Can High-Tech Ventures Benefit from Government Guanxi and Business Guanxi? The Moderating Effects of Environmental Turbulence
Abstract
:1. Introduction
2. A Theoretical Review and Hypothesis Development
2.1. Guanxi Strategy Theory
2.2. Government Guanxi, Business Guanxi and New Venture Performance
2.2.1. Government Guanxi and New Venture Performance
2.2.2. Business Guanxi and New Venture Performance
2.3. Economic Transition: Market Turbulence and Institutional Turbulence
2.3.1. Moderating Effects of Institutional Turbulence
2.3.2. Moderating Effects of Market Turbulence
3. Methods
3.1. The Sample and Data Collection
3.2. The Research Model
3.3. Measures
3.3.1. Government Guanxi
3.3.2. Business Guanxi
3.3.3. Institutional Turbulence
3.3.4. Market Turbulence
3.3.5. New Venture Performance
3.3.6. Control Variables
3.4. Assessment of Measures
4. Results
4.1. Analysis Steps
4.2. Hypothesis Tests and Results
5. Discussion
5.1. Findings
5.2. Theoretical Contributions
5.3. Managerial Implications
5.4. Limitations and Future Research
6. Conclusions
Acknowledgments
Author Contributions
Conflicts of Interest
References
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Variable Constructs and Measurement Items | Loading |
---|---|
Government guanxi (Zhang, 2010) (α = 0.79; CR = 0.93; AVE = 0.65) | |
1. The local government (or its officials) keeps its commitments to our managers and firm. | 0.85 |
2. The local government (or its officials) does justice to our firm. | 0.80 |
3. Our firm and local government (or its officials) trust each other. | 0.83 |
4. Our firm and local government (or its officials) frequently communicate with each other. | 0.78 |
5. If necessary, our firm and local government (or its officials) often provide various assistance to each other. | 0.87 |
6. Our firm and local government (or its officials) often jointly solve some difficulties. | 0.82 |
7. Our firm has good guanxi connections with local government authorities (e.g., government-sponsored banks, science and technology bureaus, industrial and commercial bureaus, and tax bureaus) and their officials. | 0.69 |
Business guanxi (Zhang, 2010) (α = 0.76; CR = 0.88; AVE = 0.56) | |
1. Primary business partners (e.g., customers, suppliers, and collaborators) consistently keep their commitments to our firm. | 0.81 |
2. Our firm and primary business partners frequently communicate with each other. | 0.77 |
3. Primary business partners have good guanxi connections with top managers of our firm. | 0.79 |
4. Primary business partners often provide useful suggestions on improving the quality of our products. | 0.76 |
5. Primary business partners and our firm often jointly overcome difficulties in product development. | 0.67 |
6. Primary business partners are willing to maintain long-term cooperation with our firm. | 0.69 |
Institutional turbulence (Johanson, 2002) (α = 0.86; CR = 0.87; AVE = 0.62) | |
1. The local government acts in a way that leads us to great uncertainty. | 0.79 |
2. It is hard to predict the impact of the political system on the market in this region. | 0.81 |
3. It is difficult to foresee regional institutional changes. | 0.82 |
4. Regional policies are relatively unstable. | 0.73 |
Market turbulence (Jaworski and Kohli, 1993) (α = 0.87; CR = 0.90; AVE = 0.60) | |
1. In our kind of business, customers’ product preferences change quite a bit over time. | 0.82 |
2. Our customers tend to look for new products all the time. | 0.85 |
3. Our customers are sometimes very price sensitive, but on other occasions, prices are less important. | 0.80 |
4. We are witnessing demand for our products and services from customers who never bought them before. | 0.69 |
5. New customers tend to have product-related needs that are different from those of our existing customers. | 0.78 |
6. We cater to many of the same customers that we used to in the past. | 0.68 |
new venture performance (Anderson and Eshima, 2013) (α = 0.84; CR = 086; AVE = 0.68) | |
1. Sales growth | 0.81 |
2. Market share growth | 0.84 |
3. Employee growth | 0.82 |
1 | 2 | 3 | 4 | 5 | 6 | 7 | |
---|---|---|---|---|---|---|---|
1. Firm age | |||||||
2. Firm size | 0.22 ** | ||||||
3. GG | −0.11 | 0.14 * | 0.65 | ||||
4. BG | 0.17 * | 0.26 ** | 0.32 ** | 0.56 | |||
5. IT | 0.02 | 0.17 * | 0.37 ** | −0.08 | 0.62 | ||
6. MT | 0.09 | 0.07 | −0.10 | 0.47 *** | 0.05 | 0.60 | |
7. NVP | 0.03 | 0.09 | 0.15 * | 0.21 ** | 0.11 | 0.11 | 0.68 |
Means | 3.25 | 46.80 | 5.12 | 5.23 | 5.07 | 5.11 | 5.29 |
Standard deviation | 0.96 | 15.47 | 1.03 | 0.96 | 1.16 | 1.20 | 1.42 |
New Venture Performance | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Model 1 | Model 2 | Model 3 | Model 4 | Model 5 | Model 6 | Model 7 | ||||||||
β | SE | β | SE | β | SE | β | SE | β | SE | β | SE | |||
Control Variables | ||||||||||||||
Firm age | 0.03 | 0.08 | 0.03 | 0.07 | 0.03 | 0.06 | 0.03 | 0.07 | 0.02 | 0.08 | 0.03 | 0.06 | 0.03 | 0.07 |
Firm size | 0.17 * | 0.08 | 0.16 * | 0.08 | 0.11 * | 0.07 | 0.13 * | 0.08 | 0.13 * | 0.07 | 0.14 * | 0.07 | 0.12 * | 0.07 |
Main Effects | ||||||||||||||
GG | 0.23 ** | 0.07 | 0.23 ** | 0.07 | 0.22 ** | 0.06 | 0.21 ** | 0.07 | 0.22 ** | 0.07 | 0.20 ** | 0.08 | ||
BG | 0.45 *** | 0.07 | 0.47 *** | 0.07 | 0.46 *** | 0.08 | 0.42 *** | 0.10 | 0.44 *** | 0.09 | 0.39 *** | 0.08 | ||
IT | 0.17 * | 0.06 | 0.16 * | 0.06 | 0.15 * | 0.07 | 0.16 * | 0.08 | 0.16 * | 0.07 | 0.13 * | 0.07 | ||
MT | −0.04 | 0.07 | −0.05 | 0.06 | −0.04 | 0.07 | −0.06 | 0.07 | −0.05 | 0.06 | −0.07 | 0.06 | ||
Two-Way Interactions | ||||||||||||||
GG × IT | −0.08 | 0.08 | −0.07 | 0.09 | ||||||||||
GG × MT | −0.13 * | 0.07 | −0.16 * | 0.09 | ||||||||||
BG × IT | 0.01 | 0.08 | 0.02 | 0.08 | ||||||||||
BG × MT | 0.18 * | 0.08 | 0.22 ** | 0.10 | ||||||||||
F | 1.32 ** | 4.76 *** | 4.56 *** | 4.28 *** | 4.48 *** | 5.67 *** | 4.82 *** | |||||||
R2 | 0.05 | 0.18 | 0.17 | 0.16 | 0.17 | 0.22 | 0.18 | |||||||
Adjusted R2 | 0.04 | 0.16 | 0.15 | 0.13 | 0.14 | 0.19 | 0.16 | |||||||
∆ R2 | 0.13 | 0.01 | 0.01 | 0.01 | 0.05 | 0.04 |
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Su, D.; Du, Q.; Sohn, D.; Xu, L. Can High-Tech Ventures Benefit from Government Guanxi and Business Guanxi? The Moderating Effects of Environmental Turbulence. Sustainability 2017, 9, 142. https://doi.org/10.3390/su9010142
Su D, Du Q, Sohn D, Xu L. Can High-Tech Ventures Benefit from Government Guanxi and Business Guanxi? The Moderating Effects of Environmental Turbulence. Sustainability. 2017; 9(1):142. https://doi.org/10.3390/su9010142
Chicago/Turabian StyleSu, Dejin, Qixia Du, Dongwon Sohn, and Libo Xu. 2017. "Can High-Tech Ventures Benefit from Government Guanxi and Business Guanxi? The Moderating Effects of Environmental Turbulence" Sustainability 9, no. 1: 142. https://doi.org/10.3390/su9010142