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1 – 10 of over 1000Yi-Hsin Lin, Deshuang Niu, Yanzhe Guo and Ningshuang Zeng
This study examines how project uncertainties (environmental uncertainty and participant uncertainty) affect guanxi and contractual governance and assesses the mediating role of…
Abstract
Purpose
This study examines how project uncertainties (environmental uncertainty and participant uncertainty) affect guanxi and contractual governance and assesses the mediating role of guanxi governance between project uncertainty and contractual governance.
Design/methodology/approach
Data were collected in two stages from Chinese contractors. First, in-depth interviews were conducted with nine construction engineering project practitioners in different contracts as a pilot for questionnaire designing. Second, a cross-sectional questionnaire survey was conducted with professionals and practitioners of construction enterprises to collect primary data. Partial least squares structural equation modeling (PLS-SEM) was used to test seven hypotheses based on data collected from 198 respondents.
Findings
Project environmental uncertainty promotes the use of guanxi governance, while project participant uncertainty hinders it; the relationship between both types of uncertainty and contractual governance is the same as with guanxi governance. Furthermore, guanxi governance promotes contractual governance and partially mediates project environmental uncertainty and contractual governance and a complete mediating role between project participant uncertainty and contractual governance.
Research limitations/implications
As the interviewed samples are mainly from China, the study should be replicated using large representative samples from East Asian countries, such as Japan and South Korea, to gain a more comprehensive understanding of the influence of guanxi governance. Further, while the internal consistency reliability and convergent validity of the questionnaire data in this study align with the standards, a larger sample size would improve the reliability and validity of the research results and better represent the overall work situation of contractors, owners and public policymakers.
Originality/value
The results provide insights into project governance research and have implications for construction practitioners in deploying governance-related resources.
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The emergence of “interorganizational marketing” as a hot topic leads to one key question: can interorganizational governance mechanisms (socialization, incentives, and…
Abstract
Purpose
The emergence of “interorganizational marketing” as a hot topic leads to one key question: can interorganizational governance mechanisms (socialization, incentives, and monitoring) offered by marketing theory be applied to China, an emerging economy characterized by the Chinese guanxi relationship? The purpose of this paper is to seek to answer this question by introducing the importance of guanxi roles and by illustrating how to apply proper governance mechanisms to roles activation in Chinese business practice. The paper finds that the answer is “yes” and develops a theoretical model to show such interactions.
Design/methodology/approach
The paper applies interorganizational strategies to interpersonal relationships. Guanxi was categorized into three categories – family members, helpers and business partners – which meet each of the three governance mechanisms (in addition to favoring exchange as a special and typical Chinese governance mechanism) in the model.
Findings
Through ex post role activation, the paper argues that guanxi is a dynamic balance and the ways in which various governance mechanisms can set roles will lead to the roles either changing (reinforcement or dilution) or switching (helper to business partner, and vice versa). It seems futile to implement external governance mechanisms on family ties (the main category of guanxi) that have been firmly rooted in Chinese culture. On the other hand, applying the four mentioned governance mechanisms could reinforce, maintain, or dilute helper and business partner roles, or even make it possible to switch from one to another.
Originality/value
The paper proposes a new concept regarding relationship marketing, namely the application of governance mechanisms to interpersonal relationships, which provides people doing business in China with a new perspective for reference.
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By distinguishing opportunism-based and bounded rationality-based transaction costs, the study examines how firms use equity/relational governance and boundary spanners' guanxi to…
Abstract
Purpose
By distinguishing opportunism-based and bounded rationality-based transaction costs, the study examines how firms use equity/relational governance and boundary spanners' guanxi to govern their exploration alliances in a transaction cost economizing way.
Design/methodology/approach
This study used a survey methodology for data collection, and the sample consists of 150 exploration alliances formed by large Taiwanese information and electronic firms.
Findings
Findings of this study show that exploration alliances incur considerable transaction costs and require high-level equity control and relational governance. The positive exploration of alliance-equity ownership relationship will be weakened by boundary spanners' guanxi when guanxi serves to harmonize conflicts and mitigate opportunism-based transaction costs, thereby reducing the need for using costly equity ownership to govern exploration alliances. In contrast, the positive exploration alliance-relational governance relationship will be amplified when guanxi becomes a source of legitimacy in the Chinese guanxi institution. This relation-augmenting effect will drive more relational governance because guanxi and relational governance together allow alliance managers to obtain sufficient legitimacy in the formation of a common dominant frame, thereby mitigating bounded rationality-based transaction costs.
Originality/value
By distinguishing various moderating effects of boundary spanners' guanxi and separating transaction costs into two forms, this study contributes to the existing literature as well as advances our understanding of alliance governance decisions in the Chinese business environment.
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Herbert Sima, Henry F.L. Chung and Yulong Liu
Drawing on the organizational learning and relational governance literature, this study aims to advance a theoretical model to explain the export performance of emerging market…
Abstract
Purpose
Drawing on the organizational learning and relational governance literature, this study aims to advance a theoretical model to explain the export performance of emerging market export ventures.
Design/methodology/approach
This study selects quantitative methodology because the main objective of this study is to explore the role of export ventures’ performance (past) on guanxi networking, co-creation marketing strategies and present performance.
Findings
The empirical evidence suggests that guanxi networking and co-creation strategy can mediate the relationship between export venture performance in the preceding year and export venture performance in the following year. In addition, this study also provides some guidance for emerging market export ventures on how to build a strong guanxi networking and create opportunities for collaboration when the effect of export performance in the preceding year on current performance is absent.
Originality/value
The authors propose the inclusion of strategic guanxi networking-related factors (e.g. top executives’ ties with business-to-business customers, such as distributors in the host market) in the prior performance-current performance paradigm. The outcomes of this study also contribute to extant organizational learning theory research by integrating preceding performance research with the co-creation theory. The study offers new insights into organizational learning and relational governance from the emerging market perspective.
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Haiyan Emma Lu, Andrew Potter, Vasco Sanchez Rodrigues and Helen Walker
The implementation of sustainable supply chain management (SCM) calls for an acknowledgement of uncertainty inherent in complex environment. Confucianist society forms social…
Abstract
Purpose
The implementation of sustainable supply chain management (SCM) calls for an acknowledgement of uncertainty inherent in complex environment. Confucianist society forms social networks in Confucianist society, called guanxi networks, influence economic behaviours and business practices in the workplace. The purpose of this study is to explore how these social networks influence the implementation of sustainable SCM. In doing so, this study aims to critically investigate the constructs of guanxi networks, their impact on flow of supply chain capital and how this leverages the implementation of sustainable SCM.
Design/methodology/approach
Two systematic literature reviews are conducted to understand the constructs of social networks in Confucianist culture and their impacts on the flow of supply chain capitals. The reviews also analyse evidence related to the economic, social and environmental practices to reveal the current state of the literature and research gaps. Propositions and a framework are developed to support future research in this area.
Findings
The constructs of ganqing, renqing, xinren and mianzi in guanxi networks have expanded the contexts of social networks in Western literature. Guanxi networks increase the flow of supply chain capital and generate trust between players, thus enhancing capabilities to implement sustainable SCM. Guanxi networks also create the mechanism of network governance with which to increase sustainable SCM implementation under the institutional logics of sustainability.
Research limitations/implications
The conceptual framework and justification are based on the reviews of current studies in the field. Future empirical study is encouraged to test the propositions, both in Confucianist culture and other countries with culture of social networks.
Originality/value
Social networks are socially constructed concepts. The constructs of guanxi networks revealed in this study have developed the knowledge of Western-based social network theory. Besides, arguments from a social network perspective provide an alternative answer to explain increased behavioural commitment and companies’ investment in sustainable SCM. This study helps practitioners understand the logic of this social norm and to use it to maximise their operation outputs, including sustainable SCM implementation.
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Dedong Wang, Shaoze Fang and Kaili Li
The purpose of this paper is to study the mechanisms governing dynamic changes in relational and contractual governance at different stages of government-funded mega construction…
Abstract
Purpose
The purpose of this paper is to study the mechanisms governing dynamic changes in relational and contractual governance at different stages of government-funded mega construction projects (MCPs) by studying their different effects on project performance and participants’ opportunism.
Design/methodology/approach
Partial least squares structural equation modeling was used to test eight hypotheses based on data collected from 147 respondents in different participating organizations in Chinese MCPs.
Findings
First, contractual governance has a stronger positive impact on project performance than relational governance in the early stage of MCPs, while relational governance exerts more positive effects on project performance than contractual governance in the middle and late stages. Second, opportunism is a mediator variable between governance mechanisms and project performance, and relational governance is more effective than contractual governance in restricting opportunism.
Originality/value
In contrast to a static analysis of project governance mechanisms, this study examines dynamic changes in the governance mechanisms of MCPs in the Chinese context by considering the mediating role of opportunism as well as guanxi as an element of relational governance, thus filling in gaps in the literature on MCP governance and contributing to the development of MCP management theory.
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The purpose of this paper is to assess the change in Chinese managerial network systems to identify adaptation to Western strategic systems.
Abstract
Purpose
The purpose of this paper is to assess the change in Chinese managerial network systems to identify adaptation to Western strategic systems.
Design/methodology/approach
A sequential explanatory approach was adopted – a quantitative analysis of personal value systems of Chinese managers visiting the UK using established cultural value dimensions, with qualitative semi‐structured interviews to assist statistical inferences.
Findings
The traditional values of Chinese managers are decreasing in importance and lower power distance is apparent. A more flexible, dynamic approach with increased heterogeneity in countering competitive challenges – a transvergence, rather than crossvergence or convergence – is inferred.
Research limitations/implications
This paper has three major limitations. First, it applies cross‐cultural methods but uses strategic theory as the interpretative framework. Second, the sample size is small, based on convenience sampling, and is specific to managers arriving at a foreign interface. Third, this research is exploratory and explanatory, designed to challenge present understanding. Future research at country interfaces should identify global patterns of strategic adaptation, creating stronger inferential arguments with convergence of economic problems as a causal mechanism.
Practical implications
The practical implications are twofold: Chinese strategy is adapting to new economic problems not new ideological structures; managerial network systems and not Chinese firms are the locus of the adaptation.
Originality/value
This paper draws together concepts from strategy, problem solving, decision making, and cultural values, arguing that Chinese strategic change results from a dynamic interaction between strategic problem‐solving choices.
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Yong Cao and Yang Xiang
Knowledge governance is an organizational mechanism that formally and informally defines how the firm manages the activities related knowledge, thus it plays a significant…
Abstract
Purpose
Knowledge governance is an organizational mechanism that formally and informally defines how the firm manages the activities related knowledge, thus it plays a significant influence on knowledge sharing. The purpose of this study is to analyze the impact of knowledge governance, including formal and informal knowledge governance, on knowledge sharing. Then the paper examines the mediating role of the guanxi effect on knowledge governance and knowledge sharing.
Design/methodology/approach
Based upon this research, the authors chose to use the logical deductive approach for their hypotheses and analytical frameworks. Questionnaires and interviews were used to collect data from 339 employees in 39 Chinese strategic emerging firms. Finally, regression analysis and structure equation models (SPSS and AMOS) were used for data analysis and hypotheses testing.
Findings
This study points to the impact that knowledge governance has on knowledge sharing based on the mediation of the guanxi effect in China. The results first show that knowledge governance, including formal and informal knowledge governance, plays a key role in knowledge sharing; second, that the guanxi effect partly mediates between informal knowledge governance and knowledge sharing; third, the guanxi effect plays a significant mediating role between formal knowledge governance and knowledge sharing.
Research limitations/implications
This study presents a framework for Chinese strategic emerging industries to better understand the impact of knowledge governance upon knowledge sharing and thus enhance their firm's guanxi networks to maximize economic and social benefits. The managerial implications are that firms should strengthen knowledge governance to promote employee knowledge sharing and infuse a more harmonious atmosphere to strengthen the positive effects of guanxi among employees. Ultimately, Chinese firms must consider and encourage the benefits of the guanxi effect. This study only investigated 339 employees in 39 organizations located in the central China. It is limited by employees' cognition. In further research, the authors will identify more samples and develop a large‐scale questionnaire to explore these impacts in more detail and thus enhance their current research.
Originality/value
It is the first attempt in China to systematically investigate the impact of knowledge governance on knowledge sharing based on the mediation of the guanxi effect. The results provide a theoretical and methodological contribution to the study of knowledge governance and can thus improve managerial practice in an era of knowledge‐based economies.
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Yong Cao and Yang Xiang
Knowledge governance is an organizational mechanism that formally and informally defines how the firm manages the activities related knowledge, thus it has a significant influence…
Abstract
Purpose
Knowledge governance is an organizational mechanism that formally and informally defines how the firm manages the activities related knowledge, thus it has a significant influence on knowledge sharing. The purpose of this study is to analyze the impact of knowledge governance, including formal and informal knowledge governance, on knowledge sharing. Further, the authors examine the mediating role of guanxi effect between knowledge governance and knowledge sharing.
Design/methodology/approach
Based upon their research, the authors chose to use the logic deduction approach for hypotheses and analytical frameworks. Questionnaires and interviews were used to collect data from 339 employees in 39 Chinese strategic emerging firms. Finally, regression analysis and structure equation models by SPSS AMOS were used for data analysis and hypotheses testing.
Findings
This study points to the impact that knowledge governance bears upon knowledge sharing based on the mediation of guanxi effect in China. The results first show that knowledge governance, including formal and informal knowledge governance, plays a key role in knowledge sharing; second, that guanxi effect partly mediates between informal knowledge governance and knowledge sharing; thirdly, guanxi effect plays a whole mediating role between formal knowledge governance and knowledge sharing.
Research limitations/implications
This study presents a framework for Chinese strategic emerging industries to better comprehend the impact of knowledge governance upon knowledge sharing and thus enhance their firm's guanxi networks to maximize economic and social benefit. The managerial implications are that firms should strengthen knowledge governance to promote employee knowledge sharing and infuse a more harmonious atmosphere to strengthen the positive effects of guanxi among employees. Ultimately, Chinese firms must consider and encourage the benefits of the guanxi effect. This study only investigated 339 employees in 39 organizations located in central China. It is limited by employees' cognition. In further research, the authors will identify more samples and develop a large‐scale questionnaire to explore these impacts in more detail and thus enhance their current research.
Originality/value
It is the first attempt in China to systematically investigate the impact of knowledge governance on knowledge sharing based on the mediation of guanxi effect. The results provide a theoretical and methodological contribution to the study of knowledge governance and can thus improve managerial practice in an era of knowledge‐based economies.
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Ferdinand Balfoort, Rachel Francis Baskerville and Rolf Uwe Fülbier
The evolution of International Financial Reporting Standards (IFRS) was nurtured by economists and accountants loyal to the philosophical basis of what is often referred to as…
Abstract
Purpose
The evolution of International Financial Reporting Standards (IFRS) was nurtured by economists and accountants loyal to the philosophical basis of what is often referred to as “Western” market economies, being classical and neoclassical contracting theories. The purpose of this paper is to illustrate how a particular Asian cultural attribute (guānxì ) impacts on the efficacy of fair value measurement.
Design/methodology/approach
Using a literature review and research of studies of the adoption of IFRS in China, studies of both guānxì and fair value in Chinese accounting research, this study unbundles Williamson’s governance structure and contracting theory to examine how guānxì is positioned orthogonally to fair value (market-oriented valuation) principles for financial reporting. This is followed by a case study of the events surrounding the collapse of China Medical Technologies.
Findings
Guānxì is integral to Asian economies and economic transactions. Resulting conditions, characterised by relational contracting, may not meet the qualitative characteristics of neutrality and faithful representation in fair value measurement of assets and liabilities. The same may be true when insider or “trusted party transaction” values prevail for large ticket transactions among entities in any jurisdiction.
Research limitations/implications
Future research on the impact of guānxì may be constrained by its often hidden, and yet dynamic, character; and the varieties of its manifestations.
Originality/value
This study highlights how difficult it may be to achieve both comparability and relevance in the asset and liability recognition and measurement rules in Asian (and possibly also other) economies adopting accounting principles that are developed in a Western context.
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