Session 17

Social Capital

Track A

Date: Sunday, December 16, 2012


Time: 15:30 – 16:45


Room: Meeting Room 2

Session Chair:

  • Jing Runtian, University of Electronic Science and Technology of China

Title: Business Entertainment and Firm Performance in Emerging Economies


  • Kehan Xu, University of Wollongong
  • Yadong Luo, University of Miami
  • Shujun Zhang, Sun Yat-sen University

Abstract: We conceptualize that business entertainment as the mechanism that transforms unrelated personal ties into structured gray relational capital of firms in such a way that business entertainment facilitates business transactions in the informal-formal hybrid economies. Because business entertainment is used to fulfill transaction-specific and short-term objectives, we further contend that business entertainment substitutes firm pro-market actions in emerging economies. A stream of regression models was employed with 5,646 firms from World Bank archival data to examine these relationships. Results indicate that business entertainment increases performance but that the positive effects diminish as business entertainment continuously increases. Results also suggest that business entertainment substitutes both R&D investments and formal contracting in explaining firm performance. This study highlights a paradoxical tension between business entertainment and pro-market actions among firms in an emerging economy.

Title: Foreign Guanxi Networks in China


  • Jing'an Tang, Sacred Heart University

Abstract: Though building “Guanxi” networks is widely considered a crucial strategy in conducting businesses in China, there has rarely been scientific examination of the development process of “Guanxi” network as a whole at the inter-organizational level, not to mention the investigation of its impact on business performance. When it comes to how foreign companies handle “Guanxi” and establish networks of its own to co-opete with Chinese firms, studies become even scarcer, if not none. In an attempt to fill in such a void, this study aims to answer two research questions: How do foreign Guanxi networks (FGN) develop and evolve over time in China? What are the impacts on foreign subsidiary performance of FGN development in China?

Title: Guanxi Talks: From Dynamic Capabilities to Performance in Transitional China


  • Wenyao Zhao, EMLYON Business School

Abstract: This research examines the unique role Guanxi (Chinese network capitalism, conjectured as a substitution to formal institution in this research) plays in Western firms’ survival or success in the ever-changing competitive and regulatory environment of contemporary China. Few efforts have been made to elucidate the mechanisms through which dynamic capabilities lead to superior performance. Against this background, this research attempts to offer an alternative view on dynamic capabilities-performance relationship by adopting a Guanxi-as-conduit view. After presenting the L-A-O Guanxi typology, this study, instead of treating Guanxi as the antecedent of performance, addressing Guanxi (both extra-organizational and intra-organizational) as a moderator for the relationship between dynamic capabilities and performance, which is mediated by operational capabilities.

Title: Trust in Emerging Markets: Understanding, Antecedents and Outcome


  • Christian Kuklinski, EBS University
  • Thorsten Migge, University of Western Australia
  • Roger Moser, University of St. Gallen

Abstract: Managers in emerging markets are challenged in their business development: institutional voids, rooted in political and economic shocks as well as fast and non-linear institutional change, create risks for economic transactions due to an exposed vulnerability of exchange partners. We argue that a dynamic institutional context, inherent in emerging markets, induces managers in ‘low trust societies’ to rely on trusted business relationships from their personal networks as informal bypasses. We examine the conventional perception of trust, its role, antecedents and consequences for business development in emerging markets. Based on 88 semi-structured interviews conducted with local and expatriate managers in emerging markets we develop propositions by re-modeling trust in emerging markets and identifying similarities with research in network theory: social capital, structural holes and closure.

All Sessions in Track A...

Sat: 09:00 – 09:30
Session 35: Conference Welcome
Sat: 09:30 – 10:45
Session 30: Keynote Plenary Panel: Competing and Cooperating in and for China
Sat: 11:15 – 12:30
Session 4: Competition and Adaptation
Session 11: Firm Boundaries and Growth
Session 19: Global Strategy
Session 26: Entrepreneurship in China
Sat: 13:45 – 15:00
Session 31: Plenary Panel II: Collaborative Strategies in and for China
Sat: 15:30 – 16:45
Session 6: CSR and Sustainable Development
Session 7: Entrepreneurship
Session 9: Executives and Incentives
Session 22: Panel: Innovation
Session 24: Managing Innovation Strategies
Sat: 17:00 – 18:15
Session 5: Corporate Governance
Session 8: Evolution and Ecosystems
Session 10: FDI
Session 12: Innovation Strategy
Session 27: FDI and Institutions
Sun: 09:00 – 10:15
Session 32: Plenary Panel III: Corporate Governance and Executive Leadership in the Age of Globalization
Sun: 10:45 – 12:00
Session 13: Institutions
Session 15: Internationalization II
Session 16: Networks
Session 29: Resources and Capabilities
Sun: 13:45 – 15:00
Session 33: Plenary Panel IV: Strategic Management Research in China - What is Next?
Sun: 15:30 – 16:45
Session 3: Alliances and Cooperation
Session 14: Internationalization I
Session 17: Social Capital
Session 28: Governance, Knowledge, and Cooperation
Sun: 17:00 – 18:00
Session 34: Executives Plenary Panel: Innovation Strategy in China

Strategic Management Society