Open AccessArticle
Can High-Tech Ventures Benefit from Government Guanxi and Business Guanxi? The Moderating Effects of Environmental Turbulence
by
Dejin Su 1,2, Qixia Du 3, Dongwon Sohn 4,* and Libo Xu 1
1
School of Business Administration, Nanjing Audit University, # 86, Yushan West Road, Jiangpu Street, Pukou District, Nanjing 211815, China
2
School of Business, Nanjing University, # 22, Hankou Road, Gulou District, Nanjing 210093, China
3
School of Health Economics and Management, Nanjing University of Chinese Medicine, # 138, Xianlin Road, Qixia District, Nanjing 210023, China
4
College of Business Administration, Inha University, # 253 Yonghyun-Dong, Nam-Gu, Incheon 402751, Korea
Cited by 12 | Viewed by 7144
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
[...] Read more.
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.
Full article
►▼
Show Figures