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

Dejin Su, Qixia Du, Dongwon Sohn and Libo Xu
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Dejin Su: School of Business Administration, Nanjing Audit University, # 86, Yushan West Road, Jiangpu Street, Pukou District, Nanjing 211815, 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

Sustainability, 2017, vol. 9, issue 1, 1-17

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.

Keywords: government guanxi; business guanxi; institutional turbulence; market turbulence; new venture performance (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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