm Performance in Turbulent Conditions," Management and Organization Review, Cambridge University Press, vol. 9(1), pages 115-137, March.
    34. Chung, Henry F.L. & Yang, Zhilin & Huang, Pei-How, 2015. "How does organizational learning matter in strategic business performance? The contingency role of guanxi networking," Journal of Business Research, Elsevier, vol. 68(6), pages 1216-1224.
    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. 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).
    2. Li Zhao & Jung Ha-Brookshire, 2018. "Importance of Guanxi in Chinese apparel new venture success: a mixed-method approach," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 8(1), pages 1-19, December.
    3. Linh, Nguyen Thi Thuy & Lab, SDAG, 2019. "Factors influencing on salesperson performance in information service industry," Thesis Commons ugcre, Center for Open Science.

    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. Ju, Wei & Zhou, Xiaohu & Wang, Shuaibin, 2019. "The impact of scholars’ guanxi networks on entrepreneurial performance—The mediating effect of resource acquisition," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 521(C), pages 9-17.
    2. Zhong Qin & Xin Deng, 2016. "Government and family Guanxi in Chinese private firms: perceptions and preference," Review of Managerial Science, Springer, vol. 10(1), pages 35-60, January.
    3. Hongjuan Zhang & Rong Han & Liang Wang & Runhui Lin, 2021. "Social capital in China: a systematic literature review," Asian Business & Management, Palgrave Macmillan, vol. 20(1), pages 32-77, February.
    4. Hongjuan Zhang & Rong Han & Liang Wang & Runhui Lin, 0. "Social capital in China: a systematic literature review," Asian Business & Management, Palgrave Macmillan, vol. 0, pages 1-46.
    5. Lee, Liane W.Y. & Tang, Yiming & Yip, Leslie S.C. & Sharma, Piyush, 2018. "Managing customer relationships in the emerging markets – guanxi as a driver of Chinese customer loyalty," Journal of Business Research, Elsevier, vol. 86(C), pages 356-365.
    6. Chu, Zhaofang & Feng, Bo & Lai, Fujun, 2018. "Logistics service innovation by third party logistics providers in China: Aligning guanxi and organizational structure," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 291-307.
    7. Liwen Wang & Jin Jason Lu & Kevin Zhou, 2023. "Technological Capability Strength/Asymmetry and Supply Chain Process Innovation: The Contingent Roles of Institutional Environments in China," Post-Print hal-03954124, HAL.
    8. Chen, Ming-Huei & Chang, Yu-Yu & Lee, Chia-Yu, 2015. "Creative entrepreneurs' guanxi networks and success: Information and resource," Journal of Business Research, Elsevier, vol. 68(4), pages 900-905.
    9. Chu, Zhaofang & Wang, Qiang & Lai, Fujun & Collins, Brian J., 2019. "Managing interdependence: Using Guanxi to cope with supply chain dependency," Journal of Business Research, Elsevier, vol. 103(C), pages 620-631.
    10. Jiang, Xu & Liu, Heng & Fey, Carl & Jiang, Feifei, 2018. "Entrepreneurial orientation, network resource acquisition, and firm performance: A network approach," Journal of Business Research, Elsevier, vol. 87(C), pages 46-57.
    11. Wang, Liwen & Jin, Jason Lu & Zhou, Kevin Zheng, 2023. "Technological capability strength/asymmetry and supply chain process innovation: The contingent roles of institutional environments," Research Policy, Elsevier, vol. 52(4).
    12. Yulia Muratova & Jakob Arnoldi & Xin Chen & Joachim Scholderer, 2018. "Political rotations and cross-province firm acquisitions in China," Asian Business & Management, Palgrave Macmillan, vol. 17(1), pages 37-58, February.
    13. Lu Shen & Kevin Zheng Zhou & Chuang Zhang, 2022. "Is Interpersonal Guanxi Beneficial in Fostering Interfirm Trust? The Contingent Effect of Institutional- and Individual-Level Characteristics," Journal of Business Ethics, Springer, vol. 176(3), pages 575-592, March.
    14. Wenting Chen & Chunjia Han & Lei Wang & Petros Ieromonachou & Xiaochen Lu, 2021. "Recognition of entrepreneur’s social ties and firm innovation in emerging markets: explanation from the industrial institutional environment and survival pressure," Asia Pacific Journal of Management, Springer, vol. 38(2), pages 491-518, June.
    15. Huihua Chen & Cong Chen & Hujun Li & Jianshe Zhang & Zengke Yang, 2022. "A Simulation Study on the Processes of Intra-Group Informal Interaction Affecting Workers’ Safety Behaviors," IJERPH, MDPI, vol. 19(16), pages 1-17, August.
    16. Ming-Huei Chen & Yu-Yu Chang & Yin-Chen Lin, 2018. "Exploring creative entrepreneurs’ happiness: cognitive style, guanxi and creativity," International Entrepreneurship and Management Journal, Springer, vol. 14(4), pages 1089-1110, December.
    17. Yang, Jie & Ma, Jieqiong & Zhang, Yong & Hong, JungHwa, 2018. "With whom should you have dinner? A multidimensional framework for understanding political ties in China," Business Horizons, Elsevier, vol. 61(6), pages 891-898.
    18. Li, Yanlin & Tian, Gary Gang & Wang, Xin, 2021. "The effect of Guanxi culture on the voting of independent directors: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 67(C).
    19. Huatao Peng & Geert Duysters & Bert Sadowski, 2016. "The changing role of guanxi in influencing the development of entrepreneurial companies: a case study of the emergence of pharmaceutical companies in China," International Entrepreneurship and Management Journal, Springer, vol. 12(1), pages 215-258, March.
    20. Isidoro Romero & Zhikun Yu, 2015. "Analyzing the influence of social capital on self-employment: a study of Chinese immigrants," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(3), pages 877-899, May.

    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:gam:jsusta:v:9:y:2017:i:1:p:142-:d:88211. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.