dr wubiao zhou (joseph) associate professor birmingham business school, university of birmingham
we examine how formal institutional weakness in emerging markets affects the utilization and performance of different business networks by focusing on two common, but very different, types of interorganizational network ties: preexisting business relationships and new business relationships. while many previous studies have shown that business networks can substitute for weak formal institutions, less attention has been devoted to disentangling preexisting business relationships from new business relationships, and to examining directly how formal institutions influence the utilization and performance of different business network strategies. using a nationally representative survey of private entrepreneurial firms from china, we find, first, that firms rely more on new business relationships under higher market uncertainty for accessing key resources and opportunities but more on preexisting business relationships when encountering higher legal uncertainty for resolutions of contractual disputes. second, compared with exploiting preexisting relationships, exploring new relationships brings lower performance under more severe institutional weakness, but higher performance under more developed formal market institutions. the contributions and implications of these findings are discussed.
吉林快三wubiao zhou (joseph) is an associate professor in the department of management, birmingham business school at university of birmingham, united kingdom. he obtained a ph.d. in sociology from cornell university, and m.a. and b.a., both in sociology, from peking university, china. adopting quantitative and analytic methods, he has been working in the research areas of economic and organizational sociology, entrepreneurship, small and medium enterprises (smes), social networks and social capital, and international business (particularly, international entrepreneurship), with a focus on emerging and transition economies.