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and entrepreneurship in urban China

Author

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  • Michael Troilo
  • Jun Zhang

Abstract

We test for the relative importance of guanxi (‘connections’) as a catalyst for entrepreneurship in urban China using survey data from five cities for the period 1996–2001. We find that guanxi with the Chinese Communist Party (CPC) is negatively correlated with the likelihood of being either a sole proprietor or an entrepreneur with employees. Family guanxi has no effect for sole proprietors, but is positively correlated with the probability of being an entrepreneur with employees. These findings add to the literature on entrepreneurship in China by differentiating the effects of various types of guanxi on various forms of entrepreneurship.

Suggested Citation

  • Michael Troilo & Jun Zhang, 2012. "and entrepreneurship in urban China," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 17(2), pages 315-331.
    • Handle: RePEc:taf:rjapxx:v:17:y:2012:i:2:p:315-331
    DOI: 10.1080/13547860.2012.668280
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    References listed on IDEAS

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    1. Barry Naughton, 2007. "The Chinese Economy: Transitions and Growth," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262640643, April.
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    Cited by:

    1. Klingler-Vidra, Robyn & Tran, Ba Linh & Chalmers, Adam William, 2021. "Transnational experience and high-performing entrepreneurs in emerging economies: Evidence from Vietnam," Technology in Society, Elsevier, vol. 66(C).
    2. Canfei He & Jiangyong Lu & Haifeng Qian, 2019. "Entrepreneurship in China," Small Business Economics, Springer, vol. 52(3), pages 563-572, March.
    3. 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.
    4. Bei Luo & Terence Tai-Leung Chong, 2019. "Regional differences in self-employment in China," Small Business Economics, Springer, vol. 53(3), pages 813-837, October.
    5. Cheng, Zhiming & Tani, Massimiliano & Wang, Haining, 2021. "Energy poverty and entrepreneurship," Energy Economics, Elsevier, vol. 102(C).
    6. María José Rodríguez-Gutiérrez & Isidoro Romero & Zhikun Yu, 2020. "Guanxi and risk-taking propensity in Chinese immigrants’ businesses," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 305-325, March.
    7. Feng Zhang & Haina Zhang & Geoffrey G. Bell, 2021. "Corporate religiosity and individual decision on conducting entrepreneurial activity: The contingent effects of institutional environments in China," Asia Pacific Journal of Management, Springer, vol. 38(3), pages 955-978, September.
    8. 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.
    9. 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.
    10. Klingler-Vidra, Robyn & Tran, Ba Linh & Chalmers, Adam William, 2021. "Transnational experience and high-performing entrepreneurs in emerging economies: evidence from Vietnam," LSE Research Online Documents on Economics 110756, London School of Economics and Political Science, LSE Library.

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