Journal ArticleDOI
Guanxi Versus the Market: Ethics and Efficiency
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TLDR
In this paper, the authors evaluate guanxi from an ethical perspective, and then attempt to shed light on the sources of its economic advantages and disadvantages through the use of a simple mathematical model, pointing out how eastern and western business practices may already converge toward systems based on more complete models of trust to deal with the conditions of progress coupled with uncertainty that form our new economic reality.Abstract:
Guanxi refers to a Chinese system of doing business on the basis of personal relationships, and it is representative of the way that business is done throughout much of the non-western world. In this paper we first evaluate guanxi from an ethical perspective, and then attempt to shed light on the sources of its economic advantages and disadvantages through the use of a simple mathematical model. Finally, we point out how eastern and western business practices may already be converging toward systems based on more complete models of trust to deal with the conditions of progress coupled with uncertainty that form our new economic reality.read more
Citations
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Journal ArticleDOI
Corporate Governance and Competitive Advantage in Family-Controlled Firms
TL;DR: In this article, the impact of a family's control rights over a firm's assets generates three dominant propensities (parsimony, personalism, and particularism), which give advantages in scarce environments, facilitate the creation and utilization of social capital, and engender opportunistic investment processes.
Posted Content
Internationalization and the Performance of Born-Global SMEs: The Mediating Role of Social Networks
TL;DR: The authors argued that home-based social networks play a mediating role in the relationship between inward and outward internationalization and firm performance, attributed to three information benefits of social networks: knowledge of foreign market opportunities, advice and experiential learning, and referral trust and solidarity.
Journal ArticleDOI
Internationalization and the performance of born-global SMEs: the mediating role of social networks
TL;DR: In this paper, the authors argue that home-based social networks play a mediating role in the relationship between inward and outward internationalization and firm performance in the context of born-global small and medium enterprises (SMEs).
Journal ArticleDOI
When Does Guanxi Matter? Issues of Capitalization and Its Dark Sides:
TL;DR: Li et al. as discussed by the authors proposed an integrative framework that unbundles the benefits and risks of guanxi and delineates the organizational processes to internalize Guanxi as a corporate core competence.
Journal ArticleDOI
Chinese Guanxi: An integrative review and new directions for future research
TL;DR: The authors reviewed research on Chinese Guanxi and social networking in the past twenty years and identified the major perspectives, theories, and methodologies used in guanxi research at micro and macro levels.
References
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Journal ArticleDOI
The Commitment-Trust Theory of Relationship Marketing
Robert Morgan,Shelby D. Hunt +1 more
TL;DR: Relationship marketing, established, developing, and maintaining successful relational exchanges, constitutes a major shift in marketing theory and practice as mentioned in this paper, after conceptualizing relationship relationships as a set of relationships.
Journal ArticleDOI
An Integrative Model Of Organizational Trust
TL;DR: In this paper, a definition of trust and a model of its antecedents and outcomes are presented, which integrate research from multiple disciplines and differentiate trust from similar constructs, and several research propositions based on the model are presented.
Journal ArticleDOI
Transaction-Cost Economics: The Governance of Contractual Relations
TL;DR: For instance, the authors argues that if transaction costs are negligible, the organization of economic activity is irrelevant, since any advantages one mode of organization appears to hold over another will simply be eliminated by costless contracting.
Posted Content
The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting
TL;DR: In this paper, the authors argue that economic organization is shaped by transaction cost economizing decisions and that any issue that arises, or can be recast as a matter of contracting, is usefully examined in terms of transaction costs.
Book ChapterDOI
The economic institutions of capitalism : firms, markets, relational contracting
Abstract: This study is based on the belief that economic organization is shaped by transaction cost economizing decisions. It sets out the basic principles of transaction cost economics, applies the basic arguments to economic institutions, and develops public policy implications. Any issue that arises, or can be recast as a matter of contracting, is usefully examined in terms of transaction costs. Transaction cost economics maintains that governance of contractual relations is mainly achieved through institutions of private ordering instead of legal centralism. This approach is based on behavioral assumptions of bounded rationalism and opportunism, which reflect actual human nature. These assumptions underlie the problem of economic organization: to create contract and governance structures that economize on bounded rationality while safeguarding transactions against the hazards of opportunism. The book first summarizes the transaction cost economics approach to the study of economic organization. It develops the underlying behavioral assumptions and the types of transactions; alternative approaches to the world of contracts are presented. Assuming that firms are best regarded as a governance structure, a comparative institutional approach to the governance of contractual relations is set out. The evidence, theory, and policy of vertical integration are discussed, on the basis that the decision to integrate is paradigmatic to transaction cost analysis. The incentives and bureaucratic limits of internal organization are presented, including the dilemma of why a large firm can't do everything a collection of small firms can do. The economics of organization in presented in terms of transaction costs, showing that hierarchy also serves efficiency and permits a variety of predictions about the organization of work. Efficient labor organization is explored; on the assumption that an authority relation prevails between workers and managers, what governance structure supports will be made in response to various types of job attributes are discussed, and implications for union organization are developed. Considering antitrust ramifications of transaction cost economics, the book summarizes transaction cost issues that arise in the context of contracting, merger, and strategic behavior, and challenges earlier antitrust preoccupation with monopoly. (TNM)
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